BMW CEO Responds to the Audi "threat".
03-20-2007, 07:58 AM
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BMW CEO Responds to the Audi "threat".
In the past few years BMW faced difficulties and profit-eroding issues, such as the weak dollar and yen, rising material prices and tougher European Union regulations on tailpipe emissions. Also Audi and Lexus could become a problem for BMW sales.
How will BMW solve their problems and if they really consider Audi as a threat for BMW's existence we will find out in an interview with Norbert Reithofer, BMW CEO.
BMW is still far below the European auto industry's goal of reducing CO2 emissions to 140 grams per kilometer driven by next year. How do you plan to close that gap?
Reply: We will achieve a clear reduction in these numbers by the target date. By then a third of our vehicle fleet will be under 140 grams per kilometer. But we have to reach this goal without undermining our core characteristic: driving dynamics.
The European Commission wants to reduce CO2 emissions from cars to 120 grams per kilometer by 2010. What would that mean?
Reply: There isn't a single luxury manufacturer who could achieve this limit for all vehicles. It would put the foundation of the German luxury automakers' existence into question.
How bad are exchange-rate effects?
Reply: It's not just the weak dollar that's an issue for us. The yen also has become an issue. We have been very successful in the Japanese market, so the yen exchange rate keeps playing a larger role for us.
How great is Lexus' competitive advantage in Europe by virtue of its production in Japan?
Reply: The competitive advantage is now significant. Since 2001, the yen has continued to weaken against the euro.
Your rival Audi has resolved to become the most successful luxury automaker in the world by 2015.
Reply: We have been in competition with Mercedes in sporty vehicles for the past 10 years. It has done both of us good; it has pushed both of us. I view the prospects of more competition from Audi in precisely the same way.
Do you see any danger that you could be overtaken by Audi?
Reply: If you look at the entire world - not just Europe, Asia and the U.S. - then you see that there are just two luxury manufacturers acting globally: Mercedes and BMW.
Courtesy of topspeed.com<ul><li><a href="http://www.topspeed.com/cars/car-news/norbert-reithofer-talks-about-bmw-problems-ar29969.html">http://www.topspeed.com/cars/car-news/norbert-reithofer-talks-about-bmw-problems-ar29969.html</a</li></ul>
How will BMW solve their problems and if they really consider Audi as a threat for BMW's existence we will find out in an interview with Norbert Reithofer, BMW CEO.
BMW is still far below the European auto industry's goal of reducing CO2 emissions to 140 grams per kilometer driven by next year. How do you plan to close that gap?
Reply: We will achieve a clear reduction in these numbers by the target date. By then a third of our vehicle fleet will be under 140 grams per kilometer. But we have to reach this goal without undermining our core characteristic: driving dynamics.
The European Commission wants to reduce CO2 emissions from cars to 120 grams per kilometer by 2010. What would that mean?
Reply: There isn't a single luxury manufacturer who could achieve this limit for all vehicles. It would put the foundation of the German luxury automakers' existence into question.
How bad are exchange-rate effects?
Reply: It's not just the weak dollar that's an issue for us. The yen also has become an issue. We have been very successful in the Japanese market, so the yen exchange rate keeps playing a larger role for us.
How great is Lexus' competitive advantage in Europe by virtue of its production in Japan?
Reply: The competitive advantage is now significant. Since 2001, the yen has continued to weaken against the euro.
Your rival Audi has resolved to become the most successful luxury automaker in the world by 2015.
Reply: We have been in competition with Mercedes in sporty vehicles for the past 10 years. It has done both of us good; it has pushed both of us. I view the prospects of more competition from Audi in precisely the same way.
Do you see any danger that you could be overtaken by Audi?
Reply: If you look at the entire world - not just Europe, Asia and the U.S. - then you see that there are just two luxury manufacturers acting globally: Mercedes and BMW.
Courtesy of topspeed.com<ul><li><a href="http://www.topspeed.com/cars/car-news/norbert-reithofer-talks-about-bmw-problems-ar29969.html">http://www.topspeed.com/cars/car-news/norbert-reithofer-talks-about-bmw-problems-ar29969.html</a</li></ul>
03-20-2007, 05:52 PM
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In Shanghai, BMW & Audi were about the same number, but a slight edge to Audi
Of course the VW Santana was the most of any European maker. Buick Regal is the second most popular car that I saw after 7 trips this past year.
03-21-2007, 06:23 AM
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Re: Which is probably where this came from . . .
Precisely Ross. The Long Wheel Base A6 was designed specifically for the Chinese Market in China. Realising that the A8 was rather expensive, Audi decided to elongate the A6. Essentially a step between the model, the A6 and the SWB A8.
Audi has had a foothold in China for some time. Rings are considered to bring good fortunes, thus symbolically, Audi has done well just by virtue of the four rings. However it also shows that when people do not have preconceived notions of luxury, Audi does very well. Take into account that nearly all taxi cars in HK are MB, most in the region do not view MB as the rest of the world.
China will play a pivotal roll in helping Audi realise its goal of becoming the number 1 luxury maker in the world by 2025, based on a volume of 1.5 million cars per year. I suppose the avant garde-esque Audi allure is gone, by then, Mercedes may become what Audi once was.
Audi has had a foothold in China for some time. Rings are considered to bring good fortunes, thus symbolically, Audi has done well just by virtue of the four rings. However it also shows that when people do not have preconceived notions of luxury, Audi does very well. Take into account that nearly all taxi cars in HK are MB, most in the region do not view MB as the rest of the world.
China will play a pivotal roll in helping Audi realise its goal of becoming the number 1 luxury maker in the world by 2025, based on a volume of 1.5 million cars per year. I suppose the avant garde-esque Audi allure is gone, by then, Mercedes may become what Audi once was.
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