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VW drops premium pricing in US

By SYF77 on 24 Jun 2010

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It appears that Volkswagen wants to dump its premium pricing strategy in order to compete with Japanese competitors in the compact and mid-sized sedan segments in the US.

The first step begins with the redesigned 2011 Jetta sedan which will go on sale in October. The new Jetta pricing will start from USD $16,000, down from USD$18,435 for the current Jetta. In addition, the entry-level version is offered with stability control and air conditioning. Regarding the competition, the entry-level 2010 Toyota Corolla starts at USD $16,200 while the base 2010 Honda Civic is offered for $16,405. The Jetta will be the most affordable car from Volkswagen in the United States, slotted below the Golf which starts at USD $18,370.

Apparently, the Jetta price was lowered because it is Volkswagen’s “bread-and-butter car and the potential in sales is sizable” according to Mark Barnes, COO of VW of America. I am not sure if this is a good marketing strategy as it might have a negative impact on the branding.

Do you envision the day whereby a Jetta is cheaper than a Corolla in Singapore?

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VW, Jetta, pricing, strategy and 1 more...

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Written by SYF77
I have been a car fanatic since 1989, when my father was changing our family car then to a Toyota Corolla 1.6 GL fitted with a Twin Cam 16 valve engine that was carburetor-fed, a big deal back in those days. The automobile technology and industry fascinates me and I hope to broadcast these interesting developments to everyone out there through this blog.

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Watwheels Jun 24 2010 04:21 PM
Wait long long lor.
Onghc73 Jun 24 2010 04:52 PM
still prefer current model outlook..
Darthrevan Jun 25 2010 05:35 AM
US market is huge..don't think we'll get such luck!
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