i don't think there are much debate here. as the marketing director of Audi of USA said, Audi is going to transform into a sport/luxury company. In the next 7 years, Audi will release at least 7 new model onto the market.
This year (2007) all new A4 this fall, Q5 to follow. 2008, All new A6, all new A7 (sport coupe of A6), Q3 2009, All new A8.
before 2010. Audi will have a very complete product line.
Seden: A4, A6, A8 Sport coupe: A5, A7 SUV: Q3, Q5, Q7 super sport car: R8 small coupe: TT Entry level: A3
I think it is as complete as a car company's product line can be. The marketing director also meantioned that in the future, less and less parts will be shared between Audi and VW. (kinda similier to Lexus and Toyota story)
On the other hand, what VW is famous for? Golf, Jetta, Passat, Beetle.
I think VW will continue focusing on what they do best. small economy car, which is reliable and affordable. If you want Luxury, go to Audi.
Market is all about TARGET AUDIENCE. You need to target and focus on very specific group of people. If their target audience is everyone. The result is no one buying it.
If you think of the US market, Toyota is focusing on USD $30000 and below. Lexus is focusing on USD $30000 and above. guess what? it's a HUGE success.
I think VW and Audi is going to do the same thing, as VW focusing on 30K and less and Audi take care of 30K and above.
phaeton is already proved an unsuccessful case. It is a great car, but target the wrong group.
Skoda? I think for a car to be successful, it need to do well on top major market first. (1. United States, 2, China, 3, Japan, 4, Germany, 5, UK) I don't see Skoda has great success in ANY of the top 5 market yet.
and what's luxury car? it is very subjective. If you are riding a bike, a VW golf is already very luxury. but for someone, he might think RR or Bentley are luxury cars.