Audi goes slowly on new plan.(Audi of America Inc.)(Brief article)

Automotive News, February, 2007 by Kurylko, Diana T.

Byline: Diana T. Kurylko

Yielding to dealer pressure, Audi of America Inc. is taking it slow on proposals to change the dealer margin by tying it to sales and customer-satisfaction goals.

Audi is negotiating its margin proposal with management in Germany. Although dealers aren't in full support, "it is moving in the right direction,'' said Tom Harper, head of the dealer council and owner of Harper Porsche-Audi-Jaguar in Knoxville, Tenn.

But Johan de Nysschen, executive vice president in charge of the Audi brand in North America, has told dealers that even if there is a new margin structure this year, they can keep the old structure through year end.

The current system, which expires Dec. 31, doesn't reward or penalize dealers for...

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