The camouflage is starting to thin out as the 2011 Audi A1 gets closer to its official debut. Like the Mercedes-Benz B-Class we showed you yesterday, the Audi A1 is a small hatchback that has been considered for the U.S. market but will likely remain in Europe.
Like Mercedes-Benz, Audi is wary of getting spread too thin in the American market. If the A1 were to come in at the bottom around say $24-25K, the brand would stretch from there all the way to $155K for the R8 V10. That's quite a spread.
It begs the question: Do you consider Audi and Mercedes-Benz to be pure luxury brands only? Or would you consider an Audi or Mercedes that was priced more like a mainstream brand like Ford or Honda?
nealibob says:
06:35 AM, 02/ 6/10
Part of me does want a more affordable Audi, but a cheaper entry price does not mean it would be an economical choice. I feel that you would still be stuck with luxury costs of ownership, just with less amenities. That is how I felt about the MINIs I had. Great little cars, but they still felt somewhat cheap. A $1000-?? post-warranty airbag system defect repair bill estimate for a car that cost me about $17,000 (used) was discouraging.
I really do not care who drives what car. We are well beyond the point where any car or brand is sacred to enthusiasts, since there are way too many people out there with more money than sense (and driving ability).
wrinklebump says:
09:10 AM, 02/ 6/10
Nealibob nailed it. Owning an Audi, MB, BMW, or any other luxury brand (outside of Lincoln & Caddy) is not an economical proposition. There are a handful of volume-selling nameplates that are more expensive than a A4 at the dealer, but a fully-loaded Sonata is going to be less expensive to own than a stripper model of the Audi because of the cost-structure for everything in the luxury world is scaled up.
BMW is the only luxury brand that might be able to get away with a sub-$25k offering because of the free service.
cr_driver says:
09:30 AM, 02/ 6/10
" but a cheaper entry price does not mean it would be an economical choice. I feel that you would still be stuck with luxury costs of ownership, just with less amenities. "
That`s IT.
+100
thejohnp says:
09:39 AM, 02/ 6/10
This would probably require premium gas vs regular. Cost of regular maintenance (oil changes, brakes, tires, etc) would likely be much higher than say a comparable VW/Honda/Mazda/etc. I agree with the folks above, an entry level price point vehicle is great, but in the long run it'll cost you the same as a regular luxury brand opposed to a more economical vehicle.
audisport says:
10:07 AM, 02/ 6/10
@wrinklebump- I agree with most of what you said, however it isn't as cheap to service a Lincoln or Cadi as you might think...
I will agree though that The Germans are significantly more expensive than The Americans to service.
One of my daytime running lamps went out and I couldn't even find that bulb at ANY local chain auto parts store... Seriously? Thankfully my Audi dealer did it for me FREE of charge. I was shocked.
cruiserhead1 says:
10:11 AM, 02/ 6/10
It is a tough sell in the US. Audi would be bumping up against it's own VW brands.
For the same money, would you buy a base A1 or a loaded GTI? Yeah, tough sell...
stephen987 says:
11:27 AM, 02/ 6/10
I wouldn't buy an A1 for $25k. But a stripped A4 (base Euro spec) would be quite tempting at that Jetta-level number. As would a 120d. . .
huyracing says:
11:29 AM, 02/ 6/10
i dont think it'd be a tough sell... i have a loaded GTI, minus navigation, and i'd consider an A1. just as i'd consider just about any other reasonably priced product from VAG. maybe these aren't premium cars, but they certainly feel premium to me... and they're fun to drive, unlike say your typical Mercedes Benz.
cruiserhead1 says:
11:35 AM, 02/ 6/10
my wife said the same thing. She thought people would buy the A1 just to say they got an Audi.
She hates the GTI because it looks like a Golf and might as well buy a Golf if you're doing that.
So, for many, the A1 might be a "budget Audi". I remain a bit skeptical...
wrinklebump says:
09:32 PM, 02/ 6/10
The thing is, the brand's cache loses some value when everyone's plodding around in the cheapest model of a luxury nameplate, thereby cheapening the marque's image, which is frankly half of the reason to buy a brand-spankin new German ride. I understand VW's reasoning behind the move – sell souped up people's wagons at a tidy profit – but I'm not sure it's good for the long-term health of the brand.
throwback says:
06:12 AM, 02/ 8/10
Do you consider Audi and Mercedes-Benz to be pure luxury brands only?
Good question, my thought is when you take a luxury brand (as opposed to a premium brand) donwmarket it loses some of it's luster. I think BMW HAD the right idea with Mini. However now that they will making a small FWD BMW below the 1 series, they will be competing against them selves. VW/Audi will have the same problem and A1 or a GTI?
hondacura4 says:
07:08 AM, 02/ 8/10
One thing most people don't know or fail to realize is that the German "luxury" brands have a totally different perception in the European market where cars like the 3 Series, C-Klasse and A4 ARE NOT considered luxury offerings. Perception and feature content between the 2 markets are very different.
As for the A1, I wouldn't suggest Audi to offer that car here right now but I could see it working in the future when folks start accepting premium compacts and subcompacts. However, as another poster mentioned, I could get a GTI for similar money, have a larger car, more features, more performance and still have that premium feel. The only real difference is the badge.
bimmerjay says:
01:22 PM, 02/ 8/10
@hondacura4,
"One thing most people don't know or fail to realize is that the German "luxury" brands have a totally different perception in the European market where cars like the 3 Series, C-Klasse and A4 ARE NOT considered luxury offerings. Perception and feature content between the 2 markets are very different."
That is true, but they are still considered premium offerings in Europe. The C-Class and 3-Series might offer more basic entry-level models, but you can still load them up with everything you can get in the States. The difference is that Europeans don't really care that a C200 serves as a taxi because the C63 AMG speaks for itself and people know there's a difference. Americans on the other hand fear that their C63 will be "cheapened" by C180's tooling around in livery service.
And Europeans certainly pay more for the privilege to own the same cars we do. Excluding the 19.5% VAT in Germany, my car similarly-equipped cost almost $10K more there.
Regarding the original question (which is asked time and time again), yes having downmarket versions cheapens the brand, in the US. The reverse argument could be made for the "amenities". The $25K Audi customer gets to enjoy the same facilities and most of the same services that the $90K A8 customer does. The $25K Audi customer is also benefiting from the same engineering and resource pool that went into that A8.
erk5 says:
07:12 PM, 02/ 8/10
Audi seems to be on a roll right now and I think the the A1 would do well here. Automakers love repeat customers who are loyal to the brand and I can't think of a better way to target young, first-time car buyers than with the A1.