By on October 1, 2008

“This is the toughest economy we’ve seen in a long time.” This piercing glimpse into the obvious comes to us from Volkswagen of North America COO Mark Barnes. Despite sales of over 1,077 units of the Tiguan– which wasn’t on sale last year– every other VW flopped. As we’ve pointed out previously, those 1k Tiguan sales likely came out of the Rabbit’s hide. Rabbit sales fell 37.5 percent, a loss of some 700 sales, compared to September 2007. The Passat also crashed and burned, down 56.5 percent from 2,704 sales last September to a paltry 1,176 this September (a $24k base price and premium gas requirement probably aren’t helping). The Beetle and Beetle Convertible also cratered, falling from a combined 3,109 last September to 1,888 cars in September 2008. It’s not a pretty picture when the company that’s supposed to be selling fuel efficient, affordable European cars has a range merely somewhat efficient, rather expensive Mexican-made European branded cars. I blame staid styling (Rabbit, Jetta), the aforementioned silly prices, and an America-unfriendly engine lineup dominated by a five-cylinder tractor motor. Also, with the American recession in full swing, Volkswagen’s earned (or unjustified, depending on your view) reputation for building unreliable cars isn’t doing it any favors.

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24 Comments on “Volkswagen September Sales: Down 9.4%...”


  • avatar
    Brendan

    That 5-cylinder just makes me crazy! VW is every bit as capable as Honda when it comes to simple, fun 4s but they drop this heavy lump of of boring in their most important car.

  • avatar
    John R

    I wonder what the impetus was for this motor. They couldn’t make a 4 that could spit 170-180bhp?

    When I drove a Jetta a few months ago I enjoyed the way it handled itself in the corners, but not really enjoyed (the previous gen Mazda 6 with the 2.3 was a hoot). And the motor was warblely (sp?). You’ll never forget that it that there IS an engine in this thing. Another reason to turn up the radio.

    Torque was half decent, though. But the Tiptronic in that thing (rental car)makes any manumatic from Japan seem like a dual-clutch. It up shifted nearly 800rpms before the redline!

  • avatar
    no_slushbox

    The styling is fine. The base engine was an incredible mistake. VW actually thought that the I5 would be America friendly (Americans love torque for their automatic transmissions), but VW got hit by high gas prices, and more importantly, they misjudged VW customers.

    VW customers want to feel European, with small efficient engines in their cars. They don’t want some American market specific outdated engine dumped on them by European executives making negative assumptions about American buyers.

    Some VWs are priced way out of their true markets, but the base Rabbit is priced competitively. The problem, along with the engine, is that the Japanese can build a car in the US with Japanese quality, while VW can’t even put its bottom of the European barrel quility into its Mexican made products.

  • avatar
    Casual Observer

    Personally, I think the styling of VW’s gives them a stigma of being the preferred choice for women and metrosexual males – especially Jetta, Passat, and Tiguan.

    If my little sister thinks they’re “cute”, then there is no way I’d be caught dead in one.

    That may be just me, but I have a feeling I’m not alone.

  • avatar
    Negative Camber

    How bad could this engine be? I’m seriously considering a SportWagen with the 2.5, as my credit crunched finances make it painful to spring for the turbo mill.

    I had the misfortune of driving a euro-market jetta rental car with the 1.6; now that was a miserable engine – dangerously underpowered.

    The 2.5, at least on paper, appears to have useful torque which should translate to a good overall real world experience.

    If the worst of it is that it’s ‘warbely’ (well put, I know what you mean), I can live with that.

    Anyone else live with this motor and have some comments before I buy my SportWagen 2.5?

  • avatar
    no_slushbox

    Negative Camber

    I wish they made a Civic wagon. The 1.8 liter manual Matrix is basically a Corolla wagon.

  • avatar
    John Horner

    High prices, crappy dealers and a well deserved reputation for poor reliability just don’t cut in in today’s market.

  • avatar
    EEGeek

    Interestingly, Jetta sedan sales are up 3%. I’d love to know how many of them were TDIs.

    Coupled with the new Jetta wagon sales (which likely don’t come out of the Rabbit’s hide), my guess is that TDI sales have kept VW in a range that will be comparatively respectable this month. Contrast with Ford…

  • avatar
    brettc

    Over at the TDI forums, you’ll find there are a lot of pissed off people that would be driving a new 2009 Jetta right now, had VW not dropped the ball on building the cars the prospective owners put deposits down several months to a year ago. Instead they’re selling TDIs to people that walk in off the street, but they’re not prioritizing production for people that have been waiting forever. Good job VW! Way to continue sucking…

  • avatar
    akitadog

    My ’08 GTI has been pretty trouble-free so far in under 9K miles. I did have to get the IPod adapter replaced, but no other issues have come up. I am really loving the 2.0T. I’m averaging 26.X to 28.X mpg (my calc) with a 80% highway/20% city commute, depending on how much weekend city driving I do.

  • avatar
    dadude53

    Ever since VW started to build really decent cars they got hammered in the States. It appears they still would be better off with some low priced but durable flivvers in that market.
    Well, I guess due to the lousy fuel in the States they cannot offer any of their 1.4l dual charged (compressor plus turbo)making 180hp( final stage)engines which require 98RON fuel.

  • avatar
    Axel

    Expensive
    + “Grinning Corolla” styling
    + Nagging reliability questions
    + Abysmal MPGs
    = LOSE.

    If I wanted to drop a lot of coin on a compact that got lousy mileage, I’d get an Impreza.

    Gotta hand it VW on that interior, though.

  • avatar
    Axel

    no_slushbox :

    I wish they made a Civic wagon. The 1.8 liter manual Matrix is basically a Corolla wagon.

    Amen and Hallelujah. I’ll take mine with a DOHC iVTEC and a manual, please. And make it a REAL wagon, not a half-assed hatch like the Matrix and Mazda3. Also fold-flat rear seats and an inch or two extra rear legroom vs the sedan.

    There. I just described the perfect vehicle. Go forth and produce, Honda!

  • avatar
    Justin Berkowitz

    @Axel:

    http://www.nobodysuspectsthewagon.com/

  • avatar
    ChopperDave

    John R :
    October 1st, 2008 at 12:27 pm

    I wonder what the impetus was for this motor. They couldn’t make a 4 that could spit 170-180bhp?

    That’s the messed-up thing, too: the previous generation had a 180hp turbo four with fine MPGs. The 5 sounds like it has spraypaint cans for pistons. It doesn’t go with the buttoned-down look of the interior, or the solidity of the exterior.

  • avatar
    arapaima

    The rabbit is actually a really nice car. It’s comfortable, stylish enough, drives better than almost any compact hatch. And unless you drive tons of miles per year the difference between mileage only translates to an extra cost of a few hundred miles per year.

    Now if they could just design their cars so that only the dealer and specialists could work on them it would be great.

  • avatar
    kurtamaxxguy

    It seems VW’s not going to really get rolling in the USA until they:

    1. Build cars/whatever in USA (or a Mexican plant with better quality control) to get around the Euro exchange rate,
    2. Upgrade the USA VW dealer network (After years of searching, I’ve yet to find one without euro-arrogance or offering competent service).
    3. Tailor USA VW offerings to better match what “image” they are promoting (read: sporty euro handling vehicles).
    4. Stop trying to be Audi. (If they can’t, then just merge the VW units into Audi USA and be done with it).

  • avatar
    zerofoo

    akitadog, Agreed on the 2008 GTI. My ’08 GTI only has 2500 miles so I can’t really judge reliability yet; but the other day my wife and I were astonished to see 30.3 MPG average on the meter – amazing considering I put my foot into it quite often.

    I had the misfortune of owning a 2000 Golf 1.8T and a 2000 Jetta 2.0. They had tons of problems – but as a friend of mine likes to say – “the safest time to fly is after a crash”.

    I hope VW did put some effort into building the MKV cars right.

    -ted

  • avatar

    I heard through VWVortex.com that the MKVI GTI should me out this time next year in America, about six months or so after Europe gets it. Considering how long we waited to get the current GTI after Europe got it, I’m hoping for a quick turnover here…

    http://www.vwvortex.com/artman/publish/vortex_news/article_2505.shtml

  • avatar
    Justin Berkowitz

    @EEGeek:

    VW sold 2,280 Jetta TDIs this September (that’s sedans and sportwagens)

  • avatar
    EEGeek

    Thanks Justin. So if you figure that 80% of those TDI sales would have simply gone away (I would guess 90+%), then VW’s sales decline would have been more than twice as bad.

  • avatar

    How amusing.

    VWs decline is less than half of all the other automaker declines (in %) TTAC has reported lately. Yet everyone posts negative comments. Even if they hadn’t introduced the Tiguan or TDIs their declines likely wouldn’t have been as bad as many other automakers. And this is without huge rebates.

    And that’s WITH “questionable quality” and “silly prices”. I would also wager that VW was a lot closer to profitable than any of the Big 2.8 at a minimum. To me, volume is not nearly as important as profit. And I think VWs relatively low volumes are part of what appeals to many VW customers. It’s a matter of being a bit distinctive, yet not spending a ton on the car. VW has something of a persona in the US. Sort of like Saab & Volvo (did?).

    Sadly, for the market as a whole, a ~10% decline in sales actually makes for a market share increase.

  • avatar
    joeaverage

    I love my VWs. All three of them. I’m happy with the 115HP 2.0 b/c I know it is tuned for torque instead. ~30 mpg all the time. 11 yrs old. Reliable but the maintenance requirements are a little higher. Not worse than a domestic though.

    Will buy another VW if the right one comes along. The Sportwagon is a good candidate with a TDI.

  • avatar
    joeaverage

    I’m happy with my three VWs. Will buy another. The Sportweagon TDI is a good candidate.

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