Audi of America Boss Fired Over Negative Comments on Piech and Phaeton

[Canuck]

From The Car Connection
http://www.thecarconnection.com/inde...&sid=173&n=156

Mees Fired from Audi over Phaeton Remarks

Automotive News reports that Axel Mees, the brand chief for Audi of America, has been fired for critical remarks made concerning former VW chairman Ferdinand Piech and the Phaeton sedan. The remarks, made to reporters at the national press launch of the Audi A6, characterized Piech as "an engineer" who wanted to prove VW's mettle without seeing the brand's weakness in the luxury market. Mees had been named head of the Audi brand in America only on March 1. Audi said in a brief release that Mees had left the company and that the current management would lead the brand until a replacement was named.

[Canuck]

Audi VP reported fired for criticizing VW's luxury-car fiasco
Failed attempt to move upmarket with US$70,000 sedan

Chris Sorensen
Financial Post
Thursday, November 18, 2004

The vice-president of Audi America Inc., Volkswagen AG's luxury auto division, has left the company amid rumours he was fired for making critical comments about VW and its failed attempt to move upmarket with the US$70,000 Phaeton luxury sedan.

Although Audi didn't give a reason for Axel Mees' departure, Automotive News said a Volkswagen AG spokesman in Germany conceded it was because of comments Mr. Mees made about the Phaeton earlier this month at a press event in San Francisco.

According to the industry publication, Mr. Mees told reporters the Phaeton wasn't selling because Volkswagen underestimated the weakness of the VW brand in the luxury market.

Mr. Mees, who oversaw Canada and the U.S. for Audi, also said former Volkswagen chairman Ferdinand Piech "was an engineer and he wanted to prove that he can build great cars, and didn't look at the marketing aspect, the brand aspect," Automotive News reported.

"It could be the best car, but I would still not buy it because it has the VW logo and because I have to go to a VW dealership where the salesmen are used to selling Jettas and Golfs."

Jennifer Cortez, a spokeswoman for Audi America, said yesterday she couldn't comment on reports that Mr. Mees was fired because of the published comments, only that he and Audi had reached a "mutual" agreement that would see him step down immediately.

"It is sudden, but I have no reasons to give for his departure," Ms. Cortez said.

Volkswagen, best known for its compact cars, misjudged the appetite of consumers for a luxury offering bearing the VW brand. At the end of 2003 the Phaeton had only sold about 6,000 units, about half the firm's original estimate.

In the first 10 months of 2004, U.S. dealerships had sold only about 1,400 of the cars.

It's not the first time someone inside VW has taken a swipe at the Phaeton sedan concept.

Bernd Pischetsrieder, Volkswagen's CEO was quoted in the British magazine CAR as saying, "The Phaeton fails to sell because it is not distinctive enough."

[1BadPig]

Not surprising... about the firing and the criticism. Why bother with a VW when the A8 is there? Honda, Toyota and Nissan learned to distiguish the pedestrian cars from the luxury ones, they needed a new brand. What was Piech thinking? As I recall that was when VW was rolling in dough. Now with profitability concerns and quality rating declining, I bet if he was still in charge he would be hesitant to continue with this experiment.

[jro4566]

Glad he's fired then.

Just because part of your family made a mistake, doesn't give you the right to critisize. Family's family, right?

[Rex Raider]

A car guy named Axel, getting the ax?

Umm... Irony.

[Canuck]

Bernd Pischetsrieder, Volkswagen's CEO was quoted in the British magazine CAR as saying, "The Phaeton fails to sell because it is not distinctive enough."

So RCTennis3811 when is Mr. Pischetsrieder going to get fired for his comments?

[jro4566]

It's OK to admit your own mistakes, but to criticize others' is a mistake in its own way.

[mgescuro]

Originally Posted by Canuck

According to the industry publication, Mr. Mees told reporters the Phaeton wasn't selling because Volkswagen underestimated the weakness of the VW brand in the luxury market.

Mr. Mees, who oversaw Canada and the U.S. for Audi, also said former Volkswagen chairman Ferdinand Piech "was an engineer and he wanted to prove that he can build great cars, and didn't look at the marketing aspect, the brand aspect," Automotive News reported.

"It could be the best car, but I would still not buy it because it has the VW logo and because I have to go to a VW dealership where the salesmen are used to selling Jettas and Golfs."

Volkswagen, best known for its compact cars, misjudged the appetite of consumers for a luxury offering bearing the VW brand. At the end of 2003 the Phaeton had only sold about 6,000 units, about half the firm's original estimate.

In the first 10 months of 2004, U.S. dealerships had sold only about 1,400 of the cars.

It's not the first time someone inside VW has taken a swipe at the Phaeton sedan concept.

Bernd Pischetsrieder, Volkswagen's CEO was quoted in the British magazine CAR as saying, "The Phaeton fails to sell because it is not distinctive enough."

Speak the truth.... and get canned....
Not the first time a high ranking C-level exec or VP got canned for opening his/her big mouth.

Not to be sarcastic but... "Told ya so!!!" HAHA

Everything that was said in this forum was just echoed by the Audi head. Bad brand. Bad marketing. Good car. Phaeton is an ego car. Selling a $70-90K car along aside a Jetta. Etc etc etc.

Kill the Phaeton!

[mgescuro]

Originally Posted by 1BadPig

Not surprising... about the firing and the criticism. Why bother with a VW when the A8 is there? Honda, Toyota and Nissan learned to distiguish the pedestrian cars from the luxury ones, they needed a new brand. What was Piech thinking? As I recall that was when VW was rolling in dough. Now with profitability concerns and quality rating declining, I bet if he was still in charge he would be hesitant to continue with this experiment.

If Peich was still around, he probably would ahve launched a Phaeton wagon at $90K+.

The continual argument in these forums... is that there is no reason why VW can't be like Mercedes and offer a car line from the A-class all the way up to a V12 S-class. And it's obvious that's where Peich was leading VW. Offering the Passat W8 and the Phaeton. Now that Passat W8 has gone the way of the dodo and Phaeton isn't too far behind... that logic's flaw have been revealed.
It's just people fail to look at VW as a product and brand. Nobody looking for a $70-90K car will consider teh VW brand, no matter how good the car. Not without changing the dealership experience. Not without changing the marketing. I mean... commericals essentially telling the consumer "Oh look.. we've grown up... we don't just offer Beetles anymore. We got the Phaeton. Now starting at $69,995." What a load of bull.
The Japanese did it right. Acura. Lexus. Infiniti. Mitsubishi tried by offering a luxury car under the Mitsu name. It didn't go anywhere.

With VW riding high in the 90's, there was undoubtedly some arrogance in releasing the Phaeton. Now it's bit them in the a$$ big time. And no one, other than Mees was willing to speak up about it.

[tgagneguam]

I feel a little conflicted about this. I believe the first part of fixing a problem - and I do think VW division's luxury strategy is a problem - is acknowledging it. However, there's also a right way to express the acknowledgment and not alienate yourself from the organization, too. Perhaps had he tempered his disdain, he could have expressed his reservations and kept his job. Then again, maybe his remarks were deliberate, knowing that he no longer wanted to be part of the VW Group. His remarks were one sure way to end a binding contract prematurely.

[Canuck]

So to summarize the emperor has no clothes
hello pink slip
Audi is VW lux divison let VW remain the 'people's car' company
Perhaps Zallera and his tooth paste marketers can go save VW.

[JVal14]

With VW riding high in the 90's, there was undoubtedly some arrogance in releasing the Phaeton. Now it's bit them in the a$$ big time. And no one, other than Mees was willing to speak up about it.

I agree, the Phaeton was mostly arrogance, or at least that's the only logical explanation. I mean a company owns Audi and Bentley, two luxo-sedan legends, and they try to make one of their own; there's just no sense to it.

Why bother with a VW when the A8 is there?

The Phaeton was VW thinking their invincible.

And while Mees did speak the truth about the horrible logic, doing it to the press was inappropriate, it wasn't going to help the situation. Maybe he was bitter at VW creating inter-competition between the brands.

[BigAls87Z28]

Oh well...He was just stating the obvious.

[mgescuro]

Originally Posted by tgagneguam

I feel a little conflicted about this. I believe the first part of fixing a problem - and I do think VW division's luxury strategy is a problem - is acknowledging it. However, there's also a right way to express the acknowledgment and not alienate yourself from the organization, too. Perhaps had he tempered his disdain, he could have expressed his reservations and kept his job. Then again, maybe his remarks were deliberate, knowing that he no longer wanted to be part of the VW Group. His remarks were one sure way to end a binding contract prematurely.

That was the whole thing, right? The Audi people weren't too enthused about VW encroaching on its turf with a high end über-luxury car priced at $70K, when a comparable Audi sold in the $90K+ range. What was teh point of Phaeton, right?

Then VW mgmt comes out and says Phaeton was a flop because it wasn't differentiated enough and that the next-gen would be an "estate" instead of a "saloon." You thinka $70K wagon is gonna do any better? I don't think so.

VW thinks that Audi and VW serve different markets. And to an extent, they do. But VW offering an über-sedan that equals the Audi über-sedan for $30K less.... you've got brand and product issues... and VW has yet to acknowledge it.

[mgescuro]

Originally Posted by JVal14

I agree, the Phaeton was mostly arrogance, or at least that's the only logical explanation. I mean a company owns Audi and Bentley, two luxo-sedan legends, and they try to make one of their own; there's just no sense to it.
The Phaeton was VW thinking their invincible.

And while Mees did speak the truth about the horrible logic, doing it to the press was inappropriate, it wasn't going to help the situation. Maybe he was bitter at VW creating inter-competition between the brands.

Well... the odd thing is that the über-sedans are encroaching on each other's turf. Phaeton is moving in on the A8. And the A8 is moving in on the Continental GT. All 3 are on the same platform. personally, I don't believe Bentley shoudl have broken the $150K barrier.

I think there's some sort of internal confusion and issues in the VW corporation right now. You don't have a C-level executive-type person fired for no reason, unless there's some sort of fighting going on in the boardroom. His comments publicly exposed the idiocy of the management of VW. Oh well. I'm sure he made enough money.