Audi's Q Factor

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UpFront



Audi's new Q7 is very late to the luxury SUV party. So late, in fact, it's more likely showing up to an after-party where other manufacturers have had years to tailor and refine their offerings. But Audi has managed to make the best of its tardiness, and the Q7 is startlingly fresh and well positioned to make its mark in a crowded field.



For years, during the late 1990s and early 2000s, Audi held out, offering as an alternative its excellent, rugged all-road station wagon. Executives now admit that was a big mistake, estimating that as much as 15% of its customer base abandoned the brand for lack of a standard SUV. Even Subaru and Volvo, brands that made highly regarded wagons, began offering full-on SUVs during that time period.



Now, Audi's top brass [which reports to parent company Volkswagen] wants the brand to roll with the big boys instead of occupying a narrow niche. That primarily means challenging its German compatriots BMW, DaimlerChrysler's (DCX) Mercedes-Benz division, and Porsche. And, more important, competing on all fronts means offering a luxury SUV packed with power and technology. Enter the new-for-2007 Q7.



Running through the Q7's various trim lines, you can tell Audi engineers closely studied the competition, and that their mandate was to snatch as many "best in class" designations as possible. The various models are positioned to compete on price at the low end and project affluence at the high end.



Case in point, the entry-level $39,900 Q7 with a 3.6-liter V6 is more powerful than the similarly priced BMW X5, Nissan's (NSANY) Infiniti FX35, Toyota's (TM) Lexus RX 350, and the Mercedes M-Class. This Q7 model also competes on price, nearly matching the cutthroat pricing of the Infiniti and Lexus models. It's significantly cheaper than the X5 and M-Class, meanwhile, undercutting those models by an average of about $4,000 [see BusinessWeek.com, 9/18/06, "Mercedes Mmm Class"].



At the top of the line, the story is similar. At $59,900, the 4.2 V8 is more expensive than all four competing vehicles in the class -- the X5, M-Class, Ford Motor's (F) Range Rover Sport, and the Porsche Cayenne [a Q7 cousin -- the Cayenne, VW Touareg and Q7 all share a chassis]. But that may very well be a virtue when customers are looking for signs they're buying superlative luxury. This Q7 is also more powerful than all those models save the BMW, which it matches with 350 horses.



Audi lent me this top-line model. In addition to the base $59,900 window sticker, my test ride had a $2,500 adaptive air suspension, $500 side assist safety system, and a $2,150 S line sports package. Included in the base price were sexy options like the enormous panoramic sunroof, 14-speaker Bose sound system, satellite radio, and DVD-based navigation system. All-in-all, still quite a value for $65,870 with $720 destination charge.



Behind the Wheel

The top-of-the-line Q7's optional 4.2-liter V8 engine produces 350 horses and plenty of road-gripping torque. At 5,467 pounds, Audi's SUV is heavier than nearly all its competitors. But despite its heft, the V8 feels zippy even if it only gets from zero to 62 mph in a silky smooth 7.1 seconds. Top speed is electronically limited at 130 mph, and unlike other luxury SUVs, the Q7 feels quick enough to actually get there.



Audi's automatic transmissions are generally excellent. The Q7's is no different, as you would rightly expect from a vehicle costing this much. However, the DSG gearbox that puts F1-style paddle shifters behind the wheel is a notch above the rest. These enable eyeblink-quick gear shifts, handy for sport-oriented drivers. I was impressed at how well the system performed, dropping two gears heading into a turn for instance, even in so large a vehicle.



The Q7 is a treasure trove of technologies, some included as part of the basic package and others worth-it options. A standard camera built into the trunk beams images to the dash to assist with parking. Nothing amazing about that. But Audi one-ups the competition by overlaying a 3D image of exactly where the car is headed as the wheel turns -- extremely useful. Another handy option that isn't standard is an intuitive mirror-mounted safety system that warns drivers when other cars enter blind spots.



Perhaps the most interesting option, though, is the $2,500 adaptive air suspension. This system allows the Q7 to play well on- and off-road. Race-winning quattro all-wheel drive is sterling. But when the car is equipped with this suspension, the click of a few buttons lifts the ride height to tackle tricky off-road obstacles or lowers it to noticeably improved handling. Think hydraulics in slow-mo. It will be interesting to see how popular an option this becomes, as it does help the vehicle bridge the chasm between off- and on-road performance.



Inside, the appointments are all Audi. The leather and wood trims are sumptuous, seats comfortable, and, at night, the cabin is lit with verve. The panoramic sunroof, standard on the top-of-the-line model, is gorgeous and creates an airy feeling inside the entire cabin. Even the third row of seating is reasonably comfortable, though it's more apt for children than full-grown adults. It's no wonder the model won Ward's Auto Interior of the Year award.



Looks-wise, Audi's new snout is controversial in auto circles. The way the grille pulls the front of the car down toward the road gives the hulking SUV a sportier look. Indeed, despite being a rather large vehicle, the Q7's sweeping lines make it look sleek and smaller than it is.



Buy It or Bag It?

So, Audi's Q7 is safe, luxurious, and well priced at every trim. It competes mightily with all the vehicles in its class. It can be loaded up with enough technology to make even the most blase luxury buyer's head spin. What's the catch?



Gas mileage, of course. The larger engine is rated to get between 14 and 19 miles per gallon. That's pretty standard for the class except for the hybrid version of the Lexus RX. But, in my tests, it averaged far below that. In mixed highway and city driving, I only managed to average 13.4 miles per gallon.



Also, if you like the Q7 you may want to take a closer look at the closely related Cayenne S and Touareg V8. The former is actually about $2,000 less than the Q7 quattro Premium edition, albeit with a slightly less powerful engine and a shorter wheel base. The Touareg costs a good $15,000 less before optional extras.



Still, for an offering as late as the Q7 is, it's a remarkably strong offering in a highly competitive market.



Click here to see more of the Audi Q7.