Paying a higher price at the pump reduces the disposable income consumers have, sometimes by a sizable amount. Many of the autos on the American roadways are powered by regular gas, Audi hopes to change that. They're introducing sporty cars in the American Market powered by diesel which is almost 30% more efficient than the conventional fuels we're using now. This is an interesting step for the company as it takes on competing fuel sources such as hybrids and electric cars. It makes sense for Audi to bring this type of car to market in the U.S. because we already have diesel infrastructure available, these cars don't have the problem of expensive battery replacement which further reduces the footprint on the environment. For years diesel has been the dominate fuel in Europe, the auto maker has extensive experience with these types of engines. If Audi is successful, other German manufacturers such as BMW, Mercedes, and Volkswagen are sure to follow suit. It will be interesting to see how Audi's marketing plan matriculates into this low competition segment because many American view diesel fuel as expensive, loud, and dirty.
http://blogs.wsj.com/drivers-seat/2013/02/08/audi-plans-to-attract-more-u-s-buyers-with-diesels/?KEYWORDS=bmw+discount+luxury+car
I also tend to think of diesel as a 'dirtier' fuel... perhaps because 18-wheelers run on diesel and i certainly dont think of trucks as being very clean or good for the environment. Audi will need to first work on changing the public's perception of diesel fuel so that people will be more open to it.
ReplyDelete