Audi wants to fatten dealer margins.(Audi of America)

Automotive News, February, 2006 by Kurylko, Diana T.

Byline: Diana T. Kurylko

Audi of America wants to boost dealer profits and have more stores upgraded - even if it's at the expense of corporate margins, says Johan de Nysschen, executive vice president in charge of the brand.

Audi will propose new terms to its year-old dealer contract that will include increasing a profit margin that dealers say is the lowest among luxury makes. The three-year contract runs through the end of next year.

Audi will discuss the issue at its annual dealer meeting in Orlando, Fla., on Tuesday, Feb. 14, after the National Automobile Dealers Association convention.

De Nysschen says low profits have prevented dealers from building new stores or upgrading existing ones. Only 92 of Audi's 267 dealers have...

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