Volkswagen in the US has just announced a drastic price cut for the upcoming new 2011 Volkswagen Passat sedan, which will now start at US$20,765. The price reduction will put it in direction competition with the popular Toyota Camry and Honda Accord.

Volkswagen Passat

In the US, the price of the Toyota Camry starts at US$20, 195. Compared with the 2010 Volkswagen Passat sedan, which retails for US$27,945, for most buyers in the Camry segment, the Passat is a stretch too far. With the new model though, which is set to be launched in the country during the second-half of the year, Volkswagen has decided this gap should be closed, providing serious competition to the Camry and Accord.

The 2011 Volkswagen Passat will be available with a choice of three engines in America, including a turbo-diesel variant. Turbo-diesel and diesel engines are still a relatively new concept in the US in terms of normal passenger cars, it will be interesting to see how it shapes up against its rivals, especially with a claimed full-tank range of just under 1300km.

Volkswagen currently has a number of marketing campaigns going in the the States which are trying revamp the Volkswagen brand. Christian Klingler, head of sales and marketing for Volkswagen worldwide said in a recent Automotive News report,

"Volkswagen is back." Adding, "Our intention with this Passat is to broaden the appeal to more customers."

It's a pity the Volkswagen Passat in Australia is unable to be priced so competitively with cars such as the Honda Accord Euro and the Toyota Camry (the Volkswagen Passat starts at $38,990 here in Australia, excluding on-road costs), although, our range is considerably larger than what is offered in the US.

Click here for our full review of the brand-new 2011 Volkswagen Passat.