Volkswagen Still Losing Money In US And It Will Be At Least 2 More Years Before It Could Get Better

When you IGNORE what the market wants and produce shoddy product is it any wonder? They are either MIA or class trailing in every American segment:

Ultra-Affordable segment (Spark, Mirage, Versa) MIA
B Segment (Fit, Fiesta) MIA
C Segment (Civic,Corolla) Jetta and Golf are not in the hunt
D Segment (CamCord) the Passat has been a disaster
E Segment (Avalon) CC right priced but wrong sized

B crossover / MIA
C crossover (RAV4, CRV) the Tiguan is class trailing
D crossover / MIA coming in 3 years
Minivan / MIA
Pickup / MIA
Utility vans / MIA

I don't believe you have to cover a lot of bases to be successful. You just have to make products that people want and buy in meaningful (to you) numbers. And that's where VW is hurting.

My understanding is that given VW prices, people expect more, and they get it... from the competition. Conversely, based on the vehicle's character and reputation for defects and repairs, people expect VW prices to be lower than they are. Herein lies the problem.

VW: Your vehicles aren't desirable enough for people to put up with the relatively high price and failure rates. Either lower the price of acquisition, repairs and maintenance, or make more desirable vehicles. (Hint: Merely adding more horsepower to existing vehicles, and/or making them look like a tuner car won't likely work).

Nonsense about covering bases! If your stated goal is 800K units, you cover a LOT of bases.

When VW matches the Toyota base price for the Camry and Corolla with the Passat and Jetta respectively, the difference is that the CamRollas are nicer to be in that the PasEtta.

VW has a LOT of work to do on reliability and durability as well.

They aren't in it to win it.

The Chrysler 200 was designed on one third of a shoe string and is a much nicer vehicle than the truly 90s feeling Passat.

The problem with VW is that Americans consider it an ENTRY LEVEL car company competing with Chevrolet and Ford and Toyota and Nissan etc. VW has brought its image up in the rest of the world to make in more of an upscale vehicle - but it is NOT viewed here that way.

American bought lots of Beetles because they were cheap - reliable - and cheap to fix when they broke down. VW cannot say any of its current cars are that. They expect upscale prices - the reliability is simply not the same - and the cost to repair them is in the premium class price range (Audi buyers complain about that too - but at least they expect it). Since the prices are so close - people buy Audi instead. When the cars are nightmares - they do not repeat the purchase - and I know several people who can vouch for this. Then ADD the fact that all of their cars look the same for years - and you end up with lethargic sales.

Conceptually Skoda makes more sense as the American VW (i.e. value brand) and stylistically SEAT is a better fit. VW's are deadly dull to look at. The Euro Passat is not worlds better looking than the American Passat. Whereas if you compare the first VW Rabbit to its contemporaries (Datsun B210, Vega, Pinto) it was game changing different

The Yeti would have been a MUCH better move than the Tiguan.

What 'upscale' process? Most Volkswagens are in the $20k range, with only a few in the $30k range. The Toureg is the only one that ventures higher. Chevrolet and Ford pricing structure is exactly the same.

If you want to see a bunch of cars that look exactly the same for years and years and years, look no further than the BMW, Audi, and Mercedes.