2016 Audi A4 Premium Plus Sedan on 2040-cars

Auto blog

Despite premium carmakers going downmarket, luxury auto sales stick at 10-11%

According to research conducted by global information company IHS Automotive, the leporine birthing of new models by luxury manufacturers over the past six years hasn't increased their market share in the US. Even as car sales reached 15.6 million units, IHS says what's happened instead is that luxury buyers are merely moving from one brand to another, moving from larger luxury vehicles into hot segments like compact luxury crossovers or leaving the market at the same rate as other buyers enter.
Whether broken out by makes or by segment, market share has rollercoastered inside a narrow band from 10.5 to 11.5 percent since "at least" 2008. Closer investigation reveals the shifting boundaries in the aspirational pond, with brands like Mercedes-Benz and Audi gaining territory as Lexus and Lincoln lost it, and Saab and Hummer were buried, dead, under it. One neat note is that Tesla has gone from a share of zip to .12 percent.
The subcompact and compact crossover segments show growth, with those little high-riders jumping from .3 percent to 1.16 percent of overall industry sales. Their rise, though, is concomitant with the decline of four other segments: compact and midsize cars and fullsize cars and SUVs. We think the next few years that will tell if the small-car expansion can overcome the large-car retraction, with a phalanx of smaller offerings like the CLA only recently hitting the market and others like the GLA, Macan and Q1 doing so in the near future.

Is Audi getting complacent and suffering from brain drain?

The argument is made in a Reuters article: Audi is falling behind other luxury brands, such as Mercedes-Benz and BMW, due to a lack of research-and-development spending and "brain drain," or the migration of top executives and R&D chiefs to other parts of the Volkswagen Group. Reuters notes that Audi's current R&D chief is the third in 16 months.
Audi, which contributed to 40 percent of VW Group's $11.6 billion in profit the first nine months of the year, is delivering cars at a record pace: 1.31 million were delivered from January to October 2013 versus BMW's 1.35 million. Yet Audi, Reuters reports, doesn't have a halo car akin to BMW's new electrified i3 and i8 or an answer to Mercedes' plug-in-hybrid S-Class, and the R&D spending at Audi is less than BMW and Mercedes by a fair margin. It's noted in the article, however, that Audi benefits from other R&D spending within VW Group.
Reuters mentions that BMW "trumpets its new 'i' series" and the new Mercedes CLA and GLA ranges are winning "rave reviews" as part of its argument that Audi's recent lack of technological innovation could hurt future sales. Those cars do pack tons of new technology, some of which are firsts for mainstream production cars. But last time we checked, the i3 could be causing BMW's stock to slide, the CLA isn't receiving the rave reviews that Reuters would have you believe and the GLA hasn't been reviewed yet.

Audi S1 officially shows itself as 228-hp hot hatch [w/video]

We got the first leaked pics of the new Audi S1 Sportback five-door hot hatch yesterday, and as expected, Audi has unloaded the full details today, including confirmation of its S1 three-door sibling ahead of its debut at next month's Geneva Motor Show. The two cars are essentially identical aside from their door counts, and together, they represent a new entry-level rung into Audi's S car range.
The subcompact S1 is propelled by Audi's ubiquitous 2.0 TFSI four-cylinder, tuned here to produce 228 horsepower and 279 pound-feet with a six-speed manual transmission and all-wheel drive. The potent combo accelerates the S1 to 62 miles per hour in 5.8 seconds (5.9 seconds for the Sportback) and on to a top speed of 155 mph. Fuel economy is rated at an average 33.6 miles per gallon (40.3 mpg UK) in the UK cycle. The S also gets a completely different four-link independent suspension to replace the less sophisticated torsion beam setup found in the standard A1.
Styling also gets a bump in aggressiveness that befit the S1's performance upgrades. In addition to a new body kit with a lower front air dam and 17-inch wheels, the S1 comes standard with Xenon headlights, LED taillights and two new available exterior colors ­- Vegas Yellow and Sepang Blue. The interior gets combination leather and cloth sport seats, piano black trim and a retractable 6.5-inch color infotainment display.