Audi A7 confirmed for U.S. and S8 model in the works

2011 Audi A8 – Click above for high-res image gallery

At last week's tony Design Miami reveal of the 2011 A8 luxury cruiser, we were able to corner Johan de Nysschen, Audi's executive vice president in North America, and ask him for some tasty tibits on the brand's upcoming products, including the A8's sexier derivative, the A7.

In addition to giving us the first official confirmation of the A7's existence, de Nysschen revealed that the four-door coupe model will slot in "a little bit below" the new A8 in terms of pricing, just as we expected. Of course, it's worth noting that the 2011 A8 faces a price bump due to substantial increases in content and technology, so when the A7 finally comes to the States, the average model is likely to sticker at around $82,000-$83,000, which de Nysschen says is about the price for a typically equipped 2010 A8 (pricing starts at $74,550 plus delivery).

Based on Audi's new longitudinal modular platform technology, the A7 will be clearly related to the A8 (and the A6 replacement that will follow it), and de Nysschen says that the 2009 Detroit Auto Show Sportback concept car serves as a "very reliable indicator" of what the production model will look like. Judging by recent spy shots from our friends at KGP, that very much appears to be the case. While parts commonality will be "substantial," de Nysschen says that the A7 will not use the full aluminum spaceframe design of the A8, although it will have aluminum elements.

As expected, the A8 will launch Stateside in both standard and long-wheelbase formats, with the latter predicted to make up the lion's share of the volume (the A8L presently accounts for about 80 percent of the model's sales).

We asked De Nysschen about how the two models will interact in the full-size luxury sedan segment, and he noted that:

"This top end segment is characterized by more conservative people, and we need to clearly take lower levels of risk with a flagship model [the A8]. But we recognize too that there is a sizable enough cluster of customers in that same segment who are ready for a more avant-garde design [the A7]. So we will essentially be positioning two cars into the same segment, which means that independently, the volume each attains is not that significant, but when you put them together, it will mean that our share of that segment will grow quite dramatically."

All-in De Nysschen thinks that the A8 will account for about 4,000 to 5,000 sales per year in the U.S., and the less costly A7 could clear 7,000-8,000 additional units.

And what of a high-performance S8 to take on Mercedes-Benz's AMG lineup, or the A5 Sportback? Click through to the jump for more details.

2011 Audi A8: Live from Miami

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Most auto shoppers who send email leads to dealerships

Most auto shoppers who send email leads to dealerships dislike the way their messages are handled, according to a survey by AutoTrader.com, an online vehicle marketplace.

Only 37% of new-car shoppers who submitted leads were satisfied with the process. The satisfaction rate was higher for used-car shoppers: 49%.

Most satisfied are people who got a response within three hours. A response time of between three hours and a day left shoppers somewhat satisfied. Full dissatisfaction kicked in after a day with no reply.

“Dealers should establish a process for quickly responding to emails,” AutoTrader CEO Chip Perry says.

A personal reply within a day is best, he says. Better than nothing is an automated response saying, “We received your email; someone will contact you soon.”

The study indicates the top three reasons shoppers send dealerships emails are to: confirm a vehicle is still available (76%), get more information about a vehicle (57%) and ask if the posted price is flexible (53%).

Although responding quickly to emails is important, they’re not a primary channel for shopper-dealer communications, AutoTrader research indicates.

Up to 90% of consumers use the Internet to shop for cars but only a quarter of them send emails to dealerships, Perry says.

Dealers need processes for quick email responses, says AutoTrader CEO Chip Perry.

Those that don’t say they prefer dealing with sales people in person and want an immediate response.

Eighty percent of car shoppers who visited a dealership showed up without prior contact, according to an AutoTrader study in conjunction with Northwood University. Seventeen percent phoned beforehand. Only 2% emailed.

“Many people still crave a communication method that is more human,” says Dave Schoonover, a marketing manager for Kia Motors America Inc.

One reason so many car consumers skip emails to dealerships is that “so much information is available online about dealers and their inventories,” says Anna Zornosa, general manager of The Cobalt Group Inc.’s Dealix.com, which provides Internet leads to dealerships.

“People can click directly to website pages, fill out forms and inspect inventory,” she says at a J.D Power and Associates’ Internet conference here.

First-time car buyers are more likely to use email, she says. They also are “extremely interested” in independent opinions about cars, such as views expressed on third-party automotive Internet sites.

Modern technology speeds up car shopping, but essential elements remain unchanged, says Christian Nimsky, vice president of Kelley Blue Book’s kbb.com, a vehicle-value guide.

“People are asking, ‘What is my car worth as a trade-in? What car should I buy? What’s the complete transaction price?’” he says. “When you cut through all the technology, these are the questions they want answered.”

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Perry agrees the basics count. At some point, “people want to see a live car on a dealer lot,” he says. “They want to see a car and a deal. When dealers fulfill that need, it moves the needle.”

Conversely, when information is inconsistent – such as online inventory listings for cars that already have been sold – “people tend to back off and think about contacting another dealer,” Nimsky says.

Most customers would prefer to avoid going from dealer to dealer, Schoonover says.

“Ideally, a customer has a good relationship with a dealer who treats him or her right,” he says. “No one wants to deal with five different dealers any more than you would want to go to five different Nordstrom’s to buy something.”

General Motors on Monday said it would invest US$336m

General Motors on Monday said it would invest US$336m in its Detroit-Hamtramck assembly plant to begin production of the Chevrolet Volt electric car, with extended-range capabilities, in 2010. The plant initially will also build Opel/Vauxhall Ampera variants for Europe although production of those is expected eventually to shift across the Atlantic, possibly to the Vauxhall plant in Ellesmere Port, north west England, though a final decision has not been made.

This brings GM's combined Volt-related investments in Michigan to $700m, over eight facilities. Detroit-Hamtramck will be the final assembly location for the Volt, using tooling from Grand Blanc, lithium-ion batteries from GM's Brownstown Township battery pack manufacturing facility, camshafts and connecting rods from Bay City, and stampings and, eventually, the Volt's 1.4-litre engine-generator from Flint (initial supplies will be imported).

"We expect the Detroit-Hamtramck plant will be the first facility in the US owned by a major automaker to produce an electric car. It is the hub for the wheel that we began rolling in 2007 when the Volt debuted at the [Detroit motor show]," said GM vice president of global product planning Jon Lauckner.

"Since then, the field of challengers and partners has grown significantly. This competition will expedite the development of electric vehicle technology and infrastructure."

After the Volt's debut in January 2007, other automakers announced six plug-in hybrid or electric vehicles later that year, followed by 19 introductions in 2008 and five more this year.

In addition to GM's $700m in Volt-related facility investments, there are the many suppliers, utility companies and organizations investing in Michigan and the US to support Volt production and electric vehicle development. In August, the US Department of Energy selected 45 companies, universities and organisations in 28 states for more than $2bn in awards for electric drive and battery manufacturing and transportation electrification.

To reduce cost and maximize flexible manufacturing techniques, some equipment for Volt production is being reused from other GM facilities and installed in the Detroit-Hamtramck plant's body shop. The car will be built on the existing assembly line at Detroit-Hamtramck. Assembly of prototype vehicles will begin in the spring, with the start of regular production scheduled for late 2010.

Detroit-Hamtramck opened in 1985, and currently employs about 1,200 workers, including 1,100 hourly workers represented by United Auto Workers (UAW) 'Local 22'.

The Volt is an electric vehicle with extended-range capability. It is designed to drive up to 40 miles (60km) on electricity without using petrol or producing tailpipe emissions. When the lithium-ion battery runs out, an engine/generator seamlessly operates to extend the total driving range to about 300 miles (500km) before refueling or stopping to recharge the battery. Pricing has not been announced.