Results 1 to 14 of 14

Thread: VW to abandon US market?

  1. #1
    Senior Member misterdecibel's Avatar
    Join Date
    Apr 2007
    Location
    Little Rock, Arkansas
    Posts
    3,408

    VW to abandon US market?


    VWOA is hemmoraging $1B/year.

    - But there's only so long any management can put up with nearly $1 billion annual losses. Says one executive close to VW: "For the first time in some time, the phrase 'If we are to stay in the U.S.' precedes a lot of conversations at VW."

    http://www.businessweek.com/magazine...ge_top+stories

  2. #2
    Senior Member
    Join Date
    Jul 2006
    Location
    Raleigh NC, USA
    Posts
    3,628

    Re: VW to abandon US market?

    I can't see much wrong in the article. They're pretty much spot-on.

    VW needs to drastically increase their product quality. This needs to be a culture change within the company. A friend who has worked for suppliers to both Japanese and German brands says the Japanese build quality in, while the Germans inspect it in. I would say that the latter strategy isn't working.

    They also need to improve their dealer network. The stories I have heard (and experienced when I had a Jetta) are just amazing. If you want to keep a customer, treat them well.

    Chip H.

    Former owner: 2012 Honda Civic LX, 2006 Honda Ridgeline RTL, 2000 Honda CR-V EX, 2003 MINI Cooper S, 1992 Honda Accord LX, 1999 Mercedes ML-320, 1995 VW Jetta GLX, 1991 Mercury Capri XR2, 1981 Mercury Zephyr, 1975 Chevrolet Impala

  3. #3
    Vulture of The Western World Eric's Avatar
    Join Date
    Jul 2006
    Location
    The Land of The Edentulites
    Posts
    22,751

    Re: VW to abandon US market?

    Quote Originally Posted by misterdecibel

    VWOA is hemmoraging $1B/year.

    - But there's only so long any management can put up with nearly $1 billion annual losses. Says one executive close to VW: "For the first time in some time, the phrase 'If we are to stay in the U.S.' precedes a lot of conversations at VW."

    http://www.businessweek.com/magazine...ge_top+stories
    VW over-reached (and lost a lot of money) on the Phaeton; then there's the "forced absence" of diesels - which it specialized in. The New Beetle's getting old.... and the Golf's too expensive. The Eos is too anonymous. None of these are "bad" cars. But the market is so competitive that to stand out and make a buck is harder than it ever has been...

  4. #4
    Senior Member misterdecibel's Avatar
    Join Date
    Apr 2007
    Location
    Little Rock, Arkansas
    Posts
    3,408

    Re: VW to abandon US market?

    The Eos is bland beyond belief, I almost fell asleep standing next to one in the showroom. How is the Golf, or rather the Rabbit, too expensive? $15K for the 3-door and $17K for the 5-door brings it in at below Honda Civic pricing. And I don't see how the Phaeton lost them much in the US, the huge investment in that car was in Germany with that absurd showpiece factory.

    Having diesels to sell during this fuel price crisis would be good, as long as people can be convinced that the fuel economy of the diesel will overcome the price/gallon of the fuel, which is higher than gasoline right now. Diesels are back for 2008 model year, right?

    I think their biggest blunders lately have been in advertising. The whole "Fast" thing didn't connect, and the "Pimp My Ride" parody with the snotty Euro-fags was just off-putting. I bet they spent a fortune on that crap too.

    I have no complaints with my GTI yet, but then I've only had it three months and 1800 miles. The assembly quality seems first rate, though, the car exudes quality. Well, the sunglasses holder in the overhead console is a bit flimsy.

  5. #5
    Vulture of The Western World Eric's Avatar
    Join Date
    Jul 2006
    Location
    The Land of The Edentulites
    Posts
    22,751

    Re: VW to abandon US market?

    "The Eos is bland beyond belief, I almost fell asleep standing next to one in the showroom."

    Agreed!

    "How is the Golf, or rather the Rabbit, too expensive? $15K for the 3-door and $17K for the 5-door brings it in at below Honda Civic pricing."

    But still much more costly than just as good Kias and Hyundais. Plus, the base price is deceptive; the $15k Rabbit is a "stripper." Add a few necessary options and it's closer to $17k. Again, not expensive as such - but for an "entry level" econo-car? To hell with "German engineering." Give me Kia low price!

    "And I don't see how the Phaeton lost them much in the US, the huge investment in that car was in Germany with that absurd showpiece factory."

    It was a PR disaster as well as a big-time money-loser. And the first reinforced the second (and still does!)

    " Diesels are back for 2008 model year, right?"

    Reportedly, yes.

    "I think their biggest blunders lately have been in advertising. The whole "Fast" thing didn't connect, and the "Pimp My Ride" parody with the snotty Euro-fags was just off-putting. I bet they spent a fortune on that crap too."

    Amen!


  6. #6
    mrblanche
    Guest

    Re: VW to abandon US market?

    Quote Originally Posted by misterdecibel
    Having diesels to sell during this fuel price crisis would be good, as long as people can be convinced that the fuel economy of the diesel will overcome the price/gallon of the fuel, which is higher than gasoline right now. Diesels are back for 2008 model year, right?
    Right now, gas and diesel are pretty close, within a couple of cents either way. Last winter, diesel was 20 cents higher. A month ago, diesel was 20 cents lower.

  7. #7
    Vulture of The Western World Eric's Avatar
    Join Date
    Jul 2006
    Location
    The Land of The Edentulites
    Posts
    22,751

    Re: VW to abandon US market?

    Quote Originally Posted by mrblanche
    Quote Originally Posted by misterdecibel
    Having diesels to sell during this fuel price crisis would be good, as long as people can be convinced that the fuel economy of the diesel will overcome the price/gallon of the fuel, which is higher than gasoline right now. Diesels are back for 2008 model year, right?
    Right now, gas and diesel are pretty close, within a couple of cents either way. Last winter, diesel was 20 cents higher. A month ago, diesel was 20 cents lower.
    Yes, but you'll go a lot farther on a tank!

    The diesel Jetta and Passat were 40 mpg capable (or better) on the highway; only a few gas burning cars can match that - and they're all much smalller than either VW. The New Beetle TDI was tickling 50 mpg on the highway - about as good (or better) than the Prius hybrid!

  8. #8
    mrblanche
    Guest

    Re: VW to abandon US market?

    The real question is if you can get enough daily fuel savings to justify the initial buy-in.

    A used TDI in good condition might be a real bargain, if you know what you're getting into.

  9. #9
    Senior Member misterdecibel's Avatar
    Join Date
    Apr 2007
    Location
    Little Rock, Arkansas
    Posts
    3,408

    Re: VW to abandon US market?

    Is a $15K stripper Rabbit any worse than a Civic DX? As far as equipment level goes I mean. At $15K, the Civic has wind-up windows, for example, the Rabbit has electric. The only real options on the Rabbit are stability control, a tire pressure monitor, and an iPod port, everything else on the option list is just dealer-installed bullshit such as alloy wheels, floor mats, cargo nets. So it's not like they nickel and dime you to death to get one that is reasonably well equipped.

  10. #10
    Vulture of The Western World Eric's Avatar
    Join Date
    Jul 2006
    Location
    The Land of The Edentulites
    Posts
    22,751

    Re: VW to abandon US market?

    Quote Originally Posted by misterdecibel
    Is a $15K stripper Rabbit any worse than a Civic DX? As far as equipment level goes I mean. At $15K, the Civic has wind-up windows, for example, the Rabbit has electric. The only real options on the Rabbit are stability control, a tire pressure monitor, and an iPod port, everything else on the option list is just dealer-installed bullshit such as alloy wheels, floor mats, cargo nets. So it's not like they nickel and dime you to death to get one that is reasonably well equipped.
    I think the difference is the Civic has a real following and so people are willing to pay more for the car. The Rabbit doesn't have that going for it. Second, you can buy a new Kia, Hyundai (or even a Chevy Cobalt) that's better equipped for less....

  11. #11
    Staff
    Join Date
    Aug 2006
    Location
    Houston, TX
    Posts
    3,126

    Re: VW to abandon US market?

    Yeah, but the VW Jetta drives better than a bunch of cars in its class. Unfortunately, it costs a fortune. To some, its worth it. Not to me. Its made in Mexico.

  12. #12
    Vulture of The Western World Eric's Avatar
    Join Date
    Jul 2006
    Location
    The Land of The Edentulites
    Posts
    22,751

    Re: VW to abandon US market?

    Quote Originally Posted by swamprat
    Yeah, but the VW Jetta drives better than a bunch of cars in its class. Unfortunately, it costs a fortune. To some, its worth it. Not to me. Its made in Mexico.
    It's also been plagued by quality control/reliability issues - though these have reportedy been dealt with.... but still.

  13. #13
    Senior Member misterdecibel's Avatar
    Join Date
    Apr 2007
    Location
    Little Rock, Arkansas
    Posts
    3,408

    Re: VW to abandon US market?

    Again, a base model Jetta is only $17.2K, I don't see where that constitutes costing "a fortune".

  14. #14
    Senior Member misterdecibel's Avatar
    Join Date
    Apr 2007
    Location
    Little Rock, Arkansas
    Posts
    3,408

    Re: VW to abandon US market?

    Speaking of price, I wonder of some of VWs losses involve holding prices down to a fairly competitive level against a bad exchange rate between the Dollar and the Euro? Selling some models at a loss to try to maintain market share?

Similar Threads

  1. after market sunroofs
    By bikerlbf406 in forum Motor Mouth
    Replies: 16
    Last Post: 02-01-2011, 02:40 PM
  2. Stock market
    By swamprat in forum Survival/Economic Collapse
    Replies: 3
    Last Post: 01-26-2011, 06:12 AM
  3. The Job Market j/k
    By dom in forum What happened to our liberty?
    Replies: 1
    Last Post: 07-16-2010, 09:58 AM
  4. What the American Car Market Needs
    By Eric in forum Fight Traffic Tickets/Driving Issues
    Replies: 10
    Last Post: 01-06-2010, 01:43 PM
  5. Too many cars - not enough market
    By Eric in forum Motor Mouth
    Replies: 9
    Last Post: 02-14-2009, 08:18 AM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •