Audi Powers-up Chinese R&D

Bertel Schmitt
by Bertel Schmitt

Audi follows a trend set by other OEMs, notably GM, and opens an R&D Center in China. Located in Beijing’s fashionable 751 D-Park , the center will be busy doing product customization for the Asian market, especially when it comes to electronics and connectivity, along with components for new-energy vehicles and efficient powertrains.

Located at the site of an old coal-fired power plant, built in the bad old days with the assistance of East Germany, the 751 D-Park has quickly made a name as China’s fashion and design hub. Audi’s R&D Center is right in the middle of the center. It also helps that the 751 D-Park is in the North-East of Beijing, halfway between downtown and airport, thereby helping to avoid the worst of Beijing’s traffic, as long as one takes a plane.

Approximately a third of Audi’s sales are in Asia, and most of those are in China. If you are somebody in China, you show that with an Audi, preferably an A6 long, and most preferably one with a white tag and a red star. Blinking lights in the front grille help you get back to the airport on time.

Ignoring stories that government officials must eschew foreign premium marques and drive Chinese, Audi increased its 2012 sales in China by 30 percent. TTAC readers, serviced by experienced writers, never had to believe the story anyway. We wrote in February: “Just about every year, there was an announcement that the Chinese government will from now on only buy Chinese. It never happened.” And so it did not happen again.

Audi Sales 201220122011YoYWorld1,455,1001,302,65911.7%Europe739,000726,3181.8%USA139,310117,56118.5%Mexico9,4828,05817.7%Asia-Pacific478,900373,72428.1%China405,838313,03629.6%India9,0035,51163.4%

In November, the New York Times sounded the all clear, and wrote that the black A6 still is “the automobile of choice for practically any party official or military officer with enough clout to secure one.”

Bertel Schmitt
Bertel Schmitt

Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.

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  • Geozinger Geozinger on Feb 01, 2013

    "Audi follows a trend set by other OEMs, notably GM, and opens an R&D Center in China." What's notable is the lack of ominous overtones and fear-mongering regarding the establishment of the Audi R&D center vs. the establishment of the GM R&D center... It is nice to see that Audi follows GM again...

  • Corey Lewis Corey Lewis on Feb 01, 2013

    That CGI image shows a poor balance of RCI zoning in the area. -endsimcityjoke.

  • Redapple2 Love the wheels
  • Redapple2 Good luck to them. They used to make great cars. 510. 240Z, Sentra SE-R. Maxima. Frontier.
  • Joe65688619 Under Ghosn they went through the same short-term bottom-line thinking that GM did in the 80s/90s, and they have not recovered say, to their heyday in the 50s and 60s in terms of market share and innovation. Poor design decisions (a CVT in their front-wheel drive "4-Door Sports Car", model overlap in a poorly performing segment (they never needed the Altima AND the Maxima...what they needed was one vehicle with different drivetrain, including hybrid, to compete with the Accord/Camry, and decontenting their vehicles: My 2012 QX56 (I know, not a Nissan, but the same holds for the Armada) had power rear windows in the cargo area that could vent, a glass hatch on the back door that could be opened separate from the whole liftgate (in such a tall vehicle, kinda essential if you have it in a garage and want to load the trunk without having to open the garage door to make room for the lift gate), a nice driver's side folding armrest, and a few other quality-of-life details absent from my 2018 QX80. In a competitive market this attention to detai is can be the differentiator that sell cars. Now they are caught in the middle of the market, competing more with Hyundai and Kia and selling discounted vehicles near the same price points, but losing money on them. They invested also invested a lot in niche platforms. The Leaf was one of the first full EVs, but never really evolved. They misjudged the market - luxury EVs are selling, small budget models not so much. Variable compression engines offering little in terms of real-world power or tech, let a lot of complexity that is leading to higher failure rates. Aside from the Z and GT-R (low volume models), not much forced induction (whether your a fan or not, look at what Honda did with the CR-V and Acura RDX - same chassis, slap a turbo on it, make it nicer inside, and now you can sell it as a semi-premium brand with higher markup). That said, I do believe they retain the technical and engineering capability to do far better. About time management realized they need to make smarter investments and understand their markets better.
  • Kwik_Shift_Pro4X Off-road fluff on vehicles that should not be off road needs to die.
  • Kwik_Shift_Pro4X Saw this posted on social media; “Just bought a 2023 Tundra with the 14" screen. Let my son borrow it for the afternoon, he connected his phone to listen to his iTunes.The next day my insurance company raised my rates and added my son to my policy. The email said that a private company showed that my son drove the vehicle. He already had his own vehicle that he was insuring.My insurance company demanded he give all his insurance info and some private info for proof. He declined for privacy reasons and my insurance cancelled my policy.These new vehicles with their tech are on condition that we give up our privacy to enter their world. It's not worth it people.”
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