Audi Takes Aim at BMW

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Dec. 27 (Bloomberg) -- Bloomberg’s Jamie Butters and Matt Miller discuss the resurgence in Audi sales and what that may mean for their competitors. They speak on Bloomberg Television's “In The Loop.” (Source: Bloomberg)

Speed ahead of bmw.

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And a controversy all movie poster that was released overseas.

We will have more on that story in a moment.

? timeout for the global outlook.

Audi is looking to replace bmw has the largest maker of luxury cars.

They plan to invest over $30 billion from 2018 to develop new models and technology.

They are now selling cars annually.

Matt miller is joining us now with more.

It is really interesting because i have seen more and more audis on the road.

They have really pushed further into the u.s. market.

There has been a huge resurgence in the last decade.

They have met their targets early.

They wanted to sell 1.5 million vehicles annually by 2015. they have already done than 2013. if anything, i hear complaints that they are made to well and they are too easy to drive.

That is where bmw kind of holds its ultimate driving machine brand as being a drivers car.

I'm assuming that some people like the fact that it is easy to write.

Jamie, do we know how they will deploy $30 million?

They have indicated that they're are planning to invest more in electric drive and other powertrain.

They have built up their model line where they have lines that match up with the big volume bmw and mercedes cars.

They are more spurted to drive than the mercedes.

To matt's point, they are not all the way to bmw.

They're a lot easier to use on the interior.

The i drive controls had a rocky introduction a decade or so ago.

That has been an obstacle for bmw.

Audi has a very smart system.

I think you would agree that the i drive has improved substantially.

I think that system is now amazing.

At first, it was absolutely confusing.

I want to also -- we have some pictures of the audi concept cars.

They rival the sexiness of the i-8. the four content -- concept is an incredible design.

Is that it?

That is the quattro concept.

It made their reputation as a sports car maker in the 80's. there is a new concept that kind of looks like a ferrari boxer.

I think that the sexiest thing on wheels -- hopefully they make it.

They kind of on the market as the sexy sport cars.

They have the sexiest electric car out there as well.

This is the direction that all carmakers are going.

Will will bmw deal?

They will be launching 25 new models this year and next year.

I feel like bmw already has the market on model proliferation.

There is a model for everything.

There are six different versions of each one of those models.

I do not know if you have done any work on this, but it feels like they are making too many cars to me.

Bmw definitely has the challenge of being the incumbent.

They do not want to give anything up.

They are trying to preserve their ground and their leadership.

Audi is coming after them and they're trying to find spots where they can pick things off and be a little easier to drive.

They're trying to fit only the sweetest niches.

With bmw, that is the main brand of the company.

With audi, they have a sweet spot in the massive portfolio that is volkswagen.

They are premium.

They are not that much different than the old slackens except that they are just nice enough to charge more and make enough money.

Folks like in will sell about $100 billion to beat out toyota and general motors.

They have a plethora of brands.

How does -- 60 different cars to choose from.

How does audis price compared to bmw's? jamie, take this one.

A little bit lower.

Still a premium for bmws.

The brand has some magic.

I remember being at an analyst presentation.

The best loyalty was to bmws.

She said i do not know what they are feeding them.

The guy next to her said they are feeding them bmws.

If you have one, that is what you want again.

Jamie, thank you so much.

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