Nein, danke: VW not interested in buying Chrysler minivan business
Click above to view high-resolution images from our first drive of the Volkswagen Routan
With Chrysler's fortunes swirling around the drain, it's widely expected that the only way it will survive is as individual parts swallowed by other automakers. But while the costly Viper operation may find a new home, the most likely buyer for its minivan operation, the product that put the company back on the map over two decades ago, isn't interested.
Chrysler has been rebadging its Town & Country minivans as Routans for Volkswagen in a deal struck by Wolfgang Bernhard, a former top exec at both automakers. But while Chrysler sold 232,000 of its Town & Country and Dodge Caravan minivans last year, Volkswagen sold a paltry 3387 Routans, which may go a long way towards explaining why Stefan Jacoby, president and CEO of Volkswagen Group of America, says they're not interested. The weak sales come despite a costly ad campaign featuring Brooke Shields: If they spent $1 million on the commercials – including Brooke's big fat paycheck (the only time "fat" and "Brooke Shields" ever belong in the same sentence) – that means the advertising cost $294 per Routan sold. Which is more than what we'd pay for a badge-engineered minivan being passed off as German engineering.
Still, for your viewing enjoyment, we've included a video of Brooke's Routan mocumentary/commercial after the jump, because we'll take any excuse to watch Brooke Shields talk about making babies. Just be prepared to yell "but it's not German engineering!" at your computer screen repeatedly.
Gallery: First Drive: 2009 Volkswagen Routan
[Source: Business Week]
Reader Comments (Page 1 of 2)
firstplace 2:07PM (1/18/2009)
they should have brought back that VW van that was a concept. Yet another nail in the Chrysler coffin.
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dakota 2:26PM (1/18/2009)
How? Chrysler doesn't sell these vans. They were approached by VW to build them a van to THEIR (VW's) specs.
Sounds more like VW FAILED by not developing their own van. Nail in Chryslers coffin? Hardly.
TyWright 2:14AM (1/19/2009)
I agree - the Microbus should have been built!!
http://www.autospies.com/images/uploads/medium/2001-VW-Microbus-Concept-Side-1280x960.jpg
Definitely the biggest blunder of the year in the car world.
How embarrassing for VW...
bh 2:12PM (1/18/2009)
Technically, Chrysler was German-owned when the current Grand Caravan was developed.
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The Luigiian 2:18PM (1/18/2009)
The only part of this that's going to be sad of Chrysler's dissolution is when Nissan buys the Ram, because you know they're going to style it like the Titan, which is by far the ugliest of the large trucks. Right now the Ram looks beautiful, the best it's ever looked.
Back on topic, I really can't blame VW for not wanting the minivan business. It's just a real small niche that is pretty much controlled part and parcel by Honda and Toyota now. Still, it's nice to have some competition in any niche. Perhaps new competitors will come in. Or Nissan may be planning on using the Dodge/Chrysler platforms for its Nissan Quest. I have a feeling Nissan's going to be taking the lion's share of Chrysler.
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Nude Love 3:40PM (1/18/2009)
"It's just a real small niche that is pretty much controlled part and parcel by Honda and Toyota now."
I don't think that 232,000 units is that bad, considering it is from a company that people don't want to buy from. And that certainly isn't niche vehicle numbers.
Chryslers make the best Minivans around, bub, and don't you forget it.
The Luigiian 4:43PM (1/18/2009)
OK, let me rephrase what I said, then:
I really can't blame VW for not wanting the minivan business. It's just a real small niche that, if left without Chrysler's presence, would pretty much be controlled part and parcel by Honda and Toyota. Perhaps VW doesn't think it can keep the niche market as well as Chrysler could.
josh 7:55AM (1/19/2009)
Minivans still accounted for around 5% of the total US market or around 600,000 units, respectable if not astounding.
Chrysler (G. Caravan/T&C combined) pulled 41% of the market, Honda was second at 23%.
It is fair to say that Chrysler is a strong competitor in this segment and whether poster here like them or not 240,000+ went on the road in 2008.
Rends 2:22PM (1/18/2009)
OT:
When do we see the first Autoblog news where the TAGS text is bigger than the news?
I mean this one comes close.
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Kimura 2:26PM (1/18/2009)
I hate these commercials. The scripting is retarded and passing a rebadge as "German Engineering" is just as bad.
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Mark 2:34PM (1/18/2009)
You guys are morons.
Obviously they sold so few, the car went on sale in the FALL and production didn't ramp up until December.
I doubt anybody is expecting this to be a huge hit, but at least put sales figures into CONTEXT. Or is that too complicated a concept?
Here's a fact: In November 2008, the Routan was the second best-selling car in Volkswagen dealers, bested only by the Jetta.
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summazooma 3:37PM (1/18/2009)
Yes, the Routan is a vehicle that, for those who don't know much beyond the unfortunately bad advertising (and, I'm actually a big Brooke fan, from the skimpy wardrobe days of Blue Lagoon), there is a shortage of respect for just how much this vehicle is improved over the Chrysler branded models.
From the exterior, which looks more like the original than a facelifted version of something else, to the interior, where the forms in the I/P, the improved materials and the rejection of the typically-dingy "dirty gray" Chrysler interior color palette, this is easily the Chrysler minivan I'd choose.
When I sat in one at NAIAS, after sitting in and critically assessing other vehicles, it occured to me that this interior might actually represent hope for Chrysler; If they can execute this, then perhaps GM's most recent interiors aren't really an aberration among poorly-executed domestic interiors, after all... and, perhaps, GM isn't the best domestic at executing an interior, either!
Back to the exterior, one thing that I don't think alot of people realize but that really changes the look of the vehicle, even as subtle as it (by necessity) is, is the among of sheetmetal changes to the Routan from the base Chrysler products. I mean, this doesn't share the side stamping, which is a huge deal (by comparison, when GM replaced the Venture/Transport vans with the Uplander/Montana/Relay CSVs, they retained the same side stamping). In addition, the front end uses a significantly differentiated clip, even going to a clamshell hood.
Between these changes and, at least with the top trim level, the best looking wheels of any Chrysler-produced minivan, these are actually pretty nice pieces.
Now, the powertrains are another thing, though... I've drive the new 4.0L a couple of times and, though it's a pretty good update on an old-tech domestic V6, it's hardly in keeping with a "German technology" representative, much less a legitimate counter to the Toyota & Honda engines. In fact, I'd even go so far as to suggest that the Hyundai-Kia 3.8L might actually be the most refined engine in the segment (yes, even more than the Honda & Toyota 3.5L engines). It's big problem is body structure, road noise and, counterintuitively, excessive weight, but the engine is actually very silky... Not so, with the Chrysler 4.0L (although I sense that it received a lot of focus during development, but then again, only so much you can do with the original engine family).
James 6:35PM (1/18/2009)
Thank you for pointing that out, Mark.
If you hadn't mentioned this fact, I would have.
Those Routan sales are highly misleading, as the car didn't go on sale until late fall. I've seen a couple of them bumming around the suburbs while visiting my parents here in Houston. Still, I can't blame VW for not wanting more than the Routan's share of what is generally considered a dying segment in an aching economy.
gforce 6:43PM (1/18/2009)
Thank you, Mark. I don't know whether those number were suppose to be intentionally misleading or whether is was just really, really... really poor research. Either way, it's deplorable "journalism".
In any case, why would Chrysler even be interested in selling off one of their most successful vehicle lines. The whole question smacks of someone fishing for a comment from VW, then taking it and misrepresenting it as yet another "no one wants a Chrysler" line.
Bah.
Frank 9:50PM (1/18/2009)
Excellent point Gforce. This is a "push" story, not a real one.
@summazooma remember that this v6 family will be replaced soon by the Phoenix engine family. I'm sure that VW knows this too.
tbyron 2:31AM (1/19/2009)
The Routan is not selling in any kind of volume, and won't, because VW did a stupid business deal with Chrysler (DC at the time). They let Chrysler retain exclusivity of both the Stow & Go and Swivel & Go configurations for the middle row. Although the middle row seats in the VW are more comfortable for adults than either Chrysler option, this irrelevant...most of the consumers of minivans need versatility for families with kids.
We had a VW Eurovan MV and have had 4 Audi's in the past several years. There were not many families that should have been a slam dunk for a Routan more than us (as long as VW has chosen not to bring the T5 Eurovan here). It just didn't work. It wasn't worth the dough. And the interiors were not sufficiently different either.
k.w.a 2:41PM (1/18/2009)
i still have yet to see one VW Routan
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Conundrum 2:54PM (1/18/2009)
The Chrysler vans would be a good replacement for the Nissan Quest. Honda, Toyota, Hyundai, Kia all have decent vans and Mazda, Mitsubishi, Subaru, and Suzuki may not be big enough in the US to need the vans in thier lineups.
Nissan may be Chryslers biggest buyer because of this and the Ram trucks. Nissan buys them at bargain basement price, skims off what they want, and sell the rest to the Chinese makers.
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MikeW 3:10PM (1/18/2009)
The powertrain of the VW Routan sucks.
Where is the 300ps 3.6 VR6 & DSG
http://www.youtube.com/watch?v=OkVA0qEIuBs
(skip ahead to about 30 seconds)
Crappy Chrysler engines & transmission don't help move your product.
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Rends 3:17PM (1/18/2009)
what i miss in the article:
It seems that Chrysler didn´t ask VW to buy Chryslers Minivan line.
So the VW guy answered to a question noone mentioned?
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