

| Subject: | Re: VW drops Phaeton - may we have a transporter please |
| From: | Thomas Myers |
| Date: | Mon, 14 Nov 2005 14:31:27 -0500 |
I would not count on a Transporter coming soon. That concept was dropped Because VW�s major problem with being a expensive place* to make cars. [Which can be covered up/ignored/not fixed by moving yourself upmarket....hence the rash of $40,000 and up cars] The American arm has little chance of repositioning the brand as �mainstream� If the German Body keeps avoiding hard decisions. Of course � maybe VW America can call up SEAT [ VW Spain] for some cars. They have some neat models. [oversimplified notion] Tom *speaking of expensive places- I believe VW�s current labor agreement says If it is a truck or a van - it must be made in Hannover. And Hannover is probably One of the most expensive of all VW plants. Till that changes � T5�s are $45000+ From: jimt <camper2@TACTICAL-BUS.INFO> Reply-To: jimt <camper2@TACTICAL-BUS.INFO> Date: Mon, 14 Nov 2005 13:53:02 -0500 To: <vanagon@GERRY.VANAGON.COM> Conversation: VW drops Phaeton - may we have a transporter please Subject: VW drops Phaeton - may we have a transporter please today.reuters.co.uk VW drops Phaeton - but only in USA Mon 14 Nov, 2005, 17:13 In a symbolic move, VW has admitted defeat in the world's largest market for luxury cars. The Phaeton is being withdrawn from the USA having never near its original 5,000 per year sales target: this year, it will sell less than 1,000. The move is important because, without the US market, it is virtually impossible to make money on a luxury car. Certainly, European sales are hardly compensating for the failure in the USA - the Phaeton is struggling in nearly all markets. VW still seems committed to expensive saloons and is now planning a Mercedes CLS- style model to go above the Passat, but it will need to be light years ahead of the Phaeton in terms of customer appeal. With losses in the USA of $1 billion a year, the American operation is trying to reposition VW as the mainstream value brand it was 30 years ago. jimt
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