AIMS: Audi's A1 takes the stage

RS5 and R8 Spyder were out the front, but it was the diminutive A1 capturing all the attention on Audi's stand
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Audi's two new model releases at the Australian International Motor Show (AIMS) covered both ends of the market.

At the high end was the A8 L, a longer-wheelbase variant of the large, luxury car games with a 13cm stretch and the choice of three engines. At the low end of the market but potentially more important, was the new A1. The new hatch represents the future for the Audi brand -- particularly in Australia. Since 2004, the local market has been a happy hunting ground for Audi, with sales increasing every year without fail. The introduction of the accessible entry-level model will add further momentum to the company's sales volumes.

"[A1] should be the strongest car in our [product portfolio]," said Audi's local MD Uwe Hagen. "It's our entry model now... I think $29,900 is an offer, which is really reasonable."

The sub-$30K figure is the starting price for the new model range. Hagen, who admittedly has only been in the job for seven months, doesn't recall Audi ever selling a car here for under $30,000. We believe that at some point in the past there must have been an Audi selling below that point, but that time was probably back in the early 1980s.

In conversation with journalists after Audi's presentation at AIMS, Hagen stated that the A1 would kick off with a 1.4-litre model, but other drivetrain options would subsequently follow, including at least one diesel variant. Hagen didn't put paid to the possibility that the diesel variant in question might be a TDi e model, with auto-stop and a low carbon-footprint engine.

"I mentioned that this car is an entry-[level model], so new customers; that means those customers [must come] from other places..."

So Audi may be contemplating a MINI D/Prius/Fiesta ECOnetic rival for the Australian A1 range. Hagen wouldn't elaborate and nor would he confirm for the local market other variants such as the five-door model and convertible in the wings -- but Audi being Audi, it's unlikely these variants won't be sold here.

How would the presence of the tiny car in the Aussie line-up impact on the brand's image -- one that has been founded on prestige (and expense)?
"Perfect," answered Hagen, "because you can see this with other models. I think a premium brand is driven top-down...

Hagen quoted a member of Audi's board of management who stated that a premium product needed "admirers". A well-positioned entry-level model, logically, will convert admirers to brand "participants".

Audi plans to put a finance package on the table for A1 buyers when the car goes on sale locally from December of this year. The idea, according to Hagen, is to ease the hip-pocket pain of entry to the world of Audi ownership -- not that the $29,900 asking price for the basic A1 is very steep in current terms.

But Audi is making sure the acceptance of the A1 by its target buyer demographic will be a matter of form.

"Currently our best-selling car is the A4, by volume. But we are convinced the A1 will... sell more.

"With premium brands you have high loyalty... so the earlier you can get people into your range, the better it is."

"It fits the market," Hagen explained when the Carsales Network asked him why the A4 outsells the A3. He principally believes that the A4 is a better package (by size) for Australian buyers, but the MD insinuates that the A4 is a car that Aussies associate with the prestige of the Audi brand to a greater degree than is the case for the A3.

That being so, why should the even cheaper, even smaller A1 outsell the A4? In essence, it's about the social climbing of young, aspirational buyers -- something that BMW exploited in the same way with the 318i from the 1980s, although Hagen says that, in his opinion, the MINI is now the new entry-level BMW.

That supports his contention that a quirky small car can be a volume-selling success story. And like the MINI, the A1 will likely reach the local market with a wide range of accessories, provided they meet the demands of global markets. Audi in Australia is already confident the A1 will sell like wildfire here, says Hagen, because the social networks on the internet have been abuzz with news of the new car since it was announced for the local market.

The A8 L that was also unveiled in Sydney will be available with three engines: a 4.2-litre direct-injection petrol V8, a 4.2-litre turbodiesel V8 and a 3.0-litre turbodiesel V6. All three engines drive through ZF's eight-speed automatic transmission. The long-wheelbase variants will go on sale in the first quarter of next year, with pricing and specification to be announced at that time.
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AIMS: Suzuki previews Swift for 2011 debut

One of Australia's favourite hatchbacks gets more room and better efficiency
discount new cars  » Get the best price on a new Suzuki Suzuki previewed the new generation Swift hatchback at the Australian International Motor Show this morning – but it won't go on sale until about March next year.

The company said the new model is taller, wider and roomier than before – and yet more fuel efficient.

The new Swift has already won 63 car of the year awards in 19 countries.

The company confirmed the Australian-spec Swift will have seven airbags standard across the range, including a driver's knee airbag, and stability control. What's not clear is what engine will be under the bonnet but the Carsales Network understands it will have a 1.4-litre petrol engine, not the 1.2-litre engine offered in Europe.

"People loved the look of the current Swift so there wasn't a need to change it radically," said the boss of Suzuki Australia, Tony Devers, when asked about the new model's familiar styling.

Devers confirmed a diesel version was under consideration. However, the Suzuki marketing boss cautioned it was not confirmed.

"In this class of car the improvement in fuel economy between petrol and diesel is less pronounced. It's harder to justify [the additional diesel engine costs] in dollar terms," he stated.

Devers promised the new Swift would deliver class-leading fuel economy in its petrol variant.

Suzuki Australia is on track to record 25,000 sales for the first time in its history. To the end of September, Suzuki had sold 18,602 cars, up 27 per cent on the 2009 figure at a time when the new-car market is up 14 per cent.

For our full coverage of the Australian International Motor Show in Sydney visit our minisite at carsales.com.au/aims

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AIMS: Lexus confirms LF-A supercar price

A Japanese Ferrari for $700K -- but if you want one you may be disappointed as all of them are sold...
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Lexus has confirmed the price of its LF-A supercar – and although it was tipped to cost well in excess of half-a-million dollars, its official sticker of $700,000 plus on-roads is still a bit of a shock. The same money will buy the top end Ferraris and Lamborghinis – and give you change.

But it matters little; all eight cars destined for Australia are sold, with the first one due to arrive early next year.

"This is a very exciting car for Lexus and we’re pleased that there was such strong interest," said the boss of Lexus Australia Tony Cramb. "We really wish we could get supply of more cars, but unfortunately that’s it."

The Lexus LF-A will be one of the most exclusive cars on sale in Australia.

"Each and every Lexus LF-A customer will have personal dialogue with senior Lexus Australia representatives," Cramb said.

As is the norm in the top-end supercar class, Lexus would not reveal the identity of the buyers. However, the Carsales Network understands that at least two of the vehicles have been bought by Toyota-Lexus dealers.

The Lexus LF-A is powered by a 4.8-litre V10 with 412kW of power and 480Nm of torque. It reaches 100km/h in a claimed 3.6 seconds and has a top speed of 325km/h.

At AIMS the car was debuted by LF-A ambassadeur, US sportscar driver, Scott Pruett. Pruett has completed more than 10,000km at the wheel of LF-As as part of Lexus USA's sales program. There all 171 cars allocated to US buyers are now also sold, say Lexus insiders.

For our full coverage of the Australian International Motor Show in Sydney visit our minisite at carsales.com.au/aims

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