Date:         Mon, 14 Nov 2005 14:31:27 -0500
Reply-To:     Thomas Myers <thomas.myers@XEROX.COM>
Sender:       Vanagon Mailing List <vanagon@gerry.vanagon.com>
From:         Thomas Myers <thomas.myers@XEROX.COM>
Subject:      Re: VW drops Phaeton - may we have a transporter please
In-Reply-To:  <5C28B1D4-73FC-4D6F-B969-A1EADC1D66D5@tactical-bus.info>
Content-Type: text/plain; charset="ISO-8859-1"

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The Phaeton is being withdrawn from the USA having never near its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