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Audi A3 supplies tight, model stealing Honda, Toyota sales

It appears that there was a pent up demand for compact, front-wheel drive German luxury sedans that no one really knew about. Not only has the Mercedes CLA-Class been a success in the US with its Hungarian factory running three shifts to keep up, but the Audi A3 Sedan is doing quite well, too, after just three full months on the market.
Audi of America recently announced that the compact sedan shifted 2,452 vehicles in June and 7,735 units of the A3 since the beginning of the year. Not only are they selling; it's the people buying them that's important. According to Audi USA spokesperson John Schilling speaking to Autoblog, "A little over 25 percent of A3 buyers in April were 30 years or under." That's compared to about 18 percent for the A4, he said. Company executives also recently told Edmunds that many of those new customers are brand conquests turning in Honda or Toyota models. We gently mocked Audi when it held A3 Sedan launch parties aimed at hipsters that served craft beer and played indie music, but the marketing worked, apparently.
That said, if you're in the market for an A3, you might have not be able to get one immediately. According to Edmunds, some customers are on a waiting list for the compact luxury sedan. Although, Schilling said that's because Audi is still stocking dealers. "It's a little leaner than other models, but that's mainly because it's new and still ramping up," he said.

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:

Next-gen Audi A7 design to be 'radical'

The Prologue concept has our attention. In fact, it has everyone's attention. It is the preview for the coming A7, and Autocar summarized Audi design chief Marc Lichte's concerning the new A7 as, "A more radical design is promised for the next-generation." In fact, the next A7 is said to become "the most radical" of three coming designs inspired by the Prologue, the others being the new A6 and A8. Autocar also said Lichte made it clear that there would be "much greater visual differentiation between the trio and other future Audis." Yet, for at least four years Audi has been talking about a design overhaul to fight back charges that its cars look too similar. In 2011 there was a "design initiative" dubbed AQR to make sure that "the design details will be different" between its hatchbacks, Quattro offerings and R Sports cars, and make proportion changes to its sedans. That didn't really move the needle. In 2013, then-design boss Wolfgang Egger hailed the end of "scalable design," a prime culprit for the 'same sausage, different lengths' accusations. We're not sure the needle moved much then, either. And this year came news of a new "Quattro-centric" design language that would stress horizontals, perhaps the new Q7 it's first serious proponent, a crossover that we'll have to see before we can judge. Although we've heard the bells ringing about fresh design at Audi for years, we hope they mean it with products that come after the Prologue; it is a fabulous place to start. Featured Gallery Audi A7 Sportback facelift View 13 Photos News Source: Autocar Design/Style Audi Sedan marc lichte