Has anyone seen this new Dealership in Detroit...sounds incredible...also a bit on "Who Shops Audi"
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Has anyone seen this new Dealership in Detroit...sounds incredible...also a bit on "Who Shops Audi"
Copyright 2001 The Detroit News, Inc.
The Detroit News
September 6, 2001, Thursday
SECTION: Business; Pg. 1
LENGTH: 716 words
HEADLINE: New dealership helps Audi put luxury center stage
$5.5 million facility in Rochester Hills showcases nameplate's sales resurgence
BYLINE: Joe Miller; The Detroit News
DATELINE: ROCHESTER HILLS
BODY:
ROCHESTER HILLS -- From the outside, it resembles a modern hangar for luxury airplanes and private jets. Inside, the sleek,
glass-encased showroom features ceramic floor tiles imported from Italy and Germany, maple wood surfaces, and curved aluminum
accents.
There's a Quattro cafe tucked in one corner and the silver R-8 sports car that captured the 2000 LeMans endurance race in France.
No expense was spared: Australian craftsmen were flown in to install the tiles. Designed to showcase and sell sports sedans and flashy
coupes, the new $5.5-million Audi dealership in Rochester Hills represents the new brand look for the German nameplate. It has opened
as the German luxury nameplate is enjoying a sales renaissance in the United States and in Metro Detroit.
The store will become the merchandising template for about 70 new or revamped Audi dealerships scheduled to open in the United
States over the next several years.
Owned by longtime Metro Detroit dealer Eitel Dahm, it replaces an Audi store in Eastpointe.
"Believe it or not, this is one of the growing markets for Audi," said Len Hunt, vice-president of Audi's North American sales arm, based
in nearby Auburn Hills.
Audi dealers in Metro Detroit have sold 1,065 Audi cars this year, up 13.9 percent from the same period a year ago, according to R.L.
Polk Co. Nationwide, sales for the upscale brand are up 8 percent and on pace to hit a record 85,000 cars, beating last year's record
sales of 80,000.
Hunt believes new vehicles in the pipeline and the revised retail format will put Audi's annual sales over 100,000 in the next two to three
years.
"We're building the infrastructure to match the massive growth we've experienced," he said.
The positive outlook caps a remarkable comeback for the German brand, cast aside for most of the 1990s by rivals Mercedes-Benz,
BMW and Japanese upstarts Lexus and Acura.
A decade ago, Audi considered abandoning the U.S. market, following French rival Peugeot. The brand's image suffered a blow in the
late 1980s following reports of vehicles with sudden acceleration, some resulting in deaths. Although the stories were later debunked,
the damage was done. In 1994, Audi's annual U.S. sales bottomed out at 12,575 units.
But Audi -- benefitting from a buoyant U.S. economy in the late 1990s -- has recovered with an onslaught of modern sports sedans,
including the popular A4 -- which has been redesigned for 2002 -- and niche vehicles such as the TT Coupe and Roadster.
"The brand is on its way up," said Jim Sanfilippo, executive vice-president of Automotive Marketing Consultants Inc. in Warren.
New vehicles are finally pulling Audi out of the shadow of German luxury heavyweights BMW and Mercedes-Benz.
"This new (2002) A4 is going to surprise everyone, even (BMW and Mercedes)," said Sanfilippo.
Dahm and other Audi dealers have benefited from Audi's comeback to the point that they are willing to invest millions of dollars to build
exclusive showrooms.
When Dahm became an Audi dealer 10 years ago, he was selling about 60 cars per year. Today, his annual sales are closer to 300,
and he expects to reach 500 in a couple of years with the new dealership.
"We were totally out of space," Dahm said, referring to his Eastpointe facility.
The new 22,000-square-foot dealership is based on Audi's European dealership design. The showroom floor is set up to represent
Audi's trade-marked four rings.
"Even if you didn't have a car in there, you would say, 'Hey, this is Audi,'" Hunt said.
Audi currently has 70 more dealers signed up to build showrooms like Dahm's, with close to 20 scheduled to be completed by the end
of 2002.
Hunt believes Audi's lineup of cars is succeeding in winning over new customers. Now it is up to Audi's 270 U.S. dealers to keep those
customers loyal.
"The investment is actually in customer retention," said Hunt. "Nowadays, it is not just about buying a car. It's about the whole ownership
experience."
Who shops Audi
* Average new Audi buyer is 45
* Median annual income of Audi buyer is $132,100
* 78 percent of Audi buyers have a college degree
* 71.5 percent of Audi buyers are male
* New Audi buyers' second choice, in order, were a BMW, Lexus, Volvo, Mercedes-Benz and VW
Source: J.D. Power and Associates
GRAPHIC: Nationwide, Audi sales are up 8 percent and on pace to hit a record 85,000 cars, beating 2000 sales of 80,000.Engell
Pellumbi is the service manager for the Rochester Hills dealership. Audi dealers in Metro Detroit have sold 1,065 Audi cars this year,
up 13.9 percent from the same period a year ago.; Charles V. Tines / The Detroit News
The Detroit News
September 6, 2001, Thursday
SECTION: Business; Pg. 1
LENGTH: 716 words
HEADLINE: New dealership helps Audi put luxury center stage
$5.5 million facility in Rochester Hills showcases nameplate's sales resurgence
BYLINE: Joe Miller; The Detroit News
DATELINE: ROCHESTER HILLS
BODY:
ROCHESTER HILLS -- From the outside, it resembles a modern hangar for luxury airplanes and private jets. Inside, the sleek,
glass-encased showroom features ceramic floor tiles imported from Italy and Germany, maple wood surfaces, and curved aluminum
accents.
There's a Quattro cafe tucked in one corner and the silver R-8 sports car that captured the 2000 LeMans endurance race in France.
No expense was spared: Australian craftsmen were flown in to install the tiles. Designed to showcase and sell sports sedans and flashy
coupes, the new $5.5-million Audi dealership in Rochester Hills represents the new brand look for the German nameplate. It has opened
as the German luxury nameplate is enjoying a sales renaissance in the United States and in Metro Detroit.
The store will become the merchandising template for about 70 new or revamped Audi dealerships scheduled to open in the United
States over the next several years.
Owned by longtime Metro Detroit dealer Eitel Dahm, it replaces an Audi store in Eastpointe.
"Believe it or not, this is one of the growing markets for Audi," said Len Hunt, vice-president of Audi's North American sales arm, based
in nearby Auburn Hills.
Audi dealers in Metro Detroit have sold 1,065 Audi cars this year, up 13.9 percent from the same period a year ago, according to R.L.
Polk Co. Nationwide, sales for the upscale brand are up 8 percent and on pace to hit a record 85,000 cars, beating last year's record
sales of 80,000.
Hunt believes new vehicles in the pipeline and the revised retail format will put Audi's annual sales over 100,000 in the next two to three
years.
"We're building the infrastructure to match the massive growth we've experienced," he said.
The positive outlook caps a remarkable comeback for the German brand, cast aside for most of the 1990s by rivals Mercedes-Benz,
BMW and Japanese upstarts Lexus and Acura.
A decade ago, Audi considered abandoning the U.S. market, following French rival Peugeot. The brand's image suffered a blow in the
late 1980s following reports of vehicles with sudden acceleration, some resulting in deaths. Although the stories were later debunked,
the damage was done. In 1994, Audi's annual U.S. sales bottomed out at 12,575 units.
But Audi -- benefitting from a buoyant U.S. economy in the late 1990s -- has recovered with an onslaught of modern sports sedans,
including the popular A4 -- which has been redesigned for 2002 -- and niche vehicles such as the TT Coupe and Roadster.
"The brand is on its way up," said Jim Sanfilippo, executive vice-president of Automotive Marketing Consultants Inc. in Warren.
New vehicles are finally pulling Audi out of the shadow of German luxury heavyweights BMW and Mercedes-Benz.
"This new (2002) A4 is going to surprise everyone, even (BMW and Mercedes)," said Sanfilippo.
Dahm and other Audi dealers have benefited from Audi's comeback to the point that they are willing to invest millions of dollars to build
exclusive showrooms.
When Dahm became an Audi dealer 10 years ago, he was selling about 60 cars per year. Today, his annual sales are closer to 300,
and he expects to reach 500 in a couple of years with the new dealership.
"We were totally out of space," Dahm said, referring to his Eastpointe facility.
The new 22,000-square-foot dealership is based on Audi's European dealership design. The showroom floor is set up to represent
Audi's trade-marked four rings.
"Even if you didn't have a car in there, you would say, 'Hey, this is Audi,'" Hunt said.
Audi currently has 70 more dealers signed up to build showrooms like Dahm's, with close to 20 scheduled to be completed by the end
of 2002.
Hunt believes Audi's lineup of cars is succeeding in winning over new customers. Now it is up to Audi's 270 U.S. dealers to keep those
customers loyal.
"The investment is actually in customer retention," said Hunt. "Nowadays, it is not just about buying a car. It's about the whole ownership
experience."
Who shops Audi
* Average new Audi buyer is 45
* Median annual income of Audi buyer is $132,100
* 78 percent of Audi buyers have a college degree
* 71.5 percent of Audi buyers are male
* New Audi buyers' second choice, in order, were a BMW, Lexus, Volvo, Mercedes-Benz and VW
Source: J.D. Power and Associates
GRAPHIC: Nationwide, Audi sales are up 8 percent and on pace to hit a record 85,000 cars, beating 2000 sales of 80,000.Engell
Pellumbi is the service manager for the Rochester Hills dealership. Audi dealers in Metro Detroit have sold 1,065 Audi cars this year,
up 13.9 percent from the same period a year ago.; Charles V. Tines / The Detroit News
AudiWorld Super User
Joined: Feb 2001
Posts: 7,483
Likes: 0
DAMN!!! that salary number is sooo high. Sheeesh it will be another 15 years before I hit that ...
number. And what is up with the average age of 45???? **** I better go buy a BMW or Lexus to be with "kids" my age :-D, NOT. Hmm I wonder if my local Audi dealer is going to do the same with their new location?
AudiWorld Super User
Joined: Mar 2000
Posts: 10,935
Likes: 1
This is a nice segway to a some info shared by a dealership G.M in LA Last week...(long)
While waiting for my 30k service to conclude last week, I spoke with a G.M. at a Audi dealer in So. Cal. The discussion involved the fact that the dealership has recently been upgraded... new paint, new logos (out with the Audi football logo and in with the Audi with rings logo), a separate service counter than the other brands sold, and an impending move to a new exclusively Audi lot with separate service bays, etc.
A significant amount of leverage has been applied to dealers to get this work done - and fast. The penalty for not moving was said to be both financial and far move importantly, reflected in allocations of cars provided to dealers.
This particular dealer has a "review" by top Audi exec's this week in which they will evaluate the progress against a number of wide sweeping initiatives that Audi has imposed on their entire dealer network - worldwide.
Said G.M. speciulates that all of the change is driven by a long-term plan to sell off Audi in the future and that the changes imposed on his dealership and all others will allow a "cleaner" sale as the dealer network will be free and clear of all ties to other brands - this dealer previously had BMW and Porsche and Audi all serviced, sold, and parked in shared facilities.
The articly Denny passed on to us (Thanks Denny!) seems to add value to the comments shared with me last week. With Audi now upgrading it's image and facilities they do seem to be making a move toward building equity... not such a bad thing for us.
What they need to do is work on the Service end. We ALL know that. If we continue to use "all of the available means of persuasion" when we have issues - Customer Care line, service surveys, mailed surveys, etc. I believe we can, over the long-term, guarantee ourselves a better quality car and service.
It's worth a try.
Anyway, thought I would share this info... anyone have other comments?
Glen
A significant amount of leverage has been applied to dealers to get this work done - and fast. The penalty for not moving was said to be both financial and far move importantly, reflected in allocations of cars provided to dealers.
This particular dealer has a "review" by top Audi exec's this week in which they will evaluate the progress against a number of wide sweeping initiatives that Audi has imposed on their entire dealer network - worldwide.
Said G.M. speciulates that all of the change is driven by a long-term plan to sell off Audi in the future and that the changes imposed on his dealership and all others will allow a "cleaner" sale as the dealer network will be free and clear of all ties to other brands - this dealer previously had BMW and Porsche and Audi all serviced, sold, and parked in shared facilities.
The articly Denny passed on to us (Thanks Denny!) seems to add value to the comments shared with me last week. With Audi now upgrading it's image and facilities they do seem to be making a move toward building equity... not such a bad thing for us.
What they need to do is work on the Service end. We ALL know that. If we continue to use "all of the available means of persuasion" when we have issues - Customer Care line, service surveys, mailed surveys, etc. I believe we can, over the long-term, guarantee ourselves a better quality car and service.
It's worth a try.
Anyway, thought I would share this info... anyone have other comments?
Glen
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