[V8] German Pricing

S_Matus scott_matus at yahoo.com
Mon Mar 21 10:02:04 EST 2005

The exchange rate from the Euro to the dollar is going to drive up the prices on anything coming from Germany.  I do understand that VW has not had a good sales year in the US for the last few year.  Not having any new product (Except Tourag and the "Noone can afford it" Phaeton).  Audi on the other hand had done well at bringing new product to the market on a timely basis.
I have been looking at the pricing of the New Jetta for a commuter car.  VW thinks that they can sell a stripped Jetta in the US for $21K. You are looking at $26K for some content. They are setting themselves up for failure in my eyes.  VW is no longer the "Peoples Car".  This will have to affect Audi in the long run.  Their pricing strategy is going to be critical for remaining in the US Market.  The example I see with the New Jetta and the Phaeton will not drive people to the VW symbol, but rather to buy the lower priced, lower content Audi look-a-like. We will wait and see with the pricing on the new A3.  If it comes in under $25K base, I will opt for the 4 rings over the single ring.
Scott Matus
'91 V8QM
'90 V8Q
'02 allroad TQM (Wife's)
'86 Jetta GLI (Soon to adorn collector's plates)

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