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.

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.