About one in every three Audis sold new last year was purchased in China. That’s almost three times as many cars as were sold in North America, or about as many cars sold in all of Europe. China is important.
The company’s plan last year was to try to start a bit of a reset, with a new sub-brand. The name of this new Audi offering? AUDI. It’s just Audi, uppercase, and without the rings. It turns out that silly marketing can’t fix serious problems. Oops.
While we’re on the topic of Spider-Man pointing to Spider-Man, Toyota’s Toyoda looks like it’ll finally be able to buy Toyota Industries, which is a company that’s not totally owned by Toyota.
In less recursive news, there’s another war on, and the impacts could be small, or they could be huge. No one knows anything. That’s not entirely true. UAW workers at Stellantis know exactly who to blame for the loss of bonuses for 2025.
Adventurous Adopters Aren’t Appreciating Audi’s Audacious AUDIs
If it seems like I’m constantly harping on Audi, it’s because the brand is important and there’s no reason why it has to be a failure. If you’re a member of the four-ringed faithful, perhaps 2025 represents the bottom.
Sales were down 3% globally to 1.6 million vehicles, led by a 5% drop in China to about 618,000 vehicles. One of Audi’s big plans to compete with the rapid adoption of well-liked, tech-forward domestic options was a new brand: AUDI. That’s Audi, but with no rings and the caps lock key engaged. The first AUDI is the E5 Sportback.
This is a locally-built car developed in conjunction with long-time Volkswagen partner SAIC. It’s an attractive five-door wagon with specs that are, if not better than what the best China has to offer, at least closer.
It only went on sale last year, but thus far, it hasn’t exactly set the world on fire. As Bloomberg reports, sales numbered just 605 in January. That compares to about 8,000 Model 3s and more than 20,000 Xiaomi SU7s.
Bigger than that, the vehicle is predictably plagued with issues, according to one owner who spoke to Bloomberg:
“I prefer cars that are a bit more niche and I really love the styling,” said Neo Shen, a Shanghai-based engineer who bought the most premium version of E5 Sportback. The car retails for between 235,900 yuan ($34,000) and 319,900 yuan.
But “the infotainment system is a total work-in-progress and full of bugs,” he said. The air conditioning turns on by default every time he starts the engine and the driver-assistance features are too slow for city driving, making him miss off-ramps on highways.
(Note: the “engine” thing is a mistake; Bloomberg is going to fix it.)
The E5 Sportback did win the China Car of the Year award, and it’s still early days. A lot of the bugs can be worked out eventually, although other issues, like slightly slower charging speed, probably cannot.
Either way, it seems like AUDI isn’t the silver bullet Audi needs.
Toyoda Triumphs, Toyota Takes Toyota
I haven’t been reporting much on the back and forth of it all, but the original company that Akio Toyoda’s grandfather founded, which eventually became Toyota the carmaker, is a textile company called Toyota Industries, and Toyota Group really wants it. Why? It’s a textile company that also makes hybrid components and forklifts.
There was only one obstacle: Elliott Investment Management. The American-owned activist investor owns the largest independent chunk of the company, and it’s long accused Toyota Group of trying to muscle the company out for too low a price, given how profitable Toyota Industries is.
Stubbornness works! Toyota is going to pay $132 per share, which is way more than the original $104 offer. As Automotive News points out, this is part of a larger trend of minority shareholders trying to exert more influence on Japanese companies:
The privatization also addresses a complicated parent-subsidiary relationship between Toyota Motor and Toyota Industries as investors and regulators increasingly frown on cross-holdings.
The cross-holdings bind allied Japanese companies through business and capital tie-ups in a structure known in Japan as the keiretsu system. Critics say it introduces corporate governance issues such as conflicts of interests and opaque financial relationships, while also locking up capital that could be better invested elsewhere. The system also tends to ignore minority investor input.
It’s a big win for Toyota and Toyoda as the company is probably worth more than what they paid for it.
Carlos’s Choices Confound Chrysler-ites
The combination of tariffs and poor leadership has resulted in UAW workers at Stellantis being deprived of bonus checks, after getting up to $14,000 just two years ago. While the tariffs are a big part of it, the bad choices ex-CEO Carlo Tavares made seem to be getting most of the attention from workers who spoke with The Detroit News:
Reactions on Thursday varied by plant. At Sterling Heights Assembly, where workers have been recently working long hours to churn out Ram 1500 pickups, a letter to members from Local 1700 President Michael Spencer indicated workers were fed up. He told them they “will not be walking out on a wild cat strike,” and urged them to keep building “the best quality vehicles possible.”
“I do want to express the disappointment of the thousands of UAW Members who come to work every day and deserve better from Stellantis Corporate leadership in their decisions, product planning and fiduciary responsibility,” Spencer added. “Corporate greed drove the decision to offshore production, cut jobs and speed up production lines.”
If there’s any silver lining here, it’s that workers seem to think the new guy is a lot better than the old guy, and there appears to be an appetite to give him a chance.
Alliteration Is A Little Too Glib For This One
Oh, right, I started the alliteration thing and then realized I didn’t want to do it for this story. There’s a war going on, or police action, or whatever it’s being called. It’s nominally between Iran and the United States/Israel, but it’s inflamed the entire Middle East.
In light of the real threats and human suffering, the possible impact on the automotive world seems less important. That all being said, the automotive world has endured one supply chain shock after another since 2020, and any time it seems like things are cooling off, something else happens. This counts as something else.
The big questions are: How long will this last, and will the strategic Strait of Hormuz stay closed? Without answers, whatever happens next is just speculation. Still, as Automotive News reports, the industry is keeping a close eye on it.
It might be nothing, but here’s the logical worst case:
David Whiston, an equity analyst at Morningstar Research Services, told Automotive News that the struggle to ship oil and other automotive components out of the region could add to the industry’s growing affordability crisis.
“That just adds more inflation to making a vehicle, which is already battling tariff costs,” he said.
Long-term, Whiston worries about a broader impact to the economy and potential recession.
“If the war is prolonged, then it’s a question of does it cause U.S. business to freeze spending which will in turn lead to a slowdown, if not recession and layoffs,” he said.
Fun times.
What I’m Listening To While Writing TMD
You’re the first to learn that, if you become a member in March (or upgrade an existing subscription), you’ll not only get 10% off your order, you’ll also be entered into a drawing to be added to a group chat with your favorite Autopian authors in April. The bit I wanted to do for this is use a screenshot from “The Telephone Hour” from Bye Bye Birdie, but everyone told me that was weird. Either way, follow this link or use the code groupchat at checkout.
The Big Question
What’s the best automotive sub-brand, and why is it Merkur?
Top photo: AUDI
I refuse to acknowledge that either of those top two pictures are indeed Audis.
They aren’t Audis, they’re AUDIs.
I guess the difference is you have to shout to pronounce it.
Yeah what’s with the upper case? FIAT (Fabbrica Italiana Automobili Torino) , ALFA(Anonima Lombarda Fabbrica Automobili), SAAB (Svenska Aeroplan Aktiebolaget) B stands for something I guess, but Audi is a pun on Horch, not initials.
I liked DS when it was ‘Citroën DS’ and not the BS ‘DS’ they’re trying to hawk these days. The 2010s Citroën-badged models like the DS3 and DS5 (I try not to think about the DS4) were charming, couture, and still very Citroën. Now they look like knock-off Audis and have zero brand heritage.
I forgot about that one. If the question had been “What’s the most disappointing automotive sub-brand, and can we say it’s Scout yet?” then DS would be my pick.
If oil and fuel prices continue to increase due to this war – well, golly – it’s almost as if owning an EV and installing wind and solar generation was the correct choice after all.
Then again, we could have just continued down that path and eliminated the need for this financially and environmentally costly idiocy in the first place.
But then we couldn’t feed our Futures Trader, Big Oil and Defense Contractor overlords that way….
Best Automotive Sub-Brand?
AMG
Maximum profit and cachet for minimal engineering and cost.
That’s okay because the US invaded Venezuela for its oil, mere weeks before starting a catastrophe in the Middle East.
*tin foil hat ENGAGED*
Might as well wrap up in a bit of the shiny stuff myself, then:
Funny how the caveat about Venezuelan oil was that it’s too thick to be lucratively extracted… barring big changes in oil prices and availability.
“If there’s any silver lining here, it’s that workers seem to think the new guy is a lot better than the old guy, and there appears to be an appetite to give him a chance.”
I would say the new guy likely is way better than Carlos Tavares… at least for North American operations. Carlos was completely clueless about North America.
Regarding Audi, OOOO, and AUDI, I’ve spent enough time in Germany/Austria to learn that they have an excellent education and apprenticeship system from K through higher education. It’s rigorous. How anybody got through that system and still managed to hatch and approve the idea of a separate “AUDI” brand is concerning.
I am not sure why the German brands are in such a funk. I mean ALL of them.
Because they all went 100% in on EVs at the same time without an actual plan, similar to the approach Disney took with the Star Wars sequels.
This, and they rested on their laurels in China and forgot to build cars that were competitive with the Chinese domestics.
No, not that.
What are your thoughts then?
From my perspective, they caught on to Tesla eating their lunch with the Model S, and around the same time, the whole diesel cheating thing came out. VAG pivoted hard, and the others followed.
They chased Tesla by stuffing their EV’s full of software tech, and relied on their brands to be the difference. They made products that said, “Hey, look at our cool EV that does all the same stuff as the Tesla, but from an established brand.”
Instead of doing something truly innovative with their legacies and massive capital, they just… copied Tesla. Big cars with too much tech and quirky things just for the sake of quirkiness with a side of data collection for resale.
Big cars with too much tech and quirky things just for the sake of quirkiness with a side of data collection for resale.
Minus the part about info gathering, that was true of my brother’s 5000cs Quattro back in 1989. Audi’s been “Leaksprung durch Technik” for most of my lifetime. Tech for tech’s sake, with aftersales in the service department (and now data brokerage) as a side hustle.
I was thinking more along the lines of “is there something in the water in Germany?” But yeah Diesel cheating, overly rosy expectations that people will keep buying increasingly expensive cars etc. paired with just cranking out just dull stuff.
Because China does not need or want them anymore.
The US can’t afford them anymore.
They’re just not all that good anymore.
And they’ve become rather ugly.
Yup all of the above
Dieselgate fines + Tesla panic + COVID inflation + surprise Chinese EVs
Fathers who went to the store for cigarettes in 1989 will be back before Audi’s sales in China.
Gave up on engineering perfection to chase profits. Bean counters directing engineering always works out well
More like missed the rapid shift from gas cars to EV and PHEVs. Western brands combustion cars were / are hands down better than the domestic Chinese manufacturers. Their plug-ins are not and 50% of cars sold in China today have a plug.
Probably doesn’t help that people on the Chinese internet are calling the AUDI without rings IGUA. Which means aubergine or “really short person” in Chinese. It’s also what you would see in the mirror stopped at a light. Mirror the image and see for yourself!
Why would Audi get rid of the rings? Do they not want to cash in on the enduring brand recognition of DKW, Horch, and Wanderer?
Oh, and my favorite automotive sub-brand is Essex-Terraplane, of course.
I can understand why Audi wanted to go with AUDI. I mean it worked so well for MINI.
They’ll totally get the bonus after the federal government sends them a fat rebate over the illegal tariffs.
The other problem, however, is there’s probably a heavy percentage of workers that have banked on getting a $14k bonus every year and have already spent it in advance. There’s some basic financial literacy lessons that are sorely missing from public schools.
I’m convinced those two leopards totally won’t eat their face.
Former salaried employee (non-union) in a UAW factory here, there are a significant number of employees banking on this bonus as part of their salary. Same goes for OT hours, every Jan-mar we’d cut back on OT opportunities until the bonuses paid out as our manpower budgets dried up a bit. There was always more than a handful of my guys that would panic when they didn’t get to work 7/12s for a couple of weeks. At least in this part of the country, you can live an extremely comfortable lifestyle on their base pay too, most of them made more than I did.
At my current employer and a former one bonuses were implemented as part of a pay restructuring. Base salary cut and a bonus added. Yes, a lot of people plan their budget on getting at least the base “bonus”.
It is not officially announced but this year I expect my 2025 bonus to be $0. 2024 was the highest ever at about $15K. The difference between the two is tariffs. Even passing on increased cost to customers our margins have dropped and that is the metric for our bonus. Same thing happened in Trump’s first term with his failed metal tariffs.
Since my wife and I have been married we have lived on one income and saved one income so losing the bonus won’t affect our day to day finances but it will for a lot of people in the company.
GM and Ford workers got a bonus so I’m not surprised they blame Carlos Tavares (not pictured above).
So, they’re just SHOUTING now?
I am perplexed, so perhaps someone who has lived (or is living) in China can explain this.
Is AUDI pronounced differently from Audi?
Does it use very different Chinese characters?
Because if the answer to either of those questions is ‘no’, and the problem is Chinese buyers’ perception of the Audi brand, then you haven’t really fixed anything, right?
I’ve never been, but it’s pronounced the same I believe. The Audi brand still has a lot of goodwill in China, it’s just that their EV product is pretty uncompetitive. If they make a competent EV suited to Chinese market tastes, it’s likely they’ll steal back a bunch of the sales they lost or at least stop the bleeding. It’s nowhere close to the reputation of Cadillac or Lincoln a decade ago where their heyday was a distant memory.
Hmm… then I’m even more confused. The E5 looks to be an extremely competitive and attractive EV–why isn’t it selling better?
What I’m listening to.
Back in High School, I was in Bye Bye Birdie. I played lots of bit parts, including Harvey Johnson.
Shockingly, as soon as the song started, I knew the words and could have sung along. It’s been about 40 years and my brain still has that in long erm storage, while I can’t remember what I ate for breakfast.
Likewise, except I played Conrad Birdie himself 🙂
Look at you Mr. Popular in High School. I’ll have you know when it comes to popularity, I failed to become elected to be the VP of the AD&D club. Harvey Johnson was an upgrade.
I wasn’t popular, but I *was* the 17-year-old who was most capable of growing Elvis-like sideburns!
It’s been interesting to read that Audi is having such a poor time. In the past couple of years, I’ve noticed so many Audis on Colorado roads. Much more than comparable luxury brands. But then again, it seems to be the tuner of choice, as they’re often lowered, zipping through traffic by a 20-something. Secondary market sales probably aren’t helping the company if primary buyers don’t stay with the brand.
Hmmm… Audi is the new Infiniti?
Audi’s US sales down almost 30% in 2 years but we are only 10% of their global sales. Audi’s big problem is China.
My theory is the band aid beige and black Audi A5’s and Q5’s I believe you speak of are from the influx of wrong coasters who were trying to miror their influcers and their various VAG cars and SUVs of limited color options. They then trade those in on a Toyota probably a 4runner or taco or maybe a Subaru to better blend in or for all those outdoor activities they don’t do.
You then then have the various home grown teenagers and 20 something that will demand the used for the same reason. Likely iPad kids who have grown up with influencers from day to night. For a newer car with such high safety ratings they don’t cost too much especially when you consider what they were new and parents say ok and buy them. If you have ever seen a q5 flipped or in a ditch it is impressive they are safe so probably not the worst thing to buy a kid especially if they are going to wreck something. Let them get the wrecks out of their system and move to something a little more reliable.
“If you have ever seen a q5 flipped or in a ditch it is impressive they are safe so probably not the worst thing to buy a kid especially if they are going to wreck something. Let them get the wrecks out of their system and move to something a little more reliable.”
Are you OK with kids wrecking cars? Because I’m not, especially something as big and dangerous to bystanders as a modern SUV.
Don’t want anyone wrecking but mix iPad kids and wrong coasters someone is going to wreck. Might not be the kids fault just might not know how to be super defensive against the wrong coaster and get driven off the road. Happens a fair amount.
So don’t mix iPads, kids and a steering wheel, especially a steering wheel attached to a two and a half ton ton, three digit speed capable death machine.
Kids wanna learn? Fine, here’s your 1.0L I3 MT Ford Fiesta. Have fun kid. Don’t like it? Well there’s always the Swedish solution:
https://en.wikipedia.org/wiki/EPA_tractor
There is a reason farm kids are the best drivers. Learn to drive a tractor early. Then stick them in other equipment. I believe we are watching a similar thing unfold with these e dirt bikes. The kids are outside again riding on things and observing traffic.
I’d much rather kids learn on dirt and e bikes than on public streets with 5000 lb pedestrian crushers
It will certainly make them better drivers especially younger. Probably with a better understanding of everything. But the mindless people will try to stop then complain they aren’t outside and other social issues that it solves.
What’s the best automotive sub-brand, and why is it Merkur?
The XR4Ti rides like a dream but handles great!
The Scorpio even more so. A juggernaut GT once moving, although somewhat leisurely in the get moving department. I liked mine.
On a VAG product having funky electrical problems, color me not surprised.
I’m glad to see VW worker guy again. I hope he and his loved ones are doing well.
Another Awesome Article, Att Ardigree!
Autopian Alliteration Addition!
Last addited 35 minutes ago by Kuruza
Autozam was a great sub brand.
I liked Scion too. Different designs
Scion iQ my beloved!
Two different 1st gen xB’s here. I met life-long friends through Scion and the events they used to sponsor.
Introducing the 86/GT86 to Americans as a Scion was probably actually a smart move on their part. Establish a legacy without people going “why don’t they just call it a Celica?” Scion was the weird experimental side of Toyota in the states, and that was a benefit.
To paraphrase Beyoncé: AUDI, if you liked it then you shoulda put some rings on it.
As to Stellantis: Meet the new boss, same as the old boss. Hope we don’t get fooled again.
Rock on.
It’s Cadillac V by a mile.
Younger people who have grown up with Cadillac as a performance brand have no idea how hard that title had to be won, and how ridiculous the very idea seemed at the start.
Blackwings being generally acknowledged as the best driving sedans in the world 20 years after Cadillac’s sportiest offering was legitimately the FWD Seville is quite the transformation.
After the loss of the dream of a 6MT CTS-V Wagon, the pinnacle of the fun, they’re dead to me as an aspirational brand.
I’ll have to settle with a dream of an Audi, instead.
Audi doesn’t make what you want either though.
Dead. To. Me.
Ouch. In that dream, what sleep may come is hopefully covered by warranty.
I think we need a definition of “sub-brand”. Cadillac was started in 1902 as an independent company, predating all GM brands except Olds and Buick. I think of a sub-brand as a marque originated by an existing marque, e.g., Saturn, Lexus, Acura, Scion, Infiniti, Imperial, Edsel, Geo, as well as Matt’s favorite Merkur, in order to address a particular market.
But yeah, the Blackwings are special.
My intention was that “V” is the sub-brand inside Cadillac, not Cadillac as a sub-brand of GM.
They didn’t sell cars using only that name, but otherwise it fits.
Sorry, I missed the “V” in your original comment. Problem is that now you open things up to BMW M, M-B AMG, Audi RS, Ford’s SVT and SVO, etc.
I cannot in good conscience rank V anywhere near M and AMG. C’mon, the original M1? AMG Hammer?
Great cars for sure, but the crux of the argument is the remarkable journey from FWD Northstar powered overboosted steering relics to world class sports sedans, and I’m not sure BMW or Mercedes has ever in their history had a self-improvement arc quite like that.
What? No love for the Allante? /s
As for BMW and M-B, yeah, they seem to be on a reverse trajectory. Their best years mirror Caddy’s worst.
Exactly, and props for jumping on that grenade before me. Still sorta unclear about what’s a sub-brand. Was Geo one? If so, Scion was too. Blackwing seems like a trim level or package, so I guess V is a sub-brand. Audi’s S vehicles are a sub-brand but S-line is a specification? Is an RS6 a sub-brand of a sub-brand?
Anyway, the answer’s Alpina, if only because a sub-brand of their original brand can get you buzzed: https://www.alpinawein.de/
Kidding aside, V absolutely redefined Cadillac in an appreciable way.
The media STILL doesn’t give V its props.
Best automotive sub-brand? Early Scion.
Early Scion was so good.
If Audi doesnt have rings anymore, what am I going to hit with my Sonic?
I dunno, but I’m gonna have to see if your Sonic drops any rings. Not gonna crash into it, just hit it with my knuckles.
Well done. Very well done.
Is it just me or does the AUDI thing feel like they’re blatantly inviting parody in GTA6 with OUTIE on the name plates of the obviousy-Audi-but-trademark-compliant cars?
If not AUDI, maybe INNI, or is that too close for comfort and BMW would complain?
I’d think the normal GTA driving style while in a BMW knockoff might be enough to trigger some kind of trademark infiringement…
Ugh, enough replacing emblems with letters. Now you can’t even look at a CUV blob and tell what brand it is at a glance because the 5 letters could be TESLA or MAZDA or ACURA, etc.
I’m sure you can find tutors in your area who will help you read well enough to differentiate them 😉
All kidding aside, I also strongly prefer emblems over name badging.
My big gripe about it is when you pull up behind a vehicle with the spelled-out make is the jarring difference in lettering style (font, all caps/lowercase, itallics, etc.) between the make, model and trim badges. It kind of feels like a OEM-applied bumper sticker collage or someone went HAM with the PepBoys fake badges.
What, you don’t like to see:
Subaru
O U T B A C K
Touring XT AWD
(right eye twitching while physically cringing)
No, what gave it away?
Just wait till the AI gets ahold of it. /-\|_UR/–
Fun new game though:AI interpretation of a car or fly-by-night Amazon brand?
Or Elon’s child
I irrationally despise the M A Z D A lettering on the back of the new CX-5.
It’s especially disappointing from Mazda, as it feels like such a me too marketing choice from a company that used to feel like it stuck to it’s principles.
Totally agreed.
Oh come on now. I wouldn’t call it irrational
It wouldn’t bother me if they went back to the 80’s stencil style lettering.
Especially since chrome letters with odd angles of lighting just makes it harder.
Especially since not everyone speaks English or uses the same alphabet. That was the whole point of logos!
Wait until the Chinese EVs come to North America. Imagine sharing the roads with YANGWANG or DONGFENG
I’ll never understand how Chinese products have come so far in quality and performance, yet they seemingly cannot get the names right for US or other markets.
Living in San Diego I already see plenty on the road from Mexico.
The weird thing about it is that basically every other industry is trying to replace words with symbols because they don’t have as many localization issues. As the industry famous for selling the Chevy No Va in Spanish-speaking countries, you would think they’d be all over symbolic branding.
I, for one, can’t wait to pick up my 2031 (Poop Emoji) (Eggplant)
Determining which manufacturer will rebrand itself as the poop emoji is an exercise left to the reader. 😉
The Chevy Nova thing was an urban myth though. Nova and no va are two different things in Spanish. Pemex, Mexico’s national fuel provider, used to even have a grade of fuel called Nova.
https://www.radioformula.com.mx/economia/Gasolina-Nova-Te-acuerdas-de-ella-Esta-es-la-razon-por-la-que-desaparecio-20221109-0148.html
Lexus could have done a better job on their logo (see: OG Infiniti Q45 badge), but it’s still more readily identifiable than a set of big letters that just look just all the other title script on the back of similar crossover blobs.