VW counting on 2005 for sales revival

[tgagneguam]

By John McCormick / Autos Insider

PUEBLA, Mexico -- Timing, as the saying goes, is everything.

Just ask Volkswagen North America. A lengthy renewal cycle for critical mainstream models planned by its German parent company has caused difficulties in the ultra-competitive, incentive-laden U.S. auto market during 2004.

Sales over the past year have slipped 12 percent to around 260,000 units as VW struggled to move older Golf, Jetta and Passat model lines. The good news for the Auburn Hills-based unit of Volkswagen AG is that help is finally on the way.

In March, an all-new fifth generation Jetta sedan -- traditionally VW's most popular model in the U.S. market -- will be in showrooms. Built in Puebla, Mexico, the 2005 Jetta is longer, wider and has a more powerful 2.5-liter five-cylinder engine in place of its predecessor's four-cylinder unit. During the year, a diesel engine and turbocharged 2.0-liter gasoline engine will be added to the powertrain lineup.

Sales of the current generation Jetta have averaged 130,000 annually since its launch in 1999, but the company expects the new version will top 140,000 units in 2005. VW will also launch the next generation Passat, the company's mainstream family car, in 2005 but its fall arrival will be too late to add a significant boost to the year's sales.

Moving later into 2005 and 2006, however, VW expects to shift into high gear with the arrival of a face-lifted Beetle, a new 280-horsepower VR6 engine in the Passat, a Passat wagon and finally, two years after its European launch, the latest version of the Golf hatchback.

Though the prolonged new model roll-out is less than ideal, VW North America's enthusiastic vice president Len Hunt is undaunted. The coming new models will display the driving characteristics that made VW famous in the past, Hunt says, as opposed to the "appliance-like" character of rival models.

"I see an increasing world of vanilla cars," Hunt says. "Other products are dumbing down. That's all right for people who don't care about driving appliances from A to B. But we stand for people who do give a **************** how they get from A to B. I want VW to be known as a brand that is against beige-ism, suburban-ism, and vanilla-ism."

With the new Jetta starting at under $18,000, VW North America believes it will represent good value in the market, even though its average transaction price is likely to increase slightly. One positive aspect of the new Jetta launch is that, for a change, the United States is the lead world market for a VW model introduction.

A successful reception here for the Jetta would be doubly pleasing for VW North America, which marks its 50th year of doing business in the United States in 2005.

Full article link

[Dumb_Ass_2003]

Why do I get the feeling everyones gonna think its great that VW thought up something as advanced as a 5 cyllinder engine

I wonder what a 5 cyl Ecotec would be like

[desmo9]

Audi, Volvo, Acura and others have had them on the shelf for years. I doubt VW cares to flaunt it.

On a similar note, I read that Colorado sales are down 20% compared to the S10 on its outgoing year ... which was a decade old by then! Nothing wrong with inline fives, but GM's taking another page from the book of "Why Didn't You Listen?" Even if the midsized stuck shopper doesn't tow alot, they still buy based on spec. If a competitive truck costs the same and will tow 3000 more pounds, that's what'll sell.

Whoever decided that Colorado should go lighter-duty and lack a six-cylinder offering should be fired ... right now. It's gotta be one of the biggest debacles in GM's history ... way bigger than something like Aztek.

But I'm off-topic now.

[Bravada]

I know that VW USA has a totally different marketing image than in Europe, but for me Volkswagens are ultimate "A to B" aplliances. Which is not bad at all, many people don't really want anything more - that's the initial target market for the Saturn, or the Beetle!

[Gearhead1432]

I see VW right now, and for most of the companys history, as making economical cars that stand out.... in that they don't copy or imitate.... a VW looks like a VW. They aslo made an important performance statement with the introduction of the GTI (pocket rocket) in the 70s.

Rob

[Maverick]

VW will do well with the new lineup... they've kept their price points about the same, and they'll get the buyers who didn't want to replace their 2000 Jetta with a 2005 Jetta that looked exactly the same. Personally, I can't wait to get a whiff of that legendary Volkswagen quality (my close relatives have owned them) again. VW has a way with getting thousands of college students to get their parents to buy their cars... I think they want to be Yuppies in Training.

[illustcat]

I can't wait to get a whiff of that legendary Volkswagen quality (my close relatives have owned them) again. [/quote]

LOL isn't VW dead last on most quality surveys? Quality is not a word I would use for VW. Sheek and nice fit and trim but not quality.

[GMfan2381]

Originally Posted by illustcat

I can't wait to get a whiff of that legendary Volkswagen quality (my close relatives have owned them) again.

LOL isn't VW dead last on most quality surveys? Quality is not a word I would use for VW. Sheek and nice fit and trim but not quality.[/quote]
Scarcasm perhaps? And yes VW has had major quality problems over the last few years. 2004 initial quality put them at 36/37...Ouch vehicle dependability puts them at 33/37 (tests done on cars after 3 years of driving)...double ouch. VWs look nice, but apparently dont run well.

[marinerbc]

Originally Posted by GMfan2381

LOL isn't VW dead last on most quality surveys? Quality is not a word I would use for VW. Sheek and nice fit and trim but not quality.

Ah, but VW has a following second to none, even Toyota or Honda. There were many in the 60s and 70s who would only drive a VW, just because it was "different". VW owners wave to each other as the pass on the highway, (or at least they used to) and have other cultish rituals.

I don't think it has much to do with how the car actually runs. It's about making a statement.

[desmo9]

Originally Posted by GMfan2381

LOL isn't VW dead last on most quality surveys? Quality is not a word I would use for VW. Sheek and nice fit and trim but not quality.

"Sheek" (middle-eastern term?) and nice fit/trim are usually measured by the term "perceived quality." So it gets confusing. By definintions of quality, an interior could be a hunk of junk ... designed by Fisher Price with cheap plastic everywhere. But if every one conforms to spec ... is built right and develops few problems, the quality is good, perceived quality is bad.

Conversely, a beautiful interior might develop warranty problems ... good perceived quality but poor quality.

A manufacturer should strive for both, but the one that'll sell more cars is perceived quality. It's amazing how people will overlook problems with their past GM Blandmobile when the new GM car looks great and has super perceived quality. It's emotion. Psychology.

In the big picture, considering quality plus perceived quality, VW does pretty good.

[Gearhead1432]

I think VW has had some quality control problems in the past, mostly 80s or some of their line up in the 70's. Most of problems are like door handles comming off, but that is also party because a fair number of people don't know how to open the door on a 20 year old VW. That is probably one of the reasons VW went away from the trigger door handle.

Also, VW continues to thrive off of the legendary status they achived with the type 1 beetle;that is, the worlds most populus and most reliable sedan.

The new looks and new up rated VR6 for 05 will only help VW to sell more Jettas in the coming years. That is, if the price is not too high.

Rob

[Swahili]

I personally don't like any of the new VW lineup other than the Passat. I'm not so sure they'll do well with sales. Best of luck to them but I don't see next year being a great year for them with the current and new generation of cars they have.

[desmo9]

Originally Posted by Gearhead1432

I think VW has had some quality control problems in the past, mostly 80s or some of their line up in the 70's. Most of problems are like door handles comming off, but that is also party because a fair number of people don't know how to open the door on a 20 year old VW. That is probably one of the reasons VW went away from the trigger door handle.

Also, VW continues to thrive off of the legendary status they achived with the type 1 beetle;that is, the worlds most populus and most reliable sedan.

The new looks and new up rated VR6 for 05 will only help VW to sell more Jettas in the coming years. That is, if the price is not too high.

Rob

Thought I heard no immediate plans for the VR6 in the Golf/Jetta. Shame. (Although, the turbo-4 is faster, lighter, and $3K cheaper)

[GMfan2381]

Originally Posted by marinerbc

Ah, but VW has a following second to none, even Toyota or Honda. There were many in the 60s and 70s who would only drive a VW, just because it was "different". VW owners wave to each other as the pass on the highway, (or at least they used to) and have other cultish rituals.

I don't think it has much to do with how the car actually runs. It's about making a statement.

True, but having a good following will not win you too many new sales if your quality, percieved or otherwise, is in the pits. Say you sold a VW, and it was just a big stinker, that person will tell whoever asks about the car how bad it its. I dont see a sales revival for VW, at least not what they are aiming for. Having a strong following is great because you can always count on repeat sales from that group, but new ones will be harder to sway IMO.

[tgagneguam]

Hmmm, the euro gains in strength against the dollar on a daily basis, and VW is left without a US plant. This does not portend a strong rebound in sales for VW, and I bet it won't do well for MB's upcoming product onslaught, either. You can only hedge so much against currency fluctuations before you have to give in and raise the price of your products.

Ah, but VW has a following second to none, even Toyota or Honda.

According to what study? I'm a scientific person, so this suggestion needs some backing before some people will buy it. As to the hand waving, Jeep Wrangler drivers do the same in my area, so I'm not convinced tnat that's the sine qua non of brand loyalty.