Competitive Strategies Case Study

Audi’s Intended Acceleration

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Abstract:
In late 1986, ‘Audi AG’ was accused by a popular television show for a flaw in the Audi 5000 sedan that caused the vehicle to accelerate instead of braking, thereby causing fatal accidents. The allegation was followed by a sharp decline in the sales of Audi cars in America and the company was nearly wiped out from the market. Although subsequent investigations proved that it was drivers’ error that caused the accidents rather than vehicular malfunction, the damage had been inflicted on the company. Faced with the daunting task of rebuilding the company’s image and re-capture lost market shares, Audi took a number of steps that revived its sales. By the end of 2004, Audi re-emerged as a strong player in the US luxury car market.

Pedagogical Objectives:

• To examine the steps taken by the company to revive its brand image.

Keywords : Audi AG; Audi of America; World of Audi; New World of Audi; Unintended Acceleration; Sudden Acceleration; 60 Minutes; NHTSA; Audi 5000; Industry Analysis Case Study; Audi A6; US luxury car market; Luxury car manufacturers; Quattro; SUV; Trendsetter Program

Contents : 
Unintended Acceleration
Reinventing Audi
Audi’s Way Ahead
Luxury Car Sales (US), 2004