Volkswagen Golf Mk VI not U.S.-bound?
by Alex Nunez on Jun 15th 2008 at 12:21PM 
Germany's Spiegel Online is reporting that currency concerns will force Volkswagen to not sell the upcoming Mk VI Golf in the United States, Brazil, and Australia. It all boils down to profitability, and it appears that the forthcoming Golf simply cannot be sold in our market (or Brazil or Australia) in the current economic climate without falling short of VW's targets. Thus, Spiegel reports that VW boss Martin Winterkorn told a meeting of the board that the next Golf won't make an appearance here in the States, period. The original article (in German) is here, and any German-speaking readers are welcome to add clarity to the report in the comments below.
In the US, the Golf (Rabbit) family is VW's second-highest seller behind the Jetta. If this drastic measure does indeed come to pass, we're left wondering what, if anything, would fill that void. Would the current Mk V soldier on, much in the same way VW continues to offer the Mk IV in markets like Canada under the City moniker? This is going to be an interesting story to follow, regardless of what ultimately transpires. Thanks to all who sent tips.
UPDATE
[Source: Spiegel Online (Translated)]
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Reader Comments (Page 1 of 4)
vdk 12:26PM (6/15/2008)
what about Canada? Will it make it here...
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n!ck 12:53PM (6/16/2008)
screw the mk VI.
I want the updated mk I that they sell in South Africa.
It converts to about 10-13 grand canadian.
splunge 12:32PM (6/15/2008)
If you folks in the US would like one of the new Golf Mk. VI you are welcome to come to Canada and buy one and import it into the US, can't be that difficult...
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Jared 12:42PM (6/15/2008)
Oh yes it can be.
SPG 1:29PM (6/15/2008)
I know that bringing a new car (actually a VW) from the US to Canada means having to swap the speedo and a few other components. That ads up.
That is of course after customs taxes and stacks of paperwork. You can even be delayed at the border for a few days.
It's a huge hassle, tons of time, and lots of money to bring a car from the US to Canada. I can't imagine it would be much or any less to bring a car from Canada to the USA.
John Miller 12:39PM (6/15/2008)
No new GTI?? I'm heartbroken.
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zamafir 3:07PM (6/15/2008)
considering how long we had to wait for the MKV, I could see this coming years after European release provided the US ever recovers... though... I'd rather have the Scirroco, R8/599 magnetic dampeners standard and cheaper than a GTI with a much nicer interior, and better handling, sign me up.
vkchu 9:59PM (6/15/2008)
maybe ford will take notice and bring their rs/st variants over from europe and fill in the void that the gti is leaving? wow what an opportunity!
zamafir 2:57AM (6/16/2008)
@vkchu - yes like all those other European ford offerings of lesser risk they've already brought over. oh. wait. no.
Duncan 12:40PM (6/15/2008)
May I ask how Volkswagen intends to meet their stated million-unit sales goal in this country by selling outdated products?
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mr.ed 3:58PM (6/15/2008)
It's time for the Polo-sized vehicle to come to the US. Ask your sold-out Honda Fit dealers.
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Chuppa 12:43PM (6/15/2008)
The article states that VW would undercut their original profit goals by EUR 600 million, should they sell the Golf VI in the USA, Brasil and Australia. CEO Winterkorn won't allow the profitability margin to drop below 5 percent, sales in those countries would lower this margin to 3,4 percent.
Apparently, VW wants to decrease prices of the Golf VI compared to MKV, while expanding standard equipment.
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swisslexus 1:44PM (6/15/2008)
Actually, according to the article the distribution department wanted to decrease prices and expand standard equipment. But this turned down by the board.
swisslexus 1:46PM (6/15/2008)
But this *was* turned down...
Chuppa 1:54PM (6/15/2008)
True, my mistake, although the article doesn't say what strategy they will actually go with, if not this one. Looking at their recent strategy on the European market (read: Tiguan), I wouldn't be surprised if the new Golf would leave showrooms for less than they do now.
EvolutionVII 2:44PM (6/15/2008)
Let's just do some comparison:
Golf V GTI MSRP in Germany is as high as 39 352,23 US$, nearly TWICE as much as you'd pay for it (22,220$). That's why they can keep those prices down for you.
Chuppa 2:59PM (6/15/2008)
@ Evolution
Tell me about it! I live in Europe, my mom owns a MKV GTI. I'm just commenting on the European situation. How they can sell those cars in the USA for half the money with the current exchange rates, I don't know...
tbyron 12:54PM (6/15/2008)
A few months ago, wasn't there a leaked strategy that acknowledged that currency pressures were going to force them to limit their offering in this platform to the GTI model, essentially changing the Golf/Rabbit's positioning? The lineup would be augmented by a smaller- and cheaper-than Golf/Rabbit vehicle, the Jetta, a more basic/spartan vehicle to replace the Passat, and the Passat CC to continue the upmarket direction established by the current Passat.
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psu48187 1:29PM (6/15/2008)
I'm not familiar with the build process of VWAG cars sold in NA, but aren't Golfs and Jettas destined for those markets built in Mexico?
I wonder if this is truly a financial decision, or the fact that VW doesn't want to deal with selling these vehicles at all stateside. I mean for crying out loud the MKV went on sale in NA almost 3 years after it did so in Europe.
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John 1:41PM (6/15/2008)
I'm really sick of VW and VWOA telling us which models we're not getting. The new Scirocco? No. A TDI for the Rabbit instead of the fuel inefficient 2.5L? No. A Tiguan TDI? No. A Polo? No. A Fox? No. America sure doesn't want fuel efficient cars at 4.00 a gallon fuel eh? But hey, we'll make sure you have to put premium fuel at a premium cost in your 2.0 TSI Tiguan.
BMW announced an additional 1 Billion dollar infrastructure investment in the US this week. Apparently it's cheaper to build cars here even after investing in new plants while creating American jobs along with the investment. Instead, VW sends us cars that cost more than equally equipped cars in the Subaru, Toyota, Hyundai and Honda brands. VW, either make an investment to deliver the best products to America, or quit telling us how important America is to your worldwide profitability goals.