German automakers Audi and Porsche are looking to expand their dealership network, a new report finds. The growth is intended to further the brands in emerging markets and to close sales gaps with competitors. The plan calls for the increase in the number of dealerships to 3,000 by 2011 — up from the current level of 2,700.
“We need this density in order to achieve our targeted sales of 1.5 million vehicles (annually),” Audi sales chief Ralph Weyler told Auto Motor und Sport in a recent interview. Audi has made it publicly known that it intends to dethrone BMW as the largest luxury marque, and the increase to 3,000 dealerships would equal BMW’s network.
The plan also includes adding more than 50 dealerships to Porsche’s network of 650 dealers. Porsche sales chief Klaus Berning says the new dealerships will be in locations that don’t currently have access to Porsche products. “We want to continuously expand our current network of 650 dealers to more than 700 in the coming 10 years, mainly in growth markets like China, India and Russia,” he said.
Berning also predicted that China could become the automaker’s largest market by 2012, overtaking its home market of Germany. According to Reuters, Porsche expects to sell more than 3,500 vehicles in China this year.
11/05, 12:54 PM
posted by:
deutschetouring1337
They will have to beat Mercedes first, then take on BMW. Considering the restructure going on within BMW I highly doubt Audi with its horrible after-sale service and reliability to be any threat to BMW. Also considering Audis DTM engines are based on Mugen/Honda V8s, I use to think Audis technology was at an almost Merc state but it isn’t. The VAG will probably gain ground with Hybrids and trying to diversify their models more like the Porsche 4 door. But with Porsche gaining a markethold as the parent of VAG you might see less of Audi models which compete directly with Porsche such as the R8/R10, not to mention Audi has been using Lamborghini engine designs.
11/05, 12:56 PM
posted by:
deutschetouring1337
I’m thinking Asian/MiddleEast/SouthAmerican markets for sure.
11/05, 1:30 PM
posted by:
Madcapp
Those 2 brands are overpriced like a M-F.
11/05, 1:39 PM
posted by:
atourya
madcapp… really? I guess I can see your point… but then again, I think the S5 and TT are priced quite well.
Man I love that S5
11/05, 1:45 PM
posted by:
SwerveEarly
3,500 cars in China this year.
China, largest buyers market of Porsches by 2012. That is a scary prediction. They are already pushing oil and materials up, how long until they can influence the costs of 911s.
11/05, 3:38 PM
posted by:
e46Ne90
yea audi plans to dethrone bmw by increasing their model line up and dealership…but guess what, BMW is also going full throttle with their model line ups including new x1, x6, 1 series, v-series, m5 m6 twin turbos, new m3s, 8 series, z6 and model change 5, 7, x3, z4 which are due within couple of years. So good luck with ur wishful strategy
11/05, 4:47 PM
posted by:
warmasice
e46Ne90 if you haven’t seen audi coming, your an ass. just keep thinking like that and one day when you wake up you will realise what a turd u are.
11/05, 5:08 PM
posted by:
e46Ne90
I can sit n see audis coming allday long, but front wheel drive based marked up volkswagens doesn’t really interest me
11/05, 6:23 PM
posted by:
Jazz
Audi’s are not FWD. Both Audi anmd BMW have some good things on their plate. I think Audi has better offering coming personally but that is because their line up was weak before. BMW will have a tough time fielding the 1 series AND updates across its range. Look for some long production runs on their current cars. Further, although they intend to dethrone BMW look for Audi to steal sales from other lux marques like Acura, Lexus , Volvo and Jaguar.
11/05, 6:28 PM
posted by:
CA36GTP
I generally like Audi, but would never own one because of the overblown price and terrible reliability.
Given the choice when it comes to German automakers, I’ll step over to BMW and take a 1-series.
11/06, 1:36 AM
posted by:
Veda
The only reason not to choose an Audi over a BMW is the horrible interior reliability. I mean, heck a Honda Fit has better switches and buttons than the new A6.
11/06, 5:23 AM
posted by:
gumball
Its good to see that VAG member companies are working together, and I dont think for the sake of the VAG empire that porsche will limit Audi or Lambo, otherwise the empire will crumble. People think porsche are gonna crush audi and lambo, but the position they will soon be in will force them to think strategically and make sure that all VAG companies are making sales that means they need to build competetive cars.
11/06, 3:58 PM
posted by:
e46Ne90
jazz: audi a6, a4, a3, a2 are all front wheel drive in their base models, before upgrading to quattro options…thus my quote above clearly states “front wheel drive based car” not front wheel drive car. Audis are not rear wheel driven cars that have option of AWD. Its a FWD vehicle with AWD option.