Skip to main content
Sister Publication Links
  • Automotive News
  • Automobilwoche
  • Automotive News Canada
  • Automotive News China
Subscribe
  • Subscribe
  • Newsletters
  • Login
  • HOME
    • Latest news
    • Automakers
    • Suppliers
    • New Product
    • Environment/Emissions
    • Sales By Market
    • On The Move
    • Auto Shows
    • Munich Auto Show
    • Geneva Auto Show
    • Paris Auto Show
    • Beijing Auto Show
    • Shanghai Auto Show
  • Features
    • Long Read
    • Interview of the Month
    • Focus on Electrification
    • Focus on Technology
    • Segment Analysis
    • Cars & Concepts
    • Supplier Spotlight
    • Europe By The Numbers
  • Opinion
    • Blogs
    • Commentary
    • Guest columnists
  • Photos
    • Photo Galleries
    • Geneva Photo Gallery
    • Beijing Photo Gallery
    • Frankfurt Photo Gallery
    • Paris Photo Gallery
    • Shanghai Photo Gallery
  • Podcasts
  • Car Cutaways
  • EVENTS
    • ANE Congress
    • ANE Rising Stars
    • ANE Eurostars
  • More
    • Publishing Partners
    • Social Media
    • Contact Us
    • Media Kit
    • About Us
    • Capgemini: All or nothing: Why circular business models require a holistic approach
    • Capgemini: Invent Head on automotive takeaways from CES 2023
    • Capgemini: Securing the industry's future through a radical rethink
    • Capgemini: Succeeding with the automated driving journey through AI
    • Capgemini: The circular economy is spurring new thinking on EV batteries
    • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
    • HEXAGON: Plugging into data is the only way to make winning EVs
    • TUV Rheinland: Ideas, services and certifications for smart mobility
    • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
    • Toyota Europe
    • UFI Filters
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter
MENU
Breadcrumb
  1. Home
  2. News Analysis
January 10, 2023 04:45 PM

Why Audi needs to pick up speed in 2023

Audi has been hit by postponed market launches, the end of the Artemis self-driving car project and lagging in EVs.

Burkhard Riering
Lennart Wermke
Automobilwoche
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    Audi Duesmann Urbansphere 2022
    AUDI

    Duesmann stands next to Audi's Urbansphere futuristic concept that previews an EV for people living in megacities. Rivals are ahead of Audi in launching new electric cars.

    If you had to find a suitable animal for each of the Volkswagen Group's 12 brands, the image of a lizard would come to mind for Audi. A lizard has a striking appearance but is also rather immobile most of the day.

    Within the VW empire, no one doubts the competence of Audi's engineers or the ability of the designers to create elegant premium vehicles. Still, Audi did too little in 2022 compared to its premium competitors Mercedes-Benz and BMW. And in 2023, there is little sign of improvement.

    Postponed market launches due to software issues, the winding up of the Artemis autonomous flagship car originally planned for 2024 and falling behind in electric cars mean that CEO Markus Duesmann cannot be satisfied with the brand's performance in 2022.

    Audi is under close scrutiny from the Porsche-Piech families --- VW Group's majority shareholders who have always had a special affinity for the brand.

    New VW Group CEO Oliver Blume -- who also leads Porsche -- has set himself the task of managing Audi more closely.

    Audi is currently in a quandary: BMW and Mercedes are pulling ahead with more and more new models, while Chinese premium start-ups such as Nio are putting Audi under additional pressure.

    China weakness

    Audi's weakness is noticeable in China, the industry's most important growth market.

    Sales of the high-margin A6 fell 31 percent in China in the first three quarters of 2022 and sales of the A8 range-toping sedean were down 36 percent.

    "If you look at comparable models to the A6 such as the BMW 5 Series or the Mercedes E-Class in China, BMW was able to increase its sales figures in 2022. So it's not because of the segment. The A6 has a problem in the market. Audi is not seen on the same level as Mercedes and BMW," said Jochen Siebert, head of JSC Automotive, a consulting agency specializing in the Chinese market.

    In response to Siebert's comments, Audi pointed to a total of 496,295 vehicles delivered in China in the first three quarters and cited continuing supply bottlenecks, especially with semiconductors, as well as COVID-related production restrictions as reasons for its sales difficulties.

    Competitors are making fun of Audi's futuristic Sphere studies. Shown are the Skysphere, Grandsphere and Urbansphere.

    These problems will ease this year. But Audi still will lack a new top model to catch up with the competition in China, and also in Europe and the U.S.

    The e-tron full-electric model, launched in 2019, has been upgraded and renamed the Q8 e-tron. It will arrive in European dealerships at the end of February. The U.S. market launch will be at the end of April.

    The long-awaited Q6 e-tron is expected to be unveiled in the autumn. It is Audi's first SUV on the new PPE electric platform developed with Porsche and the brand's most important all-electric model launch this year. It's also Duesmann's first new full-electric car after three and a half years as Audi CEO.

    A new A4 compact model could still come in 2023, and the A6, which is important as a business fleet car, is getting a face-lift. However, the A6's full-electric version will not be available until 2024, while BMW will be able to offer its customers the i5 and i5 station wagon as early as this summer.

    The mood among Audi's dealers is bad. The new models are not coming fast enough for them.

    And Audi's competitors are making fun of the brand's slick TV commercials for futuristic studies such as the Grandsphere. Their executives say: "We prefer to advertise cars on TV that you can buy."

    On Jan. 26, Audi will unveil its fourth Sphere concept called Activesphere. This is yet another vision whose realization is a long way off.

    Audi's sales are likely to drop this year because of its aging lineup. Its global deliveries fell 3.9 percent to 1.61 million last year on prolonged supply bottlenecks and major challenges in the logistics chain, the brand said in a press release on Tuesday.

    The chips crunch is likely to ease this year but it will still be a problem. The lull in model launches will also lead to underutilization of Audi's plants.

    'BMW North'

    Audi's problems and its high number of former BMW executives in top posts mean that Audi is being called "BMW North" by dissatisfied members of VW Group's leadership in Wolfsburg, according to Spiegel magazine.

    Audi's Ingolstadt headquarters in Bavaria, Germany, is just 85 km north of BMW's Munich base. Duesmann, sales chief Hildegard Wortmann and marketing boss Henrik Wenders are all former BMW executives.

    Sales boss Hildegard Wortmann is under pressure.

    The entire leadership of Audi's Formula 1 team that is currently being created also has a BMW past.

    With the ouster of former VW Group CEO Herbert Diess, who also came from BMW, the executives are missing an important backer, said an insider.

    High-ranking Audi managers say they have never heard the term "BMW North." Nevertheless, the unease at Wolfsburg is not diminishing.

    Before Christmas, there were rumors that Wortmann would be replaced in the near future. Wayne Griffiths, currently head of VW Group's Seat/Cupra brands, was touted as her successor. Griffiths is a former Audi manager.

    Audi strongly denied the rumors. But 2023 will be a year of probation for Wortmann. Audi has to deliver on sales.

    For Duesmann, the key challenge will be to demonstrate that Audi is picking up speed to catch rivals. If he is to remain as Audi CEO through to next year, the brand will have to gain momentum.

    Duesmann will get another chance, an insider told Automobilwoche. "He has to take advantage of it," the executive said.

    Related Article
    Audi to lose key AV project in VW Group's new software strategy
    Audi Activesphere concept set for January debut
    DAILY NEWSLETTER: Sign up and get the top news of the day in Europe every business weekday.
    RECOMMENDED FOR YOU
    Russians reluctantly embrace Chinese cars after Western brands depart
    Recommended for You
    Moskvich car 2022
    Russians reluctantly embrace Chinese cars after Western brands depart
    Dacia Sandero with new front grille 2023
    Dacia, MG gain from French demand for low-cost cars
    Smart #1 11.jpg
    Smart dealers optimistic about switch to agency direct-sales model
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up and get the best of Automotive News Europe delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    SUBSCRIBE TODAY

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    SUBSCRIBE NOW
    Connect with Us
    • Twitter
    • Facebook
    • LinkedIn
    • Instagram

    Founded in 1996, Automotive News Europe is the preferred information source for decision-makers and opinion leaders operating in Europe.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI  48207-2997
    Tel: +1 877-812-1584

    Email Us

    ISSN 2643-6590 (print)
    ISSN 2643-6604 (online)

     

    Resources
    • About us
    • Contact Us
    • Advertise with us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Awards
    • Rising Stars
    • Eurostars
    • Leading Women
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Europe
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • HOME
      • Latest news
      • Automakers
      • Suppliers
      • New Product
      • Environment/Emissions
      • Sales By Market
      • On The Move
      • Auto Shows
        • Munich Auto Show
        • Geneva Auto Show
        • Paris Auto Show
        • Beijing Auto Show
        • Shanghai Auto Show
    • Features
      • Long Read
      • Interview of the Month
      • Focus on Electrification
      • Focus on Technology
      • Segment Analysis
      • Cars & Concepts
      • Supplier Spotlight
      • Europe By The Numbers
    • Opinion
      • Blogs
      • Commentary
      • Guest columnists
    • Photos
      • Photo Galleries
      • Geneva Photo Gallery
      • Beijing Photo Gallery
      • Frankfurt Photo Gallery
      • Paris Photo Gallery
      • Shanghai Photo Gallery
    • Podcasts
    • Car Cutaways
    • EVENTS
      • ANE Congress
      • ANE Rising Stars
      • ANE Eurostars
    • More
      • Publishing Partners
        • Capgemini: All or nothing: Why circular business models require a holistic approach
        • Capgemini: Invent Head on automotive takeaways from CES 2023
        • Capgemini: Securing the industry's future through a radical rethink
        • Capgemini: Succeeding with the automated driving journey through AI
        • Capgemini: The circular economy is spurring new thinking on EV batteries
        • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
        • HEXAGON: Plugging into data is the only way to make winning EVs
        • TUV Rheinland: Ideas, services and certifications for smart mobility
        • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
        • Toyota Europe
        • UFI Filters
      • Social Media
        • Facebook
        • Instagram
        • LinkedIn
        • Twitter
      • Contact Us
      • Media Kit
      • About Us