Audi to weak stores: Invest or sell; U.S. sales goals propel upgrade of dealer network.(News)(Audi of America Inc.)

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

Byline: Diana T. Kurylko

Invest in the franchise or let us buy you out.

That's the message from Audi of America Inc. executives to weak dealers who are dragging down customer satisfaction. The effort is needed so the company can compete with Mercedes-Benz and BMW in the United States, says Audi's top U.S. executive.

Audi has a war chest big enough to buy out "every single one of our potential candidates,'' says Johan de Nysschen, executive vice president of Audi of America. The dealer buyout funds were approved by parent Audi AG in June, says de Nysschen, who would only describe the amount as being in the double-digit millions.

Audi decided to upgrade its dealer network rather than push volume by spending more on incentives and...

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