Report: Audi U.S. sales suffering due to supply shortage

Posted on 12 April, 2010

Filed under: Car Buying, Plants/Manufacturing, Crossover, Audi

Audi Q5 – Click above for high-res image gallery

There are good problems and there are bad problems. Audi dealers across the U.S. are having trouble selling vehicles, but not because of uncompetitive product or industry-wide sales woes. Automotive News reports the reason for Audi’s sales troubles have everything to do with a supply shortage that stems from strong first quarter sales. Audi of America President Johan de Nysschen reportedly told AN that U.S. dealers are “short of everything,” with Q5 and Q7 supplies running especially low.

Last year, Audi cut U.S. deliveries by 6,000 units due to weak sales here in the States, but the German luxury automaker saw brisk sales in December followed by a first quarter that bested the first three months of 2009 by 35 percent. Audi now has a 29 day supply of product for U.S. dealers; about half the typical 60 day reserve and a third of the 88 day supply of March, 2009. De Nysschen says Audi has allotted an additional 3,000 vehicles to the U.S. for 2010, which should help dealers a bit. That said, we’re thinking Audi isn’t looking to beef up inventories too much considering the fact that the Four-Ringed automaker managed to keep incentives in check at a time when other automakers are dumping truckloads of cash on the hood to boost their sales.

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[Source: Automotive News – sub. req.]

Report: Audi U.S. sales suffering due to supply shortage originally appeared on Autoblog on Mon, 12 Apr 2010 11:19:00 EST. Please see our terms for use of feeds.