Comments on: Volkswagen August Sales Up 2.9%… Somehow

By: RetardedSparks

RetardedSparks — Thu, 04 Sep 2008 15:52:54 +0000

I, too, think that VW’s results are perplexing – there are so many internal contradictions here, but maybe some clarity, too:
- How is it that VW increases or even maintains sales levels with a poor quality reputation and a price disadvantage in most segments?
- The Rabbit (even with the crappy re-tread of a name) should be flying off lots like all the other small cars, but it’s tanking. Is is due to poor mileage, poor quality, high price, all of the above?
- I don’t think 1000 Tiguans a month is even worth the price of printing the brochure. But, it does show that some people will still pay premiums for anything wrapped in SUV-ish packages. I’d guess the average price for these is $28k – not bad for a Golf.
- I laughed when i heard VW’s sales ambitions, but in this market, level sales are equal to a 30% GAIN in sales in the past. This (and the waiting lists/price gouging the TDI is generating) will no doubt convince the VW brass that they are doing everything right.
That could be the biggest problem of all…

By: Acd

Acd — Thu, 04 Sep 2008 02:04:53 +0000

With the higher transaction prices they bring in more revenue on 1000 Tiguans than they will on 1000 Rabbits–ask General Motors about the importance of revenue right now.

By: pariah

pariah — Thu, 04 Sep 2008 01:56:54 +0000

So when will we see a TTAC review of the Tiguan anyways? I’m interested in reading about it.

By: Nemphre

Nemphre — Wed, 03 Sep 2008 22:43:07 +0000

The 2-door Rabbit is a pretty great deal for what you get other than the lame fuel economy. Oh, and the reliability. If I wasn’t so sold on VW (un)reliability from a family member’s Passat, it would be on my short short list.

By: John Horner

John Horner — Wed, 03 Sep 2008 22:15:42 +0000

Aren’t Jettas already built in Mexico for the US market? Opening a US factory doesn’t seem like a way to lower costs of their bread and butter product.

By: yournamehere

yournamehere — Wed, 03 Sep 2008 22:04:00 +0000

- the MK6 is coming here. there was a press release not to long ago about it. the rumor is that they shaved $2k off of production costs. its based on an updated MK5 chassis.

- i dont think nearly 3% sales increase is anything to shake a stick at in this current market.

- i recently read that once VW has the US plant up and running they will be building the Passat and Jetta there. They are targeting the size/price of the Camry/Corolla which sounds good to me. The Jetta is way to big and heavy.

i would love to see the Scirocco make its way over here with the current 2.0T engine and give the GTI the updated 2.0T that has more power and torque. OOOOOR Bring the Scirocco here and just call it the GTI. i wouldnt mind.

By: murphysamber

murphysamber — Wed, 03 Sep 2008 21:10:56 +0000

This could be an explanation for the drop of sales as the old one should be out of production for a couple of months now with only left overs to be sold off.

Sold out of 2008 Rabbits about 6 weeks ago. the 2009’s are just barely rolling in. we didn’t sell many because there were none to sell.

It costs a lot LESS than the MKV to build is what they’ve told us

By: arapaima

arapaima — Wed, 03 Sep 2008 20:37:42 +0000

I think the new US plant should help in that respect. Add the increased supply with lower transit costs; throw in marketing dollars and I can see growth for the US Market.

By: 66Nova

66Nova — Wed, 03 Sep 2008 20:00:32 +0000

“Still, Volkswagen seems to be able to keep themselves consistent”…

The problem is that they are not content with “consistent”. VW says they want to sell 800,000 vehicles in the US in 2018! With these numbers, how is that going to happen? They need to show gains, and they’re just treading water.

By: Justin Berkowitz

Justin Berkowitz — Wed, 03 Sep 2008 19:23:06 +0000

@EEGeek:
That engine is the only really compelling thing that VW has going for it, IMO.

Agreed. Well, that and the GTI.

By: EEGeek

EEGeek — Wed, 03 Sep 2008 19:16:35 +0000

I’d love to know how many of the roughly 2500 additional Jettas sold (vs. year-ago) were TDIs. That engine is the only really compelling thing that VW has going for it, IMO.

By: shaker

shaker — Wed, 03 Sep 2008 19:08:36 +0000

I was checking out Rabbits in my quest for the “cheap”.
But that 5 cyl tractor engine with only OK fuel mileage held me back, as well as the oddball option lists where you couldn’t find the car you wanted for the price you wanted to pay.
Though an improvement over the “Golfs of Mexico”, the reliability of the Wolfsburg iron still wasn’t up to Japanese standards.
Still, the car had a “quality” feel and heft to it that many cars in its price range lack.
Still not enough to make it a winner over the long term, especially if they’re losing money on them.
I once owned a ‘76 Wolfsburg Rabbit (used); a rust bucket, to be sure, but a blast to drive.

By: carguy

carguy — Wed, 03 Sep 2008 17:57:58 +0000

“Somehow”? I would say by offering new appealing products to their customer base who responded by buying more of them. While some Tiguan sales came at the expense of other VW products, the fact remains that VW managed to broaden their product offering and increase sales during a very difficult time for the auto industry. Say what you will but give credit where credit is due.

By: beetlebug

beetlebug — Wed, 03 Sep 2008 17:37:11 +0000

Heck, I’ll take a stand for the Rabbit. Back then it wasn’t that bad a car (I’m not talking about the later Penn. made models). I preferred them to the Japanese competition since they actually were somewhat fun to drive. I think the problem with the Rabbit name is that not many people really remember it fondly. It was a utility car, not a cultural icon like the Beetle. However, I don’t think “Golf” wins any awards as a great name itself.

By: psarhjinian

psarhjinian — Wed, 03 Sep 2008 17:29:39 +0000

So, does anyone else think that perhaps “Rabbit” was a stupid name to dredge up? Maybe Ford will dredge up “Pinto” next.

What was Volkswagen thinking? The MkV had enough problems, what with the cost disadvantage and the fuel-sucking inline five. Why kneecap it with one of more problematic nameplates?

Methinks someone got cocky and thought “Hey, retreaded eighties crap is selling like hotcakes, why not bring back the Rabbit?!” forgetting that while we enjoyed Transformers, skinny jeans and The Breakfast Club, we didn’t actually like riding in Rabbits.

By: 86er

86er — Wed, 03 Sep 2008 17:14:48 +0000

Justin:

Give what back?

By: menno

menno — Wed, 03 Sep 2008 17:14:46 +0000

We don’t have August sales for “everybody” in the auto industry yet? I’ve been waiting to see whether we get a 10th drop in a row (month on month) as predicted by the Wall Street analysts, etc.

By: Diewaldo

Diewaldo — Wed, 03 Sep 2008 17:11:28 +0000

I read that the new Golf VI aka the new Rabbit will be not be offered in the US, because they can’t make money from it.

This could be an explanation for the drop of sales as the old one should be out of production for a couple of months now with only left overs to be sold off.

They won’t make a profit of the Tiguan in the states either and with the whole production already sold out for a whole year in Europe you may get the idea why they won’t be too eager to sell in the states.

By: Justin Berkowitz

Justin Berkowitz — Wed, 03 Sep 2008 16:59:29 +0000

I call president!

By: 86er

86er — Wed, 03 Sep 2008 16:57:52 +0000

Just don’t show that trillion-dollar bill to Fidel Castro, VW.