Volkswagen Gives Tiguan a Price Haircut as Sales Soar
Volkswagen’s pre-dieselgate “take over the world” scheme appears to have returned in a smaller, more manageable form. Now, VW’s plan is simply to plunder the compact crossover segment — not an easy task, given the fierce competition.
The automaker’s strategy involves spanning the segment with two vehicles carrying the name badge. The old, criticised-for-its-size Tiguan continues on as the Tiguan Limited, while the new-for-2018 next-generation model ferries three rows of passengers on a nearly 11-inch longer wheelbase. Now, we learn of Phase 2 of VW’s plan. Chop the price.
According to a dealer notice obtained by Automotive News, VW’s taking a chainsaw to Tiguan MSRPs. Starting with a price cut of $600 for front- and all-wheel-drive Tiguans in base S trim, the savings ratchet up to $2,180 on all mid-range SE models. Buyers of SEL models will see $1,460 shaved off the sticker, while the Tiguan SEL Premium stays put, as that model carries the most automaker gravy.
The newfound savings do not trickle down to the Tiguan Limited. With the price cut in place, the gap between a FWD Tiguan S ($25,495 after delivery) and a base Tiguan Limited ($22,860) shrinks to $2,635. The new starting price places the Tiguan S $650 above the two-row Ford Escape S, $370 above an entry-level Honda CR-V, $70 above a base Toyota RAV4, and $280 below a Nissan Rogue S.
Competitive pricing, to say the least. Already, the two-Tiguan strategy is paying off in terms of sales. In December, U.S. sales of the Tiguan nameplate surpassed November’s record haul by over 1,100 vehicles — a 44.6 percent year-over-year increase, and that’s taking into account December 2016’s industry-wide sales bonanza. In the U.S. and Canada, 2017 was the highest-volume year in the Tiguan’s lifespan.
Breaking the figures down to two models, the next-generation Tiguan is still responsible for the bulk of Tiguan sales. U.S. buyers took home 5,770 long-wheelbase models and 2,291 Tiguan Limiteds in December. Even if VW had decided to ditch the old model, December would still be a record month for Tiguan sales.
In case you’re wondering if Volkswagen’s run out of ways to draw compact crossover buyers away from other brands, it hasn’t. There’s a two-row variant of the long-wheelbase Tiguan on the way.
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