(Source:  Reuters,  Motor Authority)

Audi is moving from strength to strength the world over but especially here in the U.S. where for years brand prejudices has left it playing second fiddle to the likes of BMW, Mercedes-Benz and Lexus. The four-ring brand is in the midst of a transformation, however, and is set to launch a host of exciting models over the next 12 to 18 months so grab a seat and let’s look at the rundown.

Audi today reported its U.S. sales last month rose 26% to achieve its second-best August sales ever and its best month overall since June 2008. In August 2009, Audi sold 8,057 cars and SUVscompared to 6,406 vehicles sold in August 2008.  Audi posted the strong results despite offering only modest discounts toconsumers and seeing minimal impact from the federal government’s Car Allowance Rebate System. Fewer than 10% of Audi sales for the month can be attributed to the “Cash for Clunkers” incentives that were available throughout August. Audi discounts have ranked among the lowest in the luxury vehicle segment, according to third-party measurements. August was no exception to that trend.

“With each passing month it is clear that Audi is shaping the luxury vehicle conversation,” said Johan de Nysschen, President, Audi of America. “These August results are not figments of steep discounting or other sales gimmicks. They represent the reality that the performance orientation, the leading-edge styling, the attention to detail and efficiency found across the Audi lineup resonate with the priorities set by today’s luxury car buyers.”

August 2009 set a sales record for the Audi Q5 crossover vehicle, which has been met with positive critical reviews since its launch in February. For the month, Audi dealers sold 1,496 Q5 models, leaving a 21-days supply of unsold models. Typically, a 60-days supply of unsold models is considered normal.  Strong demand also tightened inventories of the Audi Q7 TDI(R) as American consumers are showing a new appreciation for the efficiency and emissions benefits of the world’s cleanest diesel technology. The inventory of unsold Q7 TDI models dipped to a mere 29-days supply.

During August 2009, Audi sold 6,167 cars and 1,890 SUVs. From January through August 2009, Audi sold 39,380 cars and 12,929 SUVs.   Audi is also optimistic about sales in the months ahead. At the end of August, dealership showroom traffic was up more than 20% from a year earlier and Internet leads were up 38.1% year-to-date from 2008 levels. What’s more, luxury consumer interest in the Audi lineup should intensify with the arrival of the Audi S4 Sedan, the S5 Cabriolet, the A5 Cabriolet and the redesigned Q7 models. Before the end of 2009, Audi will launch the new A3 TDI model, which gets a stunning 42 mpg of clean diesel fuel, according to the U.S. Environmental Protection Agency.  Audi recorded 2,642 Certified Pre-Owned (CPO) units sold in August, and has now achieved 21,187 CPO sales in 2009.

If this is not enough, Audi is upping the ante by introducing new models to beef up the market stake.  By the end of the year we should be seeing Audi’s awesome R8 V-10 supercar hitting the streets, as well as the S5 Convertible and S4 Sedan. However, the real action starts next year as Audi is planning to unveil a replacement for its A8 flagship sedan, the production version of its A7 four-door coupe and possibly the next-generation A6.

First comes the 2011 Audi A8. Speculation had put the world debut for the new aluminum space-frame sedan sometime this fall, but it’s now certain that the A8 will make its world debut at the 2010 Detroit auto show. The car will be “the first of a new styling language at Audi,” executives say. All-wheel drive will be teamed with dual-clutch transmissions and a range of diesel, turbocharged V-6, V-8 and possibly hybrid V-8 engines.

Next in Audi’s busy year will be the production version of the A7 concept, shown earlier this year in Detroit and expected at the 2010 Geneva auto show. The new vehicle is a four-door coupe based on the A8 architecture, and will share its aluminum space frame. The same powertrains from the A8 should cross over into the A7, while an S7 version may sport a V-10 sourced from Lamborghini.

Click here to read the entire article.

(Sources: Motor Authority, WSJ, Reuters Blogs)

In late July Porsche announced Wendelin Wiedeking would be leaving his position as the company’s CEOto be replaced by Michael Macht, clearing the way for the supervisory board atVolkswagen to lay the foundation for an integrated company with underVolkswagen leadership. Today that merger has moved forward, and reports indicate the Auto Union name could be revived to brand it.

A Reuters report says that details of a deal between Volkswagen and Porsche have been broadly agreed, with VW set to buy a stake of up to 49 percent in the sportscar maker.  The supervisory boards of the German auto makers are expected to vote Thursday morning on a so-called memorandum of understanding, which would be a precursor to a more detailed and firm merger agreement, one of the people said.

The crucial point here is that the family-owned holding company Porsche Automobil Holding SE will get a much-needed cash injection from the sale – anywhere between 4 and 5.5 billion euros –  as well as an additional 5 billion euros from selling a package of options on VW shares to the Gulf state of Qatar.

The Porsche clan has already agreed to sell shares to raise at least 5 billion euros, so it should finally be in a position to pay off debts of more than 10 billion euros it stacked up building up a stake of just over 50 percent in VW.  Stuttgart-based Porsche ousted its chief executive, Wendelin Wiedeking, in July and is working to pay down a debt pile of more than 10 billion euros ($14.13 billion).

After the successful completion of the VW deal, the Porsche marque will then enter into a new “Auto Union” as the 10th brand, under the leadership of VW CEO Martin Winterkorn.

The Auto Union name was originally given to a merger of four German carmakers – Horch,  DKW and Wanderer – in 1932. The brand went on to fame in motorsports through the 1930s, but was disrupted by World War II, and subsequently went through a number of reformations, eventually ending in a renaming to  AG in 1985.

The integrated automotive group will be formed from the progressive participation of  in AG and the subsequent merger of Automobil Holding SE and  VolkswagenAG.  Porsche will remain an independent company headquartered in Stuttgart.” Today’s report re-affirms  independence, and the Auto Union name is apparently being considered to help preserve the idea that it’s not running the whole show.