A few days ago, we looked at Volkswagen and said that “we expect a growth of group sales well over 10 percent in the first quarter” when Volkswagen does publish its Q1 data by the end of the week. Wolfsburg did not disappoint. Volkswagen sold 1.97 million cars globally in the first three months of 2011. In the same period of last year, it was 1.73 million vehicles, for a growth of 13.7 percent.
The “increase means Europe’s largest automaker also clearly outperformed the overall market, which grew 8.1 percent,” proclaims a statement emailed from Wolfsburg. Group sales in March were also respectable: 767,200 units, up 8.1 percent over March 2010, and a new record.
From the perspective of America, where Volkswagen has been relatively luckless ever since the success of the Bug, these numbers may look surprising. However, the world’s third largest automaker (after Toyota and GM) obviously makes it up elsewhere. Its group market share in Europe stands at an unassailable 22 percent. In unit sales, Volkswagen is the largest brand in the world’s largest car market, China. On a group level, Volkswagen is second in China behind GM.
Speaking of China: Q1 Volkswagen Group sales grew 19.9 percent in China to 548,500 units, outpacing both the Chinese market (up 8 percent in Q1) and its rival GM China (up 10 percent in Q1). Even North America, a market that supposedly shuns VW, if blogs and their commentariat are to be believed, registered strong gains: 143,900 units were sold in Q1, up 17.9 percent over Q1 2010.
| Q1/2011 | Q1/2010 | Change | |
| VW | 1,230,000 | 1,110,000 | 10.40% |
| Audi | 312,600 | 264,017 | 14.80% |
| Skoda | 217,100 | 178,900 | 21.40% |
| Seat | 90,800 | 88,300 | 2.8% |
| Commercial | 121,200 | 89,000 | 36.2% |
| Total | 1,970,000 | 1,730,00 | 13.7% |
I completely agree with Bertel’s statement “bloggers be damned”. VW sells well globally and is doing better in the US with the much derided, by bloggers, Jetta. I don`t expect self-appointed experts who blog to eat humble pie anytime soon, although that would be nice.
Exactly. Ever see a VW commercial vehicle in the USA? Who cares what our bloggers think of them because they don’t even think of them and never have, but look at how their sales are up: by 40,000 units. Trucks, buses, flatbeads, etc. VW has made several acquisitions in the sector and has a variety of models.
The largest selling VW product sold in this country, the Jetta, so roundly criticized and debated on these boards, isn’t even sold in large numbers outside of North America.
In Europe, the Golf is VW’s midsize car, the Polo and the Lupo are the compacts. And the Golf’s got something like a 40% market share in its segment in England, for instance. 40%! And there is competition from Honda, Toyota, Renault, Citroen, Pugeot, Fiat, more competition than here. So what if we hate the Jetta.
If we’re going to damn bloggers for criticizing VW, we’d better be prepared to damn Consumer Reports and Car & Driver. They both agreed with the “self-appointed experts”: the new US-spec Jetta is, charitably, a piece of chintzy crap.
Still, I’ve seen a lot of new Jettas on the roads, so automotive critics are obviously underestimating the nationwide love affair with chintzy crap.
“They both agreed with the “self-appointed experts”: the new US-spec Jetta is, charitably, a piece of chintzy crap.”
Do you have the article or info that qualifies that statement? I’m not being critical, but I am trying to figure out what, exactly, the issues/concerns are.
From their website CR has this in their longer new Jetta review:
“The Jetta sedan emerged from its 2011 redesign as something altogether more humdrum than the compact, agile, tautly-sprung European car it had been. The cabin is roomier and the trunk is huge, but handling now falls short on agility and cornering grip. Interior quality, formerly impeccable, is now subpar.”
They don’t recommend it even if the reliability turns out to be good because it scores so low on their scale.
Grain of salt, etc, but that’s CR’s take, which seems to mirror Edward’s take when he reviewed the new Jetta here at TTAC.
I’ve not driven the new Jetta myself, so I have no personal opinions either way. Here is a story referencing CR’s testing of the car (one of many sources that posted a summary of CR’s findings)….
Premiere U.S. consumer magazine calls the new Jetta ‘a shadow of the agile, well-finished car it once was.’
Top-notch consumer magazine Consumer Reports has given a very negative review to the 2011 North American VW Jetta.
“The new Jetta is unimpressive. In an effort to bring the car’s starting price down, VW cheapened the previous Jetta’s interior and suspension, making it less sophisticated and compromising handling.”
That’s from David Champion who serves as senior director of Consumer Reports‘ Auto Test Center in Connecticut.
The release from Consumer Reports goes on to call the 2.5 liter, 5-cylinder engine “coarse-sounding” and says that the “redesigned Volkswagen Jetta is a shadow of the agile, well-finished car it once was…handling agility and cornering grip now fall short, as does the finish inside the formerly impeccable interior.”
As VW has tried to bring down the starting price on the Jetta, which now begins at $15,995, $1,740 less than the previous generation, it has decontented the car in a way that has left consumers weary. For example, on the standard U.S.-market model the rear suspension is a single torsion beam, whereas on the European-spec Jetta, it comes with a 4-link set-up.
Consumer Reports offers the most detailed and comprehensive testing of any organization for models sold in the United States. It is an independent magazine which conducts long-term, extensive testing of vehicle quality and reliability.
Source: Consumer Reports
@salhany, actually the TTAC review was by Michael Karesh:
https://www.thetruthaboutcars.com/2011/02/review-2011-volkswagen-jetta-se/
Michael, too, felt the interior had been cheapened but I don’t believe he found any issues with the handling.
@th009, I was thinking of this one:
https://www.thetruthaboutcars.com/2010/08/review-2011-volkswagen-jetta/#more-362300
@salhany, thanks for pointing that out — I had forgotten about the earlier review. But Edward didn’t have big complaints about the handling, either …
So what? The bottom line is that the cheapened Jetta is selling better than the old quality model. Which means, C&D, CR, and all those bloggers obviously didn’t understand the market – at least in the short run. Not that you’ll get any of them to admit to that.
CR provides unbiased information on what they suggest consumers should purchase. Their purpose is not to predict what cars will sell well. Many of the cars they suggest people avoid sell like gang busters, this doesn’t reflect negatively on the information that they provide.
Come on – look at what AMERICANS buy for cars! They buy CAMRYs and COROLLAs. VW is making the Jetta more like the Corolla, and the Passat more like the Camry. Bigger, softer, and cheaper. And it is WORKING, which should come as absolutely NO surprise to anyone.
Sure, as an auto enthusist I think it is too bad, but the average car buyer has spoken. For the enthusiasts, VW still makes the Jetta Wagon, the Golf/GTI, the EOS, and the CC. And the Jetta GLI will put most of the good bits back, at a price.
I completely fail to see the problem here – this is a smart thing for VW to do.
I don’t consider myself part of the “hate-bloggers” as I question why all the hate. If their reliability was that bad, how and why do they sell so well?
I really like the new Jetta, but I said that several times in earlier threads.
From what I’ve read, the stereotype is that VWs (excepting the new Americanized pair) ride and handle wonderfully and have gorgeously pleasant interiors, and are overall a magical place to be… until they fall apart and everything in contact with an electron goes insane. I think that sense of betrayal is what fuels the invective.
The Germans in general have positioned themselves to dominate the market. They did not go belly up during the recession and still pay their workers a better salary then US workers. Now admittedly, they do not have to pay health care costs like we do in the US but considering that their taxes are no worse than ours here in the states, they have managed to provide a stable economic platform for years to come. The US will come to its senses one day and “socalize” medicine as Germany has done. They had no lay offs during the recession and they get 6 to 8 weeks vacation.
I always try to learn from my mistakes and take tips from those who are more successful. Too bad our government is so focused on lining their pockets without fear of prosecution that this country has spent itself into the poor house.
Until government representatives are held accountable, the US will never climb out of its financial situation.
Germans have always been bent on world domination.
It’s true.
Can everybody please either stop saying that Germany socialized medicine or please give me the the address where I can find that fabled socialized and free healthcare.
– There are tons of private health insurance companies in Germany, Allianz being the biggest one
– They aren’t particularly cheap
– Employers pay half of the monthly fee, the employee pays the other half
– There are co-payments
Does that sound familiar?
Actually, the total cost of benefits raises the cost of the average worker by approximately 30% on top of wages – I should know, I managed and owned companies in Germany.
I’ll gladly be wrong. Again, if anyone could direct me to that socialized and free healthcare, I’ll gladly take it and happily apologize for having written this.
Now as for taxes not being worse in Germany, let me just say that I thought I was in a tax haven when I handed in my first U.S. return.
I guess sarcasm does not translate well in print. I did italicize socialized. It is a primitive word used in a derogatory manner by the unknowing. Yes, it is very simiar to what we have here in the states although the biggest difference is that it is not as equiatable here. Our insurance costs/insurance are not based on income. That is a very important difference. Like sales taxes, the little guy gets screwed here in the states.
The US may well be a tax haven for those with good incomes coming from a place like Germany. But, someone here in America is paying the price for inequitable tax policies favoring the more affluent.
@westcott- a little class envy? your politics are showing! A $million income pays $350,000 to the feds alone, while 47% of households pay nothing. Hardly a tax haven, though better than Germany, which is not a low cost place to build cars.
Volkswagon is the German “Government Motors”, 20% owned by the State of Lower Saxony. Doesn’t seem to stop them from doing well though…
Look at those Skoda sales! Still want an Octavia stateside. Still never gonna happen. Still sad about it.
I have a 03 Jetta Wagon, and while repairs have certainly not been cheap, I like the way it drives and I’ve been treated well by the local dealership (as well as VW Canada), so I would seriously consider another VW when I get around to replacing my current one (e.g., a Golf or perhaps the upcoming Bug if it’s interesting).
As I contemplate a needed 4-seat replacement for my Z3, I start thinking about a GTI. Then I read the owners’ comments . . . and they scare me away, even with all kinds of warranties, etc.
As for the sales of the revised Jetta . . . there’s always a certain segment of the market that’s very price-sensitive and it just might be that Jetta is trading on its brand equity. Of course, if the reviewers’ sentiments about the Jetta begin to be shared by the owners of the new version, and the reliability and QA is as spotty as with VW products in the past . . . that equity will dissipate in a few years.
There is no more criticism for VW than for BMW, the Z3 especially. Was your Z3 a bad car?
The problem with VW is that at thier price point, people cross-shop Honda and Toyota. Honda and Toyota vehicles are extremely reliable, and generally will not have many, if any at all, repairs needed. They are also usually boring to drive. So when someone actually has to spend some time and money maintaining thier car, and when a few things break here or there, they get bitter about it. And there isnt anything wrong with that, if you expect a certain level of reliability, fine. Thats also why people buy a Lexus instead of a BMW or Mercedes.
But if you are used to BMW level of reliability, and expense to maintain, then a new VW wont be any different. But it will be much more fun to drive than a Honda or Toyota.
Well said. It is ultimately the buyers responsibility to understand what he or she is investing in and be prepared for the consequences.
I disagree with the notion that VWs simply have “a few things to fix here or there”. Most that I have heard of ended up being complete disasters with failures that shouldn’t be happening at all (Coil packs? ABS modules? Seat springs falling out?). Plus, when you’re frugal and you don’t have much money to spare on endless extra repairs, a Toyota or Honda begins to sound pretty damn good compared with the average VW. The core audience for cars like this doesn’t value driving pleasure highly enough to want to deal with the BS associated with a VW product anyway (and frankly the “fun to drive” attributes of most VWs are vastly overplayed to boot; I don’t think most of them do much better than a similar Honda or Mazda).
Bottom line: there is no excuse for building garbage regardless of how “Germanic” or “fun to drive” it is.
So how many have you heard of? 100? 1000? 10000? How many anecdotal stories have we all heard? Lets say its 100000. Now how many cars does VW sell each year? Its not like every single car they sell has fallen apart. Its not like every coil pack has failed. Or every ABS sensor gone bad. Its not like you cannot find a used VW for sale because they have all been relegated to the junk yard. There are tons of them on the road, driven by people generally very happy with them.
I am not disagreeing, they definitely have a quality problem. But you are talking failures-per-million units, not failures per hundred or even thousand. VW had a massive quality issue with the Mk4 generation. That is where 90% of the horror stories I have heard come from. Eliminate that generation and then the numbers go back to very average, on par with any other European manufacturer. When you take out stories that can be attributed to owners not maintaining their cars properly and stories about crappy dealers, the number drops even lower. Hence, my point that thier quality level sits around the same level as BMW. They just have a higher chance of problems than most Japanese cars in thier price range.
I think you are flat out wrong about the “core audience” for VW. Thier core buyers want something that is more fun to drive than average, is more unique, and do value driving pleasure, which is why they went to VW in the first place. The problem is, the LARGEST group of consumers are NOT those people. MOST people who buy cars want a generic appliance that costs as little to run as possible, and doesnt require anything more than a quarterly stop at the quick lube joint to keep running. They could care less about how it drives, as long as it comes with all the electronic doo-dads they want and is the right color.
Any VW is more fun than any equivilent product sold by Honda or Toyota. If you value driving, you would easily see the difference. If you dont notice a difference, great, then you will be happy in one of those other brands. But for a VW, if you get it, you get it.
I wonder how much one of those huge rolls of sheet metal costs.
Almost double what it cost 2 years ago.
Around central NJ, these new Jettas are selling like crazy – they are everywhere.
The anecdotal evidence suggests that no one is buying the $15,995 2.0L version. All the ones I see are the 2.5L version with rear disc brakes. That model sells for around $23k.
Was the stripper version even necessary? Is anyone buying it?
-ted
The ‘stripper version’ is just a ploy to attract buyers to the showroom. It’s a common strategy that most manufacturer’s use, and since it seems to work, then I guess VW thought they would try it as well (without making the horrible mistake this time of identifying it as a stripper by calling it the ‘City’ Jetta).
I’ve driven the Jetta and thought it handled well. I don’t understand CR’s criticism of the engine as “coarse sounding” since the 2.5 has been a standard in many VW’s for years now (it would be interesting to see if they’re equally critical of the Golf and others in that regard). I wonder if the people at CR wrote their review based on their technical expectations rather than actual driving characteristics. In general, I think the reviews by Michael and Ed noted above hit most of the main points quite well. The Jetta still drives and handles well under most circumstances, but the interior is definitely downgraded and the many squeaks and other ‘fit’ related noises that I heard are likely indicative of a serious decontenting in that regard.
I do not understand either. We have had several VWs over the last 25 years, and they all had problems, some serious. Then there are the service departments. The 2011 Touareg seems to have cured itself, for a while anyway.
During my time in France, I had the use of a Renault 25, (1988) and it was a very good ride with no problems. Renault failed in the US. ??
VW-Audi Group share of the U.S. was 2.3% in Q1 of ’10 and has fallen to 2.2% in Q1 ’11. Their highest share ever was 5.6% in 1970. Highest in the last decade was 2.5% in 2001.
VW Group has to be admired for profitability, though! $9.4B in 2010. That makes them the most successful auto business for the year and their global sales were over a million behind leaders Toyota and GM. Proves you don’t have to be the volume leader to make money!
btw-GM China sold 685,000 in Q1 ’11, they say the slowing growth was due to government incentives being dropped.
I highly doubt if people from China or Brazil read english car blogs regularly.
Ok, for everyone who got on the media-created “the new Jetta interior is soooo bad that it will destroy the company” bandwagon here is the situation: old Jetta = Audi-like interior, new Jetta= interior that the average consumer will still like better than some of the Asian competition. Miss the old Jetta? Buy a used Audi.
It is going to take at least 5 years of consistently improving reliability for me to go near a VAG product again after my terrible VW ownership experience. My B5 was an absolute disaster, and as it turns out, didn’t even drive any more “germanic” than it’s replacement, a 2006 Legacy which has been practically flawless and a better looker to boot.
I hate seeing all the VW bashing that goes on, since I bought a VW, but I dont blame you, it will take 5-7 yrs of significant improvement to turn many opinions, maybe more. Ive said before about Hyundai and Kia, they need 10 yrs to turn around the perception of cheapness, and unfortunately the same probably holds true for VW.
And you happened to have purchased one of the best ever Subaru models after owning one of the worst ever VW models. I think you would notice a bigger difference between a current Passat CC and current Legacy.
So, I do read complaints about the Jetta’s “cheapened interiors” and a “coarse engine”. There are also regrets that “standard U.S.-market model the rear suspension is a single torsion beam, whereas on the European-spec Jetta, it comes with a 4-link set-up”.
I can’t believe it. With a base price of $15,995, you get what you pay for. Pay EU prices and you will get it better. if you prefer “cheap” you will get “cheap”.
In the meantime, some Germans whine that such cheap VWs are not offered in Europe, stating that “nobody will notice the difference between a single torsion beam and 4-link set-up”, ranting about luxury 4-disk-braking systems, and “rear drum brakes certainly do”.
They really seem to be chasing Toyota in vanilla design. If a new Jetta were to park next to a new Corolla you would be hard pressed to tell the difference from a distance.
No doubt. The new Jetta has to be the most generic looking car to come out in a decade. It actually makes Toyota’s look like they have character.
A cheapened version of a car with an upscale reputation always sells well at first.
This is the road Cadillac followed in the 1970s…
I also think the torsion beam suspension and drum rear brakes are less of a problem than the cheapened interior, bland styling, and apparent indifferent suspension tuning. One gets the impression that the German engineers decided that if they were going to install a less than optimal suspension design, there was no reason to really fine tune its performance and behavior.