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Audi of America President on What's Driving Business

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    Audi of America president Scott Keogh breaks down the company’s key to success.

  • Duration 4:07
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This transcript is automatically generated

Well despite the slowing economy -- posting record US August sales rising 13%.

Year over year so what is the auto maker's secret to success.

Let's find out we have Audi of America president Scott deal with Fox Business exclusive.

-- up numbers here Scott congratulations but what do you think we're really did the trick here.

You know I think it's a simple story for -- we've been investing in product development almost two billion dollars a year.

That's bringing great cars to the market so we have a fresh portfolio vehicles and these vehicles are selling and beautiful and a lot of them so what new product is really driving the sales.

Scott you or head of marketing and within the cast your -- was about a year and a -- -- when I first saw those.

Extraordinary commercials in which -- which you branded Mercedes bands as as as kind of old fashioned and and stuffing -- and presented Audi as adds that the kind of new form of -- was that you're doing and how's -- work and she.

I think as a collective doing myself -- agency and of course the strategies.

It is working quite well America is responding.

Truth be told we have the youngest buyers in the business.

Forty for 66% of our sales come from gen X and gen Y.

So this concept of having a brand that is modern well designed high technology.

All of the times.

Is absolutely working I don't think people looking for dated ideas of -- I think they're looking for modern innovative ones and that's exactly what -- brings the table.

Well this at a time when people are really watching what they spend even though we have pulled ourselves out of the recession there's always that concern we might tip back into it so.

What are you doing to capitalize on people who are sort of fence sitters to -- spend the money for an Audi.

I think there's two things on that front the first thing is the business point of view and you need to run a very healthy business and -- -- that means.

Tight supply of vehicles.

High demand on those vehicles.

And I think what's gotten entire automotive business sideways of course entirely too much supply more cars than there are customers and you get into an unhealthy business -- I think.

Regardless of market we're in a good position running a healthy business in terms of the customer side equation Audi is absolutely -- Smart charts are cars are priced right now cars are safe they're loaded with technology.

And it's a Smart choice and that's why we're seeing all the action with our brand -- up 13%.

And that's when he record sales month in Iraq.

We didn't talk about clean diesel which you guys have really been in the forefront of of course every time I go buy -- I see that its prices higher than regular gasoline are people.

It used to be that -- that diesel was was kind of a cheaper alternative now it's a little more expensive is that hurting your clean diesel program.

Now with us it's going very well thank you have to look at this is bigger picture obviously up the price at the pump.

But you have a significantly stronger residual value on that product.

-- a much stronger product out there if you look at the -- three for example where we have a diesel engine.

Nearly 50% of the sales of that vehicle come from diesel.

The G-7 are large three -- SUV.

It's nearly 40% so customers are absolutely choosing the diesel.

If you look at it from our point of -- their contents at higher.

There's significantly more profitable TTI has been very successful for us and to that extent if you look at next year the 88 the -- six.

The 87 other Q five will all have TBI -- so I think it's a game changer for us.

Obviously Audi doing things right this time around -- US auto makers -- of course stumbled and fallen big topic of conversation as we lead up to the selection is should we save the US auto industry.

Where does a German auto -- -- Obama.

Look at so little out of my context I think the automotive business in general is a very profound and powerful business it provides a ton a jobs.

It's a focus of innovation and absolutely we -- out he believe in a competitive business domestic market as well so that's actually a point of view and our.

Scott -- Audi of America president Scott congratulations great to see -- Thank you very much thank you very much -- -- thank you -- continue.

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