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:

Comments

Recommended

Aside from fronting Honda’s annual summer tour, pop rock band OneRepublic was also given an opportunity to customize a 2017 Honda Civic Type R. The car is a one-off and...
by - July 26, 2017
Everyone seems to know that the Alfa Romeo Giulia has been recently experiencing problems. Turns out, the blame goes to Giulia’s software. Reid Bigland, big time executive from Alfa Romeo...
by - July 26, 2017
Romanian automotive media publication cars.ro earlier said that the new Ford Fiesta will no longer be offered in the United States. Robert Stiller, Ford’s vehicle program manager for the B-segment,...
by - July 26, 2017
The Nurburgring is the one track that many automakers want to hold a record of, because only the best of the best do. This time, a group of extraordinary passionate...
by - July 25, 2017
Would you like your convertible to be inspired by a yacht? Well, you do not have to imagine it anymore - thanks to the Bentley Continental GT Convertible and Mulliner...
by - July 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