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According to the Wall Street Journal, VW is going to lower its prices to become more competitive with Toyota.
VW CEO, Martin Winterkorn has announced that Europe's largest automaker is going to reduce the price gap between its vehicles and Toyota's vehicles. Certain costly items that consumers do not want will also be eliminated from the vehicles.
Winterkorn stated, "We have definitely added too many technical items that [American] customers don't want to pay for."
The automaker feels that by aligning their vehicles more for American tastes they can lower theie prices. Currently the Jetta at $17,000 starts about $2,000 more than a Toyota Corolla.
Full Story: Wall Street Journal
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Volkswagen Wants to Sell 1 Million Cars in the US by 2018
Volkswagen Sets 10 Year Goal to Catch up to Toyota

Comments (15)
Why would anybody buy a Jetta over a Corolla? Especially if it costs more. I like my cars to run for a few years and then I like to be able to sell them for more than a few percent of the original value.
Posted by gm0n3y | October 18, 2007 1:22 PM
Posted on October 18, 2007 13:22
It seems like bad business practice to not make and price a product that is competetive in the largest market(USA). I can understand if VW has luxuries and prices appropriate for the European market, but their US HQ could have done a better job at gauging the US consumer and designing a package that suits their needs. The price of every VW car has been increasing from year to year since about the mid-1980's, why does it take them about 20 years to realize the US market wants more for less. And this should be the market they focus on more, as stated previously, this is the largest and most competetive market in the world.
Posted by Jason | October 18, 2007 2:18 PM
Posted on October 18, 2007 14:18
I always thought that it was funny that a Passat and an Audi A6 were basically available with the same options. If Audi were to become truly a premium brand and Volkswagen more Toyota-ish in its offerings, then there you go...
Posted by Allen | October 18, 2007 2:53 PM
Posted on October 18, 2007 14:53
I'd like to see VW ass the 1.4l twincharger engine for the US market. It uses a supercharger & turbocharger to provide the small engine with continuous boost. The result approx 170hp and high 30mpg in euro spec Golf's.
Posted by longdxcommuter | October 18, 2007 5:25 PM
Posted on October 18, 2007 17:25
add (sp), sorry for the typo (however humerous it was)
Posted by longdxcommuter | October 18, 2007 5:26 PM
Posted on October 18, 2007 17:26
add (sp), sorry for the typo (unintentional, but funny )
Posted by longdxcommuter | October 18, 2007 5:27 PM
Posted on October 18, 2007 17:27
"We have definitely added too many technical items that [American] customers don't want to pay for," Mr. Winterkorn said in an interview. He cited Volkswagen's tendency to equip U.S. models with external mirrors that fold inward to account for narrow streets and tiny parking spaces. "Who needs that in the U.S.? The streets there are so wide," he said.
-Wall Street Journal
If folding side view mirrors are considered technical, what's considered simple?
Posted by Jim | October 18, 2007 8:57 PM
Posted on October 18, 2007 20:57
I don't know about your Volkswagens but the ones we get in Australia are great. Reliablity is also good. And a Jetta is a heaps better car than a corolla. Corolla's are the most pathetic excuse for a small car.
And youse get Jetta's so cheap(then again every car is way cheaper in the US than anywhere else, honestly thats bullshit!). No wonder they break down all the time. They are probably missing all the parts.
We pay $33000 Australian for the base 2.0L model with 6-speed manual. And our dollar buys 90c of yor american dollar. Do the math, youse get it cheap. Thats like almost $30000US. And its not like we are being ripped in Australia. In the UK its almost 15000pounds. Thats also almost $30000US. Well lucky the german site in is the same format as the AU site cause now I can tell you the home countries price. 20000Euros and thats with a 1.4L engine. Thats about $30000 US as well. So bascially youse are getting the car for half price. WHY!!!!!!
And I've seen the Jap car's you get. Trust me they are not the full Japanese qaulity. You get crap plastics just so they can price match your American cars. If you want good cars you have to be willing to pay the real price for it.
And no Toyota's are crap. They may sell here in Australia good as well but thats because they are sold to rental car places and used as company cars.
Our top selling private car belive it or not is the Mazda 3. Mainly because it is the best small car for thr price.
Posted by Luke | October 18, 2007 9:20 PM
Posted on October 18, 2007 21:20
Jim:
He is talking about auto-folding mirrors. They of course have manual control, but euro-spec ones will fold inward on an automatic preset for narrow streets. Once out of narrow streets the driver just presses a button and they fly right back to a present space.
Posted by Allen | October 18, 2007 9:56 PM
Posted on October 18, 2007 21:56
gm0n3y, Maybe because the Jetta is a larger car with a much much nicer interior, that looks and performs better than a Corolla which is a rolling antique that dates back to 2000, and is seriously showing it's age? why would anyone buy a Corolla would be my question. The worst part is that Toyota banks on Americans being ignorant, so the rest of the world gets the vastly updated and upgraded Corolla up to years before we get it as a 2009 model, Japan and Australia have it already for instance.
Anyways sit in a Jetta, then sit in a Corolla, and you will know why.
Posted by Travis | October 18, 2007 9:57 PM
Posted on October 18, 2007 21:57
I own both a Jetta TDi, and a Corolla Spacio. The first is American market, the second is Japanese market, and both are '98s. Both are fine cars. The only reason I like my TDi more is because it, drum roll please, has better fuel economy.
I do agree that VW needs to equip their American cars with the things that are necessary in America. I use my auto side folding mirrors in Japan, I wouldn't dream of it in America. Well, then again, they do add aerodynamic drag, so on an open highway I might fold them in for better FE. I am not your average driver though.
Posted by ryan | October 19, 2007 1:38 AM
Posted on October 19, 2007 01:38
for a moment i was reading 'volkswagen is going to increase its quality to compete with Toyota'
Right.
Posted by rene | October 19, 2007 1:04 PM
Posted on October 19, 2007 13:04
Vw can't compete with any one they are clearly the worst cars on the road, with electrical problem after electrical problem. They are only leasing vehicles because after 5 years nothing works right. Just look at the cars to avoid lists, who is the stars of them jetta,jetta desil,passat,bug thats quiet a record. They there sold for more then civic and corrola which run for 3-4hunderd thousand k, with no eletrical issues. VW's are a joke
Posted by vince | October 20, 2007 10:08 AM
Posted on October 20, 2007 10:08
re: Luke and Travis
Despite what your opinions are, It seems Toyota may know more about making and selling cars than you give them credit for. Even if they do give the US sub-standard equipment, it looks as though they have found a balance between producing the cheapest product with the best quality for the lowest price. Even if the Corolla isn't the lowest priced car in it's market, it still is one of the most reliable in the past decade and a half. To go along with that, Toyota doesn't see the need to update the US Corolla every other year to stay current with the Japanese or Euro markets. In the US, Toyota designs and builds a car that it thinks will satisfy the general public for about 5 years(the common production run), then moves on to a new generation design. While this may date the car after about 4 years, it keeps production costs down. This strategy obviously works for them since they grew and surpassed VW, Ford, and GM(and everyone else for that matter) in the past two decades.
This article is telling us that VW has decided to emulate the Toyota plan to a certain extent. The only thing I don't understand is why VW didn't follow Toyota in the late 90's, when VW sales were tapering off and Toyota was steadily rising. Or even in the 2000's, Nissan has a good plan that has really paid off, why doesn't VW follow them? Why is it 5-15 years later VW decides it needs to change to stay competetive?
Posted by Jason | October 20, 2007 10:33 AM
Posted on October 20, 2007 10:33
Hey, over here in Europe I never had any problems with VW's quality. My old Golf II went 580000km before dying... and it wasn't the engine, either.... my 89 Passat is still going strong at 380000km, the Audi A6 didn't have any problems, either, since I bought it 2001. Of course it's all been a bit more expensive than it would have been in the US... but hey... they are working ;)
Posted by Ueberraschungsei | October 28, 2007 6:41 AM
Posted on October 28, 2007 06:41