VW to cut prices
Posted: Thu Dec 02, 2004 11:08 am
4-Car said:
Deek
Although, reading between the lines, it sounds as if it's only the low-end models that are being cut, with the resulting greater range in prices for each model rather a shift downwards in the cost of each variant.Volkswagen is to reduce prices on its mainstream models to make them more competitive, according to Automotive News Europe. The paper quotes a VW source as saying "VW brand won't position its cars at the high end of each segment any more." Under former CEO Ferdinand Piech, a "premium" strategy was instigated whereby the Polo, Golf and Passat were amongst the most expensive cars of their type, but flagging sales are said to have prompted a re-think. ANE says that there will be cheaper entry-point models to each range, such as a new Passat with steel rather than alloy wheels, and that the new Fox city car will be priced substantially lower than the Lupo it replaces. Analysts have commented that this could lead to some overlap with Volkswagen's other brands, Seat and Skoda, though Audi will remain an upmarket proposition.
Deek
