S7E17: Why Audi Is as Excited About the 2026 Q3 as Its New Formula 1 Team

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I'm not going to say anything yet because this is under embargo until next week.

But the car itself, there's a lot of new things in this car.

And this is the entry level car for the Audi brand.

First one was in 2015 I believe.

So there's a lot of interesting things in this car.

And one in particular, I always like the map here in the virtual cockpit.

And now you brought it back because people wanted it, right?

Yeah, we were really happy to bring that back into the Q3 and it being the entry to the brand.

At the same time, it brings a lot of the class above technologies as well as some of the Kutrimuls.

If you will, back to this entry vehicle on the SUV side of the business.

So the Q3 is going to bring a lot of new customers in.

But it also will obviously keep a lot of existing Q3 buyers very happy to level up to this one.

Yeah, and this segment seems to be exploding in the past few years.

I think that all the manufacturers including Audi figure out that this is what people want.

More technology, more good design, more cool things, more power.

Not like a super sport kind of power, but more into something in a smaller package.

And what it really surprises is how the apparently has changed the strategy including a lot of stuff for what price, right?

Yeah, I mean, we've narrowed down the model complexity a little bit so that customers get the car they want.

And then they can add a few options on the side.

Previously, we had different levels of equipment on vehicles and different model lines, if you will.

And that now has been simplified.

So the Q3 comes well equipped and it has all of the basics in it including all the technologies.

It has one engine variant.

It gets the fastest 0 to 60 as well as it has the most power, which is great for a car like this

because then you can merge a little quicker on the highway.

You can also pass a maybe a truck a little bit more easily.

Yeah.

And it just allows you really to fit into your life, whether it be with the technologies, the MMI and also just the packaging of the car.

Yeah.

And some of the things that previously were included as a, especially a technology thing.

I think that what's happening in the whole industry is the technology is getting more accessible at every level.

And this is a perfect example of this because if I'm counting here from your presentation this morning is like 2, 4, 6, 8, 12, like 16 items

that before were an option or like a different package and now they're included.

So is this also driven by consumer, customers fat big or feedback I mean?

It's offering consumers a strong value equation and then also notably the car now also includes three-year scheduled maintenance

just again adding to that value equation for the consumer and having a really well equipped car is a lovely thing to have.

Yeah.

Interior, ambient lighting, navigation standard, all these things, those are things that make a big difference in your daily life with the car.

So the Q3 we think is a really great fit for that entry luxury SUV buyer.

Still the Q5 is the best selling car for Audi globally.

It is still globally the best selling car and the Q3 is certainly going to do very well.

We'll see how things develop.

Yeah.

But this car is also selling Europe obviously because it's like actually better size for the European roads and little streets in small towns, right?

Yeah, it's probably more suited for Europe where usually smaller cars get a little bit more play than in the US.

But I think the US, the Q3 does a very good job and frankly makes the job of the Q5 harder.

But the Q5 is a larger car.

It offers more space, has a little more shoulder room, has a little more headroom, a little more cargo area, etc.

So it is the right fit between the two.

Okay.

So let's talk about more about the rest of the lineup because not very long ago we were in Phoenix for the A6.

So Audi isn't really, you mentioned is that the fastest or the quickest cadence of new models in the past few years of the history of the company?

Yeah, we've been executing on our largest portfolio expansion over the last two years since the launch of the Q6.

E-tron, we've since then launched the Q5, the A5, the A6, TFSI as well as the A6.

E-tron including S models and all those cars.

Now we're bringing the Q3 and then the latter half of the year we're going to bring the Q7 and the Q9.

The Q9 will be a all-new flagship vehicle.

The Q7 will be a complete refresh of the upper-mid-sized luxury segment SUV that people know.

And with that comes a great year ahead in terms of sales.

But also very importantly, it's just a great time to be with Audi, frankly, because it's not just that I'm going to end there.

As we go into next year, we'll be seeing RS models coming and other really great emotive models as well.

Yeah, so for the car or the customer part of the business, it's really great.

But also, you were talking about how exciting the whole company is about the Formula 1 team.

Tell us about it because, I mean, just the first race, but you already had the event last year when you showed that car first in Germany.

I think it was in Berlin or Munich, I don't know.

But tell us about that. That's a big deal.

Yeah, it's a big rallying cry for the whole company, right?

From a factory worker to a dealership salespeople or to the people that work in the corporate office here in the US, everyone is super excited.

Everyone is excited to bring the racing back to the brand.

We were racing all these years at Le Mans and GT, certainly our history at Rally and also at GTM.

And that's how the Quattro technology started, right?

Yeah, rallying in rally.

And we're going to see that leading into our brand going forward.

We'll see how that develops.

But fundamentally, just to be able to see an all-new Formula 1 car, an all-new Formula 1 set of technical guidelines.

And we finished in ninth place in our first race right out of the gate with an all-new powertrain, all-new team,

and also three different engineering centers throughout spread out throughout Europe.

So it's a really great time to be with Audi.

That's another thing that most people don't realize.

How much work, and as you say, thousands of people work behind the scenes to make everything possible.

So even in this car, that always the entry-level model for the brand, there's so much work.

So designers, executives, marketing people, it's like a whole effort.

It's a team effort.

And Formula 1, it's always been.

Formula 1 is about 75 years old, I think.

From the very beginning, that's how all the other brands have used it as a lab kind of thing.

But now that we're in this transition between gas or the options that we have, gas, hybrid, that's exactly what it is, right?

Yeah, and I think F1 brings new technologies in.

It also has sustainable fuel, so it is going to be pushing what is technically feasible and also a very high level in terms of its performance.

It is like a testing lab, and it will yield results for future product ideas or technologies,

but half of it is just also the motivation for the team.

And to your point, you don't win championships or races by yourself.

Everyone contributes in whether that is putting a Q3 on the road or whether that is putting an F1 car on the grid.

Going back to the Q3, there are some details that you probably wouldn't expect in an entry-level model.

For example, that was about this new wooden pano.

I heard it's the biggest piece of wood that has been put into an Audi.

That's pretty surprising, the history that Audi has.

It might be the largest it might be, but it is a very expansive piece of wood.

It certainly, in general, the Q3 benefits from a multi-material interior design that I think gives it a really nice presence, a great place to be,

and just also tactile-wise, it feels good, and then also delivers on the powertrain as well as the technology.

So it really delivers on all those fronts, we think, for the buyer.

Yeah, then going back to the passenger side, this is Audi you're not seeing, and I'm in the driver's side.

So we go with the big double screen.

We talk already about the digital cockpit, but then like this is innovative.

This control, what is the official name for this piece where you have the transmission and then like the...

We just have a new setup that operates in an identical way really from conventional for blinkers, wipers, and also for the transmission.

So we brought the shifting up under the steering column, which allows you to keep your hands on the wheel while also being able to use that.

You still have paddle shifters as well, so if you want it, if you're happy doing that to manually shift, you can obviously do that.

And then the blinker as well as the wipers, it has a really nice tactile click to it, a tactile feel when you do hit the blinker, etc.

It really doesn't change any of your behavior and how to drive.

All it does is, all it is is a different version that just offers a little bit more tactile feel, a little bit less...

And it's like really there within your reach, you don't have to move your hands if you're driving on the highway.

And actually I used it a lot and like these are close but you don't get confused, it's very intuitive.

I mean very different from any other brand that I can remember, but also very easy to use, you don't get confused and all that.

So the other thing that Audi has been known for in the past few years is the lightning.

The outside lights are amazing, like in daylight you see them but then at night that's when they really shine, right?

Yeah, we have on the Q3 we have obviously your programmable lighting signatures that you can choose for your DRLs.

And then we also have OLED optional lighting for the rear lights. It just adds a certain look to the car.

It does look more premium and it also looks like a bit of a tech, technical look to it that is in line with our lighting leadership that we've had over the last decades.

Yeah, but there has been some technical or legislation issues for the US, like we don't get the laser, you don't get the whole level of development that you have achieved.

Like I couldn't use in Europe, why is that?

Yeah, I think fundamentally we were working in general as were other manufacturers on bringing matrix lighting in particular to the US.

The decision that was made then in terms of how to get that certified for the US was something that was changed from what was available globally.

So all manufacturers had to hit reset and really does require a wholly new development of the car.

So the Q3, not the car but of the light.

So the Q3 does not have matrix lighting but it does have LEDs and OLED lights.

And then laser lighting is something that is available on some of our cars.

It is adjusted from the European version in the sense that...

So less distance or less intensity?

It is the same intensity but it only goes a certain distance and that distance is the maximum distance that is allowed for the regulations which is still better than what you would get under normal high beam lighting when it's really dark outside.

Well it's been, again I'm not going to say how it drives but it's been a pleasure doing it here in California.

Really enjoyed the time with, every time we come without this great time.

So thank you very much for your time and the opportunity to be here.

Thank you Aviar, thanks for making it out.

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S7E17: Why Audi Is as Excited About the 2026 Q3 as Its New Formula 1 Team

Audi Quattro

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