RE: [comment] VWoA...WTF?

["Aaron Ness" <aaron@makuta.com>]

One thing to consider is that small cars don't have profit margins.  Did you
know that GM takes a loss on nearly every Cavalier it sells?  Carmakers sell
small cars to establish brand loyalty, assuming you will think your POS
Cavalier was so friggin' awesome that you will run out and buy a Monte in
two years, and a Tahoe after that, and then an Escalade.  This is just an
example, but note the logic - each successive car I mentioned has a higher
profit margin for GM.  The luxury models have the profit margin that allows
the carmaker to be profitable - and still sell entry-level cars at a loss in
order to bring people into the brand.

Others have mentioned crash safety standards.  This is another factor, as
well as emissions and little things like lighting requirements.  If VW is
satisfied that they are growing as fast as they need to grow in the US
market without drawing people in via "entry level" cars below the Jetta in
their lineup, it would be stupid for them, from the business side, to even
consider the additional development on the smaller platform that would be
required to make the cars legal to sell and drive in this country.

Another way to look at it is that VW is meeting its goals with the current
lineup, so if they were to bring in an "entry-level" such as the polo for
the enthusiasts, they would either have to be less profitable, or they would
have to pass their costs along to the consumer (a.k.a. you), and the car
would be so expensive (relative to "comparable" cars) only the most die-hard
VW nuts would even consider it.  That's not a big enough market share to
make it feasible, and the fewer interested people they can find, the more
each person will have to pay.  In general, people just won't pay a premium
for the privilege of driving a small car.

I think the root of the problem is that Americans are spoiled by excess, so
they would prefer to drive a big car.  That's why models continue to get
heavier/larger over their life.  I, like a lot of you, prefer my small cars,
but my wife doesn't understand my obsession.  I'm about 6'3", incidentally,
so I can understand her confusion.

Aaron
'82 Scirocco
'70 Beetle
'87 Jeep Cherokee 4.0
'81 Honda CX500


> -----Original Message-----
> From: owner-scirocco-l@scirocco.org
> [mailto:owner-scirocco-l@scirocco.org]On Behalf Of Night Shadow
> Sent: Friday, December 15, 2000 7:50 AM
> To: Christian Els
> Cc: VWMikeLVW@aol.com; scirocco-l@scirocco.org
> Subject: Re: [comment] VWoA...WTF?
>
>
> On Thu, 14 Dec 2000, Christian Els wrote:
>
> > BMW is not the only maker to suffer this -- look no further than the
> > Porsche SUV...
>
> Good true stuff snipped from Christian's email above, car
> makers tend to
> try and make what they think people will buy.
>
> Funny thing is, I want a Lupo too.  You guys remember when
> EuroSport took
> all those signatures to petition VWOA to bring the Lupo here?
>  Well, they
> chose to ignore it.  VWOA is being stupid here, they could sell those
> Lupos by the truck load as an entry, enthusiast oriented VW.
>
> Another funny fact, the Porsche SUV?  A joint project with
> VAG.  Yes, VW
> and Audi will have SUVs soon, with the same chassis as the Porche
> unit...just different engines...and interiors...etc.
>
> Eric
>
>
>
> --
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