Author Topic: VW / Audi / VW Group Tidbits  (Read 105464 times)

Offline sirAQUAMAN64

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Re: VW / Audi / VW Group Tidbits
« Reply #60 on: January 04, 2007, 11:44:00 am »
New 2008 Clean TDI diesel info, doesn't use UREA...
http://www.autoblog.com/2007/01/04/vw-unveils-next-gen-tdi-engine/
« Last Edit: January 04, 2007, 11:46:11 am by sirAQUAMAN64 »
AQUAMAN64 also posts on BDFD.com!

Offline nowcar

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Re: VW / Audi / VW Group Tidbits
« Reply #61 on: January 04, 2007, 03:19:46 pm »
The passat type that fills up and requires emptying by the service dept every year or so...sounds like a bad idea to me.

Offline initial_D

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Re: VW / Audi / VW Group Tidbits
« Reply #62 on: January 04, 2007, 03:25:23 pm »
The passat type that fills up and requires emptying by the service dept every year or so...sounds like a bad idea to me.

NoCar, SnowCar, NoNoCar, Nowcar ... who r u?  :) Fake?  :)

... and ...


Offline sirAQUAMAN64

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Re: VW / Audi / VW Group Tidbits
« Reply #63 on: January 04, 2007, 03:31:10 pm »
The passat type that fills up and requires emptying by the service dept every year or so...sounds like a bad idea to me.

Me too, although that's part of what the Benz BLUETEC solution is - urea.

I'm happy the smaller VW TDI will offer an alternative.

Offline airbalancer

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Re: VW / Audi / VW Group Tidbits
« Reply #64 on: January 07, 2007, 08:46:19 am »
tough times for VW
not sure if this is a repost, if it is please delate
http://www.businessweek.com/globalbiz/content/aug2006/gb20060822_430027.htm?campaign_id=rss_null


Offline sirAQUAMAN64

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Re: VW / Audi / VW Group Tidbits
« Reply #65 on: January 08, 2007, 01:37:01 pm »
VW wants to be green, and seen
Automaker seeks to show consumers its technology

Richard Truett  |   |  Automotive News / January 8, 2007 - 1:00 am


VALENCIA, Spain -- Except for electronic fuel injection in the late 1960s, Volkswagen has not often been an industry leader in introducing new technology.

But that could change if the concept cars shown here make it to production.

Volkswagen rarely touts its research into future powertrains. But the German automaker recently let journalists test-drive several of its advanced technology research vehicles here.
 
VW's green machines

HT Touran: Powered by a high-temperature hydrogen fuel cell

Hybrid Touran: Gasoline-electric hybrid with turbocharger and DSG transmission

Clean Jetta TDI: 2008 Jetta sedan with new 2.0-liter common-rail diesel engine

TSI Golf GT: Popular hatchback with a 1.4-liter gasoline engine that has a supercharger and a turbocharger

SunFuel Beetle: Uses highly purified fuel derived from biomass, such as grass and ethanol


VW is developing:


A new type of hydrogen fuel cell that runs at hotter temperatures.


Lithium ion batteries for hybrids and fuel cell vehicles. The batteries, which generate electricity through a chemical reaction, would reduce weight and cost and increase driving distance.


Synthetic fuel from biomass -- which VW calls SunFuel -- that dramatically lowers emissions. SunFuel can be made from grass and ethanol.


Cleaner, more efficient diesel engines.


Gasoline-electric hybrid vehicles.


Other automakers -- such as General Motors, Toyota Motor Corp. and Honda Motor Co. -- already have shown a variety of advanced technology vehicles. Now VW wants to convince customers that it will be offering a variety of advanced vehicles around the world that lower emissions and boost fuel economy.

"We are now going more to the public because it is necessary to inform our customers about how far we are in technology development and how innovative we are," says Wolfgang Steiger, VW's head of powertrain research.

Although most of the advanced vehicles that VW showed are far off in the future, there were hints where the automaker is going with its production technology.
 
 
The Golf GT -- with its 1.4-liter gasoline engine with a supercharger and turbocharger -- could indicate where VW is headed with future powerplants.
 
 
One car that could point the way to future Volkswagen engines -- a car already in production for Europe -- is the Golf GT hatchback. The Golf uses a small, 1.4-liter gasoline engine equipped with a supercharger and a turbocharger. The car delivers crisp acceleration but gets about 50 mpg on premium gasoline.

Volkswagen is considering a car with that engine for North America, if it can be made to perform well on lower-octane American gasoline, says VW spokesman Keith Price. Cost is a sensitive issue because the turbocharger and supercharger boost the price considerably.

About 15 months from now, Volkswagen plans to launch the next generation of its turbocharged diesel engines in the Jetta. The engine grows from 1.9 to 2.0 liters; has high-pressure, common-rail fuel injection; and will be sold in all 50 states. An early production model proved to be quicker and quieter than the outgoing model, which uses an old-fashioned mechanical fuel-injection system.

Another vehicle that seemed production-ready was the Touran Eco.Power II, a gasoline-electric hybrid small minivan. The vehicle drove as quickly, quietly and seamlessly as a Toyota Prius. Using a turbocharger, electronically shifted manual transmission and electric motor, it is VW's technology showcase.

Offline sirAQUAMAN64

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Re: VW / Audi / VW Group Tidbits
« Reply #66 on: January 08, 2007, 01:38:34 pm »
Volkswagen 2006 sales hit record 5.73 million

Reuters / January 8, 2007 - 7:00 am
 
DETROIT (Reuters) -- Volkswagen group vehicle sales advanced 9.3 percent to a record 5.73 million units in 2006 thanks to brisk growth around the world and across its brands, Europe's biggest carmaker said on Sunday.

Its core Volkswagen brand boosted car deliveries to customers by 10.0 percent to a record 3.39 million units in 2006 despite sluggish major markets, it added.

Volkswagen group sales in western Europe rose 5.8 percent to 3.11 million units as deliveries in its home market of Germany swelled 7.3 percent to 1.11 million units.

VW, the world's fourth-biggest carmaker, said it defended its market leadership in China's booming passenger car market by boosting sales there 24.3 percent to 711,000 vehicles.

Sales in its South America/South Africa region gained 14.9 percent to 683,000 units, with deliveries in Brazil alone up 15.1 percent.

New models helped U.S. sales continue their rebound, with deliveries up 5.9 percent in 2006 to 330,000 vehicles.

The sales gain still left questions about the future of VW brand head Wolfgang Bernhard, who may leave the company following a boardroom coup that elevated his closest competitor, Audi brand head Martin Winterkorn, to the position of group CEO.

The VW brand extended its market leadership in western Europe, with sales up 5.6 percent to 1.52 million cars.

Premium brand Audi posted its 13th consecutive year of record sales, which gained 9.2 percent to 905,000 vehicles worldwide in 2006. Western Europe sales rose 5.5 percent, deliveries in eastern Europe gained nearly 32 percent and China sales jumped almost 39 percent.

Audi's U.S sales rose 8.5 percent to 90,000 vehicles.

"This is a bump they are getting from the new vehicles, the Passat and the Jetta, but I don't know if it is really sustainable," Erich Merkle, director of forecasting for Michigan-based consulting group IRN Inc, said of VW brand sales growth.

Merkle was more upbeat about Audi, which is spending billions to enter new market segments with models like the hot-selling Q7 premium SUV. Audi should get a lift from its broader product lineup as well as its sharper design, he said.

Global sales of its Czech brand Skoda rose 11.7 percent to a record 550,000 vehicles, while Spanish entry-level brand Seat reversed its sales decline by delivering 430,000 vehicles to customers in 2006, up 1.9 percent.

British luxury brand Bentley's deliveries rose 7.1 percent to a record 9,200 vehicles, while Italian sports car brand Lamborghini boosted sales 30.4 percent to a record 2,087 cars.

The group delivered 47 Bugattis to customers last year, its first deliveries as part of the Volkswagen group.

Volkswagen brand commercial vehicles deliveries rose 10 percent to an all-time best 442,000 vehicles.

Offline sirAQUAMAN64

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Re: VW / Audi / VW Group Tidbits
« Reply #67 on: January 08, 2007, 01:39:09 pm »
VW goes downscale, lowers prices

Diana T. Kurylko  |   |  Automotive News / January 8, 2007 - 1:00 am

Cutting prices
VW has cut sticker prices to attract buyers looking for cars priced below $18,000. Here are prices, including shipping.
2006 Golf: $16,660
2007 Rabbit*: $15,620
2006 Jetta: $18,530
2007 Jetta: $17,120
2006 New Beetle: $17,810
2007 New Beetle: $17,120
* Golf was renamed Rabbit for 2007 model year
Source: Volkswagen
 
 
Reeling from unsuccessful attempts to move upmarket, Volkswagen of America Inc. is lowering prices to reposition the brand.

In the 2007 model year, VW will have three vehicles priced below $18,000. Last year, only the aging Golf was in that range. Its replacement, renamed the Rabbit, has a base price of $15,620 including shipping.

Prices on other 2007 models also have been lowered (see box).

Matthias Seidl, COO of VWoA, says the strategy reflects the brand's repositioning as "affordable German engineering."

"Some might argue we have left the affordability side of the equation," Seidl says. "This is proof that is not our strategic intent."

VW had been raising prices over the past several years and added luxury models such as the Phaeton sedan and the Touareg SUV. The strategy worked in Europe, where management viewed the range as underpriced.

U.S. effort fizzles

But in the United States, higher prices, coupled with VW's poor quality ratings, didn't work. The Phaeton was discontinued after the 2006 model year.

VW brand chief Adrian Hallmark launched a price/value strategy in mid-2006, emphasizing the brand's German engineering but lowering prices.

Hallmark estimated that the new pricing would lure at least 10 percent more prospects to the brand.

VW will skirt dollar-euro currency problems with two of the sub-$18,000 cars: the New Beetle and Jetta, made in its Peubla, Mexico, plant. The weak dollar puts pressure on automakers to raise prices on products imported from Europe.

Seidl says that considering the technology on VW cars - such as antilock brakes and traction control, even on the entry Rabbit - "the price/value relationship is OK."

But he says VW had priced itself too high for buyers looking for cars between $14,000 and $18,000.

"We are trying to open VW to a larger target market and make it more accessible again," says Seidl, hired by Hallmark in July to assume the new post of COO. Seidl had been VW area manager in Belgium, the Netherlands and Luxembourg. He is an alumnus of the Harvard Business School.

The strategy gets VW on the shopping list of more buyers. Potential customers using the Internet usually search within a list-price range, Seidl says.

He says this is especially important because research shows that a high percentage of VW owners are avid Internet users.

Dealers want Rabbits

With the base Rabbit launched in mid-2006 and the entry Jetta's release in the fall, it's too early to declare the strategy a success. Seidl says that of the 11,500 Rabbits sold last year, about half were the base model. Dealers are clamoring for more base Rabbits, and that's a good indicator, he says.

According to the Power Information Network, it took only 18 days to turn a Rabbit in the fourth quarter of last year, compared with 37 days for competitors including the Toyota Corolla and Honda Civic. The average transaction price on the Rabbit was $19,828, compared with $17,915 on average for the segment, according to the Power Information Network.

VW also will offer a special Passat Wolfsburg edition in March for about $27,000. It will be equipped with a 12-way driver's seat, 17-inch alloy wheels, a cold-weather package and other features that add up to a $1,000 price reduction, says Bob Grace, chairman of the VW dealer council and owner of Southpoint Volkswagen in Baton Rouge, La.

"That kind of price will make a difference to buyers," Grace says.

But Grace says VW needs to advertise its new prices because consumers aren't aware of them. "We need to get the value story back out," he says. "We have to make sure that message gets delivered."

Seidl says new marketing will "communicate the affordability and the value story of VW," but the campaign won't be ready until spring.

Offline safristi

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Re: VW / Audi / VW Group Tidbits
« Reply #68 on: January 08, 2007, 01:43:13 pm »
Maybe they are after the 3 cars and UP DEMO_graphic.............run Rabbit Run....
 hey I used ta have a RABBIT when they were RABBITS not Golf COARSE!!! nibbling
bunnies wannabees................ :stick:..I do like their LITE_GREEN bunny on the lot......but I don't know if I can afford the Up_keep...bunny kibble and Vet bills.... :'(  HAY!! I'm just Bunny Farting away here.......No FOUL(smell) NO HARM DONE eh!!!
THERE IS NO CURE FOR "LOTUS"......ONLY TREATMENT.....

Offline sirAQUAMAN64

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Re: VW / Audi / VW Group Tidbits
« Reply #69 on: January 11, 2007, 09:46:19 am »
Will VW's Bernhard return to Detroit?

Rumors swirl about possible Big 3 connection if automaker doesn't keep executive on board.

Christine Tierney / The Detroit News
DETROIT -- Speculation is mounting that former top Chrysler executive Wolfgang Bernhard will leave his job at Volkswagen AG, perhaps as early as this week, as part of a reorganization of Europe's largest carmaker.

Porsche AG CEO Wendelin Wiedeking, the head of VW's biggest shareholder, didn't dispel rumors when he spoke with reporters Tuesday in Detroit. "The success of this company isn't based on one, two or three guys. It's the whole team," he said when asked if he wanted to keep Bernhard on board.

Wiedeking said Volkswagen has many talented, high-level managers. "It's a question of how you work together."

VW is racked with tensions among its top managers and also among its biggest shareholders -- Porsche, with just under 30 percent, and the German state of Lower Saxony, with 21 percent.

Bernhard, the former chief operating officer of DaimlerChrysler AG's Chrysler Group, brought a touch of star quality to the Auburn Hills automaker. But he left the company in 2004 after clashing with former CEO Jürgen Schrempp.

Bernhard, 46, now heads Volkswagen's big VW division and has been slashing costs to boost its competitiveness. Rumors of his departure have been swirling since November when VW's former CEO Bernd Pischetsrieder said he would resign at the end of the year.

Some reports have Bernhard returning to Detroit, but sources at General Motors Corp. and DaimlerChrysler say he isn't coming to either company, and there doesn't seem to be an obvious spot for him at Ford Motor Co.

The high-drama, high-stakes intrigue is likely to reach a climax this week when Volkswagen's new CEO, Martin Winterkorn, presents his reorganization plan today to the governing supervisory board for approval.

VW sources say the new organization will run along functional lines, as opposed to brands, and that Bernhard is being offered a position as head of production.

They deny German media reports that he is being sidelined. But such speculation increased when Bernhard was not on the roster of VW executives attending the North American International Auto Show.

Ferdinand Piëch, 68, VW's supervisory board chairman who wields a great deal of power behind the scenes, avoided reporters in Detroit. On Monday, he was chatting affably with Winterkorn, his choice for a successor, and Bernd Osterloh, a worker representative who sits on the supervisory board, before the unveiling of Audi's diesel-powered Q7 SUV.

"It's like the good old times, except the old times weren't so good," said an executive with a rival German carmaker, speaking on condition of anonymity.
  :rofl2: VW is grappling with bloated costs that have been attributed partly to Piëch's deals with unions and fondness for supercars.

A widespread view that Piëch was unwilling to release his grip on VW gained credence as the family business, Porsche, took a stake, giving it effective control of Volkswagen.

Offline sirAQUAMAN64

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Re: VW / Audi / VW Group Tidbits
« Reply #70 on: January 11, 2007, 10:00:05 am »
VW stock was 1 of the 2 best performing of the past year, but if you've got any, I'd be selling it  :banghead:

Marketing exec Kerri Martin departs VW America

Diana T. Kurylko  |   |  Automotive News / January 11, 2007 - 9:13 am / UPDATED: 1/11/2007 12:56 P.M.

Kerri Martin, a controversial star of automotive marketing, left Volkswagen of America on Wednesday, Jan. 10.

Martin, 36, director of brand innovation at VWoA, unexpectedly resigned. A VW spokesman said she was not forced out of the company.

Martin is credited with edgy advertising such as the "Fast" and "Safety Happens" campaigns that regenerated both criticism and controversy.

The GTI's Fast campaign featured a small plastic figure that urged owners to drive fast. In the Safety Happens ads, VW drivers were involved in unexpected crashes. The spots touted the Jetta's safety but shocked viewers.

Adrian Hallmark, head of Volkswagen of America, broke the news to employees at a 9 a.m. meeting today. Hallmark will temporarily handle Martin's responsibilities until a successor is found.

Martin joined VW in April 2005, coming from BMW of North America, where she was brand event marketing manager. Martin worked on the team that successfully launched Mini in the United States and is credited for much of its offbeat marketing.

Soon after Martin's arrival, VW dumped its longtime ad agency, Arnold Worldwide, of Boston. VWoA replaced Arnold with Crispin Porter + Bogusky, of Miami, which had worked with Martin at Mini.

In 2003, Mini was named Automotive News Marketer of the Year for its advertising campaigns. Martin was an Automotive News All-Star in 2006.

Martin also worked at Harley-Davidson. She joined the iconic motorcycle maker in 1993 and was responsible for marketing communications for the clothing and accessories businesses. She also worked for Laughlin/Constable in Milwaukee. 

Word now is she was let go, thus forced to resign.
« Last Edit: January 11, 2007, 03:05:40 pm by sirAQUAMAN64 »

Offline sirAQUAMAN64

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Re: VW / Audi / VW Group Tidbits
« Reply #71 on: January 11, 2007, 10:49:00 am »
Bernhard to leave Volkswagen at end of January

Reuters / January 11, 2007 - 10:00 am UPDATED: 1/11/2007 10:56 A.M.

FRANKFURT (Reuters) -- Wolfgang Bernhard, chairman of the VW brand group, will leave Volkswagen by mutual agreement at the end of January following a management reshuffle, the company said today.

"(Volkswagen Chief Executive) Martin Winterkorn, who will take over the management of the Volkswagen brand group in addition to his present duties, emphasized that Bernhard had furthered the process of restructuring of the company and hence increased the productivity of the Volkswagen brand," VW said in a statement.

Bernhard, an ally of former VW CEO Bernd Pischetsrieder, had been widely expected to resign after a boardroom coup that installed rival VW executive and Audi boss Winterkorn at the helm of the world's fourth largest carmaker.

Following the November ousting of Pischetsrieder, who resigned at the end of last year, few analysts believed Bernhard would remain at VW, due to recurrent speculation that Winterkorn sought to marginalize his role in management.

VW shares barely reacted to today's news.

"It's a loss, a sentiment negative for Volkswagen but I'm not surprised the share isn't reacting since it was so widely expected," said a London-based analyst.

The outgoing VW brand group chairman had focused his efforts on restructuring the loss-making German operations at VW, but his plans for thousands of job cuts at the six west German VW plants and the sale of parts of VW's uncompetitive German automotive components business sparked strong opposition from the company's powerful worker representatives.

Bernhard, considered one of the best executives in the industry, joined Volkswagen on Feb. 1, 2005, and took over as head of the VW brand group in May that year.

Separately, Volkswagen said today it had no plans to make an offer for MAN AG after the German truck maker's stock had risen earlier on such speculation.

"We do not want to buy MAN," a VW spokeswoman said.

Shares in the truck maker, which itself has launched a bid for Swedish rival Scania, rose earlier as dealers said there was talk in the market that Volkswagen was going to make an offer for the MAN after a meeting of VW's supervisory board today, in which Winterkorn was due to unveil his new strategy.
« Last Edit: January 11, 2007, 11:16:27 am by sirAQUAMAN64 »

Offline sirAQUAMAN64

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Re: VW / Audi / VW Group Tidbits
« Reply #72 on: January 11, 2007, 11:13:09 am »
Neat article on the strategy VW used to enter the Korean market recently...

http://english.chosun.com/w21data/html/news/200701/200701090020.html

Volkswagen Korea Sales Skyrocket
 
Volkswagen sales are growing exponentially in Korea, surging almost 300 percent over the last two years. The Korea Automobile Importers & Distributors Association said Monday that the German automaker sold 3,649 units last year, a 123 percent increase over the previous year. That number made Volkswagen the number one growth leader of the 21 imported car marques. Moving just 929 units from three independent dealers in 2004, VW sales soared a whopping 293 percent in two years.
 

◆ Improving its image with the Phaeton
One of the secrets behind Volkswagen's success here is its improved brand image. When Volkswagen began its Korea subsidiary in 2005, it launched with the Phaeton, a premium luxury model priced in the W80 million (US $1=W938) range. The 3.0-liter diesel sedan drives in the same category as Audi's A8, the Mercedes-Benz S-class and BMW's 7-series.

"We introduced the Phaeton to change the perception of Volkswagen here from 'small and cute', an association derived mainly from our New Beetle," Volkswagen Korea President Park Dong-hoon says. The trickle-down strategy exploits the premium impression of the top model to improve the way people think of the maker's medium and entry-level cars. Sales of the Phaeton jumped from 284 units in 2005 to 776 in 2006, putting a new image of the automaker on Korean roads.

◆ Stealing buyers from local brands

With the flashy Phaeton on the street, Volkswagen next aimed for middle-class drivers with a more affordable model. The Passat went on sale for W38.4 million to W42.5 million, well below comparable models like the Mercedes C-class at W56.9 million to W59.5 million and BMW's 3 series at W45.2 million to W77.3 million. A so-called "volume car", the Passat makes up the major portion of Volkswagen's sales. Nicknamed the Baby Phaeton, its sales surged from 345 in 2005 to 1,164 in 2006, firmly establishing the car as a money-maker. "The new Passat was reasonably priced compared to its quality and succeeded in nabbing buyers away from the Hyundai Grandeur," says Song Sang-hoon, an auto analyst with Hungkuk Securities.

◆ Korean operations a worldwide benchmark

Volkswagen's successes here have established Korea as the benchmark for the carmaker's global operations. Of all the company's operations, only Korea exceeded its sales target right from its launch. When Kevin Rose, Volkswagen's executive director for international sales, visited Korea from Germany in November last year, he doled out praise for President Park. "Volkswagen Korea is posting the highest growth rate among our overseas operations. In particular, we were amazed by the success here of the Phaeton," he said. Next up, the automaker is aiming for the drop-top niche with the Eos, a four-seat hardtop convertible set to debut in April in the W50 million range.


Offline sirAQUAMAN64

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Re: VW / Audi / VW Group Tidbits
« Reply #73 on: January 15, 2007, 11:50:47 am »
WOW!!!  :bounce:

Phaeton could work here if …

Diana T. Kurylko  |   |  Automotive News / January 15, 2007 - 1:00 am
 
DETROIT -- Could a rejiggered Phaeton work in the United States?

Adrian Hallmark, executive vice president of Volkswagen of America, thinks so.

VW pulled the full-sized luxury car off the market in the United States last year because of poor sales. VW had tried discounting the $70,000-plus vehicle by more than $10,000.

Hallmark envisions a Phaeton with a V-6 or V-8 diesel engine, a shortened wheelbase "and a 10 to 16 percent price reduction to the equivalent BMW, Mercedes-Benz or Lexus model."

A similar model of the Phaeton is selling well in Europe, he says. "In Europe, the Phaeton is now where it could have been in the first place. It's a V-6, two-wheel-drive, short-wheelbase Phaeton that sells about 15 percent more than the Passat."

With that sort of Phaeton, Hallmark says: "We could have had a go in that (U.S.) marketplace. We could have lost money in the first life cycle, but we could have positioned ourselves."

Offline sirAQUAMAN64

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Re: VW / Audi / VW Group Tidbits
« Reply #74 on: January 15, 2007, 11:54:12 am »
VW turmoil snags U.S. lineup
Hallmark lobbies for small car, premium sedan, more trucks

Diana T. Kurylko  |   |  Automotive News / January 15, 2007 - 1:00 am

 
DETROIT -- Adrian Hallmark, boss of the Volkswagen brand in America, thought he had worked out a deal with VW product chief Wolfgang Bernhard to expand the U.S. product lineup.

Hallmark figured he could add a couple of nameplates, fix VW's pricing problems and compete on even terms with the Japanese.

Now it's back to the drawing board. Bernhard is gone, the victim of an internal corporate power struggle. And Hallmark must sell his plan all over again to Volkswagen AG's new chief, Martin Winterkorn.

Ever since he was named executive vice president of VWoA in 2005, Hallmark has been trying to jump-start stagnant U.S. sales. Here's how he wants to do it:


Change pricing and reposition the Rabbit, Jetta, New Beetle, Passat and Eos.


Add a subcompact below $15,000.


Add a Passat coupe priced higher than the sedan.


Field a truck lineup consisting of a repriced Touareg SUV, the smaller Tiguan crossover and a Chrysler group minivan.


Winterkorn must support Hallmark's plan. Winterkorn is an ally of Ferdinand Piech, VW's combative former CEO, who still heads VW's supervisory board and represents the dominant shareholders.

Piech retired in 2002 but kept his board seat. He repeatedly clashed with his successor, Bernd Pischetsrieder, who earned the enmity of VW union leaders when he rammed through a turnaround plan that cut thousands of jobs.

With the union's backing, Piech lined up enough board support to force Pischetsrieder to step down Dec. 31.

Former Audi chief Winterkorn then replaced him. Last week, Piech underlined his triumph by touring the Detroit auto show with Winterkorn in tow.

 
Repitching the plan

Now Hallmark must woo his new masters, and he thinks he has the right product plan to do so. "All of these projects are economically viable and proven," he says. "I have a lot riding on the strategy."

Hallmark says he described the plan to Winterkorn in a 20-minute presentation. Now Hallmark says he must fire up his PowerPoint again to make a formal proposal.

Aside from adding models, Hallmark also wants to fix VW's faulty pricing strategy. Too many cars are priced substantially above others in their segment. The price ranges of those vehicles also sometimes overlap those of other VW models.

For instance, the Jetta compact competes with the smaller Toyota Corolla, the larger Camry and even the BMW 3 series. Although its base price starts at $17,120, including shipping, the Jetta sells for as much as $30,000.

Thus, its range extends well above the $23,590 base price of the mid-sized Passat.

To solve that problem, Hallmark wants to replace either the Jetta or Passat in 2010.

Until those models are redesigned, VW can attack the problem only by dumping unpopular trim levels. This year, VW killed the most expensive Jettas and the cheapest Passats.
 
 
Fewer Passats

VW will sell fewer Passats, but Hallmark says he will make more money on the improved product mix. "Now there is no debate," he says. "Passat is an entry luxury product."

With his proposed lineup, Hallmark thinks the VW division's annual U.S. sales can rise as high as 300,000 to 500,000 units, up from 235,140 last year.

With that volume, Hallmark says, VW could add premium cars like the ill-fated Phaeton, which has been pulled from the United States.

But aspects of the plan are problematic. For example, VW will have trouble marketing a subcompact for less than $15,000 because of international currency fluctuations.

Importing a subcompact from Europe would be costly, and the current Polo subcompact sold in Europe cannot be built in VW's assembly plant in Puebla, Mexico.

Jetta and Passat are different sized, providing cars with different dynamics and styling to buyers. I think a base Passat works fine, as comparing a Jetta to a Camry buyer may seem like a step down to them. I'd keep both. 

VWoA is facked.  
 
« Last Edit: January 15, 2007, 12:06:16 pm by sirAQUAMAN64 »

Offline safristi

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Re: VW / Audi / VW Group Tidbits
« Reply #75 on: January 15, 2007, 02:37:53 pm »
Piech is a Megalomaniacal meddler who won't fack off...shame fer VW.....

Offline Mitlov

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Re: VW / Audi / VW Group Tidbits
« Reply #76 on: January 15, 2007, 03:32:20 pm »
I don't see a problem with price overlap between the Jetta and Passat lines.  Look at Subaru: an STI is far more expensive than a base-engined Legacy, but that doesn't mean that the cars compete with each other, or that there's not enough difference between Impreza and Legacy lines.  They're completely different animals.
"Geography has made us neighbors. History has made us friends. Economics has made us partners. And necessity has made us allies. Those whom nature hath so joined together, let no man put asunder. What unites us is far greater than what divides us." -- John F. Kennedy, addressing Canadian Parliament.

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Re: VW / Audi / VW Group Tidbits
« Reply #77 on: January 16, 2007, 07:54:54 pm »
 :o

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Re: VW / Audi / VW Group Tidbits
« Reply #78 on: January 18, 2007, 10:27:14 pm »
If the prices have been slashed have the residual values gone up?? My Rabbit was 53% in Nov.

Just curious cause a friend would like to lease one now that they were in my Rabbit.

Offline sirAQUAMAN64

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Re: VW / Audi / VW Group Tidbits
« Reply #79 on: January 19, 2007, 11:14:06 am »
If the prices have been slashed have the residual values gone up?? My Rabbit was 53% in Nov.

Just curious cause a friend would like to lease one now that they were in my Rabbit.

Price slashing was for the US market on Jettas and Passats, but the intro price for the Rabbit in Canada is less than the Golf comparably equipped, so same story as the US on that model.