Audi unveils its full-size Q9 SUV: 'We've done it right'

The full-size SUV market just got, well, bigger.

Last week, German automaker Audi introduced its all-new Q9, a three-row SUV that was designed specifically for U.S. drivers. It's grand, spacious and more luxurious than the brand's existing SUVs, with Audi executives hailing it as the new flagship vehicle in the lineup.

The Q9 arrives at dealerships later this year and starts at $87,700. Audi's SUV models are already incredibly popular; the company said 80% of its sales in the U.S. are SUVs. More Americans are clearly clamoring for glamorous people haulers that can do it all; premium large SUVs have become a hot commodity for many families.

Vito Paladino, who was named president of Audi of America in April, said the Q9 and its sibling, the sportier SQ9, clearly fit a growing need in the market. They can ferry children to school, tow camping gear (up to 7,700 pounds), deliver envious performance and amply seat seven adults.

The Q9, which comes with automatic power doors, produces 429 horsepower and 442. lb.-ft. of torque from its 2.9-liter twin-turbo V6 engine. For drivers who care more about speed, the SQ9 ($118,000) sprints from 0 to 60 mph in 3.8 seconds, making it one of the quickest three-row SUVs available to buy. The formidable ute (591 hp) is powered by a 4.0-liter twin-turbo V8.

Both models also feature digital, curved OLED tech in the taillights, giving motorists better visibility at night. Hands-free, Level 2+ automated driving is also available for the first time in an Audi SUV.

Paladino spoke to ABC News about the Q9's charm, his love of wagons and how consumers can order the brand's latest supercar.

The interview below has been edited for clarity.

Q: How important is the Q9 for the brand?

A: It's super important. It's got quattro [Audi's all-wheel drive tech], which we don't speak about enough. It's really our flex in this premium market.

When you drive the vehicle, you don't immediately notice its size. It's a brand-new platform for us.

Q: Have Audi customers been asking for a larger SUV?

A: I think the large SUV market is starting to grow. It's the top end of the automotive market, in terms of prestige. A premium brand has to have an entry [in this segment] and I think we've really done it right.

Q: The Q9 is now the largest Audi SUV available to consumers. Why not make the rear row big enough for three adults?

A: It's a good question. The way the third row is designed and configured, it is quite comfortable. You can hang in that rear third row and still feel comfortable. The Q9 is more capable of putting an adult in the third row.

Q: The Q9 has a twin-turbo V6 engine and the SQ9 is built with a twin-turbo V8. Was there any talk of making these SUVs a hybrid or electric?

A: We feel these powertrains are the right ones -- you're going to have more occupancy, you're going to be towing a boat or something large.

Does that mean we won't have more announcements going forward? It's progress. We felt these two powertrains were right for the launch.

Q: Do Audi customers prefer gas-powered vehicles over electrics and hybrids?

A: I would say U.S. customers are definitely signaling that they prefer ICE [internal combustion engine] vehicles. There are certain parts of the U.S. that are electrifying quicker. And we have a full portfolio. In this [large SUV] segment, electric feels less of something to focus on at this moment.

Q: What has demand been like over the last few months for Audi's EVs?

A: It's changed. The industry has gone to like a 5% penetration. So certainly the [federal] rebates helped the affordability. I think a consumer looks at the key values of a vehicle and what they need.

Q: Are you considering canceling any EVs?

A: We're always looking at models and markets. Electrification has to be right for the customer. It can't be based on what we think internally for our needs.

Q: What has demand been like for your RS performance models?

A: Super strong. It is our most emotional segment. RS helps to define the brand. It gives you a different driving experience.

The RS6 Avant has really resonated. Even in its last generation, it was so sought after. Consumers really desired this vehicle.

Yes, SUVs are super popular in the U.S. -- over 80% of the market. We don't look at wagons as a volume play. This is a unique space. Passenger cars bring a younger demographic into the brand.

I love Avants, personally. We can explore the wagon segment much more than we have in the U.S.

Q: You were named head of Audi North America earlier this year. What are you plans for the company?

A: I feel like people know our cars on the road but do they know our identity? I want to tell the Audi story, which is a rich story.

Q: Audi just unveiled a new supercar. How many units are coming to the U.S.?

A: About 200 units are coming to the U.S. We're really excited. That car in particular [highlights] why design is so important to the brand. Dealers are extremely excited. We're going to [Monterey Car Week] and will do a bunch of activations in the U.S. We want to celebrate this amazing vehicle.