Volkswagen says its strategy to lower prices is working

Article by Christian A., on February 11, 2011

Sales of Volkswagen AG’s bigger, cheaper Jetta sedan rose in the fourth quarter of 2010, which the carmaker says is proof that the company's strategy to lower prices is effective. With a starting price of $15,995, the revamped Jetta is about $1,700 less than the previous version even as it is longer by about 3.5 inches.

Jonathan Browning, VW's U.S. chief, said that U.S. sales climbed 40% in the fourth quarter of last year compared with the previous year.

In an interview at the Chicago auto show, Browning said that the entry level is good at reeling in the extra people. He also said that the introduction of the 2011 all-new Jetta is important in its overall strategy of “bringing accessible German engineering to the U.S. marketplace.”

He revealed that 60% of the customers for the new Jetta previously owned a competitor's vehicle. Through research, Volkswagen found out that the top reasons people weren't considering Jetta sedans were due to perception that the vehicle was unaffordable and had high maintenance costs.

In response, VW has been advertising the vehicle's lowered price and is currently offering a program that covers three years of scheduled maintenance. [via autonews - sub. required]

Topics: vw, price

If you liked the article, share on:

Pin It

Comments

Recommended

South Korean car company SsangYong recently revealed sketches of their upcoming SUV. We’re not always impressed by Korean car designs, but this one looks quite promising. Yup, it is the...
by - March 26, 2017
Twenty-eight years after the company was first launched by Toyota, which was initially targeted to the United States market only, Lexus has already made its way to over 70 countries....
by - March 26, 2017
Last year was probably Porsche’s best year ever in terms of sales. Their factory in Stuttgart delivered 237,778 cars in total, which represents a six percent increase compared to the...
by - March 26, 2017
Lamborghini has disclosed that it is looking into the possibility of releasing electric vehicles. With the Volkswagen Group revealing that it will be releasing electric vehicles within several years, there...
by - March 25, 2017
Daimler AG, through its Smart division, has disclosed that its two electric models, the Smart ForTwo and the Smart ForFour are now open for orders in Germany. Official market launch...
by - March 25, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries