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Thursday, August 27, 2009

Audi R8 Electric Coming Soon?




We are only about 1 month away from September's Internationale Automobil Ausstellung (IAA), better known as Frankfurt International Motor Show. Audi AG board member and head global sales and marketing Peter Schwarzenbauer have hinted that there will be an electric R8-like car to be unveiled in Frankfurt. He did not confirm if it will be a R8 or if it is a pure electric vehicle / petrol-electric hybrid / a plug-in type petrol-electric hybrid.

“I’m not confirming R8, but at the top end and something very, very sporty, we are going to show in the upcoming Frankfurt motor show in September what we think the right way is of getting into the electric era is,” said Audi AG board member Peter Schwarzenbauer.

More hints of a German auto industry "civil war," below are comments by Peter Schwarzenbauer in an interview with Australian publication GoAuto, during the launching of Audi Australia's "Lighthouse" - the world's largest Audi showroom.

“If you go back to the past, all major new technology was introduced top-down. I have a hard time to understand that now the only discussion about electric cars is very small cars.”

“BMW has 500 Minis running around with batteries, Smart on the Mercedes side will have a battery in it and I have a hard time to understand what the business case should be in all of this, because if you look around the current battery package to really drive a car around costs roughly €12,000 to €15,000 ($A20,700 to $A25,900) – just the battery package."

“So now if you take a small car, which also costs around €12,000 to $15,000, that means you are doubling the price, just by putting a battery (in it). I don’t know how much environmentally you have to be convinced that you spend the double of the money to drive electric. So I don’t see that this is a real business case and I think the electric car technology has to be introduced like all the other technologies in the world – top down. ”
However, we should take note that Audi's parent company Volkswagen is also rumoured to be introducing an EV version of its Up! concept small car in Frankfurt.

“Volkswagen is going the direction of bringing a small car to the market and we think for a premium brand it makes much more sense to start a top-down approach, so
our approach is to start at the high end. The one we are launching in Frankfurt, or showing in Frankfurt, will be for the Audi brand and I’m sure that Volkswagen has also something around electric in Frankfurt,”
says Peter Schwarzenbauer

VW is surely not following the "top-down" approach. Seems like a bit of a contradiction within the VAG as far as their EV introduction strategy is concerned. Can't help but wonder wouldn't it be a better strategy to just not comment on what others are doing? Plus, there is no real need to justify to the press their rationale.

Also, I need to point out that Toyota didn't control the hybrid market by introducing hybrids via a "top-down" approach. Toyota did not start rolling out hybrids with Lexus. Instead it created a new bespoke model; the Prius, and a new sub-brand - Hybrid Synergy Drive. And as Toyota proved it - the "top-down" approach is not always the most logical path, because common sense will tell you that the image of clean-green technology is not exactly in harmony with that of a large, elitist powerful luxury car.

Then again, Audi might counter saying that Toyota is an exception and Toyota could afford to lose money on the early Prius models sold because the project was "indirectly funded" by the Japanese government, a charge which TMC staunchly denies but every top executive in the industry knows this is the case. Plus, Audi's objective might be to make a public statement that hybrids / EVs are not necessarily boring, but can be a credible alternative powertrain, worthy of a high performance car like a R8. Toyota is also doing the same thing with the Lexus LF-A hybrid supercar.

But I would like to ask Audi - why should Audi feel the need to take it on themselves to change the public perception on EVs / hybrids? Why not leave the task to someone like say...BMW / or even Ferrari (also rumoured to be working on a hybrid) - the people who depend more desperately on having a sporty high performance image and are having a harder time adapting to economical, green cars. Or best still, VW Group's own Lamborghini brand. After the last hooray shout for the outgoing Murceilago; the Reventon, the next Lambo is very likely to have to adopt an alternative powertrain, just like Ferrari and Porsche, to keep those EU bureaucrats in Brussels happy.

High driving performance is not exactly a top USP (unique selling point) for a brand like Audi. You don't expect the public to eventually go "Oh BMW EVs / hybrids are more powerful or are better to drive. Other hybrids / EVs are lousy." Come on, a hybrid is a hybrid. An EV is an EV. As it is, people don't go "Oh VW diesels are good. BMW diesels are so much poorer." Plus, VW made its mark on its famous TDI diesel engines and twin-charge TSI engines with the humble Golf and Polo. So again, not ever automotive technology have to follow a top-down approach. Not even for parent company Volkswagen.

Also to be unveiled by Audi in Frankfurt is the new A8, R8 Spyder (below, do Germans name their convertibles Spyder / Spider with an "i" or "y"?), A5 Sportback and the R8-like electric (dubbed R8E).

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