VW Cuts Prices; Gives up Premium Dream
06-19-06, 07:27 AM
#1
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VW Cuts Prices; Gives up Premium Dream
VW to Cut 2007 Jetta, Rabbit Pricing
Volkswagen will cut the price of its Jetta sedan by $1,410 in an effort to boost U.S. sales, reports Automotive News. It will also cut pricing on the Rabbit (formerly the Golf) by $1,055, the report said. The automaker will reduce the base prices by removing some standard features for the 2007 model year. The 2007 Jetta will start at $17,105, while the 2007 Rabbit will start at $15,605. Adrian Hallmark, executive vice president of Volkswagen America, said reducing the prices will enable Volkswagn to be a true volume player in the United States. Since the discontinuation of the upscale Phaeton in America, VW has abandoned efforts to be a premium nameplate. “Instead of going for the penthouse, we need a few floors below,” Hallmark said.
Volkswagen will cut the price of its Jetta sedan by $1,410 in an effort to boost U.S. sales, reports Automotive News. It will also cut pricing on the Rabbit (formerly the Golf) by $1,055, the report said. The automaker will reduce the base prices by removing some standard features for the 2007 model year. The 2007 Jetta will start at $17,105, while the 2007 Rabbit will start at $15,605. Adrian Hallmark, executive vice president of Volkswagen America, said reducing the prices will enable Volkswagn to be a true volume player in the United States. Since the discontinuation of the upscale Phaeton in America, VW has abandoned efforts to be a premium nameplate. “Instead of going for the penthouse, we need a few floors below,” Hallmark said.
06-19-06, 09:00 AM
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“Instead of going for the penthouse, we need a few floors below,” Hallmark said.
M.
Last edited by videcormeum; 06-19-06 at 12:49 PM.
06-19-06, 12:09 PM
#4
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I went to a VW dealer (here in Mexico) last weekend to pick up a part for my uncle for his shop. This VW dealer is just down the street from the Toyota dealer, where I also stopped later on pick up some coolant and Type-IV fluid.
Case in point, the VW dealer just could not find enough spaces for all of the cars it had to service to the point I saw them parking some along some streets (I even asked the parts guy who admitted this). I go to the Toyota dealer, and practically nothing in their service bay.
I have even been to Honda dealers here, that have been around about 7 years or so more than Toyota and hardly a car in there and they always have extra lifts going unused.
Talk about reliability and most of the cars in the shop at VW were the Jettas and the Passats.
Case in point, the VW dealer just could not find enough spaces for all of the cars it had to service to the point I saw them parking some along some streets (I even asked the parts guy who admitted this). I go to the Toyota dealer, and practically nothing in their service bay.
I have even been to Honda dealers here, that have been around about 7 years or so more than Toyota and hardly a car in there and they always have extra lifts going unused.
Talk about reliability and most of the cars in the shop at VW were the Jettas and the Passats.
06-19-06, 01:05 PM
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Originally Posted by Lexmex
I went to a VW dealer (here in Mexico) last weekend to pick up a part for my uncle for his shop. This VW dealer is just down the street from the Toyota dealer, where I also stopped later on pick up some coolant and Type-IV fluid.
Case in point, the VW dealer just could not find enough spaces for all of the cars it had to service to the point I saw them parking some along some streets (I even asked the parts guy who admitted this). I go to the Toyota dealer, and practically nothing in their service bay.
I have even been to Honda dealers here, that have been around about 7 years or so more than Toyota and hardly a car in there and they always have extra lifts going unused.
Talk about reliability and most of the cars in the shop at VW were the Jettas and the Passats.
Case in point, the VW dealer just could not find enough spaces for all of the cars it had to service to the point I saw them parking some along some streets (I even asked the parts guy who admitted this). I go to the Toyota dealer, and practically nothing in their service bay.
I have even been to Honda dealers here, that have been around about 7 years or so more than Toyota and hardly a car in there and they always have extra lifts going unused.
Talk about reliability and most of the cars in the shop at VW were the Jettas and the Passats.
06-19-06, 01:08 PM
#7
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Originally Posted by GS69
VW to Cut 2007 Jetta, Rabbit Pricing
Volkswagen will cut the price of its Jetta sedan by $1,410 in an effort to boost U.S. sales, reports Automotive News. It will also cut pricing on the Rabbit (formerly the Golf) by $1,055, the report said. The automaker will reduce the base prices by removing some standard features for the 2007 model year. The 2007 Jetta will start at $17,105, while the 2007 Rabbit will start at $15,605. Adrian Hallmark, executive vice president of Volkswagen America, said reducing the prices will enable Volkswagn to be a true volume player in the United States. Since the discontinuation of the upscale Phaeton in America, VW has abandoned efforts to be a premium nameplate. “Instead of going for the penthouse, we need a few floors below,” Hallmark said.
Volkswagen will cut the price of its Jetta sedan by $1,410 in an effort to boost U.S. sales, reports Automotive News. It will also cut pricing on the Rabbit (formerly the Golf) by $1,055, the report said. The automaker will reduce the base prices by removing some standard features for the 2007 model year. The 2007 Jetta will start at $17,105, while the 2007 Rabbit will start at $15,605. Adrian Hallmark, executive vice president of Volkswagen America, said reducing the prices will enable Volkswagn to be a true volume player in the United States. Since the discontinuation of the upscale Phaeton in America, VW has abandoned efforts to be a premium nameplate. “Instead of going for the penthouse, we need a few floors below,” Hallmark said.
Some 20 years ago it was changed from Rabbit to Golf in the U.S. market..........and it always was Golf in Europe. The Phaeton's lack of success in America, IMO, was not VW's fault at all. For once the marketers did something right. They offered a car.....especially the W12 version.......which, even at 90K, was a steal compared to the V12 BMW and Mercedes competition. Anyone who was interested in a 12-cylinder sedan would have made out like a bandit with this car, but the public just ignored it.
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06-19-06, 01:22 PM
#8
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The Phaeton was a flop because it was still a $90K Volkswagon. Luxury and premium car buyers aren't really looking for bargains. They want status and image mostly. If your potential new luxury
car is being sold right next to a Bug, it's not that impressive.
Americans need their brand recognition. Also, it's styling was not distinctive enough IMHO. The VW emblems on the car were made unusually large and it looked like an oversize Passat.
I've seen about 2 Phaetons so far and both were very unmemorable. I don't think anyone is
going to miss car when it's gone.
car is being sold right next to a Bug, it's not that impressive.
Americans need their brand recognition. Also, it's styling was not distinctive enough IMHO. The VW emblems on the car were made unusually large and it looked like an oversize Passat.
I've seen about 2 Phaetons so far and both were very unmemorable. I don't think anyone is
going to miss car when it's gone.
06-19-06, 01:40 PM
#9
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Originally Posted by bruce van
The Phaeton was a flop because it was still a $90K Volkswagon. Luxury and premium car buyers aren't really looking for bargains. They want status and image mostly. If your potential new luxury
car is being sold right next to a Bug, it's not that impressive.
.
car is being sold right next to a Bug, it's not that impressive.
.
Perhaps so, but IMO it was still foolish for 12-cylinder customers to pass up a bargain like that.
And let's not forget that at some dealerships, BMW V12's are sold right next to Minis.
06-19-06, 02:32 PM
#10
Originally Posted by mmarshall
Perhaps so, but IMO it was still foolish for 12-cylinder customers to pass up a bargain like that.
And let's not forget that at some dealerships, BMW V12's are sold right next to Minis.
And let's not forget that at some dealerships, BMW V12's are sold right next to Minis.
06-19-06, 02:48 PM
#11
Lexus Champion
Originally Posted by spwolf
except that people dont buy 90k cars because they are cheaper....
Exactly. When you're spending close to $100K for a car, it's not about what's the best value.
If I was spending that much money on a car, I WANT people to know how much I spent. Hence
we have designer labels which drive the high end fashion & handbag industry.
The Phaeton, in my eyes, was still like the Hyundai of luxury cars. Great value, but you're not
going to wow or impress anybody as your drive up to the country club.
Minis still have a cool factor to them which the Bug and Jetta don't have. Minis are still associated
with a premium pricetag as far as sub compacts are concerned.
06-19-06, 05:20 PM
#12
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So they take stuff out as standard equipment and charge less? That is not a bargain.
VW is damn near out the USA market. Too many blunders and mistakes. They were the peoples's German car. When they became the anti-Mercedes, they made a horrible choice.
Old man Pierch....
VW is damn near out the USA market. Too many blunders and mistakes. They were the peoples's German car. When they became the anti-Mercedes, they made a horrible choice.
Old man Pierch....
06-19-06, 05:28 PM
#13
Lexus Champion
I really wish they would up their reliability. I personally like their designs a lot, but I'd never even consider owning one because I know too many occurances of people being out a car for a while due to something going wrong on it. Fortunately from what I'm told it's mostly electrical stuff, but it's still inexcusable, especially when a big name like Bosch is supplying the electrical systems for these cars.
06-19-06, 06:05 PM
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Originally Posted by mmarshall
Since when was the Golf's name changed BACK to Rabbit? Some 20 years ago it was changed from Rabbit to Golf in the U.S. market..........and it always was Golf in Europe.
Some 20 years ago it was changed from Rabbit to Golf in the U.S. market..........and it always was Golf in Europe. 
