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William Maley

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

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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


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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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      SV Sports seats, the front heated, featuring uniquely designed seat foams for optimum support, are wrapped in Jasmine leather and Windsor suede, with this trim combination also adorning the instrument panel. Twin-needle red stitching provides an added highlight, also featuring on the leather-wrapped steering wheel, door trims and centre console cover. Branded floor mats complete the interior style and comfort make-over.  
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      Both SportsCat models feature HSV Sports Suspension with the front spring rate stiffened to 110 Newtons/mm. Its MTV dampers have been tuned around the revised spring rate, with both modifications contributing to a more performance-based handling characteristic.
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      SportsCat’s stylish 18” forged alloys are wrapped in Cooper (Zeon LTZ Pro) Sports All-Terrain tyres. These Cooper tyres are a hybrid between a sports-truck tyre and an all-terrain tyre and, in addition to their rugged off-road properties, were specially selected by HSV’s chassis engineers for their outstanding on-road performance characteristics, most notably on tarmac and dirt roads. The overall size of the tyres (285/60 R18), and their rolling radius, also delivers a further 20mm increase in vehicle ride height for a total (front) ride height increase of 45mm.
      In commenting on the engineering enhancements, HSV’s Engineering Director, Joel Stoddart, said “We set ourselves some pretty aggressive targets heading into the SportsCat program. We wanted to set the bench-mark for on-road performance without compromising the vehicle’s off-road capabilities. In fact, we’ve managed to improve the vehicle’s off-road performance, so I’m confident the team has delivered on both counts”.
      In addition to the styling and engineering enhancements developed by HSV on the new SportsCat range, the vehicle also carries over a raft of core vehicle features that help complete the premium offering.
      From a performance perspective, both SportsCat models are powered by a 2.8 litre double overhead cam Duramax Turbo Diesel engine that offers 147kW of power and up to 500Nm of torque when specified with the optional 6-speed automatic transmission with Active Select. A 6-speed manual transmission is standard fare.
      Braked towing capacity of 3,500kg and a maximum payload of approximately 1 tonne deliver impressive workhorse capabilities.
      The stylish HSV modifications to the interior also complement a breadth of already impressive driver and cabin comforts and technologies including an 8” colour touch screen, embedded Satellite Navigation, a premium 7-speaker audio, a rear-view camera and seven airbags.
      Said HSV’s Managing Director, Tim Jackson, “Most 4x4’s Pick-Ups are inherently capable off-road – essentially, it’s a category expectation, and we’ll certainly be amongst the best-in-class in this regard, especially with our added ride height and Cooper tyre package. But what we also wanted to do with the SportsCat program was dial up the vehicle’s on-road characteristics, given that’s where most people tend to spend the bulk of their time driving their vehicle. With our unique suspension packages and AP Racing brakes combined with the interior and exterior comfort and styling enhancements we’ve made, we’re confident we’ve developed Australia’s most stylish and advanced sports 4x4”.
      The SportsCat range is due to start production at HSV’s new facility in Clayton, Victoria, late January, with Recommended Retail Pricing to be confirmed closer to model availability.
      CHEVROLET SILVERADO
      For over 100 years, Chevrolet has forged an enviable reputation for building strong and dependable “full-size” pick-up trucks, and HSV has committed to bringing their pinnacle model – the Silverado – to Australia and New Zealand.
      Power, payload and towing capability are what Silverado is famous for and all these attributes will be reflected in the five-model 4x4 Crew Cab line-up that HSV will offer:
      2500HD WT 2500HD LTZ 2500HD LTZ “Midnight” Edition 2500HD LTZ “Custom Sport” Edition 3500HD LTZ All five vehicles share the same impressive heavy-duty equipment including:
      Duramax 6.6L Turbo Diesel V8 engine ~332kW of power ~1,234 Nm of torque Allison 1000 6-speed automatic transmission Towing capacity of ~3.5 – ~6.1 tonne (model dependent) Payload capacity of ~1,140kg – ~1,848kg (model dependent) 4-wheel anti-lock disc brakes Automatic locking rear differential Said HSV’s Managing Director, Tim Jackson, “The availability of the Chevrolet Silverado range opens up some wonderful new opportunities for our business in a market segment whose potential is relatively un-tapped, and we believe has high growth potential”.
      “Whether it be the farming or mining sectors, those who need to pull a large caravan or horse float or simply those who want awesome towing and load carrying capability, Silverado is the pinnacle of the GM range”, he said.
      Conversion of the Silverado range will commence at HSV’s new production facility in April 2018. The 3500HD LTZ model will be available late in Q2, 2018.
      Recommended Retail Pricing is still to be confirmed.
      CHEVROLET CAMARO
      The Chevrolet Camaro defines performance and this legendary nameplate, in the form of the Camaro 2SS Coupe, will also be imported and converted to right-hand-drive by HSV, and available in 2018.
      The driving force behind the Camaro 2SS is Chevrolet’s 6.2L Generation V LT1 Direct Injection V8 engine mated to an 8-speed, paddle-shift automatic transmission and generating up to 340kW of power and 615Nm of torque.
      The vehicle’s Performance suspension provides a dynamic connection to the road with stopping power delivered by 4-piston Brembo front & rear performance brakes with fixed callipers.
      High Intensity Discharge (HID) headlamps and LED Daytime Running Lamps deliver signature front-end appeal while stylish 20”, 5-split-spoke alloys (8.5” front & 9.5” rear) are wrapped in 245/40ZR20 (front) and 275/35ZR20 (rear) Goodyear Eagle tyres. A rear stanchion spoiler and dual-outlet exhaust with bright tips add aggression at the tail.
      The interior of the Camaro 2SS delivers the perfect marriage of form and function. It starts with power-adjustable heated and ventilated leather-trimmed front sports bucket seats for optimum comfort and support, complemented by a leather-wrapped, flat-bottom sports-profile steering wheel for ultimate grip.
      Dual zone automatic climate control, a 9-speaker Bose premium audio and 24 colour interior spectrum lighting enhance interior ambience while the Head-up Display, Drive Mode Selector and Enhanced Driver Information Centre blend exhilaration with innovation. 
      Conversion of the Camaro 2SS is due to commence at HSV in July 2018 with Recommended Retail Pricing still to be confirmed.
    • By William Maley
      Over the course of this year, Toyota has unveiled three different crossover concepts; the FT-4X, TJ Cruiser, and the FT-AC. We figured that one of these concepts could make it into production and this was confirmed by a Toyota executive.
      "It's like the 90s again, we can have more than one vehicle in each segment if they are different enough," Toyota Motor North America General Manager Jack Hollis told Motor Authority.
      While the three concepts differ greatly in terms of design, Hollis explained this was done to "test the waters in the market and get feedback from consumers." No matter which design is chosen, there are certain details that have been confirmed. Hollis said this new model will sit alongside the C-HR and be based on the company's TGNA platform. Power will come from a four-cylinder, but don't count out a hybrid option. Unlike the C-HR, this model will have the choice of front or all-wheel drive. The new crossover will also influence the design of the next-generation 4Runner and RAV4.
      Hollis said the model will have a price tag of under $20,000 and go on sale within the next two to three years. 
      Source: Motor Authority

      View full article
    • By William Maley
      Over the course of this year, Toyota has unveiled three different crossover concepts; the FT-4X, TJ Cruiser, and the FT-AC. We figured that one of these concepts could make it into production and this was confirmed by a Toyota executive.
      "It's like the 90s again, we can have more than one vehicle in each segment if they are different enough," Toyota Motor North America General Manager Jack Hollis told Motor Authority.
      While the three concepts differ greatly in terms of design, Hollis explained this was done to "test the waters in the market and get feedback from consumers." No matter which design is chosen, there are certain details that have been confirmed. Hollis said this new model will sit alongside the C-HR and be based on the company's TGNA platform. Power will come from a four-cylinder, but don't count out a hybrid option. Unlike the C-HR, this model will have the choice of front or all-wheel drive. The new crossover will also influence the design of the next-generation 4Runner and RAV4.
      Hollis said the model will have a price tag of under $20,000 and go on sale within the next two to three years. 
      Source: Motor Authority
    • By William Maley
      Automakers try their hardest to keep new models under wraps for the longest time to keep the prying eyes of competitors and the media. But Cadillac is trying something a bit different.
      According to Automotive News, Cadillac will be revealing new vehicles about six or seven months ahead from the start of production. Currently, Cadillac reveals new vehicles about two to three months ahead. Why are they doing this? This is part of a push by Cadillac to work on improving the quality of new vehicles. Covering vehicles with camouflage hinders testing of aerodynamics and cooling systems in the real world.
      "If we want to achieve different results, we also have to be willing to change the processes we've used in the past," said Cadillac President Johan de Nysschen.
      "We want to put more of our development cars into the hands of ordinary drivers, not just engineers, so people can see how they perform in normal usage conditions, and that really requires the removal of camo."
      This is quite different from what other automakers have been doing recently. Take for example Honda with the latest Accord. They only introduced weeks before its on-sale date. The reasoning behind this is to prevent sales of the outgoing model from going belly-up.
      "The sales guys are concerned about that. That, obviously, is the reason why secrecy has been so paramount. Right now, I think getting the very best Cadillacs out there, that are a standard for the world, is top priority for me. If you do these things well, the sales will follow," said de Nysschen.
      Source: Automotive News (Subscription Required)

      View full article
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