Audi Brand
Hello everyone,
I've interned at Big 4 accounting firms and I strongly wish to improve my resume by engaging in more internship experiences. I was recently informed of the interview opportunity for Business Analyst position at Audi.
Audi, as you all know, is an automobile company and I don't intend to work there forever, but if it gives more credentials to my resume, then I'm willing to take on the interview.
With that said, what's your general opinion on Audi's brand prestige?
Thank you for your advice!
Only thing people will care about is if you do something interesting there and learn how to speak about it.
Should we short Audi? (Originally Posted: 12/19/2011)
I think Audi’s are fantastic vehicles. For one, it’s German, so you’re assured that nary a laugh or giggle was involved during its design. Two, they’re actually quite fun to drive, with the RS4 being especially ridiculous. And three, I think they’re quite stunning. Well, in a staid, semi-boring, German sort of way. Which is surprising given that in Asia, they’ve become the go to vehicle for those who want to scream that they’ve arrived.
Especially in China. The Chinese have such an affinity for Audi’s it’s almost disturbing. The A6 in particular is viewed with such awe that you’d think it was my Kate Upton + Anne Hathaway threesome fantasy in car form. Everyone from high-level Politburo members to the yuppie contingent wants to be seen in a black A6 down there. In fact, some say that to gauge how important a meeting is, you should check how many black A6’s are parking outside. But can they afford them now?
It seems so en vogue to rail on China these days that even my mom has sent me an email about it. Just to be a dick, I tried to break off from my thesis that China’s a complete and utter mess and went on to review a couple things from the bullish side.
Their massive reserves? It’s all borrowed and tied up in Dollars with an intrinsic RMB liability. They can’t use it without killing their own businesses.
Their low consumer debt? The combined debt of 231 out of their 6600 local government financing vehicles is roughly the size of the EU’s bailout fund already, which, interestingly enough, is just $100 billion shy of their “official” figure for the entire 6600. IMF figures show that total debt ballooned to almost 200% of GDP as well, adding that most of this came within these past 5 years only.
Their booming RE market? Child please, if selling flats in Shanghai for 75 cents on the dollar is your idea of booming then boom away. Beijing RE prices are down around 35% and for a real steal; head out to Ordos for some 70% price chop action. Keep in mind that a large chunk of Chinese families invested their money here.
Their high savings rate translating into a consumer-led economy? That’s been the plan but then again here we are.
They have cows that produce human milk too, which while totally irrelevant to this discussion, is gross nonetheless.
All in all I think I pretty much failed to produce a proper bullish case on China. Perhaps if prices go the way of ‘80s Japan then maybe the consumer will rise and bring on some growth, but so far the only thing I’ve convinced myself with is that Audi won’t be enjoying their 40% share of the luxury car market there for a long time.
What do you think monkeys? Will China keep on booming for Audi?
Well,
Only 1/3 of the chinese reserves are in US dollars.
They have the savings, the factories and a business friendly environnement.
In other words, it is a 1000 times economically more sound than the US and Europe.
Now, does this mean that they won't have recessions & depressions? Of course they will, as did the US when they were coming up.
The only thing that could derail the China story is if they don't solve their water problems.
China only accounts for 20-25% of worldwide sales for Audi. If China were to blow up, the yuan would crumble & Audi's costs of production would improve throughout its supply chain, despite final assembly taking place in Germany. The cost effect would arguably be more significant than the hit to top line sales. Then again if China tanks you should be short everything (bar the defensive sector..)
What diverse_kanga said, you need to also look at it from a specific model basis too. Compare Audis to any other luxury car in their class and you will see they have at least a handful of technologies that are one, if not two, generations beyond their competition (BMW, Mercedes, etc).
They've always had a great business model and I doubt that the fall of a Chinese economy would have that much greater of an effect on their operations than any other automaker. A major concern with Audi however is the percentage of automobiles that need to have, what are considered to be, "serious repairs" done to them within the first year of ownership.
It is great if you have the best technology in your vehicles but if they are twice as likely to be brought into an auto-repair dealership because of it there might need to be some reconfiguring done before you lose your loyal Audi owners. (Don't worry I'm not biased nor do I have any vendetta against Audi, I don't even even own a car)
Jorge, you clearly haven't been to China.
kate upton and anne hathaway.... great choice jorge
Audi = Mid-class entry level car "You can't even afford an Audi? You must be fucking homeless."
And please, being seen in a dull A6 is the last thing a high-level Politburo member wants. They won't even let their maid's kids drive Audi. You think they don't sell Ferrari, Lamborghini, Koenigsegg and Maybach in China.
Vast majority of Audis in China are purchased by the state as official vehicles. I don't think shorting the VW Group would be my first choice if China blows up, I will rather short US treasuries first.
For a China blow up trade shorting the AUD is the right trade in mind. Not forgetting fundamentals in Australia dont look strong given the high level of consumer debt in that country.
You cannot short Audi but you can short Volkswagen.
All government officials drive Audi. Even in the middle of no where (tier 3-4 cities), you know that a building is a government building when there are only Audi's in the parking lot
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