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Audi president: U.S. not ready for A1 premium compact

02/03/2009, 1:53 PM

By Drew Johnson

Audi’s A1 premium small car will hit the European market later this year, but American buyers will have to wait until sometime next decade to get their hands on the high-content hatchback. Audi is keen on bringing the A1 to U.S. shores, but doesn’t think Americans are quite ready to pay a premium price for a small car.

In an interview with Automotive News, Audi of America President Johan de Nysschen revealed the A1 was part of the company’s North American plans, but not until the second-generation version of the car bowed. The next-gen A1 isn’t expected to hit the market for the next six to eight years.

De Nysschen says the reason for the delay is twofold. First, Audi must better establish itself as a premium brand in the U.S. market before moving down rank. Secondly, de Nysschen is not convinced that Americans are ready to pay top dollar for a premium small car.

Audi’s U.S. dealers were clamoring for the A1, that is until they heard the price. At current exchange rates, the A1 would list from about $25,000 – well above the threshold most Americans are willing to pay for a small car. De Nysschen said of Audi’s U.S. dealers: “They said: ‘This is impossible. You cannot charge this much for small cars.’ In their mind, they were thinking $18,000, because that’s the conditioning our society still has.”

With gas prices still relative low in the U.S., most buyers are still conditioned to buy their vehicles by the pound or the foot – i.e. the bigger the car, the bigger the price tag. However, if gas price return and stay at the $4 mark, the concept of a high-content small car will likely finally resonate with luxury car buyers.

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02/03, 1:59 PM

posted by:

Borat

Thank you, we are not ready

02/03, 2:02 PM

posted by:

NRG

The time is coming, however.

02/03, 2:05 PM

posted by:

sundi

genesis coupe is coming

02/03, 2:09 PM

posted by:

drg

If the $25,000 (or even a bit more) includes the r20’s 270hp 4pot they have a winner.

02/03, 2:15 PM

posted by:

Zcarsales

Wow, a business decision made by facts. Lutz, you reading this?

02/03, 2:15 PM

posted by:

Need more oil for GM

Buyers would rather drive a Saturn Astra anyways.

02/03, 2:19 PM

posted by:

idrinorbarsaku

yeah in your damn dreams. saturn astra sucks compared with audi. only your biased, stupid a$$ would pick a saturn astra over an audi, if you had to pick between the 2

02/03, 2:19 PM

posted by:

Zcarsales

Need more Kool Aid for GM, if you know your product, you’ll know that the Opel Astra outpaces a lot of cars in Europe as it is. That’s due to the fact that you have a great many more options and trim levels with the Opel Astra. Saturn’s Astra, the exact same car, has no power options, period.

02/03, 2:20 PM

posted by:

Zcarsales

Which person is Need more Kool Aid for GM? Bob Lutz or Howie Long?

02/03, 2:25 PM

posted by:

johnnycanuck

Someone has to dip their toe in the pool first. Lots of people thought the Smart would be a bust.

02/03, 2:27 PM

posted by:

mayer_ray_nagin

I want this car, but this idiot is right – I ain’t paying $25k for it. Maybe loaded out with everything, but it should base at 20k to start.

02/03, 2:32 PM

posted by:

drg

Obviously Audi has not paid attention to the sucess BMW has had with the Mini. In 2008 the US was the largest market for Mini Coopers with over 54,000 being sold here.

For comparison, Audi USA reports that 2008 sales totals for it’s bread and biutter A4 sedan were 43,343 cars.

Obviously Audi is not paying attention to the facts.

02/03, 2:32 PM

posted by:

howsmydriving

Funny, Audi has already proved that there are plenty of stupid people who will pay big bucks for FWD four-cylinder.

02/03, 2:33 PM

posted by:

TomF

If BMW / MINI can find people to drop $31k+ for a Cooper S with JCW, surely Audi can find people to drop $25k on the bigger and more practical A1.

02/03, 2:35 PM

posted by:

HoosierHero

I think the Smart success was from the gas panic, not because Americans are embracing small cars. I’d love to see their sales now that gas has come down. If I was a Smart owner I’d be feeling like crap because now I would have a tin can for a vehicle.

02/03, 2:40 PM

posted by:

drg

I think you could probably do stoppies in a smart car without trying too hard. I wonder what the average smart car owner pays a month in gas now, 20-30 bucks?

02/03, 2:55 PM

posted by:

Impulsive

The concept of “by the pound/foot” is just as WRONG as “by supposed prestige/luxury”.

Granted, it is a free market and you can justify charging whatever you want … however, if intelligence ruled the world, things would be very different.

02/03, 3:01 PM

posted by:

A4

how can a GTI go for $23k and they cant charge less than $25k for something probably on similar ground?

02/03, 3:04 PM

posted by:

Struggle

Audi is the only German car I’d consider anyway.

Someday, bring it on over.

02/03, 3:12 PM

posted by:

yarddog82abn

People are paying over $25K for a smart car… You can get a fully loaded Saturn Astra for $27K, if you are as stupid as Need more oil to get suckered in to paying for a mark-up.
But hay, It’s his American duty to buy GM!!!!

02/03, 4:15 PM

posted by:

Need more oil for GM is an idiot

The saturn astra is a pile of crap compared to the A1.

02/03, 4:15 PM

posted by:

e46Ne90

good no one wants overpriced golf

02/03, 4:28 PM

posted by:

BlazeAbraham09

GOOD! I didn’t want your stupid premium compact, anyways. =P Everyone still wants the A7.

Need more oil for GM is an idiot…well, a pile of crap is an A1 compared to an Astra…=O Hahaha. I wish that made sense.

02/03, 4:37 PM

posted by:

anti-believer

WE DON’T WANT YOUR AUDI A1.

02/03, 4:51 PM

posted by:

drg

type in smart car stoppie to youtube

02/03, 5:38 PM

posted by:

tyler_is_aero_tt

Wow NMOFGM. You’re right, people are going to trade in their upscale Audi for a $16,000 car with cloth seats and mediocre performance.

02/03, 6:26 PM

posted by:

jonmiles

Smart- this will only cheapen the brand in american buyer’s eyes…

02/03, 6:30 PM

posted by:

Madcapp

You can’t ask BMW prices for front wheel drive, econobox architecture/layout cars. And in some cases, you’d get a more reliable FWD car from Japan. Who wouldn’t prefer a Civic Si after an objective price to performance examination?

02/03, 7:42 PM

posted by:

gogogodzilla

The A1 isn’t based off the VW Golf platform. The A3 is the Audi version of the VW Golf.

If anything, it’s probably based off the VW Polo.

02/04, 1:09 AM

posted by:

cocksterS

I feel like the conclusion that the US is not ready for a $25k premium subcompact is based on a high-volume, mass market roll-out strategy. I think that if Audi brought the A1 stateside in limited numbers and distributed to target dealers (read: those in denser, urban areas) it could achieve market success, as well as quell any concerns over brand dilution.
.
Some readers have already pointed to the SMART and Mini brands. I think there is a growing ‘premium city car’ niche that coincides with a demographic shift toward urban areas. If Audi can brand the A1 into this niche, I think they will be quite successful. As an aside, I think that this car is stylistically much more compelling than BM’s 1 series.

 
 
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