sobering VW

[Jon Linkov]

Golf has only JUST achieved the status of best selling, thanks to spiffs and
thrown in content. It hasn't been received well and is only the "best
selling car" due to add ons and incentives. I don't consider it a real
success when a manufacturer replaces a popular line with a new generation
that isn't bought in numbers as strong or stronger than the previous
generation was. The new car is more expensive, not as attractive, and
decontented and the public voted with their pocketbooks UNTIL VW threw in
added features for $0. Chevy Silverado is one of the best selling vehicles
in the USA....doesn't really mean it is a GOOD vehicle.

I read automotive press releases all week. When a NYTimes reporter quotes a
VW press release touting the Golf as a 6-month best seller, it makes me
question their methodology. 6 months compared to the previous 6 months, as
in best sales gain? Total numbers YTD? Sales % gain? Just saying "best
selling" doesn't really mean it's getting a gangbusters response.

Great....Touareg is part of the Premium Brand strategery...W8 is a flop and
the Phaeton is a flop. At least one of 3 is ok.

Pheaton was supposed to be a success when it was launched...then a loss
leader for the first generation....now Pietestrider (sp?) talks as if it
will be dropped. It's a fine car...and could have made a nice A8.....but VW
got too high on its press clippings and made a big error.

Doesn't matter where BMW is making the gains. They aren't losing defectors
to Pheaton...maybe they are heading to the A8 a bit (hence sales
gains)...and mostly to Lexus. But people still stay with BMW and M-B.
Pheaton YTD sales show that it isn't stealing sales.

BMW sales figures are broken out to exclude mini, and BMW STILL has a 4% YTD
gain: (Automotive News)
Cooling off
U.S. sales of top 6 European brands
7 MOS. 2004    % CHANGE VS. 2003
VW        151,934        -11.5
BMW        147,313        4
Mercedes    122,130        -2
Volvo        81,219        2.7
Audi        44,991        -8.3
Jaguar        28,051        -5.9
Europe total 
(19 brands)    658,456        -3.9*

Jon