Volkswagen is correct to delay a decision on adding capacity for the popular Audi A3. The restraint is admirable.
The A3 is a sell-out. Sales this year will be at least 25 percent higher than planned.
Customers must wait up to seven months for delivery, putting dealers in a tough spot. Audi could lose sales. Still, Audi has decided to study the market longer before investing in new capacity.
Carmakers entering a new segment have much to learn. It is impossible to know if early demand can be sustained. Competition in the lower-medium class will soon get tougher. Volkswagen will launch a new Golf this autumn and Opel will follow with an all-new Astra.
The choice to hold off was a tough decision, but the correct one.