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    William Maley

    As the Diesel Emits: Volkswagen Plans On Slashing Prices In U.S. To Boost Sales

      Volkswagen changes gears, plans a mass-market strategy for the U.S.

    It slices! It dices! No, we're not trying to sell you a set of knives. This is the best way to describe Volkswagen's strategy for the U.S.; price cuts.

     

    Bloomberg reports that Volkswagen will be changing their strategy in the U.S. to become more mass-market in the U.S. This will mean a wider product range and lower prices. The hope is the strategy can reverse a downward spiral in U.S. sales that has been taking place before the diesel scandal broke.

    Volkswagen for many hasn't been able to crack the U.S. market. Despite becoming the world's largest automaker in terms of sales this year and making up 10 percent of total automobile sales in Europe, Volkswagen has been a blip in the U.S. In the past ten years, Volkswagen has never gotten up to 5 percent of U.S. (At the moment, Volkswagen only makes up 1.7 percent of total U.S. auto sales). The German automaker has tried making the Jetta cheaper and making a Passat for the U.S., which hasn't gotten them anywhere. It doesn't help that Volkswagen has missed the boat with growing demand for crossovers in the U.S.

    “Volkswagen is facing an uphill battle to revive the brand in the U.S. Volkswagen is struggling with the loser image of the past, and now in the present the brand is burned. They need a good story that assures people it’s really a new start. Just adding another SUV won’t do it,”  said Ferdinand Dudenhoeffer, director of the Center for Automotive Research at the University of Duisburg-Essen.

    We don't think going for a mass-market plan is a good idea either at the moment. But who knows, it could be the thing that saves VW.

    Source: Bloomberg

    Edited by William Maley

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    VW going cheap and mass market is a failure waiting to happen. 

    Product that drives passion is what they need. Their current product line is bland, boring and overall Meh, forgettable. That is the real problem, not pricing and mass quantity.

    This plan is a failure in the making. :facepalm:

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    7 hours ago, ccap41 said:

    I wonder what I could get a GLI/GTI for with said discounts.. Probably too much still.

    They were offering zero percent and hefty discount on 2016 to get rid of them.  Or buy gently used...diesel gate has killed the resale on the gassers as well.

     

    Got to say FCA becoming more of a niche marketer with Jeeps and Trucks makes infinitely more sense than VW trying to beat Toyota at their own game!

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    On 9/5/2016 at 11:51 AM, regfootball said:

    resale has been terrible, all this does is get new prices closer to the wholesale / trade in market.  they can still charge the big bucks for the GTI's etc. though.

    I am to the point that there are no European cars I want to own. Volkswagen builds a few things I like, but they have pretty much shot my interest with diesel gate and some other dumb decisions, MB does not build anything interesting, I do not even like the AMG stuff, BMW quality ahs gone in the toilet, and they are no longer interesting to drive.  I have loved my MINI, but do not like the direction the brand has gone.

     

    I am ready to love me some Asian and American cars, methinks.

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      Press Release is on Page 2


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      “The ID.4 was engineered, loaded and priced to win the hearts of SUV owners who are simply ready to go electric—and fall in love with Volkswagen again,” said Scott Keogh, CEO, Volkswagen Group of America. “It drives like a GTI, it has the packaging of a Tiguan and the purpose of the Beetle. All the best things about VW in one package.”
      Powertrain & Charging
      The ID.4 electric compact SUV is based on the modular electric drive architecture (MEB). While it is the brand’s newest platform, it also represents a return to Volkswagen’s roots, with the electric motor located at the rear, just like the original Beetle.
      The heart of the ID.4 is a battery pack comprised of 288 pouch cells in 12 modules, positioned in the underbody to create a low center of gravity for optimal driving dynamics as well as extremely well-balanced weight distribution. It is housed in a lightweight aluminum structure that is bolted to the frame, helping to improve rigidity.
      At launch, the vehicle will be offered with an 82kWh (gross) battery and a rear-mounted AC permanent-magnet synchronous motor with 201 horsepower and 228 pound-feet of torque. Volkswagen estimates that the ID.4 82kWh RWD 1st Edition models will have a range of 250 miles with a full charge on the EPA cycle. A powerful, electric all-wheel-drive variant with 302 hp will follow later in 2021.
      The ID.4 also comes with three years of fast charging with Electrify America at no additional cost, helping to reduce range anxiety. The ID.4 can be charged with both alternating current (AC) and direct current (DC) fast-charging capability. The 11 kW onboard charger allows the ID.4 to charge the battery 33 miles in about one hour, and charges to full in around seven and a half hours at a home or public Level 2 charger. At a DC fast-charging station, with 125 kW charging, the ID.4 can go from five to 80 percent charged in about 38 minutes.
      Chassis
      The ID.4 is designed to be strong, yet agile. The chassis and body are made from steel. The front suspension is a strut-type with lower control arms, coil springs, telescopic dampers and anti-roll bar. In the rear, the ID.4 uses a multi-link rear axle with coil springs, telescopic dampers and an anti-roll bar. With 3.5 turns lock-to-lock and a stellar curb-to-curb turning radius of 33.5 feet, the ID.4 feels nimble, especially among other compact SUVs.
      A combination of brake types is used on ID.4. It features disc brakes on the front wheels and drum brakes on the rear—the difference being specific to electric vehicle needs. As EVs rely on regenerative braking, disc brakes on the rear can be less effective than drums after long periods of not being put to heavy use.
      Exterior
      Like the platform, the design of ID.4 represents a move towards the future with a nod to the past. At the front, the Volkswagen logo is able to be positioned centrally because there is no radiator grille, as it was on the Beetle. Large LED headlights flow backwards, hinting at the aerodynamic nature of the car, while a sculpted front bumper with large intake-like scoops and honeycomb accents give the car a powerful presence. Models fitted with the Statement package add an illuminated Volkswagen logo and an illuminated light line that stretches outward from it, creating a striking light signature.
      Front to back, clean, flowing lines alternate with crisp edges for a refined, yet futuristic look. A softly molded side section curves under the crisp rising shoulder line and flush illuminated door handles. The low greenhouse runs out into a strong C-pillar—a classic Volkswagen design feature—and into a long spoiler. The ID.4’s aerodynamically refined exterior helps it achieve an excellent drag coefficient of 0.28.
      The ID.4 sits squarely in the middle of the compact SUV segment, size-wise. It is 4.6 inches shorter than the Volkswagen Tiguan, at 180.5 inches, with a 0.9 inch shorter wheelbase at 108.9 inches. It is 1.9 inches lower than Tiguan at 64.4 inches high for the rear-wheel drive model, and 0.5 inches wider, at 72.9 inches.
      The ID.4 will available in six exterior colors—Glacier White Metallic, Mythos Black Metallic, Moonstone Grey, Scale Silver Metallic, Blue Dusk Metallic and King’s Red Metallic. All models come with a body color roof, black roof rails, and 19-inch aluminum alloy wheels. The Statement package adds a panoramic fixed-glass roof, premium LED projector headlights with Volkswagen’s Adaptive Front-lighting System (AFS) and power-folding side mirrors with puddle lamp signature, while the Gradient package (sold on top of the Statement package) upgrades to 20-inch wheels, black roof, and silver roof rails and accents.
      Interior
      Volkswagen’s first fully-electric SUV features ample space and a modern design. Passenger volume is similar to the Tiguan despite the overall smaller footprint, with 99.9 cubic feet total. Legroom is a comfortable 41.1 inches for front passengers and 37.6 inches in the rear seat. Cargo volume is 30.3 cubic feet behind the second row, and 64.2 cubic feet with the seats folded.
      The interior of the ID.4 mirrors the futuristic look of the exterior, with functionality almost completely controlled by touch or voice control. The 5.3-inch ID.Cockpit (digital driver display) replaces the traditional instrument cluster and is operated with touch-sensitive controls on the leather-wrapped multifunction heated steering wheel. Three tiles show the most important information, with the display for battery status and range underneath. The traditional gearshift is replaced by a large rocker switch on the right of the ID.Cockpit, and a control panel to the left of the steering wheel integrates the lighting functions, including automatic headlights.
      A 10-inch Discover Pro touch infotainment display is located in the middle of the dash panel, angled slightly towards the driver. This screen can be configured to driver preference, and manages the standard navigation system, all telematics, entertainment, driver-assistance systems and vehicle settings; it is upgraded to a 12-inch Discover Pro Max infotainment display with the Statement package. Menus can be moved using gesture control, simply swiping one’s hand in front of the screen. Sliders for volume and temperature adjustment are located on the inclined surface below the display.
      “Hello ID.” natural voice control is standard in the ID.4. The car follows the instructions spoken by the driver and passengers and is capable of understanding many commands from everyday language, such as “Hello ID., I’m cold” to turn up the heat.
      The ID.4 will feature ID. Light—a light strip below the windshield to support drivers in a host of situations with intuitive lighting effects in different colors and sound prompts. For example, ID. Light signals to the driver that the vehicle’s drive system is active and that the car has been unlocked or locked. It accentuates information issued by some of the driver-assistance and navigation systems and signals, both visually and acoustically, details like charge status indicator, braking prompts and incoming phone calls.
      The steering wheel, steering column, and the housings for the display and control panels in the doors are finished in Piano Black. Seats in the ID.4 are finished in black cloth on entry models and Lunar Gray or Galaxy Black leatherette on models with the Statement package. Entry ID.4 models feature six-way adjustable seats with power recline, while the Statement package adds 12-way power seats, with massage lumbar and memory, as well as 30-color ambient lighting.
      ID.4 offers a range of comfort and convenience features found throughout the rest of the brand’s lineup. Standard features include rain-sensing wipers, auto-dimming rearview mirror, dual-zone Climatronic® climate control, and KESSY® keyless access. To manage cold temperatures, the ID.4 features a standard heated steering wheel, heated side mirrors and washer nozzles, and, on all-wheel-drive models, a heated windshield. The Statement package adds SiriusXM® satellite radio with a three-month trial, an adjustable trunk floor, and a power tailgate with Easy Open & Close.
      To complete the high-tech package, ID.4 offers standard wireless mobile charging, wireless App-Connect, and Volkswagen Car-Net® with in-car WiFi capability when you subscribe to a data plan. Car-Net Hotspot allows passengers to access the internet with up to four connected devices simultaneously, including tablets, smartphones, laptops, gaming devices, and more—all at 4G LTE-enabled speed.
      Safety & Driver Assistance Technology
      To help protect occupants, the ID.4 provides a combination of both passive and active safety systems. It features six airbags as standard—front and side airbags for front passengers, and side curtain airbags for outboard seating positions. Additionally there are a number of electronic safety systems, such as an Anti-lock Braking System (ABS) and Electronic Stability Control (ESC).
      With regards to the battery, an extruded aluminum frame protects the battery system against damage in the event of a crash, and a replaceable aluminum underbody panel protects the battery against the road. Additionally, the battery is also disabled if the vehicle is involved in a serious accident.
      With the standard IQ.DRIVE® advanced driver assistance technology, all ID.4 models include Forward Collision Warning and Autonomous Emergency Braking with Pedestrian Monitoring (Front Assist); Blind Spot Monitor (Side Assist); Rear Traffic Alert; Adaptive Cruise Control (ACC); Lane Keeping System (Lane Assist); Travel Assist; and Emergency Assist. In addition to IQ.DRIVE features, the ID.4 includes Dynamic Road Sign Display; Park Distance Control; and High Beam Control (Light Assist).
      Pricing & Sales
      Pricing for the ID.4 starts at $39,995, for the rear-wheel-drive ID.4 Pro (available in the first quarter of 2021), before a potential Federal tax credit of up to $7,500 is applied. With those credits, the entry price of ID.4 is on par with the 2021 Tiguan SEL.  For highly qualified customers through Volkswagen Credit, the monthly lease payment for a 36-month lease with 10,000 miles a year, is $379 per month with $3,579 due at signing, excluding tax, title, license, options and dealer fees.
      Starting later in 2021, the ID.4 AWD Pro ($43,695) will be available. Both Pro models carry largely the same equipment, with AWD models putting out 302 hp, and adding a heated windshield and tow hitch. These models can be additionally outfitted with two packages—Statement ($4,500), and Gradient ($1,500), which is only offered with Statement.
      The ID.4 launches with a limited-run ID.4 1st Edition (MSRP $43,995). The 1st Edition models feature the same content as the Pro model, and Statement package (minus illuminated VW logo) and Gradient package come standard. These models also include unique features including accelerator and brake pedals with “play” and “pause” logos, the steering wheel and column, radio bezel and door island finished in Electric White, 1st Edition badging, black mirror caps, and a tow hitch.
      Volkswagen plans to offer the ID.4 electric vehicle across all 50 states, and throughout its network of more than 600 dealers. A reservation platform debuts today on VW.com, allowing customers to reserve an ID.4 before it hits dealer showrooms, with a fully refundable $100 reservation fee. As vehicle production starts, reservation holders will be invited to confirm their order with an additional fully refundable $400 vehicle deposit. From placing a reservation, to production and through delivery, the customer can see where they stand and when they can expect their ID. 4 to arrive at their preferred local VW dealer in a simple, transparent process. At that time, the customer can transact with their dealer and complete their purchase.

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