INGOLSTADT, Germany - Audi AG Chief Executive Rupert Stadler said the automaker sees no major impact from the global economic slowdown in the current quarter and he is optimistic about reaching the company's ambitious long-term target of selling 1.5 million cars worldwide in 2015.
"It remains crucial that we achieve profitable growth and not just boost the sales volume," Stadler told Dow Jones Newswires in an interview, adding that business in the second quarter showed no signs of a significant downturn.
Stadler said Audi expects to double sales in the troubled U.S. market to 200,000 vehicles in 2015. His remarks come at a time when major automakers such as Toyota Motor Corp. and Ford Motor Co. are voicing concerns about the state of the U.S. market and many analysts have lowered their forecasts for coming years. The auto industry continues to be squeezed by higher raw material prices and lackluster consumer confidence.
Audi wants to become the world's leading premium automaker in terms of customer satisfaction and quality and aims for an annual increase in car sales by between 5% and 6% on average in coming years.
Earlier this month, Audi improved by 16 places in the closely watched J.D. Power and Associates 2008 Initial Quality Survey for initial product quality, and now ranks 10th among the world's car makers.
Stadler reiterated that Audi aims to sell more than a million cars worldwide this year as sales are expected to be boosted in the second half by the revamped A4 model. He said the second-quarter sales had started "according to plan."
He said Audi is "well on track" to achieving its 13th consecutive annual sales record after selling 964,151 cars in 2007, which makes it the world's third-bestselling premium automaker behind BMW AG and Daimler AG's Mercedes-Benz brand.
Stadler said the Ingolstadt-based company is "already ahead of schedule" after the first five months of the year.
In the January-to-May period, Audi's car sales were up 1.5% compared with the same period last year at around 426,200 vehicles, driven by strong demand in Eastern Europe and the Asia-Pacific region.
Stadler said Audi's first half of the year has been characterized by the changeover of its best-selling A4 model. The launch of the A4 sedan was followed in May by the introduction of the new A4 estate version, or Avant, across Europe. The revamped A4 sedan will be launched in the U.S. this fall.
Audi's new small sports-utility-vehicle, dubbed Q5, is set to be launched in Europe this fall and will hit U.S. showrooms "by summer (2009) at the latest," Stadler said.
The revamped A4 model along with the new A5 coupe and the Q5 are cornerstones of Audi's plan to narrow the gap with BMW and Mercedes-Benz.
The key earnings contributor of parent company Volkswagen AG (VOW.XE), Europe's biggest automaker by sales, has enjoyed strong growth in recent years, especially in Asia and Europe, but still lags its German peers in terms of sales in the U.S. market.
In 1986, safety concerns over some models shattered Audi's reputation in the U.S. and sales nose-dived. Federal authorities were unable to identify any mechanical defects, but numerous legal disputes turned Audi's U.S. recovery into an uphill battle.
"Today, Audi is a totally different company than it was back then," Stadler said. "The U.S. premium segment has the potential to grow further," he said, adding that Audi targets a "slight increase in market share" in the U.S. this year, despite adverse conditions.
Stadler said Audi plans to increase its exclusive dealerships in the U.S. to up to 150 within the next three to five years from 118 now.
Audi's U.S. dealers are planning to invest $180 million in the next three years as part of the company's growth plan.
Stadler said Audi's U.S. dealers are expected to sell between 600 to 800 cars on average per year, up from between 380 and 550 cars currently.
Stadler confirmed that the company aims to boost its U.S. sales to 200,000 in 2015 from 93,506 in 2007. Audi has sold 36,820 vehicles in the U.S. during the first five months of the year, down 2.9% from the same period last year.
Global car sales in May caused concern among investors as even a dynamic market such as China posted a 12% decline on the year, adjusted for working days. Imported vehicles in China recorded their first drop in sales in two years, down 19%, Citicorp said in a recent note, adding that it sees increasing downside risks for the auto sector as adverse conditions persist.
"We firmly believe in the growth potential of the Chinese auto market," Stadler said, adding that automakers have to deal with a certain level of volatility in emerging markets. Audi is the best-selling premium automaker in China, the company's biggest overseas market.
Source- Marketwatch.com
"It remains crucial that we achieve profitable growth and not just boost the sales volume," Stadler told Dow Jones Newswires in an interview, adding that business in the second quarter showed no signs of a significant downturn.
Stadler said Audi expects to double sales in the troubled U.S. market to 200,000 vehicles in 2015. His remarks come at a time when major automakers such as Toyota Motor Corp. and Ford Motor Co. are voicing concerns about the state of the U.S. market and many analysts have lowered their forecasts for coming years. The auto industry continues to be squeezed by higher raw material prices and lackluster consumer confidence.
Audi wants to become the world's leading premium automaker in terms of customer satisfaction and quality and aims for an annual increase in car sales by between 5% and 6% on average in coming years.
Earlier this month, Audi improved by 16 places in the closely watched J.D. Power and Associates 2008 Initial Quality Survey for initial product quality, and now ranks 10th among the world's car makers.
Stadler reiterated that Audi aims to sell more than a million cars worldwide this year as sales are expected to be boosted in the second half by the revamped A4 model. He said the second-quarter sales had started "according to plan."
He said Audi is "well on track" to achieving its 13th consecutive annual sales record after selling 964,151 cars in 2007, which makes it the world's third-bestselling premium automaker behind BMW AG and Daimler AG's Mercedes-Benz brand.
Stadler said the Ingolstadt-based company is "already ahead of schedule" after the first five months of the year.
In the January-to-May period, Audi's car sales were up 1.5% compared with the same period last year at around 426,200 vehicles, driven by strong demand in Eastern Europe and the Asia-Pacific region.
Stadler said Audi's first half of the year has been characterized by the changeover of its best-selling A4 model. The launch of the A4 sedan was followed in May by the introduction of the new A4 estate version, or Avant, across Europe. The revamped A4 sedan will be launched in the U.S. this fall.
Audi's new small sports-utility-vehicle, dubbed Q5, is set to be launched in Europe this fall and will hit U.S. showrooms "by summer (2009) at the latest," Stadler said.
The revamped A4 model along with the new A5 coupe and the Q5 are cornerstones of Audi's plan to narrow the gap with BMW and Mercedes-Benz.
The key earnings contributor of parent company Volkswagen AG (VOW.XE), Europe's biggest automaker by sales, has enjoyed strong growth in recent years, especially in Asia and Europe, but still lags its German peers in terms of sales in the U.S. market.
In 1986, safety concerns over some models shattered Audi's reputation in the U.S. and sales nose-dived. Federal authorities were unable to identify any mechanical defects, but numerous legal disputes turned Audi's U.S. recovery into an uphill battle.
"Today, Audi is a totally different company than it was back then," Stadler said. "The U.S. premium segment has the potential to grow further," he said, adding that Audi targets a "slight increase in market share" in the U.S. this year, despite adverse conditions.
Stadler said Audi plans to increase its exclusive dealerships in the U.S. to up to 150 within the next three to five years from 118 now.
Audi's U.S. dealers are planning to invest $180 million in the next three years as part of the company's growth plan.
Stadler said Audi's U.S. dealers are expected to sell between 600 to 800 cars on average per year, up from between 380 and 550 cars currently.
Stadler confirmed that the company aims to boost its U.S. sales to 200,000 in 2015 from 93,506 in 2007. Audi has sold 36,820 vehicles in the U.S. during the first five months of the year, down 2.9% from the same period last year.
Global car sales in May caused concern among investors as even a dynamic market such as China posted a 12% decline on the year, adjusted for working days. Imported vehicles in China recorded their first drop in sales in two years, down 19%, Citicorp said in a recent note, adding that it sees increasing downside risks for the auto sector as adverse conditions persist.
"We firmly believe in the growth potential of the Chinese auto market," Stadler said, adding that automakers have to deal with a certain level of volatility in emerging markets. Audi is the best-selling premium automaker in China, the company's biggest overseas market.
Source- Marketwatch.com
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