Audi could be developing a new vehicle to compete with the likes of the Mercedes-Benz G-Wagon and Land Rover vehicles, as reported by Autocar. Potentially the brand’s new halo model, the new luxury SUV will introduce new radical designs and technology in contrast to the company’s existing offerings.
Back in 2023, when Marc Lichte was still the Head of Design at Audi, he spoke about the luxury 4×4 segment, saying, “There is potential because there are only two premium players,” referring to Mercedes-Benz and Land Rover. He then added that, “there is space for a third one.”
Lichte has since left Audi and was replaced by the person responsible for designing the Land Rover Defender, Massimo Frascella. Not much followed after but Chief Executive Officer (CEO) Gernot Döllner told Autocar, “Don’t give up on that dream.”
Despite Döllner’s broader goal of simplifying the Audi lineup, he said that developing a low-volume halo car remains important for Audi, as it serves to showcase the brand’s latest technologies that can eventually trickle down to other models.
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He added, “There is no niche banner. It’s just the opposite. It works perfectly to have a more focused line-up in the core, and in addition to that have some niche models to build the brand and to also transfer new ideas from a niche segment into the core products. That works perfectly and this is part of our strategy.”
In line with its role as a halo model, Döllner mentioned that US import tariffs have prompted the company to consider local production, suggesting that a flagship 4×4 could be an attractive option given the strong demand for such vehicles in the American market.
But of course, it remains to be discussed, as Döllner says, “At a group level, we are right now discussing and investigating whether or not we should have a factory for Audi in the US.”
“But that’s dependent on a stable tariff situation and also on other regulatory boundary conditions that we would need to take into consideration for a decision like that,” he added.
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Interestingly, this follows recent reports of BMW’s plans to develop a G-Class rival. While Audi’s intentions remain uncertain, BMW’s X5-based off-road specialist is reportedly set to enter production in 2029 in the US, serving as an indirect successor to the XM — signalling a stronger commitment to the “flagship 4×4” segment than Audi.
Funnily enough, as BMW and Audi prepare their respective halo off-roaders to challenge the G-Class, the brand behind the icon itself, Mercedes-Benz, is going in the opposite direction — downsizing the formula. The company is set to introduce a “Little G” as part of its “biggest launch campaign in history,” making the G-Class experience more attainable — and perhaps appealing enough to lure some Suzuki Jimny fans.
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