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Audi Exec Expects New A4 to Be Immune from Leasing Crisis

DETROIT – The crisis in automotive leasing is unlikely to affect the new Audi A4 compact luxury sedan, which has had a 70 percent lease mix in the current generation.

by Staff
August 29, 2008
1 min to read


DETROIT

– The crisis in automotive leasing is unlikely to affect the new Audi A4 compact luxury sedan, which has had a 70 percent lease mix in the current generation, product manager Carter Balkcom said, according to Automotive News.  

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Balkcom said the A4’s strong residuals should protect it from the pullback in lease financing being generated by other automakers’ large SUVs and pickups. He expects the three-year residual for the new A4 to be about 56 percent — an increase over the current model’s 51 percent.  

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Speaking at a preview of the A4, which goes on sale in mid-September, Balkcom said fuel economy-conscious buyers have gravitated to the turbo-powered four-cylinder engines in the current A4. Balkcom also said Audi is not near a decision on whether the A4 will be produced at the plant parent Volkswagen AG is building in

Chattanooga, Tenn.

He said a decision is unlikely before next spring.

Originally posted on Automotive Fleet

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