2019 Audi Tt 45 Tfsi Quattro on 2040-cars

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BMW expects China to pass US as its top market in 2013

When you combine two billion citizens, 100 cities with more than a million inhabitants and an economy that's as unrestrained as Jim Cramer on an Adderall binge, China's explosive auto industry growth shouldn't be a huge surprise. Audi already lists the communist country as its largest market, while Mercedes-Benz is expecting it to be there in the next few years. Now, according to a report from Automotive News, BMW is expecting the People's Republic to overtake the United States in sales by the end of 2013.
We already discovered the extent that BMW is going to in establishing a dedicated Chinese stronghold, when we explored BMW's Shanghai-based DesignWorks studio ahead of April's Shanghai Motor Show. And while we argued that DesignWorks Shanghai hasn't really borne fruit, it isn't due to a lack of sales.
BMW China has seen a 16-percent jump in year-over-year sales, lead by a 28-percent gain in 5 Series sales. Part of BMW's growth strategy comes from an ever-expanding dealership network. Remember those 100 cities we mentioned with over one million people? According to Karsten Engel, CEO of BMW's Chinese operations, those 100-million-plus city dwellers don't have access to a premium dealership.

Audi CEO says brand's EVs are almost as profitable as its other cars

After, oh, a hundred years or so of building vehicles primarily powered by internal combustion engines, automakers around the world have been and still are pumping billions of dollars into the development of electric vehicle technology. Everything from platforms and batteries to motors and the software to control it all requires untold hours of development, and that takes time and money. Fortunately, it's not going to take long for that massive investment to start paying off, at least according to Audi CEO Markus Duesmann, who told Reuters in an interview that "The point where we earn as much money with electric cars as with combustion engine cars is now, or ... next year, 2023. They are very even now, the prices." As a brand, Audi contributed more than a quarter of overall profit for the massive Volkswagen Group, which has such powerhouse brands as Volkswagen and Porsche among others. Under the Audi umbrella are Lamborghini, Bentley and Ducati, and it seems those high-end branches aren't going anywhere, at least for now. "These brands ... are very valuable very profitable brands, where we can even expand the synergy level in the future," Duesmann said in the interview. "There are no plans whatsoever to get rid of them." Despite the overall profitability of the brand, the ongoing global chip crisis is causing headaches. "We had a very strong first half in 2021. We do expect a much weaker second half," said Duesmann, who added, "We really have trouble." In fact, so serious is the trouble that the brand is forced into "a day-to-day troubleshooting process" to limit the chip-shortage damage. The good news for the automaker is that Audi has been able to boost its profit margin from 8% prior to the pandemic in 2019 to 10.7% in the first half of 2021. The bad news is that various chip shortages aren't expected to get a whole lot better over the rest of the year. Related video:

2015 Audi S3 Sedan

For the last few years, Audi has been publicly toying with building a successor to its Ur-Quattro, a model still glowing in a gritty patina of motorsports glory decades after it left the scene. If anything, the rally car's halo has burned brighter as Audi has matured into a world luxury superpower. Since 2010, the German automaker has shown two different concept cars that attempted to re-bottle the legend's lightning, and it's still trying to figure out whether to market a production model. Despite that conundrum (and not to take anything away from the seminal Ur-Quattro), it's easy to argue that there are two other cars much more important to Audi's rise from its '80s ashes: the original TT and the B5-generation A4 and its high-performance variants.
The TT thrust Audi into the vanguard of automotive styling while firmly establishing the Volkswagen Group as masters of platform development (the same basic architecture and powertrain guts were employed in a dizzying array of models, from the Golf, Jetta and New Beetle to a number of Škoda products). This unprecedented, flexible building-block approach to new model development has since become the standard of the industry.
In the case of its B5 cars, the A4, S4 and RS4 put Audi back on the radar of rival German automakers, and more importantly, they grew the Four Rings' sales by leaps and bounds while reminding the world that all-wheel drive needn't only benefit hardcore performance cars and utility vehicles. Fast-forward to today, and the A4 has established itself as the bedrock of Audi's lineup, but it's also grown over its four generations to become substantially larger, heavier and costlier than the model that debuted back in 1996 America. That's created a vacuum at the bottom of the range that the company has inadequately addressed - until now.