How Audi aims to take from BMW the luxury crown previously owned by Mercedes

[Klackamas]

How Audi aims to take from BMW the luxury crown previously owned by Mercedes

    PHILIP KING
    The Australian
    February 22, 2014

THE most interesting race in the car industry isn't in Formula 1 or any other motorsport; it's the contest to be top dog.

Among mainstream brands it's a three-way battle between Toyota, General Motors and Volkswagen, with all approaching the magic 10 million sales per year mark. A few years ago, Volkswagen declared a goal of taking pole by 2018.

The parallel contest in the luxury arena is an all-German affair, with BMW leading the way followed by Audi and Mercedes-Benz. It's more intriguing for several reasons.

First, they all want it badly and it's a close race. After being toppled a decade ago, Mercedes is desperate to win it back. BMW, since claiming it, wants to hold on. While Audi, as the second most important brand in the Volkswagen group, must mirror its parent's ambition to be number one.

The second reason is the crucial difference between the contenders. BMW and Mercedes are both independents in an industry increasingly prone to consolidation. Being part of Volkswagen gives Audi an advantage. It can share development costs within the group. At the esoteric end of its range, that means overlap with Bentley, Lamborghini and, in future, Porsche.

And third, luxury is where the action is. Luxury demand is outpacing the general market and prestige makers are moving into segments that were traditionally the preserve of the mainstream, such as small hatchbacks.

That's where most of the volume will come from but profits are richest at the other end, where cars are fastest and most desirable. The golden glow from their success can illuminate an entire range.

This is where heritage, motorsport wins and specialist tuning divisions come into their own.

Audi has a lot of models but it has lagged with performance variants. Until recently its tuner arm, Quattro GmbH, made only one RS model at a time.

That policy has been abandoned in favour of the more democratic approach of its rivals: if it moves, trick it up and charge a motza. For Audi the results have been dramatic. Globally, sales of Quattro models - those with an R or RS badge - increased 30 per cent last year against 8 per cent of the group overall.

In Australia, with our renowned appetite for anything that can punish rubber, performance variants can make a crucial difference.

Audi also has a second-tier performance strand badged S. Add the two together, and more than 1100 hi-po Audis were bought here last year, up 172 per cent on 2012. They accounted for 7 per cent of Audi sales, more than double the result in 2012 and in line with the share of Mercedes cars badged AMG.

Two RS newcomers can only help Audi's cause.

The first debuts an RS badge on an Audi SUV in the RS Q3. The standard Q3 is Audi's second most popular model, with demand growing quickly since launch two years ago. The range now starts at $42,300 for a 110kW turbocharged 1.4-litre, around $4000 below the equivalent BMW X1.

The RS sits at the top of the six-model line-up at $81,900 but ups the ante considerably on performance. It installs the 228kW turbocharged five-cylinder from the TT RS coupe, for a zero to 100km/h sprint time of just 5.2 seconds. A stop-start system keeps fuel use down to 8.8 litres per 100km.

It's been lowered, has a wider track and 19-inch alloys as standard, while a rear spoiler and aggressive intakes signal its intent.

Inside, it's been given the RS treatment at the dials and wheel, while nappa leather and contrast stitching raise the ambience. The battery has been relocated to the rear of the car, forcing the designers to settle for a single-pipe exhaust. The all-wheel drive system, which differs from the one offered on more expensive Quattro models, preferences the front wheels.

On the road, it drives like a raised hatchback; you're aware of its height but body roll is well controlled and its dynamic limits are towards the top of the SUV class.

It's also a lot of performance for the money. Audi has clear air with this car because neither the BMW X1 nor X3 has an M-badged rival. BMW performance SUVs are currently limited to the full-size X5 or X6. Mercedes will offer a rival later this year in the AMG version of its new small SUV, the GLA.

So Audi has first-mover advantage and expects to sell at least 100 RS Q3s this year.

At the other end of the price and performance scale is the RS7, which at $238,500 is the second most expensive Audi you can buy. This is a mechanical twin-under-the-skin to the RS6 Avant, a performance wagon based on the A6 Avant launched last year. Based on the A7 Sportback (ie, hatchback) the RS7 is the sort of long, sleek sedan carmakers have taken to calling "four-door coupes".

It shares its driveline with the RS6: a 412kW turbocharged 4.0-litre V8 which gives away capacity to its rivals. The BMW M6 Grancoupe has a turbocharged 4.4-litre V8 with similar power and slightly less torque; the Mercedes CLS 63 AMG has a turbo 5.5-litre V8 with 430kW and substantially more torque.

This Audi unit is a gem. Stated acceleration, at 3.9 seconds to 100km/h, is at least two-tenths better than either the Merc or BMW while fuel use, at 9.8 litres per 100km, is at least 0.1 litre more economical.

On the road it feels blisteringly quick for a 5m sedan weighing 2 tonnes. Its all-wheel drive system, which divides drive 40:60 front-rear, puts power down effectively and simply charges to the horizon. The Merc or BMW would still be scrabbling for traction.

Maximum torque of 700Nm arrives at just 1750rpm, delivering huge reserves of easy overtaking ability. Its natural cruising speed - the place where the car just cruises effortlessly - is well above the legal limit. The eight-speed Tiptronic automatic is a happy companion and preferable to Audi's double-clutch units in terms of refinement and throttle response.

It all sounds good, too, despite lots of noise deadening in the cabin. The interior has a suitably special feel and benefits from the improvements Audi has made to its control logic.

Initially the cabin feels cramped but it's more spacious than it appears with room in the back for two adults. Well-judged rear quarter-glass makes it pleasantly airy and there's good visibility for the driver.

The car handles with authority and charges through sweepers sitting sweetly on its chassis. It also brakes to a halt quickly and the steering is more engaging than the average Audi. Where it struggles is ride, with Dynamic mode unbearable and Comfort mode misnamed. On country roads the Comfort setting was essential to stop the car being bounced off course.

Large wheels and thin rubber are part of the problem, although the adaptive dampers should be able to dial some of this harshness out. Oddly, choosing the optional 21-inch wheels doesn't seem to make the over-fussy ride any worse.

Audi expects the RS7 to attract similar buyer attention to the RS6: about 20 a year. But with a substantial price advantage over the CLS 63 AMG (even more over the BMW M6) it might lure a few away from the default choices. Every little bit helps when the luxury competition is intense.Need to know

Need to Know

Audi RS7

Vehicle Large performance sedan

Engine 4.0-litre turbocharged V8 petrol

Outputs 412kW at 5700rpm and 700Nm at 1750rpm

Transmission Eight-speed automatic, all-wheel drive

Average fuel consumption 9.8 litres per 100km

Price $238,500 plus on-road costs

Rating 4 stars

Audi RS Q3

Vehicle Small performance SUV

Engine 2.5-litre turbocharged five-cylinder petrol

Outputs 228kW at 5200rpm and 420Nm at 1500rpm

Transmission Seven-speed double-clutch automatic, all-wheel drive

Average fuel consumption 8.8 litres per 100km

Price $81,900 plus on-road costs

Rating 4 stars

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