Audi is working on a new compact SUV to take a place below the Q7 in the company’s model range. The Q5 will be
based on the same platform as the next-generation Audi A4 and will come to compete with the BMW X3, Land Rover Freelander and the upcoming Volvo XC50 and Mercedes GLK. It will go on sale in 2008 at an expected price of $35000. The Q5 will be produced at Audi’s plant in Ingolstadt with a development price tag close to $400 million.