Audi started the biggest investment program in its history last year as part of its effort to overtake BMW as the world’s largest premium automaker by 2020. The Volkswagen Group subsidiary will spend 24 billion euros over the next five years to add new products, lightweight technologies, alternative drivetrains and improve connectivity. Audi CEO Rupert Stadler is particularly bullish about the automaker’s fast-growing SUV lineup. He also wants Audi’s range to be up by 10 models in the next 5 years to help it rise to the No. 1 position in premium vehicle sales.
With Mercedes having MPV’s for some time now and BMW finally caving in and releasing their own compact MPV, Audi has decided on an SUV with the Q1 because SUVs have a higher conquest rate than minivans, even in the compact segments. Audi believes that consumers are more likely to switch to an SUV and are more likely to pay a premium price because SUVs are considered more emotional. Audi would rather have an emotional choice than the rational choice. Audi’s priority is to have the ability to win new consumers and then command a premium price.
