VW Toys with Giving Up the U.S. Mass Market, and Dealers Fume
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Re: VW Toys with Giving Up the U.S. Mass Market, and Dealers Fume
#2In the android phone market, we know that mid-tier phones do very poorly; People can afford a high end one, or they can't afford anything, so they have to get the cheapest one available.
I kind of feel like automobiles are going the same way. Why pay for a mid market car from VW when you can spend another $5,000 and sit in a BMW or Mercedes? Or why spend $30,000 when you can spend $20,000 and get essentially the same thing (Jetta vs. Corolla S, for example)?
Re: VW Toys with Giving Up the U.S. Mass Market, and Dealers Fume
#3In the android phone market, we know that mid-tier phones do very poorly; People can afford a high end one, or they can't afford anything, so they have to get the cheapest one available. I kind of feel like automobiles are going the same way. Why pay for a mid market car from VW when you can spend another $5,000 and sit in a BMW or Mercedes? Or why spend $30,000 when you can spend $20,000 and get essentially the same…
I haven't looked at a VW in a long time. I last bought an A2 generation Jetta new in 1991. At that time, I think they were about $11 or $12K, and there was a definite "German" feel to the vehicle compared to similarly priced Asian or American cars. Better handling, better gear changes, a more tight and solid feel, and quieter. A Corolla at the time felt like a beer can on wheels, a Ford or Chevy in that price range felt perhaps more solid than a Corolla but had a very bland, generic, vague driving feel.
No idea if they are still that way but at least at the time a Jetta and a Corolla were not anywhere close to the same thing.
Re: VW Toys with Giving Up the U.S. Mass Market, and Dealers Fume
#4VW has cheaper brands such as Skoda.
Re: VW Toys with Giving Up the U.S. Mass Market, and Dealers Fume
#5In the android phone market, we know that mid-tier phones do very poorly; People can afford a high end one, or they can't afford anything, so they have to get the cheapest one available. I kind of feel like automobiles are going the same way. Why pay for a mid market car from VW when you can spend another $5,000 and sit in a BMW or Mercedes? Or why spend $30,000 when you can spend $20,000 and get essentially the same…
The automobile market is not that simple. It's possible for a car to be moderately priced, sell in huge numbers, and make a profit. In the mid '90s Chrysler sold 100k+ minivans a year and made an average profit of $5k. I'm sure today someone is doing almost that well with cute SUVs.
VW has the wrong product mix for North America: no trucks, no popular SUVs. They got burned with US regulation because they cheated. It's easy to imagine that they would do better as a premium brand, but there is no evidence that they have the brand or the competency. Does anyone remember the Phaeton? Google that. VW has had this fantasy before.
Source on Chrysler : http://archive.fortune.com/magazines/fortune/fortune_archive...
Re: VW Toys with Giving Up the U.S. Mass Market, and Dealers Fume
#6In the android phone market, we know that mid-tier phones do very poorly; People can afford a high end one, or they can't afford anything, so they have to get the cheapest one available. I kind of feel like automobiles are going the same way. Why pay for a mid market car from VW when you can spend another $5,000 and sit in a BMW or Mercedes? Or why spend $30,000 when you can spend $20,000 and get essentially the same…
your price differentials are a little off. you can't spend $5000 more than VW prices to get an equivalent Mercedes/BMW/Audi, its more like 10-15k more. VW's whole thing used to be that they were about 5k more than the mass market cars, but were almost as good as a luxury car with a nice feel and unique features. I'd be fine with them returning to this niche model, the american Jettas and Passats are lame.
Re: VW Toys with Giving Up the U.S. Mass Market, and Dealers Fume
#7In the android phone market, we know that mid-tier phones do very poorly; People can afford a high end one, or they can't afford anything, so they have to get the cheapest one available. I kind of feel like automobiles are going the same way. Why pay for a mid market car from VW when you can spend another $5,000 and sit in a BMW or Mercedes? Or why spend $30,000 when you can spend $20,000 and get essentially the same…
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Re: VW Toys with Giving Up the U.S. Mass Market, and Dealers Fume
#8In the android phone market, we know that mid-tier phones do very poorly; People can afford a high end one, or they can't afford anything, so they have to get the cheapest one available. I kind of feel like automobiles are going the same way. Why pay for a mid market car from VW when you can spend another $5,000 and sit in a BMW or Mercedes? Or why spend $30,000 when you can spend $20,000 and get essentially the same…
I haven't looked at a VW in a long time. I last bought an A2 generation Jetta new in 1991. At that time, I think they were about $11 or $12K, and there was a definite "German" feel to the vehicle compared to similarly priced Asian or American cars. Better handling, better gear changes, a more tight and solid feel, and quieter. A Corolla at the time felt like a beer can on wheels, a Ford or Chevy in that price range f…
> there was a definite "German" feel to the vehicle
Could it be placebo effect/confirmation bias? I am not a car enthusiast but I recently bought a new one and test drove both german and asian models and I honestly couldn't tell them apart.
Re: VW Toys with Giving Up the U.S. Mass Market, and Dealers Fume
#9In the android phone market, we know that mid-tier phones do very poorly; People can afford a high end one, or they can't afford anything, so they have to get the cheapest one available. I kind of feel like automobiles are going the same way. Why pay for a mid market car from VW when you can spend another $5,000 and sit in a BMW or Mercedes? Or why spend $30,000 when you can spend $20,000 and get essentially the same…
I haven't looked at a VW in a long time. I last bought an A2 generation Jetta new in 1991. At that time, I think they were about $11 or $12K, and there was a definite "German" feel to the vehicle compared to similarly priced Asian or American cars. Better handling, better gear changes, a more tight and solid feel, and quieter. A Corolla at the time felt like a beer can on wheels, a Ford or Chevy in that price range f…
I drive a 2015 VW GTI. It is really a very good car. Comfortable, fun to drive, good fuel economy. There is a reason why it is always on the Car and Driver Ten Best list for North America. It just isn't a mass market car. It's a car for people who will pay extra for car just because it is fun to drive but not pretentious or ostentatious in any way.
Re: VW Toys with Giving Up the U.S. Mass Market, and Dealers Fume
#10Being the designated mechanic for my wife's 2005 Jetta convinced me that the only reason I'd ever consider a VW was the TDI. How the hell do teeth start falling off your timing belt at 60,000 miles and 4 years? How can changing a timing belt require so many special tools? How can a car be small AND slow AND handle like crap AND get terrible fuel economy? 25mpg is pathetic. Still though, a clean diesel getting 50mpg sounded pretty compelling.
VW brazenly lying about the TDI emissions took away the only reason I'd ever consider them.