Coming up short, but still a great year for Audi

Audi is short of product all over the world, but it'll still be No. 1 in European luxury sales this year, says Peter Schwarzenbauer, Audi AG board member for sales and marketing.

Audi beat BMW and Mercedes-Benz in Europe for the first time last year.

And of course there's China, where Audi will be the top premium seller for the 20th year in a row, says Schwarzenbauer. Audi will sell more than 200,000 vehicles in China this year. That's twice as many cars as Audi will sell in the United States this year.

Schwarzenbauer says Audi will hit a new sales high of 1.08 million vehicles in 2010, topping last year's record of just over 1 million.

So why is Audi short? It was caught by surprise this year.

Management hadn't expected the markets to recover so quickly and couldn't ramp up production fast enough.