Plans Approved: Volkswagen will continue with Hallmark's NA product strategy

[Dorado]

To me the problem with that strategy is that it is focused on big vehicles, except for the unnamed "suncompact." Why doesn't VW seriously plan to offer an entry level subcompact in the US?

I just checked online:

Sales in the US for March 2007:

34,300 Toyota Corolla

29,700 Honda Civic

19,100 Toyota Prius

10,900 total for Scion

7,600 Toyota Yaris

7,200 VW Jetta

4,200 Honda Fit

3,600 Cooper Minis

3,400 Hyundai Accent

2,100 VW New Beetle (including Convertible)

1,800 VW Rabbit

In the family sized sedan category (I just made that up):

42,200 Toyota Camry

36,500 Honda Accord

3,000 VW Passat

 

[TornadoRed]

Unfortunately, unless VW moves all US production to Mexico (Jettas and New Beetles already are all built there) or China (which will never fly in the US,) they'd be selling cars at a loss to make them cheaper for the US.

If the 25% tariff on imported pickups from Europe and Japan was repealed, we might see more of them. Until then, more production in Mexico seems to make sense.

I read last week that passenger-configured Sprinters are shipped directly from Europe. But cargo-configured Sprinters must be disassembled, transported to South Carolina, and then reassembled to get around the 25% tariff. DC is building a new plant in SC to assemble them from scratch.

 

[oilhammer]

DC scratched the plans for the full blown plant however, unless they got back on line with it they said it was not worth the cost.

Maybe the new Sprinter will spur some sales. Quite honestly, I see no reason why anyone in this country would buy a GM or Ford full-sized van when the far superior Sprinter is available UNLESS you absolutely had to have some crazy 15,000 pound tow capacity.

The 2.7L 5 cylinder Sprinter has about the same pep as a Ford with their standard 4.6L V8, and uses only half as much fuel, stops better, handles better, is more manuverable, safer, better ergonomics, better visibility, etc. Oh, yes, the Sprinter does cost more. It should.

 

[TornadoRed]

Doesn't the new Sprinter have a 3-liter V-6? Or am I totally mistaken?

 

[bhtooefr]

Yes, it does, and there's also a 3.5L V6 gasser (as the optional engine.)

 

[MrMopar]

If the 25% tariff on imported pickups from Europe and Japan was repealed, we might see more of them. Until then, more production in Mexico seems to make sense.

Any pickups made in Mexico have the same tariff, because the tariff is for IMPORTED pickups - which can come from anywhere outside the borders of the USA. That's why all the "foreign" pickups are made in the USA, Tacoma/Titan/Ridgeline.

If it's cheap pickups you want, after (if?) the tariff is ever dropped they'll be the Asian pickups that are built in Thailand. That's the most popular vehicle sold there, and with labor being low there are companies that could have base prices of $10,000 for a 2-door, manual transmission, 4-cylinder gasser. Diesel might not make it without more cost, because I don't know if any sales profit would support the costly emissions equipment for a diesel engine. Detroit obviously doesn't want this Chicken Tax repealed, because there is no way they can compete with a $10,000 pickup. With USA labor costs, the cheapest GM/Ford/Dodge can make them is about $17,000 or so. And GM/Ford probably looses money on that.

 

[bhtooefr]

Except NAFTA allows for Mexican and Canadian vehicles to be treated as domestics.

 

[MrMopar]

Except NAFTA allows for Mexican and Canadian vehicles to be treated as domestics.

Oh, nice. I kinda though there was a NAFTA loophole there somewhere, but wasn't for sure.

 

[oilhammer]

Is NAFTA why every lawn care and roofing company in Missouri has Mexican workers?

 

[Strack]

How can VW dealers keep their doors open with such a low sales volume? When you compare to US & Japanese production numbers they are in the boutique dealer status. Since they build in Mexico, Poland, Russia, Slovakia, all low cost regions, they should have NO problem bringing their vehicles in at the correct price point.

Even British Leyland's US sales volume back in 1980 (last year of MG, Triumph, ect.) was 40,000 units. Not too shabby for a very small producer who relied upon exports for 85% of their sports cars.

Vw has some very interesting vehicles, but must take some Japanese lessons (marketing, economy of scale, reliability) to become a force in the US. The company has little identity due to it's on again off again marketing & commitment to the US market. Figure out what Americans want and build a great car (the Japanese model), not modify your cars for the US market and try to sell them to a select few at high prices (present VW model).

Toyota surpassed GM as the #1 producer for a reason. Take heed VW...

 

[MR42HH]

don't need the caddy when they have the sprinter like crafter van.

Compare the Sprinter and the Caddy - the Sprinter is two entire classes larger than the Caddy. Both vehicles have entirely different price points, with the T5 Transporter sitting neatly in the middle.

You can get a TDI Caddy panel van around 16K€.
A T5 panel van is more like 24K,

while the Crafter starts at 29K.

So for the prica of a Crafter, you can buy TWO Caddys. Different vehicles for different needs.

The Crafter isn't only sprinter like - it is pretty much identical, except for the engine, gearbox and front end. It's a joint Daimler/VW development.
Just compare those two pictures and look at the sides of the vehicle:

Seperated at birth, clearly. I wonder if there is a VW/Daimler agreement for VW to not go after the northe american market?

 

[MR42HH]

The sub compact car idea won't die, but no one has offered up what that car maybe. Polo seams more likely than Fox based on size, but exchange rate could dictate what we get (ie: not from main land EU).

Polo and Fox are pretty much the same size - the fox being marginally shorter, but taller, offering more interior space.
Fox looks much cheaper on the inside, and there are many details that make it look like an early '90s car. What would make sense - and isn't available in the USA or Europe - is the longer Spacefox.

As you can see, it's a Fox station wagon.

 

[MR42HH]

Yes, it does, and there's also a 3.5L V6 gasser (as the optional engine.)

I'm scratching my head - who would want a gasser van?

 

[MrMopar]

I'm scratching my head - who would want a gasser van?

Stupid buyers who can't run a spreadsheet that compares up-front-cost with the total-cost-of-ownership. Save a dollar up front, only to pay $5 for fuel down the road.

 

[bhtooefr]

You save $1,840 by getting the gasser (which is the optional engine) over the diesel. (Up front, that is. And for a vehicle that's designed to last this long, that's not much at all.)

Of course, the stupid people will ALSO say "hurr, diesel costs $0.10 more, hurr."

Yeah, but it probably gets 10 more MPG...

 

[crazyrunner33]

The current Honda Odyssey and Toyota Sienna are FAR better vehicles than the Caravan. I mean night and day. Both get modern, powerful multivalve engines with variable valving and 5 speed automatics....Chrysler uses thirsty pushrod dinasaurs with that wonderful crap-o-matic 41TE 4 speed transmission....same as they had in 1989.

Although both the Honda and Toyota have had some transmission problems, both those car companies actually did something about it.

My mom bought a 2001 Caravan (the year it was restyled and also known as the year they had a crap load of problems) then we recently sold it to my sister and her husband. It was peppy for a minivan and the features were nice except for the fact they only worked half of the time. Sometimes the windows would go down, but they wouldnt go back up. The transmission made it to about 100,000 miles, but then again it could be because my sister's husband took it off roading (it had all wheel drive) on the dunes at lake michigan the day before it went out.

Just thought i would share since you guys are talkin about the caravans. By the way, the van is riced out now and it is sitting on 18's with spinners.It looks so wrong. And before i forget, it got about 17 mpg at 80 mph.

 

[Sinner]

we could be doing worst: arguing over gasser minivans. Oh, wait!

 

[Thermo1223]

My Dad's GC has been running fine ever since it had a 2 year break lol. 2000 w/ 3l V6 and around 70k I think.

He basically had a bill mishap with insurance and they didn't cover his wreck so he had to save up to pay for the repair. I was really worried about the trans but it shifts smooth as ever.

He wanted to get a Chevy Uplander, thank god I talked him out of that.