Audi’s New Q3 SUV

“Hey did I already write about this?” I literally said that out loud to myself when this landed in my inbox yesterday. Nope, I was thinking of Audi’s Q7, this is Audi’s brand new, smaller Q3. Strong family resemblance though, huh? And you don’t have to have a degree in product planning to see who the Q3 is aimed at: would-be buyers of BMW’s smaller X3 sport-ute. The question becomes, does Audi have what it takes to beat BMW?

Although Audi doesn’t come out and say it, Stevie wonder could see that this ride will be a direct competitor for the small end of the SUV market, or to be more specific Audi is aiming to make a dent in the yuppie SUV market. Where I live, you see a LOT of BMW SUVs running around. Like all SUVs, they’re more of an annoyance than anything else. Of course there’s that bad mental equation that says “I need an SUV [you probably don’t] but I want something as cool and prestigious as my BMW [of course, because you’re cool and prestigious, aren’t you]; I am SO glad BMW makes SUVs!” And that’s just the buyer that Audi is aiming for.

They’ll probably sell a ton of them, cause near as I can see, there’s a ton of yuppies flush with cash and concerned about both their appearance and the well being of the tots they’re hauling around.

But here’s an interesting twist from Audi: The Q3 is going to be built in Spain, of all places. It’s interesting on a number of levels. Normally, German manufacturers like to keep stuff as close to home as they can, usually for quality control purposes. The few German companies that have strayed to foreign shores for production have been Porsche, with Boxster production happening in Uusikaupunki, Finland, and Audi (corporate sibling of Porsche) builds the TT in Gyor, Hungary. Also, keep in mind that corporate parent or sibling VW (and just what the hell IS up with VW buying out Porsche, or Porsche buying out VW, make up your minds so I can say who’s the head of this outfit, will ya?) owns some other far flung manufacturers, such as Skoda in the Czech Republic, and SEAT, in Spain. The Q3 production will be happening at a SEAT site in Martorell, Spain. Production will get cranked up by 2011, with an annual production capacity of up to 80,000 units. The total investment will amount to around €300 million.

“Following in-depth consideration of all relevant factors and an extensive international comparison of various sites, we selected Martorell,” explained Rupert Stadler, Chairman of the Board of Management at AUDI AG. Or to put it another way, ‘Hey, we got the production capacity in Spain, why not use it?’

It makes sense … this economic down turn is far from over, and even though dropping 300 extra-large is always a big outlay, better to keep that outlay internal, and if worse comes to worse, and you have to stop making Q3s, then you can re-tool it to make whatever is needed.

Here’s the Audi Press release:

AUDI AG: New Q3 SUV generation to be produced in Martorell, Spain as of 2011

Audi CEO Rupert Stadler: “Consistent strategy of growth and internationalization through this product and production decision”

Investments of around €300 million, production capacity of up to 80,000 units yearly

Key measure for securing jobs

Ingolstadt/Wolfsburg/Martorell – A production site for the Audi Q3 was chosen today: the SEAT site in Martorell, Spain. Manufacture will begin in 2011 with an annual production capacity of up to 80,000 units. The total investment will amount to around €300 million.

“Following in-depth consideration of all relevant factors and an extensive international comparison of various sites, we selected Martorell,” explained Rupert Stadler, Chairman of the Board of Management at AUDI AG. This decision enables Audi to continue its strategy of growth and internationalization.

Mr. Stadler added: “We are counting on this Spanish site’s efficiency, the excellent quality of the Production department, and its highly trained staff. We will use the Group’s synergies to sharpen our competitive edge and help protect around 1,200 jobs. The decision furthermore safeguards workplaces at other Audi locations.”

Audi Board Member for Production Frank Dreves: “Starting in 2011, the Audi Q3 will be produced to Audi quality standards at the Martorell factory. This gives us additiona flexibility regarding future decisions about products. We will begin preparing at once.”

Having agreed that the Q3 will be manufactured in Spain, a decision about production in the USA has been postponed. Mr. Stadler: “We will systematically explore our options in the context of the current market crisis. Audi is in a good position. There is currently no urgent need to select additional sites.” A small, sporty SUV, the Audi Q3 will join the family consisting of the Audi Q5 (produced in Ingolstadt, Germany) and the Audi Q7 (produced in Bratislava, Slovakia). Yet another compact vehicle in a new model range is thus set to join the A1 in 2011. The Q3 will further expand the Q family. A coupé-like five-door SUV with seat positions, wheel size, and ground clearance characteristic of a typical SUV, the Audi Q3 will stand out thanks to a supremely sporty driving experience. The Q3 will blend a compact car’s design and driving dynamics with an SUV’s spaciousness and versatility. True to Audi tradition, innovative technical solutions will blaze new trails in efficiency, driving pleasure, and comfort. The market launch of the Q3 is scheduled for 2011.

The production facility in Martorell is yet another cornerstone in AUDI AG’s portfolio of sites. Audi produces its vehicles in Ingolstadt and Neckarsulm (Germany), Hungary, Belgium, Slovakia, India, and China.

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