Volkswagen's Audi says A1 to win mostly new buyers

Volkswagen AG's Audi luxury division said 80 percent of potential buyers of the A1 compact, scheduled to go on sale in August, will be new to the brand.

Surveys in Europe, where the A1 will be introduced first, found that the model will win customers who haven't bought cars from the brand before, Peter Schwarzenbauer, the head of sales, said today in a webcast statement. Audi hasn't decided when to introduce the A1 to China or the U.S., he said.

The A1 is scheduled to be unveiled at the Geneva International Motor Show on March 2. The car, Audi's smallest, is part of the Ingolstadt, Germany-based brand's plans to add eight models by 2015 in a challenge to Bayerische Motoren Werke AG as the world's largest maker of luxury vehicles.

"The A1 will be a big hit," Schwarzenbauer said, adding that pre-selling hasn't started yet.

Audi has a target of increasing global sales to 1 million cars and sport-utility vehicles this year after deliveries fell 5.4 percent in 2009, the first annual drop in 14 years. The company plans to invest 7.3 billion euros ($9.9 billion) through 2012 on model development and plant upgrades.

The new car will be sold mainly in Germany, France, the U.K. and Italy, Schwarzenbauer said. The model won't be introduced to the U.S., the world's second-largest auto market, while Audi is examining potential for selling the A1's next version there, Schwarzenbauer said.

"We're aware of the move toward smaller segments," the executive said. "for that reason, we could imagine the A1 becoming a success in the U.S. too."

Audi has no plans at the moment to develop a car smaller than the A1, according to Schwarzenbauer.