Volkswagen plans to put more pressure on GM, Toyota in 2010
September 24, 2009 by Matt Brogan
A top executive at Volkswagen Auto Group, Mr Francisco Garcia Sanz, has said he expects global car markets to stagnate next year and has called on all staff to help the manufacturer, currently the world’s third-largest, to catch up on leaders GM and Toyota.
“In our current planning for 2010, we are assuming a similar sales volume level for the overall passenger-car market as in 2009,” said Mr Garcia Sanz. “Worldwide we are still number three by unit sales but have really closed the gap with the leaders. That should spur us on to shift up a gear, especially in the current situation.”
Group sales at Volkswagen, Europe’s biggest car manufacturer, trailed Toyota and GM by less than 500,000 cars in the first half of the year.
Print it: 
I imagine VW Australia could double sales quite easily – there are just three problems -
1) VW Aust will not bring desirable models, such as Scirocco. It’s a management issue – bring more models.
2) Supply – everyday motorists and fleets do not want to wait 6 months to get their car.
3) Price – drop the ask a bit, especially the accessories.
Fix those three things, and VW Aust will do more than its share to knock off T & GM
It’s hardly that simple. Every model needs a business case to bring it to Aus. It’s the Australian Design Rules that mean the cost of homologating some vehicles for sale here would never be recouped. Manufacturers aren’t there to lose money, even on hero cars. Would you buy a Scirocco for 50 or 60k when it has the same running gear as a 30k Golf?
People buy $50-60k Audis and they’re the same running gear as the $30k Golfs
people are shallow… it has an audi badge on it.
Haha, funny yet spot on!
Sorry, dude, that’s just B/S about needing a business case, cost of homologation, etc. You sound like a VW employee….arguing the case for continuing to stifle sales.
If the French manufacturers can get ADR for their cars which sell 3 per month then VW can bring the Scirocco. The Scirocco would sell more than all of the Skodas, as well.
Scirocco model to bring is only the “GTI” and R equivalent models, not one with base model Golf components, so your question about that issue is ridiculous.
And you know this how?
Somehow you have insider knowledge of the auto industry that the people at VW don’t.
Like the guys who like to tell the coach of there favourite football team what tactics they should use, like they know better.
How do you know those ‘French manufacturers that can get ADR for their cars which sell 3 per month’ aren’t losing money on the deal? Just because they’ve taken the risk doesn’t mean that it’s paying off for them.
The other thing VW would need to do is throw out the options list, put what is considered standard back on the cars and drop the prices. For example you scrape into the base model golf at around 30k and you don’t even get cruise control or even stereo controls on the steering wheel. Someone show me any other 30k car that does not at least have those two things, amongst many others. Not only that the way they price their options you end up (to get the cruise control) spending 2k on a package which, whilst good value in itself, contains what should mostly be standard equipment given that apparently nearly everyone gets it anyway.
This is all an illusion to make us think their cars are cheaper than they really are and despite the good quality they are a bit overpriced for what you get.
Good quality is probably arguable, but you are right on the money wrt to the options list. I priced up a Golf R32 which was one of their hero cars last year, but to get to a respectable spec was going to cost around 12K in not unreasonable options. They are kidding right?
Couldn’t agree more. You buy a base Tiguan for mid 30’s. Add a few options and in no time at all you have added 10 grand for a car with a boot the size of a back pack. The other problem with the VW range is the service costs and just so high. Take the 30 grand Golf. Some of the service are up in the $1000 range. Its just ridiculous.
@ Tuffguy good quality your kidding right???. Look at the pic above there’s a huge gap under one of the headlights imagine the bagging this car would cop for something as bad as that if it was a Korean car. If i was taking delivery of that car and saw a gap like that i would be pi$$ed off.
Don’t worry captain nemo, the two boffins in white coats are rectiflying that starboard headlamp/ bumper issue. I think they have found a fellow employee lodged in the said gap.
The only way VW is going to succeed is if they get their pricing back to normal levels. They also have to try and get past that image of ‘we’re the cheap german equivalents’ when in reality Skoda is the cheap German equivalent and VW are trying to jack up the price of models with hardly andything to brag about(bas emodel golf dont even have alloys for 25k)
Really,who cares?
This is just a few comments from an obscure executive.
VW has a number of brands under it’s “umbrella”.
Is he talking about the whole group or just Volkswagen branded vehicles?
Everyone is stating the obvious that VW need to drop their prices if they want to chase down more volume.
Now this is the bit that gets me banging my head…..
Why increase numbers which also increases risk if you wont also be increasing profit.
High turnover, low profit…….low turnover high profit, never rings so true in my ears.
Why is everyone battling for the sales crown??? why not keep to them selves and focus on a profit per unit sort of thing rather than big note themselves with sales units
It’s hard to believe Audi is part of the VAG group – here in AU, they have been increasing sales, they are bringing in what seems like dozens of models many of which overlap markets, and what is happening to Audi in AU – their sales are increasing every month.
VW should be following suit. Bring the Scirocco, bring the 2 door GTI, bring the 4 dooor GTI – Audi would….
Obviously it’s because the model of “low turnover high profit” is already implemented in other VW subsidiaries. VW has Polo, Rabbit etc. which are meant to turn profit at large volume. Unless you are suggesting VW shouldn’t even have produced Polo, Rabbit etc., but that’s crazy talk.
VW are marginally over priced here[ but are a better quality car than most of the opposition] but seeings as we are such a small market I don`t think any increase in Australia is going to make them number 2 or 1. So if you want a quality car, you have to pay a little more and apparently people agree. Oh and the dumb argument about having the same running gear you could probably say that just about every manufacturer.
I agree with mad max, even though it is hard to design and manufacture a car in Germany to sell it in Australia at Japanese prices, Volkswagen should still try to reconsider it’s standard features and provide a bit more room in the boot of the Tiguan. If the RAV4 started out at that smaller size and now is bigger then there seems to be a trend to providing adequate space in the rear for family stuff.
How does VW provide a bit more room in the boot of the Tiguan? I know! Make it a bigger car! This ongoing criticism of the Tiguan’s boot is a nonsense. You know what, people? If it’s too small, don’t buy it. If the Polo’s too small, buy a Golf. If the Golf’s too small, buy a Passat. If the Commodore’s too small, buy a Statesman. And so on. Ain’t difficult.
I didn’t notice too many people bag crap out of the Lexus RX350 with a 375 litre boot (Tiguan’s is 395). I’ve also seen many people on this site rave about the brilliant roominess of the Mazda CX7 (400 litres) and CX9 (a mind numbing 267 litres)
As Golfschwein says – if you don’t like it, move on and go up a size!
Actualy the 118 tsi golf is $31,000 base and that comes with cruse control, anti theft , abs, brake assist, ebd, day time driving lights, traction control( asr,edl,esp) and seven air bags as standard, plus it does 0-100 in 8 seconds and has one car of the year,i know a little about this because i am in the market to buy a mid 30k car and that is the best ive found and ive been looking long and hard for 6 months.
on topic i do think vw will have a good chance, if they made there getta a rwd and had it in the price range of the holden and ford, they would do very well.
According to JD power survey, VW has been awfully unreliable. I wonder why people keep buying such a lemon brand..Out of mind? Or they are so rich that do not mind repair cost?
I’ll respond to that claim, nothanks, but I doubt that you’ll read it. It looks like you’ve popped your head up out of the blue to make a whinge based on the scary (wooooooo!) JD Power results and you’ve had no experience of the cars themselves. I have. I’ve had company Toyotas, the only sort, as well. Trust me, VWs are fine. Not perfect, but neither were the Toyotas.
Audis famously copped a hammering in the early JD years. The reason? Small cup holders and lingering sentiment about the accidental acceleration issue, which was thrown out of court. Surveys are sad.
What’s all this talk about high quality car? In Europe the Golf is a direct competitor to the Focus, Civic, Astra, Mazda3, Lancer and Corolla (Auris). As for reliability it’s way down on the list.
Spam word = Who cares. Can be any thing as it’s randomly generated.
Thats the thing.
Australia…
European brands are regarded on a higher class just purely because they are designed/owned by European Manufacturers.
Outside of the Audis, Beamers, Mercs etc. The other “German” manufacturers are regarded as High Volume production cars and therefore have same tier suppliers, same tier evaluation targets, same tier performance etc. They are “everyday” cars made for profit.
Audis, Mercs, Beamers etc are differently spec’d as they are priced accordingly.
In the states, VW is regarded as “below” quality to some of the japanese manufacturers. They are also priced the same.
Here in Oz, its apparently “sophisticated” to drive a VW. It has that Aura of “I’m driving a European car therefore I’m good” reputation. VW knows this and takes advantage… pay the extra $5K to $10K extra that you didnt really have to.. for that “reputation” of driving a European car…. Its incredibly misinformed and ignorant to think VW is the same build as their sibling Audi….
Then its even worse when its time for “service” and “maintenance”…. 2-3 times more than the japanese/australia/us cars…. here in Oz mainly… because “they can”.
Although yes I agree that VW has a couple of good cars that are good value… Passat and Golf GTI/R20… but outside of that… the “better quality due to german engineering” mantra is abused and deceiving.
There is quite a bit of ignorance displayed here – you say Audi quality is better than VW – “Its incredibly misinformed and ignorant to think VW is the same build as their sibling Audi…. ”
Seems you don’t know they share components like engines, transmissions, brakes, etc.
As for your comments about people who drive VW have “status affliction”, well, that just shows you have some other affliction.
Yes..but unlike Audi cars.. VW cars such as Golf have been built in South Africa…so build quality and reliability has suffered..
In addition, according to JD power survey AUDI is not reliable either…it’s reliability is below Japanese and Korean competitors…
Really? truly? You sure? Nothing to do with the reasons I outlined above? Stop reading surveys. It makes you upset.
Looks like it makes you upset…
Stupidity always does, S. The Golf’s been the best car I’ve had in 27 years. JD power that, if you can.
I have to agree, I have had 2 Falcon XR6 turbos a 2003 ute and a 2004 sedan and my VW Bora 4motion built in 2001 left them for dead and I was a Ford man through and through, you couldn`t of got me in anything else. To all the knockers who haven`t driven 1, do so before coming on here and trying to convince yourselves that they are overrated. I have no problem with anyone complaining about any car at all, but do so out of experience and not some bullsh%t fairy tale that you have dreamt up.
VW is likely better staying back at no. 3. It keep things in perspective for them. What GM & Toyota have all over VW are utes- you cannot beat them, and those are the sales numbers that keep VW at no. 3.
Now if you want a car that handles well, is safe, feels good to drive and is generally built well and engineered by Germans, those guys who are fanatical about cars, then you can go see VW because generally they just make a better driving vehicle.
Yes of course Audi run similar drive trains and engines as VW, but after all would you not pay more for an Armani suit vs. an Emporio Armani suit?
At the end of the day it is the VAG who offer Bugatti, Lamborghini and Bentley, not GM & Toyota- those companies could not even dream up such cars. Of course no disrespect to the Corvette which is a very fine vehicle for the money.
Pete, the RX330 luggage cappacity is 423 litres, not 375 litres (still quite small though considering how much larger it is compared to the Tiguan). Also, the CX-7 is 455, not 400. BUT, the Dualis is only 352 litres!
I think the Tiguan is marketed to younger (28 to 35 years old) people in Europe anyway which are wanting a bit of offroad fun which many older people find a bit uncooth. Just like how small Suzuki 4WDs and the first (smaller) generation RAV4 attract mostly younger people.
Neo – I actually had the RX350 (there is no 330) down as 446 litres (from drive.com) until I checked the Lexus website and they have it as 375 litres.
As for Mazda, once again you are off the mark. Their website rate the CX7 as 400 litres.
I suppose it depends on who do you want to believe.
Bt the way, the RAV4’s luggage volume is 540 litres, compared to the Tiguan’s 395 litres, the RAV4 definately did grow!
Neo, where did you find the boot capacity for the RAV4. It is not listed on the Toyota website or in their brochures. When my employer was looking at buying 10 Tav4s the dealer could only tell us that the boot was “Roomy enough for your needs” (straight from the brochure). When I asked for a specific size I was ignored.
And the Outlander’s is 541 litres with the rear seats slid all the way back, or 589 litres with the seats slid all the way forward. Most other light SUVs have at least 50 litres more than the Tiguan, enough then, as another poster mentioned in another thread, to easily put a pram in the back.
And the Forester’s grew from only 383 to 450 litres!
By the way, the previous generation RAV4 was 405 litres, a measly 10 litres more than the Tiguan! MY LAST POST!