Volkswagen's Audi is introducing a small SUV, the Q5, a small coupe, the A5, and a $130,000 mid-engine sports car, the R8, over the next 18 months to boost unit sales from 83,000 in 2005 to 100,000 in
2008.
Unlike two other luxury auto brands with German roots--Mercedes and BMW--Audi has lost money in the U.S. for years, despite pioneering engineering developments like all-wheel drive and
strong performance elsewhere around the world. Revolving door management, inconsistent marketing, and inattention to customer needs are responsible for its stunted growth.
It also needs to
advertise more consistently--not just when introducing new products--and upgrade its dealerships. Although quality is getting better, Audi's reputation also lags that of its competitors. "You pay for
your sins for a long time," says Johan de Nysschen, the head of Audi of Americas.
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