Update on non-delivery of RS6

[rsjoe]

Just got a call from dealer apologizing for the non delivery of the vehicle. He said that AOA is keeping them in the dark and had no idea when delivery would take place. Now for the best part. I called AOA and here's the "story" I got. The cars arrived in port 2 weeks earlier than expected and their inspection services were not set up to handle them. She said once that takes place then they have to clear customs which takes another two weeks. Thus the car should be delivered between Jul 15 and Jul 30 hopefully according to her. Since I've received special order BMW's out of this same port in less than a week, I'm not buying this story. They may even be having problems with emissions certification, but there is definitely a problem. I've decided that when the car arrives I'm going to offer $5k under sticker, which is where the car should have been priced to begin with. It's too bad the dealer has to bear the brunt of AOA's screwup. I know for a fact that there are mucho unsold RS6 slots throughout the country.

[Rally]

Port delays are quite common. I've had this happen a few times with German cars.
If your unhappy with your treatment by Audi before the car is even delivered then I suggest you save yourself more anguish and not bother taking delivery of the car.

[Finnus]

I just spoke with my dealer, and he said the RS6s in port had been "released". This means they are free to get on a truck for delivery. This was not confirmed by his websites.

Finnus

[rsjoe]

and now were in the same boat. Let's start a rumor that AOA is reconsidering its pricing of the RS6 due to soft sales and the delay is due to the reprinting of window stickers at a significantly lower price:D

[Finnus]

Let's start a rumor that AOA is reconsidering its pricing of the RS6 due to soft sales and the delay is due to the reprinting of window stickers at a significantly lower price

Joe,

I'm afraid with the way things have been going that they would raise the price!

Finnus

[jconley]

Originally posted by rsjoe
and now were in the same boat. Let's start a rumor that AOA is reconsidering its pricing of the RS6 due to soft sales and the delay is due to the reprinting of window stickers at a significantly lower price:D

With the Euro as strng as it is against the dollar, I am suprised it isn't higher!

[Finnus]

JCon,

Good point. I was worried myself when I heard the Euro getting stronger. Way back I was thinking I should buy a currency hedge - maybe Audi does that when they announce a car's price.

Finnus

[Benman]

this is VERY true. when you consider the exchange rate for the euro is $1.30 for 1 euro that comes out to @$110,000.00 for the RS 6 sedan (with 18"s and NO nav!!!!!!!!!!!):cheers:

Ben:addict:

[Tyrrell 017]

The current exchange rate is $1.1488 per Euro. It's never been as high as $1.30.

[Benman]

Originally posted by Tyrrell 017
The current exchange rate is $1.1488 per Euro. It's never been as high as $1.30.

my bad. but that still puts the euro RS 6 @ $99,000.00. not the $82,700.00 that we will get it for!:cheers:

Ben:addict:

[Tyrrell 017]

Audi announced the pricing for the RS6 on April 9. The exchange rate then was $1.0722 per Euro. Since that time the exchange rate has increased a bit under 7.2% ($1.1492, today's close/1.0722, April 9th's close). If we adjust the price by 7.2%, then the RS6 in today's equivalent would be $88,650 and change. So there is, in fact, a significant beating that Audi and all of the European automakers have taken by not adjusting their revenues in dollar terms. Having said that, all of the major automakers have extensive foreign currency hedge programs that are in place to protect them against unfavorable exchange rate swings. Some are more successful at it than others. Yet as long as BMW and Mercedes are pricing the M5 and E55 where they are, it will be tough for Audi to capture the swing in the value of the US dollar.

[Finnus]

You have to look at the Euro/Dollar relationship when Audi first announced the price, then look at the change in the realtionship since then. I would bet that Audi pricing takes into account a strengthening or weakening Euro/Dollar relationship and they might even purchase currency hedges since such a huge part of their business is exports and I assume (big assumption) they don't want to jerk customers around with changing prices (I assume they only want to jerk us around with release dates).

This is probably more thinking than anyone would want to do on a Thursday afternoon (a holiday afternoon for us in the US), but here goes ...

Suppose that on 4/3 $1 = .92902 Euros. For an $82,700 car, Audi expected to get 76,830 Euros. Now on 7/3, the Euro strengthens (Dollar weakens) to $1 = .86655. Based on the same dollar denominated price of $82,700, Audi will now get 71,664 Euros, or 5,166 less.

Bottom line, let's hope Audi doesn't raise the price! (Tyrrell, I hope you're right on the "market forces" AKA MB & BMW)

Finnus

PS If there's a currency trader in the house or someone who knows how Audi handles this, let me know. I suppose we'll all find out soon enough.

[Tyrrell 017]

You're absolutely right. The $88 and change number is what Audi would have to charge in order to maintain the same $/ Euro relationship in Euros. The $71 and change number is what Audi would receive in order to maintain the same $/Euro relationship in US Dollars.
Audi (Volkwagen), Ford, GM, DCX--none of those folks will disclose exactly how or to what extent they engage in foreign exchange hedging activities, nor are they required to in anything but the broadest terms.
Here's another reason why the price will probably not go up:
http://cgi.ebay.com/ebaymotors/ws/eBayISAPI.dll?ViewItem&item=2421566261&category=31852

This is just a sample of what's out there, and this is $40,000 + off of last year's car. Likewise, CL55's with very low mileage are at startling "buy it now" rates. Other things that folks who are considering a RS6 might look at are similarly taking a beating. It's a buyer's market.
Happy 4th.