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Audi looking for Tesla-style, non-traditional way to sell EVs

As part of Audi's notable EV emphasis at the Los Angeles Auto Show last week, there was a bit of a secondary discussion on just how the automaker might get to the point where 25 percent of all of its sales would be electric vehicles. After all, no major automaker has figured out how to crack into the double-digit percentage of plug-in vehicle sales. The problem might be, as The New York Times noted recently, that traditional dealerships just don't know how to sell EVs. While no one at Audi was saying that the automaker is going to open up its own EV stores, like Tesla has, but two Audi of America executives were certainly warm to a different style of how an automaker can encourage EV sales. Filip Brabec, AoA's director of product management, said that Audi is at least considering making changes, including some sort of different dealership experience and perhaps a new kind of test drive. "The traditional automotive approach is not necessarily working," Brabec said. "A lot of it has to do with the complexity of the product and the complexity of the offer and it's difficult, I think, to bring that into a classical dealership and sort of treat is as another car and off we go. I think there needs to be some differences in how we go in the future." AoA president Scott Keogh said that Tesla has shown the rest of the industry how to make selling EVs a complete experience. It's not just about the car, he acknowledged. "I think we have to give Tesla credit where it's deserved," he said. "I think the charging network, at least from a public relations point of view, is quite strong and that's definitely added to the message." So many automakers want to have that, "Tesla fighter," as we've heard over and over recently, but Keogh hinted that Audi could do a better job than Tesla is doing today. "I think they've done a good job of looking at the full package. I think we have some resources and the network and everything else that we can put a fuller package together." The most important part is getting people into the cars, Brabec said. "I think exposing consumers to EVs, letting them experience EVs is another big aspect, and probably different than we have today, because test driving a car today is a very conventional thing. It's probably not going to be as conventional with EVs, particularly if you've never been in one before." We can't wait.

VW makes $23K on every Porsche sold, more than Bentley or Lamborghini

It's a good time to be in the luxury car business. In Volkswagen Group's financial report for the 2013 fiscal year, it is revealed that that Porsche enjoyed an operating margin of 18 percent. That means the Stuttgart brand made on average about $23,200 per car sold, according to BusinessWeek. Bentley wasn't far behind, and Audi (which was combined with Lamborghini) posted a 10.1 percent margin. This compares to only around 2.9 percent for the Volkswagen brand.
"Luxury brands are on fire," said Dave Sullivan, an industry analyst at AutoPacific. He said that the average profit margin is between six and eight percent. Brands like Porsche and Bentley have the benefit of competing in rarefied markets. Buyers looking at one their vehicles have fewer models to shop against and don't care as much about price. They can also charge more for options, which further boosts income, according to BusinessWeek.
In a way, we should be more impressed by the continued success from Audi. Its models generally have direct competitors in every segment from the other premium automakers. Plus, their buyers aren't the captains of industry who are shopping for a Bentley. Still, the Four Rings is leading rivals in sales so far this year.

Audi SQ7 TDI packs 48V electric compressor, 664 lb-ft

Take a look at the new Audi SQ7 TDI. It's the first time Audi has done an S performance version of its flagship sport-ute, and packs under the hood a 4.0-liter V8 turbo diesel engine mated to an eight-speed automatic and all-wheel drive. It produces a potent 435 horsepower, and an absolutely bonkers 664 pound-feet of torque. The Audi SQ7 TDI produces a massive 664 lb-ft of torque. Impressive as it is, though, that doesn't even tell the full story. That's enough to make us forget it wasn't there in Geneva. It's also more torque than just about anything the Volkswagen Group makes – short of the Bentley Mulsanne Speed and the new Bugatti Chiron. Not even the Lamborghini Aventador SV or Bentley Continental GT Speed can touch that torque figure. Nor can competition like the Porsche Cayenne S Diesel (with its 385 hp and 627 lb-ft) or the BMW X5 M50d (381 hp and 546 lb-ft). It may not surpass the old twelve-cylinder Q7 6.0 TDI (with its 493 hp and 738 lb-ft), but still trounces the VW Touareg V10 TDI (309 hp and 553 lb-ft) – which was strong enough to tow a jet airplane, while the new SQ7 is fast enough to out-drag one (as you can see from the video below). Impressive as it is, though, that headline-grabbing torque figure doesn't tell the full story. To get there, Audi employed two conventional, sequential turbochargers and a third compressor that – in an industry first that's been a long time coming – is powered electrically. The engineers in Ingolstadt installed a beefier 48-volt electric subsystem to power the electric compressor (among other systems) and its latest valvetrain tech for the first time in a diesel. The result, Audi says, is a lack of any perceptible turbo lag – and a 0-62 time quoted at 4.8 seconds, en route to the typical electronically limited top speed of 155 miles per hour. As if that weren't enough, Audi also equipped the SQ7 TDI with an optional suspension package that coordinates the activities of three systems. There's a differential, a four-wheel steering system, and a clever electromechanical roll stabilization system that employs an electric motor (made possible once again by that 48-volt system) and a three-stage planetary gearbox to keep it all level and improve ride quality over rough surfaces. The sum total is an impressive technological tour de force on Audi's part, but one that we may just have to admire from afar.