Bucking a Small-Car Trend, No Audi A1 Model for U.S.

NEW YORK — Audi has no plans to join the stampede to smaller, entry-level cars in the U.S. market any time soon, according to Johan de Nysschen, president of Audi of America.

Audi has such a car in the global pipeline, the A1, which is slotted below Audi’s smallest car of today, the A3. But de Nysschen said in effect that if Audi were to import the A1 here, for American tastes it would be too expensive for its size.

“In Europe, you can still sell a high-end, technologically advanced compact car … Small size doesn’t mean low-cost,” he said in answer to a question, following a presentation to the International Motor Press Association on March 19.

“In the U.S., the A1 is not the right car for Audi,” he said. Rival BMW introduced its smallest car, the 1 Series, in the U.S. market last year, but it’s not a whole lot smaller, or cheaper, than the next-biggest car, the 3 Series.

BMW’s entry-level strategy was to revive the Mini brand, rather than try to stretch the BMW brand too far down-market. Similarly, Mercedes-Benz added the Smart brand last year, rather than introduce a car for the U.S. market below its entry-level C-Class. In other world markets, Mercedes-Benz offers the smaller A-Class and B-Class, but not in the United States.

In the mass market, Ford and GM are both introducing new small cars for the U.S. market. Through its proposed merger with Chrysler, Fiat could introduce its tiny Fiat 500 model in the United States.   

A two-door, Audi A1 hatchback made its auto show debut as a concept car in 2007. In October 2008, Audi showed a four-door version of the A1 at the Paris auto show, with a hybrid powertrain that combines a small conventional engine with an electric motor. Judging by its auto show appearances, a production version of the A1 isn’t far off.

Audi does not currently offer any hybrid models, but it is introducing modern, clean-burning diesel engines in the U.S. market, starting in the next few weeks. De Nysschen says diesels are a compelling alternative to hybrids, for customers who want better fuel efficiency. However, he acknowledged that most Americans still associate diesel with “black smoke and lots of noise,” based on diesel engines of 20 years ago.

He said American and European tastes in small cars will probably converge over time, especially if U.S. gas prices climb again. “But certainly not for the current generation of A1. The soonest will probably be the second lifecycle of that car,” he said.

Photo: Audi