[Arabay]

The word is out that Audi will in fact still be bringing over the A3 hatch, albeit only in TDI trim. So the question. A3 hatch was killed in the US to favor the higher margin Q3. With the A3 hatch getting the TDI mill do you think its feasible Audi gives us a TDI in the Q3 as well, or is that just too much cannibalizing overlap?

http://www.burlappcar.com/2014/04/2016-audi-a3-sportback-tdi.html

 

[Otto]

Seems to me that putting the TDI mill in the Q3 would be too much overlap. From the decision making process that Audi has made up until this point it seems to me that the A3 hatch will give a high margin and so will the Q3, but an A3 TDI will not make Audi as much money, so I don't think they are going to bring it over.

 

[Quatto]

It might be too much but a TDI trim along with everything else they have could do it well.

 

[audifanatic]

it is overlap
but i dont think its an issue because its within the same company

offering lots of options is a good thing!

just look at bmw! lol

 

[Quatto]

Yup, it's good overlap, seems like when it comes to a car maker like this, this type of overlapping can be a good thing. little downside.

 

[Otto]

I guess it just comes down to the price of offering it in addition to the other models that Audi is offering. If all the parts already exist, and the underlying structures are the same I guess it just doesn't cost them much more to manufacture the Audi Q3 TDI.

Other than that they just need to make sure that there is enough demand to warrant it.

 

[Arabay]

Just to clarify, crossovers like the Q3 offer a HIGHER margin than a small car. Thats why we're seeing so many compact car based CUV's. The platform has been deved already and you can charge a higher price for a CUV.

So I'd imagine the double premium of Q3 over A3 and TDI over TFSI would be attractive enough. Oh and overlap is not good within the same company. Its called cannibalisation...

 

[audifanatic]

really? id figure margins are the same but the market is just growing so rapidly.

 

[Quatto]

I guess it just comes down to the price of offering it in addition to the other models that Audi is offering. If all the parts already exist, and the underlying structures are the same I guess it just doesn't cost them much more to manufacture the Audi Q3 TDI.

Other than that they just need to make sure that there is enough demand to warrant it.

That and even thinning it out to VW, any way they can share more of it helps

 

[Otto]

@quatto
What do you mean by "thinning it out to VW"? Do you mean making it a VW model, or something else?

 

[audifanatic]

VW definitely needs more diesels in North America

And Audi of course.

 

[Otto]

I read two articles today that seem to be in a bit of conflict, or at least are interesting when read together.

Here they both are.

This one is on the rise of diesel in North America.
http://www.autoguide.com/auto-news/2014/05/diesel-market-double-triple-2020.html

And this one is on VW lowering its sales expectations.
http://www.autoguide.com/auto-news/2014/05/volkswagen-pulls-back-from-2018-sales-prediction.html

Will VW's emphasis on diesel help them out of their slump?