Audi Will Continue Pruning Its Product Portfolio

Matt Posky
by Matt Posky

You might not have noticed but Audi has been quietly reducing the complexity of its lineup by eliminating certain content combinations, often in select markets. Here, the biggest change was the elimination of the manual gearbox for 2019. But Audi said it needed to be done due to there being an abysmally low take rate for besticked vehicles in North America.

Apparently, the automaker is just getting warmed up on tamping down the configurations. In an recent chat with Autocar, Audi CEO Bram Schot said there was plenty more work to be done. Having already reduced the number of model variants in certain regions by 27 percent, compared to last year’s options, the CEO said the manufacturer still wasn’t where it wanted to be.

“27 [percent] is not the end, the end will be 40 or 45 [percent]. We think it’s the new premium, it’s simplified premium,” Schot said. “It is not easy because at a global perspective, a take rate of 1 or 2 [percent] sounds like an easy decision but in a specific country that could be 70 [percent] of your sales. It’s very hard decision-making. We’ve done it, and we’re down 27 [percent] so that’s huge.”

From Autocar:

Further culls could also include model lines. Schot commented: “It’s not only models but variations — do we want to have a normal saloon and a sportback? We’re discussing this currently for a specific model.”

Schot said he wants to have 30 [percent] less model lines. However, he added Audi wanted to grow in higher segments with models such as the A6, A7, Q7 and Q8. At the same time, they want to attract younger customers which requires the need for more affordable, small cars.

The CEO seemed to view the business as a bit of a balancing act. Audi believes that more-youthful shoppers aren’t going to want the same things older customers desire. Unfortunately most people under 35 are broke or at least have less spending money than older generations. Blame the times, boomer greed, millennial laziness, automation, whatever — but that’s the reality and it’s something premium automakers have to contend with.

“We want to get more penetration in high-end segment, but at the same time we want to increase young customers which you do not find in that segment,” Schot explained. “If you take an average customer over 50 years old, they have a completely different requirement set to connectivity and digitalisation than a 25 year old. But the cars where you can afford that most is the cars bought by those over 50.”

[Image: Audi]

Matt Posky
Matt Posky

A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.

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  • SCE to AUX SCE to AUX on Sep 12, 2019

    Skoda and Volkswagen are the brands for the younger buyers, not Audi. Why can't they see this?

    • FreedMike FreedMike on Sep 12, 2019

      Well, Skoda's not sold here, and VW has gone full CUV mommy-mobile crazy, so is it really chasing younger buyers anymore? My guess is that this signals something smaller / more "urban" (read: CUV) than the A3 coming our way. Something like this, I imagine... https://www.audi.co.uk/models/q2/q2.html There's also a Q3 "sportback" (basically a fastback Q3) on it's way that I bet finds its' way here.

  • Inside Looking Out Inside Looking Out on Sep 12, 2019

    "boomer greed" What a misguided stereotype! Boomers never were greedy. Just opposite - they were living in communes, despised money, capitalism and establishment. Boomers were flower children and boomers were against machines, war and corporations. Regarding Audi - in Europe model line normally includes (or did when I lived there) sedan, hatchback, coupe and wagon. Manual AND auto transmission. Plus wide variety of engines. E.g. engine line 1.3L. 1.6L, 2.0L, 2.2L and that's only gas engines - add there diesels. Europeans expect greater choice and more options than Americans who are happy with Camry sedan only, AT only and with two gas engine choices.

    • Conundrum Conundrum on Sep 16, 2019

      Agree about the boomers. Those who came afterwards and weren't there of course feel free to make up any horse manure they like and blame all their travails on someone else. Makes a person feel better if there's a scapegoat, whether the reason is true or not. I have a acquaintance born in 1972 who believes he's virtually a pop music and social historian. He attempts to lecture me on the 1960s music scene and he wasn't even there, hasn't got a clue. It's all mental fabrication - sure he's memorized details of songs/writers, bands etc. etc. but seems to think his abstract mental construction is the truth. Utter bull, when he starts going on about it, I leave. He's like an internet troll but in the flesh. I never could understand those huge number of engine choices in Europe. Why anyone could come up with a reason to offer say a 1.3 and a 1.6 and a 1.8 and a 2.0 is beyond me. The resultant performance and economy differences between any two engines next to each other in displacement is a distinction without a difference of any note, but in my forays into British web sites, there is consternation that I should even suggest such a thing, that's just the way things are and nobody seems to have the imagination to even consider what I'm saying. Stuck in a mould. It's like having candy bars in 1.5 oz. 1.75 ounce, 2.0 oz, and 2.25 ounces. A waste of stockage space for the retailer and higher costs of production for the manufacturer. In other words, dumb.

  • ToolGuy Ford is good at drifting all right... 😉
  • Dave Holzman A design award for the Prius?!!! Yes, the Prius is a great looking car, but the visibility is terrible from what I've read, notably Consumer Reports. Bad visibility is a dangerous, and very annoying design flaw.
  • Wjtinfwb I've owned multiple Mustang's, none perfect, all an absolute riot. My '85 GT with a big Holley 4 barrel and factory tube header manifolds was a screaming deal in its day and loved to rev. I replaced it with an '88 5.0 Convertible and added a Supercharger. Speed for days, handling... present. Brakes, ummm. But I couldn't kill it and it embarrassed a lot of much more expensive machinery. A '13 Boss 302 in Gotta Have It Green was a subtle as a sledgehammer, open up the exhaust cut outs and every day was Days of Thunder. I miss them all. They've gotten too expensive and too plush, I think, wish they'd go back to a LX version, ditch all the digital crap, cloth interior and just the Handling package as an add on. Keep it under 40k and give todays kids an alternative to a Civic or WRX.
  • Jpolicke In a communist dictatorship, there isn't much export activity that the government isn't aware of. That being the case, if the PRC wanted to, they could cut the flow of fentanyl down to a trickle. Since that isn't happening, I therefore assume Xi Jinping doesn't want it cut. China needs to feel the consequences for knowingly poisoning other countries' citizens.
  • El scotto Oh, ye nattering nabobs of negativism! Think of countries like restaurants. Our neighbors to the north and south are almost as good and the service is fantastic. They're awfully close to being as good as the US. Oh the Europeans are interesting and quaint but you really only go there a few times a year. Gents, the US is simply the hottest restaurant in town. Have to stand in line to get in? Of course. Can you hand out bribes to get in quicker? Of course. Suppliers and employees? Only the best on a constant basis.Did I mention there is a dress code? We strictly enforce it. Don't like it? Suck it.
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