Volkswagen dumping its premium pricing strategy to take on Japanese competitors

It appears that Volkswagen wants to dump its premium pricing strategy in order to compete with Japanese competitors in the compact and mid-sized sedan segments.

The first step begins with the redesigned 2011 Jetta sedan which will go on sale in October. The new Jetta pricing will start from $16,000, down from $18,435 for the current Jetta (both include shipping) and the entry-level version is offered with stability control and air conditioning. Regarding the competition, the entry-level 2010 Toyota Corolla starts at 16,200 while the base 2010 Honda Civic is offered for $16,405, including shipping.
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dlin - 6/21/2010 3:52:45 PM

+7 Boost

Good, because it is not.

Steve - 6/21/2010 4:12:55 PM

+4 Boost

Bravo, VW. Now just match the Asians with your defect numbers, and you're good to go!

LexSucks - 6/21/2010 4:15:18 PM

+9 Boost

Volkswagen dumping its premium pricing strategy? Is this their way of admitting that the cars were overpriced?

F005 - 6/21/2010 6:25:05 PM

+4 Boost

VW should have kept a noticeable price distance from Audi long ago. It’s good to see that they are now doing the right thing.

AgentOrange - 6/21/2010 6:43:10 PM

+2 Boost

While you're at it, reprice the Audis to a more reasonable level and I may trade my 2008 Bimmer in for an A5 in a few years.

thetruth01 - 6/21/2010 7:48:56 PM

0 Boost

And what engine do you get for 16K? Ya thought the 2.5L was rough, I can't imagine trying to get this (big for its class) car up to speed with the puny 2.0L.

Bmw8ter - 6/21/2010 9:07:05 PM

+4 Boost

In defense of the 2.5L 170hp 5cyl, I think it to be a perfect match to the 6speed auto transmission. I had one on rent for over a month at one point. I really couldn't find a single fault with the car. Pick-up was direct and relatively smooth. The seats were very supportive like a sport seat. The interior materials and the radio; everything was near perfect.

Compare that with the Chevy Cobalt LT 2 door I had. 2.2L 155hp 4cyl. Beige cloth interior(yuck). A crap radio, speakers and aweful interior. 4speed auto(what a fk'n bore). And it didn't feel at all stable at highway speeds.

Then there was the Pontiac Vibe GT. A fun car to take the turns in. 5speed auto with a 2.4L 160hp 4cyl. Definitely a better build than the Cobalt. But didn't have near the top end response of the VW.

Now that VW is finally dropping their "we're German so we cost more" pricing strategy, more people will realize they actually have a worthy product. A puny 2.0L NA engine wouldn't make it in the American marketplace.

mini22 - 6/21/2010 11:26:19 PM

+1 Boost

The 16K price is not going to have the 2.5 engine. VW is coming out with a N/A 2.0. If you remember the Mark 1V Golf it had a 2.0 115HP with 125LBS of torque I believe. All I can say is I hope the new Jetta really weighs less because if this is the same engine with the same HP it is going to power challenged. Maybe VW will give DI which should help. The positive is that it should be smoother then the 2.5.

Whelan - 6/22/2010 10:20:28 AM

0 Boost

A new 2.slow for the masses. They dropped the price almost $2,500 over the outgoing model yet went up in size and style (to some, not me). Total admittance of defeat that people in the market for Jetta's cross shop entry level econo cars. The Jetta was attempted to be placed in a similar lineage as the Altima. small car that moved up to become the next "old Passat". Unfortunately they never moved the Passat to Maxima / Avalon country and then offered the CC. No where for the Jetta to go but back down. Too bad they left the "it's the baby version of your parents car" styling. I know I for one would not want a smaller look-alike to the bigger more family styled offerings.