Audi Almost Left America in the '90s Until the A4 Saved It

From Upstart to Rigging Scandal


In the ’70s, Audi was still finding its footing and was a bit of a player compared to BMW and Mercedes-Benz. If BMW promised The Ultimate Driving Machine, Mercedes-Benz said The Best or Nothing. As for Audi? It really didn’t have anything other than being a left-field alternative to the two. That changed when Ferdinand Piëch took the helm and set out to make it a technology leader. Vorsprung durch Technik, or advancement through technology, wasn’t just a tagline anymore; it became the company’s mission and vision.

It started with five-cylinder models such as the 100 and 200, followed by the Quattro and its all-wheel-drive system. By then, Audi had established its own identity, and sales rose. But just as things were looking great, allegations of unintended acceleration hit the brand in the U.S. It didn’t help that 60 Minutes ran a damning segment showing a rigged car speeding up on its own and presenting it as the truth. Audi was eventually exonerated, but the reputational damage had been done.

60 Minutes never apologized, and the company had to pick up the pieces. Why Audi never sued is beyond us, but at its lowest point, sales plummeted to around 12,200 cars in 1991. Something had to be done, or else the brand would pack it all up and leave America for good.



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Clean Slate


Audi’s lineup in the early ’90s consisted of the compact 80/90, midsize 100, and the V8, but following the unfounded unintended acceleration claims and an aging lineup, the company needed a fresh start. Audi would roll out a successor to the impressive but ultimately unsuccessful V8 first, then replace the 80 and 90.

Work on the 80/90 successor began in 1988 using the Volkswagen PL45 platform. Audi took six years to finish the project, and the result was the first-generation A4. Internally known as the B5, it made its world premiere in October 1994, mere months after the first ‘A’ Audi debuted in February that same year, the A8.

The first-generation A5 was, quite literally, a billion-dollar gamble, and the company banked on it to rake in sales in North America. It arrived at the right time, too, as BMW redesigned the 3 Series in late 1990 and Mercedes-Benz launched the successor to the 190E, the C-Class, in mid-1993.



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Leaps Ahead


When the A4 was unveiled in 1994, it was a leap ahead of the 90 in technical specifications. Take the suspension, for instance: the A4 had double wishbones at the front, whereas its predecessor used struts. That said, the rear suspension design was still similar to the 90. Front-wheel drive models still came with a torsion beam axle, but the Audi A4 Quattro had a multi-link rear end.

But the design showed the world Audi was entering a new, bolder chapter that went far beyond the name change. Imre Hasanic penned it, and in many ways, it was a shrunken-down A8. Many of the styling elements from the flagship sedan made it into the compact executive. Developed under the watchful eye of Ferdinand Piëch, it prioritized quality and attention to detail.



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Critical Acclaim


The motoring press eventually got behind the wheel, and the reception was very positive. It felt light years ahead of the 90, not just because of how it drove, but also because of how it was built. It was dubbed a benchmark in build quality and finish in its class. However, the U.S. would have to wait until late 1995 to get its hands on the A4 and see and feel it for itself.

Unlike the European/global versions, which offered a wide variety of four-cylinder gas and diesel engines plus a compact V6, the North American lineup was kept simple. It was either a 1.8-liter turbo with five valves per cylinder or a 2.8-liter V6. Quattro all-wheel drive was available for both engine choices.

Impressions from America reflected those in Europe, with magazines at the time saying it was more than a match for the almighty BMW 3 Series, and the only real complaint was the tight rear seats. That wasn’t something you could say about the A4’s predecessor. So, it won over the critics, but positive reviews don’t always mean huge sales. The engineers had done the work, but it was now time to convince the public.



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The Start of the Turnaround


Audi’s strategy for the A4 in the U.S. sounded simple enough: offer more for less than the 3 Series and C-Class. To say it worked would be an understatement; the compact executive sedan would mark the start of the company’s rebirth and redemption in the U.S. market.

In 1995, Audi sold a total of 18,120 cars in the U.S. Come 1996, the company had sold 15,288 A4s alone, with about two-thirds equipped with all-wheel drive. The A4 had sold better in its first full year than the entire range combined in 1992, 1993, and 1994. It was the savior that the brand needed in America, and things were looking up. A4 sales rose to 20,671 in 1997, then to 26,625 in 1998, and 32,137 in 1999.



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Here to Stay


In all those years, the car accounted for a good chunk of Audi USA’s sales. Enhancements and improvements over the years further boosted the car’s appeal. The 12-valve V6 gave way to a 30-valve unit, boosting output and putting it in the same ballpark as the higher-spec 3 Series and C-Class. Audi then added the Avant to the U.S. lineup, and while it was more of a niche model, it still contributed to the model’s overall success. And let’s not forget the addition of high-performance S4 models, offered in both sedan and wagon guises.

By 2000, Audi sales had returned to 1985 levels, just before unintended acceleration claims caused panic. The company had sold 80,372 cars in America, again, most of which were the A4 and its derivatives. Simply put, without the A4, Audi wouldn’t be in America today, and the U.S. wouldn’t have cars like the A8, RS 4, RS 6, R8, and more. It also would’ve relegated the brand to a bit player in the world’s luxury car market.

Five generations later, Audi rather bafflingly dropped the nameplate in favor of A5. The car that saved it in America wasn’t discontinued; it was renamed. That said, the transition hasn’t been as well-received, even if the car is genuinely good. Perhaps the next-generation should bring back the name, and it might do Audi good the second time around.



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