Jetta sales are slow as VW tries to push high-end versions on U.S.

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NFS4

NFS4

No Lifer
Oct 9, 1999
72,636
47
91
Volkswagen has been on such a long slide in the U.S. market that double-digit sales declines barely raise eyebrows -- except among the German automaker's frazzled U.S. dealers.

Last month, VW-brand sales tumbled 28 percent, for a 19 percent drop for the year to date. The comparison with the previous year should have been easy: VW sales were 12 percent lower in the first four months of 2004 than they were a year earlier.

Volkswagen now sells fewer vehicles in the United States than South Korea's Kia brand does. Although VW has a deeply loyal U.S. customer base, it has lost clients after allowing its model range to grow old in a fiercely competitive market.

So the company had a lot riding on the long-awaited new Jetta, its top-selling model in the United States.

It went on sale on March 19, but sales are off to a slow start. In April, VW sold 7,498 Jettas, compared with 7,982 a year ago.

Dealers say the trouble isn't the car itself. The new Jetta has won good reviews for its looks and handling, and performs well in crash tests. But the company initially shipped mostly richly equipped versions with automatic transmissions to its U.S. dealers and skimped on the less expensive, stick-shift models most popular with hard-core VW enthusiasts.

Shoppers found they could buy a fully loaded, larger Passat sedan for less than they would spend on a new Jetta. (The new Passat is due out in August.)

While dealers clamor for cars that can compete with Japanese models on price, VW is trying to push high-end, high-margin cars on U.S. customers to help offset the brutal impact of the dollar's weakness on its bottom line.

Last year, the automaker lost more than $1 billion in North America. In the first quarter of 2005, it lost $430 million and does not expect to break even in the region until 2006.

Adverse currency trends may be one reason why Volkswagen is not yet offering its Golf hatchback here. It launched the model in Germany in late 2003.

U.S. dealers are still selling previous-generation Golfs built in Brazil and will not get the new cars until 2006, although Volkswagen may start shipping the zippy GTI versions of the Golf at the end of this year.

VW says it postponed the U.S. launch of the Golf, which shares the Jetta's underpinnings, to space out new model introductions.

It will not launch the sporty Jetta GLI version until August and the station-wagon version will not go on sale before late 2006.

Of course, it takes time to revamp a model range -- particularly when the previous management focused heavily on premium but ultimately poor-selling models. So far this year, VW has sold only 300 of top-of-the-line Phaeton sedans in the United States.

Dealers say the new management is working hard to fix the problems that led to a drop in its quality ranking.

But with U.S. sales sliding for two years in a row, they are running out of patience.

The company has scheduled a meeting with its U.S. dealers in June. Its managers will have to demonstrate that Volkswagen can remain a profitable player in the U.S. market. After all, every other European mainstream brand that has tried has given up.
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http://www.detnews.com/2005/insiders/0505/10/C01-176834.htm

Pics:

http://pics.bbzzdd.com/users/NFS4/CorrollaVsJettaRear.jpg
http://pics.bbzzdd.com/users/NFS4/CorrollaVsJettaFront.jpg
 
M

MrBond

Diamond Member
Feb 5, 2000
9,911
0
76
Given the past history of Jetta electrical problems, there's no way I'd even consider a Jetta now, let alone a first year model. The headlights probably short out and the car bursts into flames 5 miles from leaving the dealer.
 
StageLeft

StageLeft

No Lifer
Sep 29, 2000
70,150
5
0
VW sucks. They lost my interest when their quality fell down into the sh*ter and now they're so boring that I couldn't even guess as to anything for the specs of the new jetta. I simply don't care. I'd never even so much as briefly consider one.
 
D

Doggiedog

Lifer
Aug 17, 2000
12,780
5
81
Originally posted by: MrBond
Given the past history of Jetta electrical problems, there's no way I'd even consider a Jetta now, let alone a first year model. The headlights probably short out and the car bursts into flames 5 miles from leaving the dealer.
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LOL. Thats what happened to my sister's 93 Jetta after a few years of misery. That POS caught fire and mercifully DIAF.
 
C

Calin

Diamond Member
Apr 9, 2001
3,112
0
0
Originally posted by: buck
Originally posted by: 302efi
A high-end Volkswagen ...LOL :laugh:
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The phaeton is a nice car....
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Too bad it didn't sell well enough (half of the expected number for last year, I think) - I liked both the design and the idea
However, in Europe VW stopped production of Skoda Superb as it ate too much of the Volkswagen Passat sales. Now only Skoda Octavia (a very nice car, in my opinion) remains to rival the Passat (shares the same platform)
 
C

Calin

Diamond Member
Apr 9, 2001
3,112
0
0
Originally posted by: BCYL
I love the front of the new Jetta, but the rear is just UGLY!
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The rear should have been more similar with the concept R (smaller interior lights, bigger exterior ones). The front is just ugly
 
aphex

aphex

Moderator<br>All Things Apple
Moderator
Jul 19, 2001
38,572
2
91
When i was turning in the lease on my passat, i literally laughed out loud when i saw the sticker price on some of the new jetta's at over 27k..... Hmmmm, not only is it ugly IMO but its way overpriced.
 
0roo0roo

0roo0roo

No Lifer
Sep 21, 2002
64,795
84
91
yea, thats the kind of sh*t u can only pull if your quality is #1 and your name plate has massive prestige. vw falls short on both
 
S

Summitdrinker

Golden Member
May 10, 2004
1,193
0
0
KIA has improved at least

yep falling sales have nothing to do with all the cars problems. they just will not admit that's part of the problem in public. fix fix fix

lets face it german cars are going down hill, even benz is slipping.
 
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