Audi's Plan to Go After Even More of Luxury Market

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Oct. 18 (Bloomberg) – Audi of America President Scott Keogh discusses Audi’s growth strategy and the future of the car industry with Megan Hughes on Bloomberg Television’s “Taking Stock.” (Source: Bloomberg)

For growth.

And according to three people with knowledge of the matter he will head to blue press capital management.

Back over to you.

Executives at volkswagen's luxury brand audi are predicting a record year.

Why would the company considered tesla a competitor?

That company is likely to sell 1/8 of that amount.

Megan hughes got to interview the president of audi america and joins us with some answers.

That is right.

I talked to the president of audi of america and he said if any customer is willing to spend more than $100,000 on a tesla vehicle, that makes the company at competitor.

He conceded they are the talk of the town right now.

He conceded that all the dysfunction we have seen in washington has had an impact on the luxury car market.

Take a listen.

We are still able to have a record month in september and october.

It is a simplistic thing.

What a business needs is transparency and confidence.

The luxury business operates off of confidence so it is crucial the government get back and get things back on track and keep the confidence out there.

We saw some softness in september but again the market is going to return and we will execute our plan.

You are predicting record sales for this year.

Absolutely.

We will break 150,000 units which is another record trade we anticipate that will continue.

Where is audi right now in terms of the luxury market?

If you look at us and the luxury market we are about 10 to 11% of the luxury share and we have competitors that are around 17 % or 18%. it is not just about sales.

Is your brand strong and is your business model working.

Do you see tesla being a competitor?

It would be naiàve not to take them seriously.

I absolutely do see them as a competitor.

I want to talk about fuel standards and is audi doubling down on diesel?

We are.

And i think there is a simplistic reason.

Diesel works.

If you look at what the country needs and you look at what we need, they hit our targets, absolutely diesel works.

It has been given a little bit of disadvantage in the marketplace.

Diesel fuel is taxed heavier than conventional fuel and if you look at how the epa looks at average miles per gallon they go heavy on city than they do on highway and they think this is at this advantage.

Diesel deserves a fair shake.

Do you think the epa is a link favorites?

Yes.

They're looking to be 55 city and 40 five hwy, they should look at what these old rings to the marketplace.

The reason i think this is happening is people have an archaic you of diesel.

Think -- they think of it for trucks and that is why you have the taxation issues.

They need to look at it as an innovative technology that is universally accepted in europe and 70 to 80% penetration there and something that is growing in penetration here.

We want a fair shake.

How about the plug-in, how much is audi investing?

We are investing a lot.

If you look at where we are heading in terms of meeting efficiency standards, you will have four basic technologies.

The continuation of the combustion engine and login and hybrids and we think this is a great piece of technology.

It gives you the full range that customers expect yet it allows you to drive fully zero emissions.

We will be launching a sports pack and it will be very successful.

How important is the technology component looking at the future of luxury, is that where you see things headed?

I absolutely do.

There is an archaic view of luxury which is about size and marble and for, things like that.

If you look at audi and the future of luxury, it is about height and designed and high technology and a brand that is for good times and that is what a new, modern, progressive consumer is looking for an something that makes our brand stronger and something we want to continue.

Technology will be huge.

He said looking toward the future, he is hopeful that we will see a u.s.-eu trade deal that will remove some of the complexity of having to meet different requirements and different markets in the u.s. and europe.

He is optimistic that it will happen and says if you're a car guy you have to be optimistic.

Did he say anything about how the shutdown affected audi's sales?

This is an interesting twist.

High headlights.

They are allowed in europe.

They are not allowed in the united states.

The government is doing testing on these high-tech headlights right now and that testing was put on hold.

It is something you may not have thought about during the shutdown.

Luxury car market impact.

What about the competition between audi and tesla, you spoke to him about that, are there specific ways that their strategies are different when it comes to all electric automobiles?

He gave the company kudos but one way that the companies are different is how they deal with dealers and dealerships.

He is a big supporter of dealerships, he believes they give the company leverage.

They are ties to the community that the dealers know the market that

This text has been automatically generated. It may not be 100% accurate.

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