Expensive Audi investment

The new complex, due to open in 2009, will be located in Rosebury's Victoria Park and will have eight floors. In addition to becoming Audi's national headquarters, it will also include a flagship retail showroom and customer space, an after-sales service center and commercial space.

Audi also plans to use the new facility for future events and new product launches.

And the place where Audi's new development is located already has some automotive history, as it was the site of a BMC plant from the 1950s to the 1970s. It was here that the ill-fated Leyland P76 was produced until the factory closed in 1974.

This is one of the most significant overseas investments by Audi's parent company, Audi AG. Audi Australia managing director Joerg Hofmann says this shows the parent company's commitment to the local market.

He says: "A key part of Audi's medium-term growth strategy requires the dealer network's investment in manufacturing capacity upgrades, which will enable the brand to achieve sales of 15,000 units in 2015 and deliver best-in-class customer satisfaction."

“The new retail business will not only greatly enhance Audi’s profile and benefit the Sydney dealer network in terms of a stronger brand presence, but will also accelerate brand awareness nationally to (new) levels…”

Audi Center Sydney will be the first of its kind in the world and is one of a very small number of factory headquarters outside of Europe, according to Hofmann.

“Probably one of five or so. There is China, Japan and Singapore,” he adds.

It took more than 18 months to come up with a plan and sell it to Audi's management in Germany, but Hofmann says the job has been made easier by recent sales success in Australia.

The company has registered 20 to 30 percent year-on-year growth since it became a factory operation, boosting sales from less than 4000 to a projected 7000-plus this year. The 2007 total already surpassed the 2006 result, reaching 6295 by the end of October, up 36%.