Author Topic: will VW leave the US market?  (Read 1394 times)

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gragravar

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will VW leave the US market?
« on: July 18, 2007, 08:14:13 PM »
losing a billion dollars a year is bad.

the story:
http://www.autoblog.com/2007/07/18/would-vw-leave-the-us-market/
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92UrS4

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Re: will VW leave the US market?
« Reply #1 on: July 18, 2007, 08:27:44 PM »
I doubt it, losing the money is bad, but it's their own fault. They build good cars, but they need to understand US consumer views and demands.

I'm sorry that I don't feel my Passat is the $28K car it was stickered as, if it were a $22K car I would say not bad.

VW's should not be selling for over 30K, everything that made VW popular is gone. They are HUGE in the used market. Look how popular MKIVs are amongst the younger generation.

While VW has been improving comfort, convenience and getting gadgety (which all comes at a cost) is it really needed for the VW owner?

The electronic parking brake found mostly in higher end cars made it's way into the Passat. Really cool, really gadgety, but really necessary?

Rethink who you are marketing too. VW has listened to the enthusiasts, how else did the RGT kit for the Passat make it to the US, how else did the R32 make it here? I think the Passat is a great car, but the vast majority of the owners are family folks that need a car to tote the family around. They want trouble free, easy to maintain and somewhat fun to drive.

Making the VW upscale seeks the Audi/BMW/MB shoppers but with a car that isn't desirable because of it's historical image as a budget minded manufacturer.

The American perception of brands makes it tough to branch out. Even Honda who recently had to ditch the accord hybrid learned a lesson, no one wants to pay that much for that car.

VW should have learned with the W8 and the Phaeton. Both great cars, but bridging that gap of the aging VW enthusiast to luxury wannabe. I understand the idea of appealing to a VW lifer, but it's so hard to do that. The american car manufacturers have their broad spectrum of brands. I mean GM is one company with all different brands beneath it. Daimler Chrysler is similar.

Sure VW has a similar umbrella,  but in the US market and mentality, start young with the affordable VW, grow up and move up to the Audi. GM, start with the Chevy, Buick, Pontaic move up to the Cadillac.

My observations and opinions aren't necessarily right, and probably don't mean a thing to anyone but me.

We have some friends from Germany, the guy owns an A3 back home, i am like that's awesome, he talks about what a junker it is, small engine, no frills. The A3 here in the US sells for how much?

Anyway, sorry to ramble, still I doubt they will pull out, that too will be costly to do especially when you have a lot of production in Mexico on cars like the Jetta, Golf and Beetle.

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Re: will VW leave the US market?
« Reply #1 on: July 18, 2007, 08:27:44 PM »

aowhaus

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Re: will VW leave the US market?
« Reply #2 on: July 25, 2007, 03:30:08 AM »
VW has lost much of their German mystique and affordability.  The lastest generations of their models are getting bland in thier styling, looking more like Japanese cars.

I agree that VW should let sister brand Audi take care of luxury cars, particularly over $30,000 and concentrate on affordable quality cars and/or niche vehicles -- Toyota/Lexus/Scion is a perfect example.

And lastly customer service is still a major fault that often prevents repeat/loyal customers.  Name brands such as Hyundai and Saturn has been rated very high (in the same field as many luxury imports) but costing significantly less.

VW should release popular overseas models such as the Polo, Sharon, and Lupo and compete with Hyundai and Kia, which has dominated that market basically because there is nothing out there (or at least as well designed and built) in the sub-$15,000 nicely equipped.  VW also missed the boat when they decided not to build the incredibly cool Micro Bus concept (a minivan that appeals to all ages) -- they could've had another huge success just like the New Beetle.  They cited that it would've costed too much to build, but that was years before they introduced the Phaeton (make sense right?).  Luckily they didn't produce the $100,000+ VW Nardo (an exotic superfast supercoupe), that would've been a bigger bomb than the Phaeton and the W8 Passat.

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jayryan

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Re: will VW leave the US market?
« Reply #3 on: July 26, 2007, 01:41:07 AM »
1B is a lot but what's their yearly revenue/budget? I'll bet it looks small comparatively.

The only new VW I like is the Rabbit. And that's still just a bit high priced. I would have done away with the Passat and gone, NB, GTI, Rabbit and Microbus :P And if it was the MB, I probably wouldn't be driving my Audi!
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BHase

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Re: will VW leave the US market?
« Reply #4 on: July 28, 2007, 06:17:13 PM »
The key is comparison:

http://www.msnbc.msn.com/id/16804725/

According to that article, Ford Motors Corp. lost $12.7 billion in 2006.  Makes the $1 billion by VW look like chump change.

Ben
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Cole

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Re: will VW leave the US market?
« Reply #5 on: July 28, 2007, 07:41:04 PM »
A couple of things that are missing in this discussion.

-First a VW needs to be shipped over here. This adds cost to the car. Unlike many of the US made "Foreign" cars.

-Secondly the dollar is weak compared to the Euro right now. Which makes their cars even more expensive comparitively. 


So a car that should retail for a competiive price in Europe takes two significant price hits by shipping it over seas to a country with a weaker currency.

I think there are two ways you can deal with this. First you can drop the price to make it competitive and take a smaller margin. Second you can stuff the car with more features to try to make it more appealing in the market to justify the price. (still taking a smaller margin on the car).


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ColoradoB5

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Re: will VW leave the US market?
« Reply #6 on: July 28, 2007, 09:16:13 PM »
The key is comparison:

http://www.msnbc.msn.com/id/16804725/

According to that article, Ford Motors Corp. lost $12.7 billion in 2006.  Makes the $1 billion by VW look like chump change.

Ben

Good point.  Maybe we should wonder if Ford will pull out of the American market.
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ianacole

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Re: will VW leave the US market?
« Reply #7 on: July 28, 2007, 09:18:20 PM »
Good point.  Maybe we should wonder if Ford will pull out of the American market.

We can only hope  ;D
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