Re: Volkswagen loses $1.13 billion in 04....... (2003Sport)
Although VW did make a world-wide profit, their global market share is declining. Beyond that fact, it's a matter of opinion. And, in my opinion, the reason why VW continues to turn some profit world-wide, although that is decreasing, is because they supply a line of vehicles in other countries that is more in line with what the auto-buying public wants. But I think they miss the mark here in America. And here's what I use to support that view. A large portion of American auto sales are light trucks or SUV's. VW has one in the American market, and it's more expensive than most. Beyond that, their product line is mature, for lack of a better word, they don't have an entry level car at a reasonable price point to compete with the Honda Civic, and they continue to have a perception for quality problems. Meanwhile, while all of the American automakers have Employee Pricing and the Asian manufacturers have rebates, Volkswagen has sat on the sidelines. They have a great car for the times, the TDI, but they don't have enough supply to meet demand for the one car that is hot right now, and they can't sell them new in 5 states. The sum total of it all is they're getting killed in North America.
I am a VW loyalist. I will stick with them and I can name many good points about their vehicles. I think my Jetta is a great ride and fun to drive. I love the safety features and great crash test ratings. The feel of the car is great. But I'm afraid I (and many of the rest of us) are a niche group who stick with VW through thick and thin. The broader population does not have this brand loyalty, and VW is losing their business. One of the first questions people ask me is "how many problems have you had with your Jetta?" Or "did your brakes go at 25,000 miles?" For some that have owned VW's, they ask "How many Mass Air Flow Sensors have your replaced?" "How many times did your window fall off the track?"
VW needs to freshen up the lineup, and fast. The Lupo would a big seller right now if they would only bring it over. They need a small SUV in the Rav-4/CR-V class. They need to either fix the quality problems, or stand behind their products better when they do break. That's my two cents.
