While GM and Ford continue their slow-motion fall from grace, Audi’s headed in the other direction. The German automaker’s U.S. sales are up, moving towards record levels. The company has a raft of new vehicles on dealers’ lots and more models on their way– from mid-market entry level models to the new TT roadster to the R8 supercar. Audi’s interiors are still the industry standard for design, fit and finish. They’re modifying their distribution system to increase customer choice and reduce dealer inventories. So is all well with Audi?  Yes and no.

It wasn't that long ago that Audi was known for creating cars that ran over their owners.  After the “sudden unintended acceleration" debacle, the company went on to establish a rep for building high tech cars of dubious mechanical quality.  Although Audi’s position at the bottom of JD Power’s 2005 Vehicle Dependability survey doesn’t indicate much movement on this residual critical reliability front, the company claims to be addressing the issue.  Meanwhile, Audi’s got a secret weapon in the battle to carve out a bigger chunk of the US car market: diesel.