The Wall Street Journal has confirmed what's been alluded to in the past, but this time, it's from the top. Volkswagen's CEO Martin Winterkorn plans to price its U.S. offerings more aggressively in a bid to better compete with the likes of Toyota.
Currently, the Jetta starts around $17,000, while a comparable (?) Corolla is about $2k less. Same goes for the Passat and Camry segment, where the VW's mid-size sedan has close to a $4,000 premium over its Toyota counterpart.
Interestingly, Winterkorn admits, "We have definitely added too many technical items that (American) customers don't want to pay for." What those particular features are escapes us, but as long as they work, that's all that matters.
[Source: Wall Street Journal]
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Reader Comments (Page 1 of 4)
Guenther @ Oct 18th 2007 10:37AM
The Corolla and Jetta are not really comparable vehicles, At least not the current Corolla.
That statement from Winterkorn is about as bad as it gets-
'we have no Idea what Americans want in a car'
Son House @ Oct 18th 2007 10:47AM
Well, not really Guenther... I think they understand the problem well enough. They've made their cars for European tastes, who are pretty demanding when it comes to interior styling, quality of build materials, and demand lots of neat little features. Americans, on the other want, are perfectly happy with cheap and dingy interiors, as evidenced by the Tonka-truck styling and build quality of domestic car interiors, and, to a lesser extent, the Japanese economy cars as well.
And when AutoBlog writes this...
"Interestingly, Winterkorn admits, 'We have definitely added too many technical items that (American) customers don't want to pay for.' What those particular features are escapes us, but as long as they work, that's all that matters."
Again, I think it goes back to the idea that VW's are over-engineered things. The interior's quality just blows away the competition, and VW is starting to realize that no one really cares about that. So a lot of the neat features that go into a Golf/Jetta will be going away in the name of cost cutting.
Which, as an Mk5 GTI owner, I don't really like. If I had wanted mad power combined with a crap-tastic interior, I'd have looked into a Mazdaspeed 3, or some SRT, or a WRX. But it was the VW's million little touches that sold me on a very balanced jack-of-all-trades car. Hopefully this cost-cutting doesn't take that well-roundedness away.
joe23521 @ Oct 18th 2007 10:54AM
"But it was the VW's million little touches that sold me on a very balanced jack-of-all-trades car."
I can't agree with this more...Exactly the reason I drive a VW. That and the fact that I refuse to buy Japanese. :)
icetraxx @ Oct 18th 2007 11:14AM
Its possible that us Americans do not care about the interior as much as a European, but at least we care about reliability.
cowbell @ Oct 18th 2007 11:34AM
Where are these great VW interiors that people are talking about, because they haven't been in any VW that I've sat in. I read a recent review of a Jetta that I think sums up a VW interior perfectly:
"While my ’08 tester’s fit and finish were frickin’ flawless, they pale into insignificance compared to the unforgiving slabs of petroleum-based concrete that line the creature capsule." --Tony Sterbenc
When my wife and I test drove a Passat about a month ago, we thought it was "nice" but couldn't wait to get out of the car.
Sport @ Oct 18th 2007 2:42PM
http://www.freewebs.com/car_stuff_vw/VW_Appreciation_Page.htm
Justin @ Oct 18th 2007 4:09PM
"They've made their cars for European tastes, who are pretty demanding when it comes to interior styling, quality of build materials, and demand lots of neat little features. Americans, on the other want, are perfectly happy with cheap and dingy interiors, as evidenced by the Tonka-truck styling and build quality of domestic car interiors"
Sorry but you don't get it. Don't blame VW's high pricing on us Americans having low expectations in a car. I can afford a $14k cobalt (which i actually like a lot after driving one) but I can't afford a $17k Jetta. Cobalt wins.
I like the Bugatti Veyron's interior a lot also. But (suprise!) its a wee bit unaffordable.
Chase @ Oct 18th 2007 7:43PM
Why is the Corolla so cheap compared to the Jetta?
Going down the list on autos.msn.com, the Jetta comes standard with cruise control, a telescopic steering column, TPMS, power windows, a full-size spare tire, heated side mirrors, ABS, EBS, traction control, and a 170 hp motor (compared to 120hp) where the Corolla does not. The Jetta has considerably better crash test ratings. That all is definitely $2,500 (that's the difference between their base prices).
Why is the Camry so cheap compared to the Passat?
Again from autos.msn.com, the Passat has a trip computer, power drivers side seat including lumbar, a full size spare tire, heated side mirrors, alloy wheels, a 200 hp motor (compared to 160 hp), a six-speed manual (compared to five speed), traction control, and vehicle stability control (read ESP) all standard where the Camry does not. The Camry does have buttons on the steering wheel standard where the Passat has them optional. The Passat has better crash-test ratings, but not by as large a margin as in the Jetta/Corolla. I still believe those features are worth the difference of $5,400 between the two, but they are close to being over-valued. That said, I'm not a fan of the Passat, but am of the Jetta/Rabbit.
Also, I tend to like the interior of the VWs a lot more, but thats just me.
Vexorg @ Oct 18th 2007 11:00PM
I have to agree with some of the others here that the interior is one of the major factors that sets VW apart from the competition. The materials in my Rabbit are solid all the way through, and all the little touches they put in (for example, the two red LED lights next to the sunroof controls, the heated seats and the air conditioned glovebox) really distingush it.
TBlueMax @ Oct 18th 2007 10:42AM
I've generally liked VW cars in the past and their current and future offerings look promising, however, I've always wished they had the reliability reputation of a Toyota.
It would be unfortunate if, instead of VW improving to Toyota, Toyota regressed to VW. Oh well, I can only hope that VW improves their reliability as I'm really looking forward to their upcoming diesel wagons.
BJ @ Oct 18th 2007 11:10AM
Thats so true. Winterkorn is wrong about one thing though "as long as they work" is what he says well they don't work. Iv'e owned 2 VW's one of which I continue to own. Its come to a point where I don't care if its got leather and heated seats and watever else high tech stuff in here as long as it ran atleast 1 day with everthing working. VW's are really poor on reliability = ELECTRICAL GREMLINS. I don't agree that they're over engineered just because they're German.
Dirk @ Oct 18th 2007 10:46AM
Sweet. A GTI for 13 grand will be awesome.
MikeW @ Oct 18th 2007 11:10AM
So will the 5 speed stick, beam rear axle, and dual beam headlights. and maybe optional ABS and AC.
It would be nice for 10K off, but the biggest threat right now would be the nearly insolvent USD$ to low priced cars.
Rick @ Oct 18th 2007 3:52PM
Actually, it's that tonka toy truck styling that has the big three in the dumps. VW is not only expensive, but unreliable. Lowering prices and having lower prices to maintain repairs after the warranty expires will go a long way in my book.
saluki @ Oct 18th 2007 10:47AM
Perhaps those items would be the engine and the transmission?
From my experience they should work on those first before even mentioning Toyota.
Sport @ Oct 18th 2007 2:35PM
"Perhaps those items would be the engine and the transmission? From my experience they should work on those first before even mentioning Toyota."
I guess you haven't seen VW's International Engine of the Year Awards or their regular placing on Wards' 10 Best Engines list? Have you heard anything about VW's 2.0T motor? No? You should read some of the reviews on it. I think VW should pull out of the U.S. market and leave them with their Toyotas.
psarhjinian @ Oct 18th 2007 7:58PM
It's on Ward's list because it's impressive in its output and fuel economy. It's also an unreliable, overbuilt and problem-prone design.
Of course, European engineering means exactly that: high performance, high complexity, high likelyhood of something screwing up. Toyota and Honda, now that they have traction in Europe (decent diesels, reasonable handling), are going to start cleaning house very soon as European buyers come to realize exactly how bad their domestic market cars (excluding Ford) really are.
If you've owned Fiats or Renaults all your life, that first Toyota is going to come as a pleasant surprise.
Jason @ Oct 18th 2007 10:50AM
VW is so confused it's frightening. Whatever you take out of your cars to hit the price point better not affect reliability. Your reliability can't compete with Toyota even after the hits they've taken.
ebm14 @ Oct 18th 2007 7:19PM
Jason, take a look at JD Powers recent review of the Camry.
It went DOooooooooooooooooooooonnnnnnnnnnnnnn.
John P. @ Oct 18th 2007 10:53AM
Dear Mr. Winterkorn,
We'd buy more VW's if they could just stay out of the mechanics hands and on the road where they belong. Every VW in my family, jetta, passat, beetles, have been fun to drive yet troublesome vehicles.
I really like VW's though, way more appealing than Toyotas in general. Equal fit and finish on the outside, and look/feel more expensive on the inside. I owned a Corolla, and it's interior was/is downright McDonald's Happy Meal Plastic. Same goes for the new Tundra.