In an interview with Automotive News, the head of Audi’s dealer council, Joel Weinberger confirmed that the compact Q3 crossover and A7 four-door coupe are under development, and a small SUV is being discussed.
Talking about the Q5, he said that US market will first see the hybrid version and then the diesel one: "The Q5 will go hybrid first and not diesel. You can only have so many drivetrains. It comes down to pricing too. Audi has told me the unit cost of a diesel is $4,000 more but they realize they cannot sell it for $4,000 more — the premium will be half of that. We’ll sell them if they can keep pricing in line."
When asked if Audi need the smaller Q5 SUV in the United States, he answered: "The Q7 is a really big vehicle. Just size-wise you have to look at the (Lexus) RX 330 as your target. The Q5 will fit into that niche and it should not cannibalize the Q7. It will be bigger than the (BMW) X3 and (Acura) RDX. Smaller SUVs tend to be more female-oriented."