JEZ SPINKS – 2010 Audi A8 luxury limosine

Audi claims its vastly improved credibility as a luxury car brand will help its new A8 in the sales battle against dominant S-Class and 7-Series.

Audi says its A8 flagship is better prepared than ever to break the Mercedes S-Class and BMW 7-Series duopoly in the limousine segment.

The car maker has this week launched the third-generation version of the A8, a car that previously in sales terms has reflected Audi’s status as ‘Germany’s third luxury brand’.

While the S-Class and 7-Series accounted for nearly 75 per cent of their category in 2009, the A8 registered a market share of just seven per cent.

The dominance of BMW and Mercedes has slipped slightly so far this year but they still command just under two-thirds of the segment, with the Lexus LS in third place.

Audi is the fastest-growing luxury car maker in Australia and, as it narrows the sales gap to its German rivals, the company believes the brand’s increased credibility among buyers will help sell more A8s than ever before.

“You have to understand that when we launched the second-generation A8 in 2003 that Audi was not where Audi is today,” says Audi Australia’s general manager of marketing, Immo Buschmann.

“The Audi brand has developed; it has a lot more substance in this market now than it did in 2003. “We’ve built a dealer network to the point where they can actually sell a car like the A8, and it means this car has a lot greater chance of being successful.”

Audi believes it can sell “at least” 100 A8s per year, though this would still be about half the sales of the 7-Series and S-Class.

Buschmann admits the next three years will be the prime selling period for the A8 because the status-oriented nature of such cars means buyers prefer to have the latest model regardless of brand.

“Yes, that’s more an issue like the supercar segment, where the guy who buys an R8 might suddenly buy an Aston Martin the next year and then buy a Ferrari the following year.

“With cars like the A8, though, the customers tend to be a bit more loyal and they tend to hold their car for two or three years. But ,yes, whatever is then the new kid on the block, customers might jump on that.

“It basically boils down to brand and how much the customer feels for it and wants to be associated with the brand. That will determine success. And we have brand credibility now.

“We may not be the No.1 but the new A8 will be a key player in its segment.”

The new A8 goes on sale officially in September. It will be powered initially by an upgraded 4.2-litre V8 for the 4.2 FSI model that costs $225,904 (plus on-road costs). It will be joined later by other all-wheel-drive models, including a 3.0-litre V6 diesel (by end of year) and a 4.2-litre V8 diesel (early 2011). All engines will be mated to a new eight-speed auto.

A long-wheelbase version will be showcased at October’s Sydney motor show, though Audi Australia is not yet committing to front-wheel-drive A8s that will eventually be made available.

An Audi source revealed that the company is working on a twin-turbocharged V8 TFSI engine that will eventually replace the 4.2 FSI V8.

Bruce Newton, The Sydney Morning Herald

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