Volkswagen's acquisition of Porsche was in many ways an obvious if not rational consolidation, and all the more so given Dr. Ferdinand Piech's shareholding in both companies. Porsche's future now seems secure while the brand should have a halo effect on the rest of the brand line-up.
But there is much work to be done. The 911 is an iconic car, but it really is an anomaly among modern sports cars. Good as it may be, it cannot hold a candle to the latest Ferraris or even Audi's amazing R8, which has sold so well in comparison. Both have a dynamic capabilities that even the most gifted engineers at Porsche cannot exceed when saddled with the 911's archaic rear engine layout. I am not suggesting that the 911 should be killed-off, the market for it seems to be showing no signs of declining. But With Aston-Martin and Mercedes investing in increasingly better new models, the competition is catching up. Porsche needs a new sports car strategy. Indeed, VW has already stated its intention to invest in new models, the most significant being an entry-level roadster below the Boxter. But what it really needs is a true successor to the 911.
Enough about Porsche. The question is where does this leave Audi? Audi's remarkable growth over the last 5 years has been largely due to the adoption of sporting character in its models. Cars like the R8, RS4, RS6 and TT-RS have all underlined performance as a key Audi brand characteristic. Will Audi's sporting pretensions be amputated by Porsche's strategy? I hope not and i don't think it will. But how the two brands sit together to complement each other remains a major strategic issue for the Group. I think the relationship between the two brands needs to be carefully defined to avoid product overlap and customer confusion.
In terms of future Audis, i hope we will see the following mix of characteristics: advanced technology, brilliant engineering, practicality and comfort, performance + economy, dynamic handling, safety, design a+ style and, of course, Quattro. These characteristics must continue to form the cornerstones of the brand, but equally they must add up to an overall promise that encapsulates what Audi stands for. For a long term, certainly in the UK, Audi has been using the tag line: Vorsprung durch technik (Leaping ahead through technology). Such a promise only creates value for customers if you constantly manage to innovate. The problem with innovation is that it is soon copied, so people forget the fact that it was Audi who invented things like front-wheel drive, numerous engine technologies and other breakthrough technologies.
One reason that BMW has been so successful is that its positioning was always about driving pleasure: an emotional benefit which was much harder to copy. BMW has now abandoned driving pleasure in favour of efficient dynamics. What a huge mistake.
So Audi now has the opportunity to reposition itself in a way that moves beyond 'Vorsprung durch technik'. I think it must reflect an emotional benefit, not a functional one. When I think about the cumulative benefits of an Audi, what they add up to is: total predictability that gives me confidence. It's being able to drive an RS4 on icy roads at speeds well above that of other cars; its an R8 that flatters my lack of racing driver training; it's the styling of a TT which says I'm innovative and progressive; it's a car that's forgiving when i exceed its limits.
i think defining these brand characteristics of the brand is incredibly important for Audi, not only because Porsche has to find its own place within the VW empire, but because the industry is changing. Whether we end up driving fuel-cell-powered cars, pure electric vehicles or a yet-to-be-invented sources of future green power, we'll still be driving cars and we'll want them to reflect our own individual needs, wants, tastes, preferences and attitudes.
If Audi gets this right, then we can expect to drive cars that are exciting, reliable and dynamic - just as they have now become. But, if Audi gets it wrong, it may risk descending into a morass of me-too mediocrity, a lack of focus that destroyed GM. As things stand, the signs are good, but with so many new models being released, i believe Audi's sense of its own identity is incredibly important.