Filed under: Economy, Sedans/Saloons, Plants/Manufacturing, Hatchbacks, Volkswagen
VW's plan for the U.S. include smaller Passat replacement, pickup and more
The United States is key to Volkswagen's planned expansion in the coming decade, as the German automaker attempts to rival Toyota by selling one million units in the U.S. per year by 2018. That lofty goal will be fueled by new products priced below their current counterparts, and according to VW Group CEO Martin Winterkorn, many of these new models will be built Stateside and in Mexico.One of the major product changes will come in the form of the Passat, which will ditch its current nameplate, decrease in size and be priced around $20,000. The Jetta will also see a price reduction from the current base model's $17,030 sticker to something closer to the $15,000 price-point, while some version of the Polo – expected to be built in North America to keep costs down – will slot in below VW's entry-level sedan. Other models slated for sale in the U.S. include a compact model based on the up! concepts, as well as a body-on-frame pickup truck and the return of the Phaeton, motivated by a V8 powerplant and priced substantially below the slow-selling version that was killed in 2005.
[Source: Automotive News – Sub. Req.]
Reader Comments (Page 1 of 2)
Mattias 8:39AM (3/10/2008)
I doubt they are brave enough to bring the Mercosur/SADC pickup to the US. Of course: A pickup of the Dakota's size with the choice of the Audi V6, the I5 common rail diesel, the V6 diesel and a hybrid would be an interesting truck to compete with either oversized Dodges or terribly outdated Ford Rangers.
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Dasupersprint 9:08AM (3/10/2008)
Yeah, but no Scirroco...
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BlackbirdHighway 9:28AM (3/10/2008)
Toyota's success is based on outstanding reliablity. VW has lousy reliability ratings. If VW wants to rival Toyota, that's where they need to focus first. New models and better prices are secondary.
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Gregg 9:33AM (3/10/2008)
New models and lower prices are primary, and about time VW makes the switch. Reliability may be an issue as well, but I have never had significantly more problems with my VWs than any other brands I have owned, though the VWs are usually highly satisfying cars to drive. A lower priced Phaeton might just work as well.
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MajorGeek 9:35AM (3/10/2008)
Pickup truck market is indeed a bad idea. It would probably be like that silly looking Subaru. The pickup truck market is saturated with excellent choices and a few bad. Frankly, the Tundra, Chevy, Ford and Dodge all make an excellent pickup. Not a fan of Nissan or Honda offerings personally. I always liked my previous Dodge Dakota, but felt it had some quality issues especially in the transmission department, not to mention horrible resale.
Why everyone else sticks to the small or full size truck is beyond me. Ones too small, ones too big. As Matias said, Dakota needs some competition.
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Mattias 12:18PM (3/10/2008)
The pickup truck is based on the Crafter and judging from the spy shots it will be slightly larger than the Toyota Hi-Lux.
But is was originally intended for Mercosur and SADC markets, with I5 diesels and the 90° V6 petrol engine. I doubt there will be an initial "luxury" edition for US customers. Emerging markets have to be satisfied first.
Fatman 9:40AM (3/10/2008)
Well, I can understand VW wanting to get back to its roots, affordable quality vehicles. What I can't understand is getting rid of the Passat name, quite a legacy there. If the "Passat" is downsized it will make it very similar in size to the Jetta. There is no mention of making the Jetta smaller just less expensive. Where does the "CC" fit into all of this? This article raises more questions than it answers.
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stang_fan 9:42AM (3/10/2008)
As I read this "plan" I couldn't help it, I started laughing. Is this for real? While the idea of a (slightly) less expensive Jetta sounds good, the rest of this sounds ridiculous. A smaller Passat? Isn't that what a Jetta is? I mean, it is often hard to pick one from the other even when they are parked side by side. An entry-level car, perhaps built in the U.S.? That's at least 5 years away, by then nearly every other manufacturer will be into a 2nd gen. model of entry level car, or in some cases a 3rd. VW will REALLY have to have a special car to compete in that overcrowded market segment. As far as a VW pickup truck....again, it will have to be VERY good and/or offer something all the other manufacturers don't yet offer but will probably have as optional, by the time VW gets to the U.S. market.
VW has ALWAYS given the U.S. models that were adaptations of products they sold elsewhere, and that worked for a few decades. But the companies they THINK they can overtake, have been building U.S. specific models for DECADES. VW will never get close to the numbers in sales Toyota enjoys in the U.S. until it starts looking at the U.S. as more than just an outlet for excess production.
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montoym 9:57PM (3/10/2008)
I'm really hoping VW brings a smaller pickup to us similar to the Rabbit Pickups(Caddy) we had in the 80's. I've actually seen a new one at a VW gathering last summer. Looks like a Rabbit in the front(actually had a GTI front end) but with a pickup bed in the back. With a TDI option, that would be a great compact pickup. Plus, it would be somewhat familiar to those who grew up with VW's and wouldn't seem like such a dramatic change.
If they offered a larger pickup like the Taro or even a Touareg pickup like the AAC Concept from a few years back, it wouldn't seem right since VW is primarily known as a smaller car manufacturer. Maybe once the new smaller P/U makes headway, then they could bring out the others.
Regarding the reliabilty factor. It's been said in other posts, but reliability anymore is damn good all around. Even those on the bottom are still quite reliable vehicles. Reliability is measured in problems per 100 vehicles. At the top, you may have an automaker who has 1.3 probs./100 vehicles and at the bottom, it may be 3.5/100 vehicles. Hardly a huge difference.
I'm on my 2nd VW, both of which are Mk4 models which had the majority of the problems in recent years. The two biggest issues dealt with window regulators and coil packs. I had the regulators replaced in both my cars after they failed and it took a few hours at the dealer. No big deal and it has not resurfaced(nor have I heard of anyone else having a recurrance). I only had the coilpacks replaced on my current car and that was a supplier issue(unlike the design issue like the window regulator). Again, it was fixed quickly by my dealer and under warranty as well.
Both of these issues have long been solved(for at least 5yrs) and are not present in current models. In fact, they were really relegated to the Mk4 range(and only certain models at that).
VW's are traditionally quite reliable. Look at how many older(from the 50's and beyond) VW's you see around. I see far more Beetles, 1st and 2nd gen Jettas, Rabbits, and Passats around than any number of similar vintage vehicles. VW did slip for a few years, but they've solved the issues and reliabilty numbers have gotten better and should continue to rise.
PJ 9:47AM (3/10/2008)
Good on VW for realizing that their ambitious price strategy isn't working, and for making some sensible product decisions (pickup excepted).
Still, I can't help but wonder what VW's "hook" is going to be once they've engineered out ~25% of the cost of their cars. The brand's current models really don't stand out in any area besides interior design. They're nothing special to look at or to drive. Mazda does Fahrvergnugen far better these days.
Then there's the reliability rap. As far as matching Toyota goes, I still think Winterkorn has an awfully vivid imagination...
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Avinash machado 9:55AM (3/10/2008)
Another option they have is to buy Chrysler. With their resources they could transfer Jeep into a great brand.
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Bancho 11:49AM (3/10/2008)
Buying Chrysler would be about the worst decision any company can make at this point. It's tainted with the stink of death.
Throwback 9:57AM (3/10/2008)
Unless the pick-up is a small unibody design with good mileage why bother? They also need to get a version of the UP! (lupo) here as well.
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MikeMidd 10:07AM (3/10/2008)
Oh Volkswagen...
When will these guys learn? Until they can produce high-reliability products that last, they'll be behind the eight-ball. How many of us know at least a few people who suffered through misery with a Jetta, or nightmares with an old Passat? I know I did. It's not about the quality of materials - their interiors look and feel great - it's about the way they are put together, from the endless rattles, the broken power windows, the starters that don't work to the big engine issues, etc. Until VW gets this straight, they'll suffer in the market.
As for product line, VW thought it could move upscale. They forgot that Americans don't view VW that way - VWs are sporty, young, fun, engaging cars. I recently went to price out a Passat V6, and ended up with a $38,000 car. Are you kidding? The Passat needs to compete head-on with the Accord, and the Jetta should go head-to-head with the Mazda3. That's the right price-point to drive up sales, if the product is of good quality.
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funksobruva 10:10AM (3/10/2008)
@Fatman:
Totally agree. Smaller Passat = Jetta.
Love my Passat. Would buy it again.
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Schmeltz 10:12AM (3/10/2008)
I like VW as a company and like a great deal of their vehicles, specifically the Jettas. However, it always irritated me to see the U. S. market getting the vehicles that were already in Europe for 1-2 years ahead of time. It seemed like the U.S. gets the hand-me-downs, and should be kissing their feet for it.
It's good to have ambitious goals, but to rise and overtake several other well-entrenched auto brands already, you almost need something revolutionary. Unless these new VW's run on seawater or some form of pixie dust, I can't envision them even getting close to their goals. And that's a shame.
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tankd0g 10:18AM (3/10/2008)
Is that a collection of VW badges someone has picked up on the Autobahn?
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psarhjinian 10:25AM (3/10/2008)
Pickup = Volkswagen Thing
Come on. Don't call it the Masai or some made-up word ending in "an".
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RW 10:27AM (3/10/2008)
if the passat is moved to the us then count me out...any european model thats built in the us is an inferior version than the one built in europe. our jetta built in mexico is nowhere near as good as the euro one and i don't expect a new passat will reverse that, however, i am for reducing the passats price since it is way to expensive even though its better than an accord or camry
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Turbodelta 1:03PM (3/10/2008)
Actually RW,
Both the Jetta and New Beetle that are sold in Europe are coming from...Mexico as well. Maybe some used materials and the standard equipment (altough in Europe almost everything is an option on a VW) is inferior compared to the euro versions, but the built quality must be the same.