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Market Demand and Potential for Audi cars in the US (East coast) In the following essay I am going to speak about the demand for the Audi manufactured cars in the city of New York. The information was obtained from the corporate report found on web (financials) as well as from the Bloomberg. com financial service. I will present various educated findings as well as my personal opinion on the given matter. It should be noted that demand for cars with the four-ring badge in the USA is particularly high in 2002 - 2003: the market for imported vehicles on the East coast grew by just over 14 percent - sales of Audi vehicles in the second half of 2002 soared by 42. 9 percent. Currently the USA presents a second largest market for Audi cars 40, 372 (East coast: 28, 000), after Germany (125, 000) annually.
The current market potential in the USA for these European (german) cars is estimated to be at least as large as in Germany, yet the US market is different from the European to which Audi is used. The Audi Group sold 34, 000 cars in the USA the first half of 2002; this represents an increase of 7. 6 percent on the corresponding period of 2001. This total was made up of 345, 003 Audi and 137 Lamborghini cars. Because the US presents potentially the worlds largest market for Audi sedan-type cars, Audi Group believes that the sales figure of about 45, 000 cars / year can be doubled within the next 3 years. Audi company manufactures cars known for their improved safety and reliability and, I should note that it is precisely the safety that draws paranoid Americans to buy Audi cars. The small Lamborghini Diablo luxury sports car department that Audi acquired several years ago works primarily for the European and the Japanese markets, which prefer luxury, fast speed, and pompous appearance over safety and practicality available in other Audi Group vehicles.
The primary reason why current market demand for the Audi cars is still weak is because, Audi is not properly represented in the USA (the east coast which accounts for over 60 % of the total US sales). The Audi group has production plants in Germany, and their shift to another country is unlikely because of the strategic importance of the corporation to the region. In Ingolstadt, Germany, Audi Group builds A 3 and A 4 models that are in demand in poor countries. In Neckarsulm, Germany, Audi produces models A 6 and A 8, the A 2 and allroad Quattro, the upper middle and upper class cars intended for the US, Western Europe and Japan. The Rhine plant of Wilhelm Karmann GmbH produces Audi Cabriolets which are distributed mostly in southern Europe and are not intended for the overseas sales. Thus, in order to make a purchase decision, the US customer has to wait while the Audi crosses the Atlantic ocean and should there appear a need for the spare parts, the customer might still need some the parts being brought from Germany, which overall negatively influences the customer buying decision.
In conclusion I would like to note that it is still too early to state or precisely assess the US market capacity for the European car manufacturer that Audi represents. Despite the fact that the US car market in huge, it is probably one of the most competitive in the world, and the company like Audi should do everything it can to reduce the order process and delivery of the cars. It should be also said that the company might need to switch its production to the US to be closer located to the market it attempts to cover, because although the German Audi plants do provide jobs for thousands of people, the company should be able to satisfy the market in a timely manner if it does not want to lose its market share in the USA and in turn be forced to lay off the people whose jobs it tries to save by not switching it production elsewhere to serve the US (primarily east coast market). Bibliography: web web (prepaid archive services).
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Research essay sample on East Coast Current Market
