Audi AG has acquired the 49% holding of Ayrton Senna’s heirs in their Brazilian vehicle distribution joint venture company Audi Senna.
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The company was founded in January 2000 with Audi holding 51% and the Senna Group the remaining 49%. The group was formed by heirs of the late triple Formula One world champion Ayrton Senna and his partner Ubirajara Guimarães.
Audi has now established its own 100%-owned sales subsidiary called Audi Brasil Distribuidora.
The automaker said that, by taking over distribution, it was demonstrating it regards Brazil as a key market in South America. Audi now takes the same direct responsibility for its Brazilian operation as it does in Korea, Australia, Japan, the UK and other export markets.
Last year Audi sold about 6,200 vehicles in Brazil and 9,100 units in all of South America. In Brazil, it took a 44% share of the premium segment in 2004 and expects to maintain this in the next few years, though that won’t be easy.
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By GlobalDataIn the second half of 2006, Audi will halt Brazilian production of its (previous generation) A3 model line but has no plans to produce replacements in the plant it shares with parent company Volkswagen in São José dos Pinhais city, in Paraná state.
The A3 has been made since 1999 in Brazil, where Volkswagen still builds the previous generation Golf IV and the locally-developed Fox line, now also being exported to Europe.
A3 production never exceeded 12,000 units per year for sale in Brazil and export to other South America countries. Production of the three-door version ended at the close of 2003 and five-door output was originally scheduled to stop at the end of this year.
But the Brazilian unit negotiated an extension and Audi AG in Germany allowed the ‘old model’ A3 to live on in Brazil for another year or so.
The decision to stop making the A3 in Brazil was made in 2002 when Volkswagen decided not to build the current generation Golf V there. Without the new Golf to share the platform, Audi decided that producing the new generation A3 alone in Brazil would not be viable.
However, the ‘new’ A3 will be imported into Brazil from Germany once local production of the ‘old’ A3 ends in 2006.
With a range of fully imported vehicles only, Audi won’t be able to maintain unit sales volume. The cheapest Brazilian-made A3 version, with a 1.6-litre petrol engine, is currently priced at the equivalent of $US24,000.
An Audi of Brazil spokesman estimated that the equivalent imported new generation A3 will cost $US50,000.
Audi entered Brazil in 1994 via Ayrton Senna’s company Senna Import. Sales began in April that year, just a month before the famous F1 driver died in a Grand Prix race crash.
Following his untimely death, Senna Import was controlled by Senna’s family and his partner Ubirajara Guimarães.
In December 1999, Audi signed an agreement with Senna Import to establish the joint venture sales company Audi Senna.
Since 1994, about 64,000 Audi vehicles have been sold in Brazil.
Rogério Louro
