Can These Brands Escape the Automotive Friend Zone?

The dead zone between mainstream and entry level premium is the automotive equivalent of the friend zone, an area which no brand wants to occupy. You cars are generally nicer than those of regular mainstream brands and correspondingly priced a little higher than the popular competition. Your badge isn't worth much though and therefore your sales aren't that much better than some full price luxury brands. It isn't hard to see that this is not a great recipe for financial windfall for a brand as your profit per each car sold is on the low side and you aren't doing volume either. It's an area that most brands avoid and consequently there are only a few brands that find themselves trapped in this area. Over the past few years the three brands trapped in this area have all made efforts to escape and grow their sales, let's see how well they have done.

Volkswagen is the world's best selling brand outside of America by a million or two (literally) and to jump start its US operations the brand recently went very mainstream with its core products, the Jetta and Passat. Closest to entry premium of the trio in their last generations there is no denying that both models were cheapened both figuratively and literally as Volkswagen moved down market, cut the price of admission at retail but also made obvious sacrifices to get there. The immediate payoff was fantastic for Volkswagen as the Jetta and Passat posted their best sales ever in a then still recovering marketplace. VW's progress has since stalled against fresh competition even with VW retreating back from most of the ruthless cost cutting. There is hope though as the Passat is a better effort than the Jetta and its upcoming crossover looks promising to be an even better made for America product. If only it arrives while crossovers are still a trend.

Which of the three brands do you think has the best shot of reaching mainstream sales success?
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MDarringer - 10/23/2014 8:04:35 PM

-2 Boost

VW needs to embrace mainstream with a passion because Audi is rushing down market with near-premium entries.

Mazda desperately needs to find a partner. FCA would be a brilliant move, but Mazda is mainstream not near-premium.

Subaru in effect is "owned" by Toyota and should be the brand between Toyota and Lexus (NOT Scion).

chewy - 10/24/2014 2:00:35 AM

0 Boost

Mazda is the most mainstream of the three but it's a bit "sportier" than mainstream is perhaps the best way to describe it. It should be selling better especially with its new models and the 6 in particular.

MorePower - 10/24/2014 12:03:53 AM

0 Boost

VW is mainstream.

They are the friend from out of town(lives on one of the coasts) that goes to the fancy bars where the beer and drinks cost 20% more than your local favorite.

Subaru will never be mainstream mainly because of their styling, "small" dealer network and perceived "hippie" factor.

Mazda was mainstream and now gives the impression its over being there.

Mazda was your college/work friend that was your wingman/wingwoman but moved away and you only speak once or twice a year now over email.

chewy - 10/24/2014 2:26:19 AM

0 Boost

Pretty true. VW's natural domestic competition is sold as Buick here but the true European VW is hard to find in the US lineup. Subaru is the quirkiest of the three but is selling the best now by a mile and there was time when all three had almost identical sales.