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Date:         Mon, 14 Nov 2005 16:32:25 -0600
Reply-To:     John Rodgers <inua@CHARTER.NET>
Sender:       Vanagon Mailing List <vanagon@gerry.vanagon.com>
From:         John Rodgers <inua@CHARTER.NET>
Subject:      Re: VW drops Phaeton - may we have a transporter please
Comments: To: Thomas Myers <thomas.myers@XEROX.COM>
In-Reply-To:  <BF9E503F.CFD1%thomas.myers@xerox.com>
Content-Type: text/plain; charset=ISO-8859-1; format=flowed

Over the years I hve owned several businesses. The one thing I learned common to all businesses big and small, is that if the product does not sell, you have three choices to prevent going broke -1) lower the price so it will sell 2) get into another market, 3) Stop making the product.

VW hasn't gotten the message.

John Rodgers 88 GL Driver

Thomas Myers wrote:

>I would not count on a Transporter coming soon. That concept was dropped > >Because VW¹s major problem with being a expensive place* to make cars. > >[Which can be covered up/ignored/not fixed by moving yourself >upmarket....hence the rash of $40,000 and up cars] > >The American arm has little chance of repositioning the brand as >³mainstream² > >If the German Body keeps avoiding hard decisions. Of course ­ maybe > >VW America can call up SEAT [ VW Spain] for some cars. They have some neat >models. > >[oversimplified notion] > > >Tom > >*speaking of expensive places- I believe VW¹s current labor agreement says > >If it is a truck or a van - it must be made in Hannover. And Hannover is >probably > >One of the most expensive of all VW plants. Till that changes ­ T5¹s are >$45000+ > > >From: jimt <camper2@TACTICAL-BUS.INFO> >Reply-To: jimt <camper2@TACTICAL-BUS.INFO> >Date: Mon, 14 Nov 2005 13:53:02 -0500 >To: <vanagon@GERRY.VANAGON.COM> >Conversation: VW drops Phaeton - may we have a transporter please >Subject: VW drops Phaeton - may we have a transporter please > >today.reuters.co.uk >VW drops Phaeton - but only in USA >Mon 14 Nov, 2005, 17:13 > > >In a symbolic move, VW has admitted defeat in the world's largest >market for luxury cars. >The Phaeton is being withdrawn from the USA having never near its >original 5,000 per year sales target: this year, it will sell less >than 1,000. The move is important because, without the US market, it >is virtually impossible to make money on a luxury car. Certainly, >European sales are hardly compensating for the failure in the USA - >the Phaeton is struggling in nearly all markets. VW still seems >committed to expensive saloons and is now planning a Mercedes CLS- >style model to go above the Passat, but it will need to be light >years ahead of the Phaeton in terms of customer appeal. >With losses in the USA of $1 billion a year, the American operation >is trying to reposition VW as the mainstream value brand it was 30 >years ago. > >jimt > > > >


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