Paul Sansom

AUDI Australia’s new managing director has affirmed a commitment to the dealer network and a digital future but said there were “a few issues to address with the dealer network”.

Paul Sansom, now three months into the top job at Audi Australia, said dealer profitability was “under some stress” and said the business model must create demand for Audi products.

“We have to improve the profitability by creating more demand through improving the brand image, the product value to our customers and improving the customer experience,” he told GoAutoNews Premium.

“When you get those ingredients right then the customers are more willing to pay a premium for our product.

“The key to a strong dealer network that’s able to deliver the sort of experiences that the Audi brand – or the consumers of the Audi brand – demand is that they are viable through their profitability.

“If they are making sufficient and reasonable returns from our brand then they are able to invest in their best facilities and attract customers, the best people to attract and serve those customers and the best processes and systems for those customers.”

Mr Sansom said it was important that the company and its dealer network put themselves in the customer’s shoes “and provide them with more convenience”.

“That may not mean the more traditional expansive facility with sales, service and parts. But it could be that we could look at opportunities for used cars or servicing where we can add convenience to our customers while at the same time growing our sales footprint.

“Wherever you can provide customers with what they want, when they want and how they want it, then you will add value to your brand.

“Our ambition is still to grow. As we identify opportunities for growth we will be discussing with our dealer network where those pockets are and what we should do about it.

“But there are no immediate plans in creating new outlets and also no immediate plans to add more dealers.”

Audi Alto Artarmon

Part of the future will revolve around the growing use of digital tools by customers, Mr Sansom said.

“Consumer behaviour is changing dramatically. Most of the consumption of our brand and products is done from the comfort of their own homes via iPads or equivalents,” he said.

“The digital experience has become the first moment of truth, replacing the time when the customer walks into one of our showrooms. It’s all changed.

“So we are making the first experiencethe digital experience – more convenient.

“But we believe there is also an interim step between researching a new car on an iPad to walking into a showroom. That step is where they want to speak to someone who can interact, someone who is a product expert, who can help them with a purchase decision yet is not a sales person.

“This step could be a retail experience, as in a shopping centre.

“If we can expose our brand positively with the use of busy thoroughfares where we can show our brand off through digital mediums then certainly it is something we could put to the test. It is not something we would ignore.”

One of Mr Sansom’s main changes will be in the area of ownership, a subject he describes as “incredibly important”.

Audi Alto Artarmon

“The customer experience and creating some deep roots with every customer is incredibly important to our future success in sales,” he said.

“Now I’ve learnt some hard lessons in my experiences in other markets and I’m not going to make the same mistakes here.

“I don’t think we have yet made mistakes in Australia. But we are on the cusp here of part of our evolution where we could make the same mistakes (as other markets) if we don’t focus.”

He said that Audi’s sales growth in Australia had been “incredible”.

“I know from working in an organisation where there has been such high sales growth that you are so busy growing that it is so easy to lose sight of those customers who are already on the Audi bandwagon,” he said.

“It’s very easy to lose sight of caring about them and wondering about what you’re doing next because you’re so busy growing.

“Audi is a conquest brand and certainly more recent here than most other markets in the world.

“The lesson that we can bring to Australia to make sure that we safeguard against that is to say we have to look after our big carpark with hundreds of thousands of Audis driving around.

“How do we do that? It has to be from the sales side right through to service plans that make the best possible ownership experience. That is something we are looking at now.”

Audi A3

Mr Sansom said Australia has a very strong dealer network.

“They have been terrific. They have invested heavily in the Audi brand and there’s a sense of responsibility to make sure we can provide a return on their investment in the brand,” he said.

“I would say at this stage I’m very happy with the representation and I have no plans to change the dealership network.”

He has also dismissed thoughts of selling the Audi dealership in Sydney. Recently, Mercedes-Benz sold all its factory-owned dealerships in Australia as part of a global move away from retailing.

Mr Sansom said the Sydney dealership, which also serves as the company’s head office, was built to put Audi on the map.

“It is in a very strategic position and without doubt it is providing a great return,” he said.

“What’s great about having our own retail site is that we can have a unique opportunity to be very close to the operation.

“It gives me a great opportunity to be close to the coal face and get information in a way that, though I could get from other dealers, there’s nothing like having it right downstairs, on my doorstep.

“So at this stage there are no plans to change that. It is a successful formula and we are delighted with the progress the dealership team have made. They’re doing a great job on behalf of the brand with sales and service and attention to customers that is just terrific.”

By Neil Dowling