Skip navigation

 Login or Register | Member Centre

Canada not just America Lite

VANCOUVER -- Diego Ramos, the espresso-fuelled outgoing head of Audi in Canada, is on his farewell tour here, attending dealer meetings and offering his congratulations on the opening of a swank new Audi store in the Vancouver suburb of Burnaby.

Down the street from Open Road Audi is an even more massive BMW store, and just down the street from it is what I'd have to call the poor cousin of this luxury car triumvirate – a Mercedes-Benz Canada corporate store which in back houses the western offices of Mercedes in Canada. The Mercedes store is the oldest of the three by far and is due for an upgrade.

Ramos, who holds a Spanish passport but is, in truth, a Catalan from Barcelona – this matters in the politics and culture of Spain, by the way – is leaving Canada to return to his home country. There he is to take a leadership role in global product marketing for Volkswagen subsidiary SEAT.

Just three years on the job here, he is leaving Audi in Canada having made some progress but also with much work unfinished.

Until Ramos came along, Audi here was run out of the company's old North American headquarters in Auburn Hills, Mich. (Audi has since moved its headquarters to Virginia). We were the 51st state and it showed in the sales numbers.

It still does, though at least Audi has something of its own identity here now. Big dealer groups like Open Road (with 10 stores in the group) are gambling that going forward Audi will treat Canada even more like an independent sales operation, not a satellite of the U.S. mother ship.

But if Audi truly wants to become more than a bit player in the luxury car game it must continue to push ahead with a clear and independent Canadian strategy. Under Ramos things got better, but they are not nearly good enough.

Consider the numbers. Through the end of August, Audi's sales totalled 5,771. BMW Canada had sold almost three times as many BMW brand vehicles at 15,876, and Mercedes was not far behind with 13,621. BMW and Mercedes have long been fairly independent Canadian sales operations and it shows in the numbers.

Ramos, in a last interview here before heading off to Barcelona for his new job, says he's disappointed with Audi sales in Canada, that this is an area where he wanted more progress. On the other hand, “The image (of Audi) is much better than it was. We now have a company with the marketing developed by Canadians for Canadians.”

Audi does have a Toronto-based advertising agency where before there was none. Ramos says the dealer network is making more money than it was three years ago, though still not enough. The new Open Road store suggests some confidence in Audi's future here, too.

More than anything, Ramos says the speed and intensity of business in Canada and the U.S. is dizzying for a European and that it took him time to adjust.

“In North America it is like everybody is a marketing wizard. In Europe, my feeling is that business seems like it is in slow motion,” he says.

Most likely the next head of Audi in Canada will come from Germany. Most auto makers treat the top job in Canada as sort of a training ground for promising managers, thus the off-shore appointment. “If you can make it in Canada, you can probably make it anywhere,” goes the reasoning. But like Ramos, the new boss will need an adjustment period.

If it's a European, the whirlwind pace will be a shock. If it's an American, then that person will find out that Canada is not just America Lite – as most American believe.

As a former head of BMW told me years ago, “I love it when my competitors appoint an American. It means I don't need to worry about them very much for a few years. It takes them that long to figure Canada out.”

Whoever gets the big job will have an easier time now that some of the building blocks for Audi in Canada are in place. And then there is the new product, which in the end matters most.

Audi has the 2009 A4 on sale now, but early next year the diesel-powered Q7 TDI comes along, followed by a smaller crossover wagon called the Q5.

“Ten thousand (in sales) next year is not a problem,” says Ramos.

Audi sold 8,230 vehicles in Canada last year. Good luck to any new boss whose predecessor says an 18 per cent sales jump in one year is “not a problem.”

  1. Broken Record from Victoria, B.C., Canada writes: So does this mean we'll see the Audi 2 here, and diesels available across-the-range? Not bloody likely. Neither Audi nor BMW would like us to know they offer anything but what we see in their North American showrooms.
  2. Alex D from Ottawa, Canada writes: This article tells me nothing. Is Audi going to offer us a spread of vehicle configurations as shown on the Audi.de site? Not likely. In Europe, you can configure an Audi that is approachable to younger professionals and families - all I see here is overloaded cars at premium price-points.
    And the mystery of the disappearing manual transmission - what's up with that? The only car spec'd with manual for 2009 is the A3 front wheel drive. I'm leaving you for that reason alone Audi.
    Maybe I'm a in the minority, but I note many of the people posting on GlobeAuto are very much in tune with European auto selection and would love to see some real choice here.
  3. Clutch Cargo from Canada writes: Maybe I'm a in the minority, but I note many of the people posting on GlobeAuto are very much in tune with European auto selection and would love to see some real choice here.

    ________________________

    absolutely!
  4. Jay Sherman from Canada writes: A couple of bare-bones Euro models and a new-graduate incentive program would pay off down the road...provided they could trim service costs while keeping service levels high.
  5. On Edge from Ottawa, Canada writes: Full agreement with the above here - more engine choices and the A2 would plump up Audi's profits and image here.
  6. Alex D from Ottawa, Canada writes: The A2 was discontinued a couple years back. A premium subcompact, the aluminum body was ahead of its time. I always wondered how much that would cost to repair after getting hit. The current entry level Audi is the A3.
    There is an A1 on the design table due in 2010. It's totally positioned in the Mini Cooper's market space. It's supposed to come with rear wheel drive or Quattro options.
  7. Dan Theman from Ottawa, Canada writes: I felt for a while that Audi is way ahead of BMW and Mercedes with respect to technology. Audi also has quatro across their lineup as well as the most advanced diesel technology that appeals to us Canadians.
    And personally I like their understated styling.
    Audi does deserve to become the No 1 premium brand in Canada, it's all a matter of marketing and pricing.
  8. Alex D from Ottawa, Canada writes: As a point of discussion, take a look at the A3 options and pricelist:
    http://www.audi.de/etc/medialib/cms4imp/audi2/product/a3.Par.0002.File.pdf
    There are 5 gas engine options alone: 1.6, 1.4 TFSI, 1.8 TFSI, 2.0 TFSI, and 3.2
    Base cost on a 1.6 L is about 17000 Euros (no VAT). That's about 27K CDN in a straight conversion. Prices are set by marketing in any case - direct conversion is never accurate.
    All you really need is to sell the 1.8L turbo (totally adequate engine for that size car) which lists at 20K Euros (no VAT) and it should undercut and outperform the Mercedes B Series.
    FYI, VAT adds about 15 to 17% to the cost of these cars for buyers in Europe. Glad to see we're not the only ones who are overtaxed.
  9. bill johnson from Quebec, Canada writes: I switched from Acura to Audi due to outrageous behaviour by Honda to those seeking to putchase in the USA. Brought a 08 TT in from the states - my first ever German car. It has made me realize how far Honda has fallen behind in engine technology. 2.0L direct injected turbo. Fast but very fuel efficient. Audi needs to price better in Canada. If they do, this will be my first choice for new vehicles in future in Canada. Honda can go suck an egg.
  10. Gardiner Westbound from Canada writes:
    The biggest impediment to Audi improving sales is its dismal reliability and durability record. Selling out of VW stores is also unhelpful. Luxury car buyers will not tolerate substandard customer care.
  11. Alex D from Ottawa, Canada writes: Better to laugh than cry, but regarding your goal of 18% sales increase, I just reviewed my portfolio, and I think I'll be passing this year. In fact, I'm a bit overweight, so I think I'll be cycling.
  12. Amguada Kickboote from The Sewage Treatment Plant, Canada writes: Compare the price of a new Audi to a similar configured new BMW. About the same.

    Now go 5 or 10 years later. Compare the used price of these same two cars. The value of the Audi is half that of the BMW.

    Are they really comparable?

    Yeah and where did the manual transmissions go? The original A4 was widely raced and accused of an unfair advantage. The new 2009 A4 is a lard asssed boulevardier that you will never see on a race track. No fun and way over priced.

    Yup the new manager is going to have his hands full, especially when the recession takes hold.
  13. Alex D from Ottawa, Canada writes: Listed price for A4 in Canada: $41,200
    Listed price for A4 in USA: $32,700
    Quote from Newsweek Magazine in Best New Cars of 2009: "if the U.S. dollar were a bit stronger, we could get prices down."

    But we all know Canadians are richer than Americans.

Join the Conversation, Leave a Comment

This conversation is semi-moderated What is moderation? | How do I report a comment?

You must be logged-in to submit a comment — login now!

Not registered with globeandmail.com? Register now. It is quick and free.

close

Alert us about this comment

Please let us know if this reader’s comment breaks the editor's rules and is obscene, abusive, threatening, unlawful, harassing, defamatory, profane or racially offensive by selecting the appropriate option to describe the problem.

Do not use this to complain about comments that don’t break the rules, for example those comments that you disagree with or contain spelling errors or multiple postings.

Back to Driving it Home

Back to top