Reuters / May 13, 2005 / Automotive News

FRANKFURT -- Volkswagen dealers in the United States are complaining that the German carmaker is sending them fewer vehicles and the wrong models as it fails to understand the North American market, the Financial Times said.

The paper reported on Friday that the head of the VW brand in North America had expressed concern at the brand's falling popularity among U.S. dealers, after it came bottom of the list in most categories in an annual dealers' attitude survey.

"We cannot take this in any other way but with the utmost seriousness," Len Hunt was quoted as saying at a recent dealers' meeting in California.

But VW executives had consciously decided to supply fewer cars to the loss-making North American operation because of a weak dollar, the paper said, as they focused on more profitable parts of the world.

"You just need to have enough to keep dealers going," a manager was quoted as saying.

The paper said some dealers had blamed VW for shipping too many high-end, automatic models instead of the cheaper, manual cars which they said were most in demand.

"The Germans have tried, but they don't understand the American market," Wade Walker, representing 900 U.S. dealers for VW, was quoted as saying.

http://www.autonews.com/news.cms?newsId=12336

 

True, you cannot dictate to people what cars to buy, and it is also true that VW dealerships have had many service problems in the U.S, but I mostly blame the public itself for this, not VW. VW has offered some real bargains compared to BMW and Mercedes, but the public just hasn't reacted. The Phaeton V12, especially, is a real bargain compared to the BMW 760iL and Mercedes S600. VW charges around 90K for a car that M-B and BMW charge well over 100K for....and loaded S-class V12's can go for 140K and up. If the public doesn't want to buy it because it " just has a VW nameplate " then it is THEIR loss if they want to pass up a bargain like this. You can lead a horse to water, but he won't always drink.

 

The VW forums pretty much love VW but hate how the company is changing direction and basically forgetting about these loyal people. The new Jetta is out but VW ONLY shipped to the USA loaded models. We are talking about 28k Jettas. And at that price, the car is DEAD.

VW has not shipped base or the cheaper cars yet. New Jetta sales are not much more than last years, which is very sad.

 

One thing....when we get the cleaner diesel fuel next year, VW is going to have to consider shipping more diesels over here...demand is going to go up.

 

That's just it...VW really doesn't have much of a so-called "loyal" crowd outside of some Cabriolet and Beetle junkies....and a few diesel fans who currently have no other alternative here in the U.S. The R32 simply could not compete with the STi and Evo in popularity.

 

VW does have loyal fans, but they like how it's cheap and a value buy compared to other German brands. Loaded models are not appealing to those folks.

 

I understand what you are saying, but there are many times at VW when that just doesn't work....see my comments above on the Phaeton and how the public scorned it in spite of the fact that it was a steal compared to BMW and M-B V-12's. Part of the problem with the Phaeton, IMO was that VW just didn't market it well.

 

Well, that, and the loyal VW buyers don't tend to be the kind that want that kind of car, I'd think.