Audi's Keogh: People Really Want Luxury SUVs

TL;DR

Audi anticipates growth with new luxury SUVs and AI technology.

Transcript

we're here in front of the Q8 which is a big announcement for you at this uh Auto Show tell us about what it is when we're going to be able to have it well you're right it is a big announcement and we call it a concept car but the truth is we're going to make this car it's going to come next year and if you look at SUVs and what's evolved into them... Read More

Key Insights

• Audi plans to launch the Q8, a luxury SUV, by 2018, highlighting the growing demand for luxury SUVs in the market.
• The SQ5, a sporty crossover, will be available in April, targeting the largest segment in the luxury market.
• SUVs represent 54% of all luxury cars sold, and Audi expects this to increase to over 60% in the future.
• Audi is focusing on artificial intelligence for autonomous driving, aiming to launch level four autonomous vehicles by 2020.
• The company emphasizes the importance of stability in the business environment to maintain growth and adapt to new policies.
• Despite not manufacturing in the U.S., Audi is committed to investing in American communities and dealerships.
• Audi had a record year in sales, with a 4% increase globally, driven by new product launches and a strong brand presence.
• Audi plans to continue its growth in 2017 by maintaining a balanced business model and introducing new products like the Q5 and A5 S5 Cabriolet.

Questions & Answers

Q: What is Audi's plan for the Q8 SUV?

Audi plans to launch the Q8, a luxury SUV, by 2018. The Q8 is designed to cater to the growing demand for luxury SUVs, which have become the largest segment in the luxury car market. The vehicle will be equipped with advanced technology and high performance, appealing to consumers seeking luxury and utility.

Q: How does the SQ5 fit into Audi's strategy?

The SQ5 is a sporty crossover that Audi is launching in April, targeting the largest segment in the luxury market. It is positioned as a high-performance vehicle within the luxury SUV category, appealing to consumers who desire a combination of sportiness and luxury. This aligns with Audi's strategy to capture a significant share of the growing luxury SUV market.

Q: What is the significance of artificial intelligence for Audi?

Artificial intelligence is crucial for Audi's development of autonomous driving technology. Audi is focusing on AI to manage the complexity of real-world driving conditions, aiming to launch level four autonomous vehicles by 2020. AI enables machine learning from vast amounts of data, ensuring safer and more efficient autonomous driving solutions.

Q: How does Audi view the current automotive market environment?

Audi values stability in the automotive market environment, which is essential for maintaining growth and adapting to new policies. The company has experienced record sales and believes that a stable market allows for continued success. Audi is prepared to adjust its strategies based on the evolving political and economic landscape.

Q: What is Audi's stance on manufacturing in the United States?

While Audi does not currently manufacture in the United States, it is committed to investing in American communities and dealerships. Audi employs 13,000 people in the U.S. and supports local economies through its extensive dealership network. The company remains open to future investments in U.S. manufacturing if the opportunity arises.

Q: What contributed to Audi's record sales in the past year?

Audi's record sales, with a 4% increase globally, were driven by the launch of new products and a strong brand presence. The introduction of models like the Q5 and A5 S5 Cabriolet boosted sales, along with maintaining a balanced business model that includes incentives and inventory management. Audi's focus on innovation and customer satisfaction also played a key role.

Q: What are Audi's growth plans for 2017?

Audi plans to continue its growth in 2017 by introducing new products like the Q5 and A5 S5 Cabriolet. The company aims to maintain a balanced business model, focusing on incentives and inventory management. Audi is confident in its ability to achieve another record year by leveraging its strong brand and innovative product offerings.

Q: How does Audi perceive the future of the luxury SUV market?

Audi perceives the luxury SUV market as a growing segment, with SUVs currently representing 54% of all luxury car sales. The company expects this figure to rise to over 60%, driven by consumer preference for SUV body styles and features that cater to families. Audi is strategically positioned to capitalize on this trend with its upcoming SUV models.

Summary & Key Takeaways

• Audi is set to introduce the Q8, a luxury SUV, by 2018 to meet the increasing demand for luxury SUVs. The SQ5, a sporty crossover, will be available in April, targeting a significant segment in the luxury market.

• The trend of SUVs dominating the luxury car market is expected to continue, with Audi predicting an increase from 54% to over 60% of luxury car sales. This shift is driven by consumer preference for SUV body styles and family-friendly features.

• Audi is advancing in artificial intelligence for autonomous driving, planning to launch level four autonomous vehicles by 2020. The company stresses the need for AI to handle the complexity of real-world driving conditions, ensuring safer and sooner deployment.