Profitability, e-tron battery top Audi dealer concerns
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February 24, 2020 12:00 AM

Profitability, e-tron top Audi dealer concerns

Larry P. Vellequette
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    The e-tron, Audi’s first battery electric vehicle

    The e-tron, Audi’s first battery electric vehicle

    Audi dealers face a number of profitability issues, but they could get some help from the factory in reducing their service loaner fleets and with selling the e-tron and other electric vehicles.

    Daniel Weissland, the freshly appointed president of Audi of America, said the luxury brand's plan to improve dealer profitability includes reducing the size of dealers' service loaner fleets, among other components.

    "Profitability is always top of mind for the dealers, but our plan is also to reduce the loaner fleet," said Weissland, who took over Sept. 1, following the resignation of Mark Del Rosso.

    Weissland: “Grow retail”

    Weissland asked dealers during the make meeting at the NADA Show for patience to deal with a changing luxury market now being dominated by Tesla. He said dealers had opportunities to compete and win with Audi's products, while the factory could help profitability concerns by rethinking some past requirements.

    "Let's grow in the healthy channels and reduce the unhealthy channels, because it's unhealthy for us, it's unhealthy for them, so let's reduce it. We need [loaner fleets] to a certain extent, but obviously, don't grow those things, those channels. Reduce them and grow retail," he said. "The product portfolio is there; it's a great opportunity."

    One major issue for Audi dealers is the performance of the e-tron, the luxury brand's first battery electric vehicle, which went on sale in the U.S. in 2019. One dealer, who spoke on condition of anonymity after the meeting, said Weissland and other brand leaders were "pushing" e-tron over and over, and dismissing dealer objections about inadequate range and charging infrastructure in the U.S. hampering sales.

    Weissland said the factory is working to boost the e-tron's image with customers.

    "Whenever we talk about e-tron, there's always three aspects: one is awareness, and you know, that [product] awareness is not there yet. We talked about experience, and experience starts with us. We need to drive those cars to convince potential customers ... to send the first signals. And the third one is, we have to be competitive in range, and we are there. We have programs in place for the e-tron, and we see some momentum," Weissland said. "You can't change it overnight; you have to be patient sometimes. And sometimes, that's my challenge with the headquarters."

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