Every week Askaprice.com takes a look at the state of the car industry and how it’s affecting both car buyers and car retailers. In light of news that Audi regarding lead times and stock availability, we asked the expert for his opinion on Audi’s apparent supply-chain issues.
Motortorque unveiled last week that lead times for popular Audi models had reached 28 weeks for the Audi A1, and current stock levels made available to dealerships suggest similar problems across the entire range.In response, Audi UK director Jeremy Hicks indicated that supply shortages this year will ease in 2011.Indeed, there is no doubt that the supply will recover in 2011 – if Audi wishes it to.Audi has reached the nirvana of the motor industry, in that it is selling a highly desirable range of cars even before they’ve been built. Basically they’re getting deposits for doing nothing for six months; meaning pure profit.Audi is not overwhelmed by orders; rather it is working to an intentional supply and demand strategy.If customers are aware that stock is low, as Audi has suggested, they will be more inclined to take whatever models are sitting on the forecourt, in the knowledge that they could be waiting six months for their new car.So Audi is able to flog its current stock, whilst also ensuring a steady income for its new models.At the same time, residual values will remain constant again because there is a steady stream of demand-it’s perfect marketing.With one phone call I was able to locate an Audi A1, ready to buy.
I guarantee Audi will deliver these models by March.