Audi Says U.S. Will Get Clean Diesels at a Premium Due to Uncertain Returns
By Scott Doggett September 17, 2009
Audi CEO Rupert Stadler says American consumers will get more clean diesels -- but they will pay a premium for them.
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Right, the 2010 Audi Q7 TDI starts at $50,900.
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"I think the problem is that we don't really have an honest discussion," Stadler said in a press roundtable at the Frankfurt Motor Show.----------
"There is a very, very high level of investment, and nobody today knows if the return will come," he said.
Johan de Nysschen, president of Audi of America, says that ultimately Audi sees itself as selling 20 to 25 percent of its vehicles in the United States with diesel powertrains.
For the Audi Q7 crossover, Audi's first diesel in the United States, diesel penetration is 35 percent, he said, and the brand ran short of diesels during model-year changeover.
The share is even higher for the A3 TDI subcompact, he added.
But, de Nysschen said, Audi is supporting the technology financially: "There certainly is a price premium, which we are partially recovering, but not totally."
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So Audi can justify a price premium on their more efficient models (we don?t know if we?ll be able to get a decent return on investment). And they can justify a price premium on their less efficient models (we don?t meet the new CAFE standards so we're passing our fines on to you). Of course.
What Audi conveniently left out is that sales of Audi Q7 collapsed. The 35% is not that many vehicles... The Q5 did pretty well on the other hand (and no diesel model available).
Second thing they don't mention is that in Europe diesel premiums are much lower or even equal and typically available in entry level trim.
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