[V8] German Pricing

George Tur getur at optonline.net
Mon Mar 21 11:12:21 EST 2005

On Monday 21 March 2005 10:02 am, S_Matus wrote:
> 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.
While the exchange rate hurts, the perceived quality of the product also seems 
to hurt the Jetta and the overall VW product line. I was at a local VW/Audi 
dealer a few years ago waiting for the speaker recall to be done on my V8 and 
had a chance to talk with some other customers who were waiting for their 
cars. Both were Jetta owners, I don't recall what year models they were, and 
they were waiting for repair work to be done. They were not very happy since 
they had been back multiple times and new problems were always cropping up. 
Granted most of the work was being covered under warranty, but they still 
weren't very happy about the cars being in the shop so often, and indicated 
that they probably would not get another VW. From what I've read the quality 
issue hasn't improved with VW since then.

As to the new Jetta look I cringe at the styling, reminds me of a Toyota, but 
I like the interior finish. My own preference would be to get a 2003 or 2004 
Jetta wagon with a tdi. That would be a perfect commuter and general purpose 
car for me. A hundred mile round trip  daily commute gets a little expensive 
in a V8 guzzling premium fuel, even though it's a lot of fun opening it up.

George Tur
91 V8

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