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
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The Phaeton is being withdrawn from the USA having never near its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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