Filed under: Geneva Motor Show, Euro, Hatchbacks, Volkswagen
Blame the dollar for no VW Scirocco in the States
by John Neff on Mar 5th 2008 at 4:57PM 
Click above for high-res gallery of the 2009 VW Scirocco
Volkswagen has made it categorically clear that the only reason it will not sell the recently unveiled Scirocco in the United States is because of the weak dollar. Bloomberg quotes VW's sales and marketing chief Detlef Wittig as saying, "The exchange rate is the only reason for not selling it in the U.S." Wittig goes on to say that the Scirocco would fit the U.S. market, which is arguable considering that VW already sells the Rabbit hatchback here in multiple forms, including GTI and R32 variants for the performance-minded enthusiast. But because of the weak buck, the point is moot since VW would make no money importing the Scirocco from the factory in Palmela, Portugal where it will be built alongside the Eos convertible.
Is all hope lost for those in the U.S. hoping to relive thier youths in a reborn Scirocco? Not quite, as the dollar will likely make a comeback against the euro at some point. Since no one is saying that it's likely to happen in the near future, VW also announced that it has begun scouting locations for a U.S. plant where it can build some of its cars free of the profit-sapping exchange rates. Perhaps then when we're building our own VWs in Alabama, Germany's largest automaker will decide to start selling the Scirocco in the U.S. Thanks for the tip, Mike!
[Source: Bloomberg]
Reader Comments (Page 1 of 3)
Alex Nunez 5:02PM (3/05/2008)
Here's an idea: Eos, no. Scirocco, yes.
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Tod 5:18PM (3/05/2008)
How about both? I love my Eos, it is the greatest car I have ever owned. Hard top convertible with a sunroof..for under 40 grand. Only hardtop in the world at this point with both a sunroof and convertible. While I am sad that you folks will be denied a Scirocco, I am loving my Eos.
baronmunchin 5:39PM (3/05/2008)
This is actually quite a beautiful car - I am a designer and this is a great design. Its a shame we may never see this car in USA I know quite a few people including myself who would purchase this car. The interior is damn perfect and Id love to see one in orange.
psarhjinian 5:41PM (3/05/2008)
I'd say scrap the three-door GTI. Anyone who wants a practical-but-sporty car is going to buy the five-door, and anyone who bought the three-door would probably have picked the Scirocco if it was an option. Neither segment crosses over to the Eos.
Or they could jettison the New Beetle. Goodness know it's played out.
ugg.tryptophan 12:19AM (3/06/2008)
@ psarhjinian How about VW not scrapping anything, the three door GTI is cooler than the five door, every GTI i see on the road is the three door
naggs 8:25AM (3/06/2008)
how about no to both
gti > scirocco
Dave in MI 5:11PM (3/05/2008)
Oh, wie schade!
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Mattias 4:35AM (3/06/2008)
Tja, dumm gelaufen.
Torrent 5:13PM (3/05/2008)
I'm not surprised.
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bob d 5:14PM (3/05/2008)
Baloney. Porsche just took over VW. Porsche is all about profit. This car didn't make the profit margin that Porsche wants because it has to compete against the 350z, Vette, and other Japanese rockets. What a lousy excuse for their own failure to compete in the global market.
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davido 5:36PM (3/05/2008)
Baloney???
If VW spends Euros to build the car in Portugal, and the EURO is worth substantially more than the dollar (50% more at the moment), they'll have to overprice the car for this market or take a profit hit when they sell it here. Then, having done that, they have to convert the dollars we pay for it back to Euro's and take another hit.
Just because you don't understand exchange rates doesn't mean they're not an issue.
Val 7:22PM (3/05/2008)
Exactly! Unlike Nissan and Chevrolet (GM), which are non-profit, charity foundations.
nagmashot 1:27AM (3/06/2008)
@bob d
are you on drugs?
This car is way below the price of 350Z or Corvette ..the most powerfull version with 200hp is competition vs the Honda Civic SI Coupe. Based on the Euro selling price this car would be most likely a $ 18-20k car.
GTI Germany 25,850Euro incl VAT
GTI USA $22,000
Scirocco Germany 21,850Euro incl VAT
Scirocco USA ~$18-20k
J.Crew 5:16PM (3/05/2008)
Here's to hoping that we up in Canada get this as our dollar is strong!
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End User 12:14AM (3/06/2008)
The Canadian $ is equal to the US $. I doubt the Scirocco will make it here.
J.Crew 1:03AM (3/06/2008)
Yeah, but our market is also small car based unlike the US.
John P. 5:16PM (3/05/2008)
Weak Dollar is the least of their worries. It's a Weak Design.
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Jorge 5:18PM (3/05/2008)
This one is going to be on sale here in Mexico, haha!!
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bruno 5:21PM (3/05/2008)
Not so sure.
1. I've read no evidence that the dollar will rebound vs the Euro. They're both debasing currencies, but the US is doing it faster.
2. Even if built in the US, many of the parts presumedly will have to be imported to assemble the car. Those are subject to the same exchange rate problem. Also the design costs and much of the other overhead of VW is in euros, not dollars.
3. Finally, profits in dollars are great, but they're worth less when the VW stockholders in Europe have to convert them back to Euros. I assume a lot of it is owned by Europeans.
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zamafir 5:30PM (3/05/2008)
yup yup and yup, the same reason we dont get the lupo or polo, not that it matters given the cold reception anything vw seems to receieve here on the comment section since all their products always break down, especially the newest ones.