VW Sales Suffer Cariac Arrest As Sales Plummet 18.2% In March

VW Sales Suffer Cariac Arrest As Sales Plummet 18.2% In March
Volkswagen of America, Inc. (VWoA) today reported sales of 30,025 units delivered in March 2015.

The all-new Golf continued to find success in the market as the family increased in size with the addition of the Golf-R and the beginning of sales for the SportWagen. In March, Golf family sales totaled 4,643 units. This marks the best March for the Golf family in 15 years.

“We are pleased to see the continued positive customer and media acceptance of the Golf family as evidenced by the number of prestigious awards the cars have won, including the most recent 2015 Edmunds Top Rated and Autobytel Car of the Year. We look forward to keeping this momentum going with the Golf-R and the introduction of the all-new Golf SportWagen,” said Mark McNabb, chief operating officer, Volkswagen of America.

The Jetta, which was refreshed for the 2015 model year and now has a suite of available driver assistance features, continued to show its strength as a core model, with11,005 units delivered.

The Touareg, refreshed for 2015, delivered 535 units: 273 of these were TDI® Clean Diesel models, amounting to 51 percent of sales.

The Chattanooga-built Passat totaled 7,794 units delivered for the month. In March, Volkswagen introduced a new 2015 Limited Edition model with a starting MSRP of $23,995. The Tiguan delivered 2,300 units.



MDarringerMDarringer - 4/2/2015 11:19:08 AM
-2 Boost
The Passat is the first problem. It looks 15 years old and the competition drives better. VW needs to get a full model replacement to market sooner than soon and that car needs to have gorgeous styling. The second problem is that the Tiguan is not competitive in any way with the RAV4, CRV, Tuscon, and Escape. The third problem is that the big SUV is still 18 months away from production--if VW is to be believed--which puts VW more than a decade late to the party. Meanwhile, B-segment crossovers are popping up and--not only has VW written off the B segment--VW has nothing in the pipeline.

The elephant in VW's room is reliability and it is getting out that their cars have more unscheduled warranty visits than the competition. Prior to the repositioned Jetta and Passat, the consumer perception of VW by non-VW owners was that they were pricey yes, but also high quality, reliable, and durable. When the price went down, consumers flocked to VW only to have their perceptions shattered.



carsnyccarsnyc - 4/2/2015 1:07:40 PM
+1 Boost
Well said Darringer and let me add that this is now worse than just monthly sales (which suck for VW), but about the future of the brand as we know it in the U.S.

The situation is so bad that consumers are not cross shopping Hondas and Toyotas with VWs anymore, but rather comparing Kias and maybe Hyundais to tired VW designs that don't make the cut.

And I wonder if anybody in Wolfsburg is taking note as old VW fans like me got tired of asking for better cars.

Just this week, a coworker of mine had to get rid of her 2-year old beetle after electrical and brake problems plus an A/C that went kaput one good Miami morning. She now drives a Nissan Versa and like me, she has no plan to go back to VW.


MDarringerMDarringer - 4/2/2015 6:04:19 PM
-3 Boost
They have an exceptionally high warranty incidence rate. Honda, Toyota, and Hyundai/Kia design specifically for the NA market and VW adapts and cheapens. They are not in it to win it.


mini22mini22 - 4/2/2015 8:18:42 PM
+2 Boost
Further lets look at the destruction of Beetle sales. If VW wants to continue to sell the Beetle here they are going to have to come up with something more interesting then what they are showing at the NY auto show. First off the R is really GTI light. It's suspension is inferior and it offers less room. So how do you make the Beetle a little more unique. How about offering it in a slightly stretched wheelbase 4DR. That automatically makes it a bit more viable to the buying public. How about offering it in AWD. You then give it something that makes it more than just a retro looking car. What about a Beetle Speedster R version.
Otherwise replace it with something else(hint hint-Its 2drs and starts with an "S"). Darringer's right on the Passat. Unless you put the vehicles side by side how do you tell the difference between a Passat and Jetta. No wonder it's sales are tanking. Again why no Polo? They are planning to go larger with the Tiguan replacement. What about a Golf plus awd to take on the Honda HRX, Mazda CX3, Jeep Renegade, Fiat 500X etc. There is so much VW could do but is not doing. Instead it's big SUV's for 2017 and 2018. That's 2 and 3 years off. What happened to the retro VW Van? Why don't they build it? VW is and has been known to be called "the peoples car". If they would not concentrate on the high end stuff and just concentrate on the A, B, and C size classes they might be able to revitalize sales.



MDarringerMDarringer - 4/3/2015 11:02:42 AM
-2 Boost
I've opined before that making Beetle a sub brand with variants would be sheer genius. I'd do a 2 door, 4 door, 4 door wagon, and a 2 door pickup.

They could build the UP and Polo in China where labor rates a far lower and get those products to the USA appropriately priced. The Jetta and Passat need to be replaced with amazing styling. I'd make the CC an Avalon sized vehicle.

If the Scirocco were to come, it would need a full rethink so that it is in the low $20K-$30k in price. I read one report that the reason the Scirocco is not here is because it would list above $40K. Given how blatantly overpriced the Eos was and the CC is, I can believe it.

The Skoda Yeti would have been much better than the horrible Tiguan. Throw a VW badge on it and send it over. The new Skoda Superb should be built in Chattanooga as the Passat for the North American market and exported to Europe as a Superb. The Skoda Fabia and Rapid are also quite well suited to the USA.

Somehow--in Europe--VW pulls off the VW brand being near premium, but that is not the case here. I honestly think that Skoda and VW NA products should be the alignment and not as it is now.

Throw in a Tacoma/Canyon/Colorado competitor, B/C/D sized crossovers, plug-in hybrids, and 8-9 speed conventional automatics and they would be better situated.


mini22mini22 - 4/3/2015 1:38:52 PM
+1 Boost
I essentially agree with you in that VW needs to expand offerings in the A, B, and C class with a mixture of sedans, hatchbacks and crossovers. The Sirocco does need a rethink(or something else) and needs to be built in Puebla or Chattanooga to keep it's price in check. Yes regarding a pickup truck to add to those 2 large D size crossovers VW has planned for the US. There is simply not enough diverse offerings from VW. I don't understand how VW gets it so wrong for the US. All they have to do is look at Toyota, Honda, and Nissan and follow their playbook. How hard can that be? The one bright spot appears to be the Golf. But even that is going to need a restyle in the next 3 years or sales will start to tank. It's still a conservative looking box. The Jetta appears to be a decent car with a conservative exterior and an interior that lacks the quality of the Golf. here is my proposed line up for VW.

A class-VW Polo type car-gas diesel, perhaps hybrid-4dr hatch only
B class-Golf Hatch, Sedan, and wagon(the've got 2 of the 3)in FWD and AWD. Also Golf type Crossover-Gas, diesel, and hybrid.
Not sure if VW needs a Jetta any longer. Golf sedan can replace Jetta.
The Beetle is not cutting it.Don't renew it. Perhaps instead just redoing the Sirocco what about an updated Karman Gia Coupe and Convertible. Offer GTI or Golf R engine choices with suspension to match. Passat-Better styling and offer an AWD variant
Adding to the 2 larger crossovers/suv's coming in 2017, as Darringer said, due a pickup.Then you have a properly rounded out VW lineup. Then its just improving reliability and proper advertising.






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