Up Front
Audi has been gaining market share steadily in the U.S., but in one segment—arguably the most important—the German automaker is decidedly weak: The A8, Audi's (NSU:GR) big luxury sedan, lags way behind its competitors. Through the end of August, Audi sold a paltry 568 A8s in the U.S. market this year. BMW (BMW:GR) sold 8,963 of its 7 Series models, Mercedes-Benz (DAI) 8,016 of its S-Class, and Toyota (TM) 7,575 of its Lexus LS during the same period.
It's hard for Audi to argue that it's on its way to becoming the world's leading purveyor of luxury cars (which is the goal of Volkswagen (VOW:GR), Audi's parent company) if its flagship is stuck in the doldrums. So, the company is trying to put wind in the A8's sails with a significant redesign that makes the model bigger, more fuel-efficient, more feature-laden, and nicer-looking, both inside and out. However, how popular the A8 will be in horsepower-hungry America is an open question.
The Audi still has less raw power than its rivals. The standard V8 in the new A8 is rated at 372 horsepower, 22 hp more than before, but less than the 2011 BMW 750i (400 hp), the supercharged Jaguar XJ (470 hp), and Mercedes S550 (382 hp). Only the Lexus LS 460, rated at 357 hp, trails the Audi. The torque rating of the A8's engine (a measure of the oomph available for acceleration) only rose 4 lb.-ft., to 328 lb.-ft., which trails all of its rivals, including the Lexus.
The A8's new transmission, on the other hand, is one of the smoothest on the market: a high-tech eight-speed automatic with a manual shifting function and steering-wheel-mounted paddle shifters.
The efficient transmission, relatively small engine, curb weight, and an ultra-sleek exterior help give the new A8 the best fuel economy in its class, with a rating of 17 miles per gallon in the city and 27 on the highway, for an average of 21. That beats the all-wheel-drive versions of the Porsche Panamera S (16 city/24 highway/19 average), Lexus LS 460 (16/23/18), Mercedes S550 (14/21/17), and BMW 750i (14/20/16). Surprisingly, the A8 matches the average fuel economy of the new Mercedes S400 Hybrid, and does better than the 20-mpg average mileage of the hybrid and six-cylinder-engine versions of the BMW 7 Series.
Another selling point: The A8 is gorgeous, with a long, luxurious-looking hood and a rakish roofline that curves down into a macho, chopped-off rear end. It has a more aggressive, crouched look to it than the previous model. A curving string of LED headlights make the car immediately identifiable at night; a string of orange LED turn-signal lights and running lights make it equally distinctive during the day. I suspect the headlights alone will lure some shoppers into buying this car. They're that cool.
The A8's $78,925 starting price is a bargain, especially considering that Audi's quattro all-wheel drive comes standard. In this class, only the all-wheel-drive 2011 Lexus LS 460 starts at less ($68,560). Major German rivals such as the 2011 BMW 750i xDrive (starting price: $87,175), the 2010 Porsche Panamera 4S ($94,775), and the 2010 Mercedes S550 4Matic ($96,475) are far pricier. So is the rear-wheel-drive-only, supercharged 2011 Jaguar XJ, which starts at $88,575.
