Audi launches its e-tron SUV with a party in California while the goal is at Tesla

by
Christoph Rauwald and Dana Hull

San Francisco | Be careful, Tesla: the Germans are finally coming.

Audi unveiled the e-tron, a battery-powered crossover that is expected to come out in the showrooms later this year, during a big night of Monday night in Tesla's yard.

Mercedes-Benz unveiled its own electric crossover earlier this month, and BMW on Sunday introduced another conceptual model of battle against Tesla.

Although the titles consider each new electrical offer as a "Tesla killer" and that car manufacturers around the world have for years coveted Tesla's inventory valuation and clean car reputation, the Elon Musk series is on the point of leaders in automotive luxury.

The first all-electric Audi car will be manufactured in Brussels and will arrive in the United States in the second quarter of 2019, the company said in a statement sent via email.

Publicity

The five-seater starts at $ 74,800 ($ 103,600) and will be eligible for the $ 7,500 federal tax credit.

Audi unveiled the e-tron on the site of a former Ford factory in Richmond, California on the other side of San Francisco Bay and about 56 km north of the city. 39, the only Tesla assembly plant in Fremont.

"Audi is getting electric and it's our first major step," said Scott Keogh, president of Audi of America, in an interview Monday before the unveiling.

"We think we have an extremely convincing product."

Audi has chosen the San Francisco area for the e-tron's global debut for several reasons: California is the largest luxury auto market, the technology industry predominates and Governor Jerry Brown has just organized a Global Climate Action Summit.

About 1,600 people attended the Audi show, including dealers, journalists and employees who traveled.

The event began with a boat ride from San Francisco and ended with strobe lights, swinging music and hundreds of cell phones taking pictures of the new car.

"California is an important and hard-hitting market," Keogh said.

"The electrification, the technology industry, the ecosystem is there, it's the right place to do it."

Diesel distraction

Audi, the high-end Volkswagen brand, has transferred the presentation to Tesla's court after the first plans for a party in Brussels at the end of August were overshadowed by the surprise arrest of its managing director Rupert Stadler. related to the diesel scandal of the parent company.

VW's supervisory board was to discuss Stadler's future at the manufacturer on Monday, according to a report by Spiegel.

The 55-year-old is still in detention, as he has been doing since June.

Bram Schot, interim managing director of Audi, chaired the e-tron event.

"We are merging the new world of electric mobility with 100 years of experience in manufacturing," said Schot.

The fall of Stadler marked the culmination of what was a tumultuous time for Audi, VW's largest profit-earner.

Audi, which was temporarily second in global sales a few years ago, lost ground against German rivals Mercedes and BMW, both in terms of deliveries and profit margins.

The e-tron, whose planned US reach is expected to be around 362 km (225 miles) per charge, offers the potential for a fresh start at Audi if the model turns out popular with customers.

The brand plans to add two more battery – powered vehicles by 2020.

While the e-tron is largely based on stand-alone technology, VW is advocating for closer cooperation with the Porsche sister brand, especially in the area of ​​electric car development, in order to share costs.

Audi has announced plans to introduce a total of 12 fully electric vehicles in its main markets by 2025.

By that time, these models and Audi hybrids will account for about a third of global shipments, according to a statement.

Audi has about 300 dealers in the United States

"Dealers were the target audience for this event," said Chelsea Sexton, an electric vehicle marketing consultant, at the show.

"The idea is to get Audi dealers to excite themselves for the product."

Next year, the e-tron crossover will be accompanied by a variant of Sportback, followed by a slew of other vehicles covering all major segments, from compact vehicles to high-end limousines.

A new design concept, the e-tron GT, is expected to be unveiled at the Los Angeles Auto Show in November.

Slow strike

Despite Audi's ambitions – and those of Porsche, BMW, Mercedes-Benz and others – Tesla will face little direct competition before 2020, analyst Toni Sacconaghi, of Sanford C Bernstein Co, wrote Monday in a report.

Luxury electric vehicles entering the market are now selling at a price comparable to that of the Tesla Model S sedan and the Model X crossover.

But Musk's auto business is moving more and more towards the mass luxury market, first with its smaller Model 3 sedan and possibly with the Model Y crossover.

With the General Motors Chevrolet Bolt devoid of a luxury nameplate, the first real rival of the Model 3 will be the Polestar 2 sedan that Volvo Cars plans for 2020, Sacconaghi said in a note to its customers.

"Let's be clear: there is no real flow of competition ahead," he said.

While the next two years may be less difficult to anticipate than Tesla expects, Audi, as a brand, represents a legitimate enemy, according to Musk's statements.

In 2012, he rejected comparisons with Nissan's Leaf, a cheap electric model meant to be sold by the hundreds of thousands.

"When someone plans to buy a Model S, he considers it against something like an Audi A6 or A8, or against a Porsche Panamera or who knows, BMW 5 Series, 7 Series," said Musk. during a conference call.

"It really tends to be the basis of the comparison."