Audi of America President Says Tesla is a Company to Watch

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is beginning to garner notice from major luxury automakers. BMWBMWGermany, 1918 > present87 models
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is citing it as a possible inspiration for its next car from the i sub-brand, and AudiAudiGermany, 1909 > present83 models
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of America President Scott Koegh described that company as “the talk of the town” in a recent interview with Bloomberg.

“What the industry as a whole can learn from them is continue to push innovation, continue to have the challenger spirit,” he said.

Of course, Tesla is nowhere close to Audi in sales. It will sell only about 21,000 cars worldwide this year, while Audi has already sold 114,411 cars in the United States through September and has sold over a million worldwide with three months of sales to go.

Keogh did criticize Tesla’s decision to eschew the traditional dealer model of selling franchises to sellers in favor of opening its own corporate-run stores. It means that Tesla will grow its sales much more slowly but have much tighter control. It has also gotten Tesla into lawsuits in several states where laws do not allow automakers to sell directly to customers.

“My view of dealers is crystal clear because I have personally seen the leverageable advantage of a dealer,” Keogh said.

Keogh also hinted that Audi is working on an EV model of its own to meet California’s mandate for large automakers to offer at least one electric model. The alternative is paying annual fines in the state. 

Source: Bloomberg