Volkswagen Slashes Price of 2012 Passat by $7,000, Undercutting Japanese Rivals

contheon says:

03:02 PM, 06/18/2011

They didn't jsut "slash" the price. They slashed the content ... especially with that old 5 cylinder engine.

The price seems to skyrock when you get into the engines that even have a chance of being competitive.

tbone85 says:

06:12 AM, 05/28/2011

This is not the best design, but this class with a couple of exceptions is pretty frumpy. VW appears to have made some pretty good compromises in an effort to move their market position forward. If the quality improves, having a roomier model that handles better while looking just as dull as the competition is a good strategy for picking up a few points of market share. If they were looking to move quickly toward market leadership, then they need something as radically different as Hyundai-Kia has produced.

bestjinjo says:

08:17 PM, 05/27/2011

@ albook,

"The target market IS Camry buyers. I don't know where the VW fans are getting that this car will drive superior to other cars on the market just because it's German. It's significantly larger and has less power (in base form) than its predecessor. The math just doesn't add up. "

Straight from IL's first road test in the Passat.

"At 3,221 pounds with the base engine and optional six-speed automatic, the Passat weighs about the same as a Honda Accord and slightly less than the Ford Fusion and Toyota Camry. With the V6, the Passat is over 100 pounds lighter than a similarly equipped Ford or Honda.

It has sharp steering that's quick to respond off center, so it feels more like its European counterpart than some oversize, American land yacht. We tossed it through some tight canyon turns to see just how far it could be pushed and it felt surprisingly competent. There's the expected understeer as you approach its limits, but it doesn't get in over its head easily. The brakes are solid, too, with a progressive pedal feel that makes them easy to modulate smoothly."

So there is little doubt it will best most of its competitors (besides the Mazda 6) in terms of driving dynamics. But as blueguydotcom noted, most of this doesn't really matter to the Camry / Accord target market. I'll have to agree with that. Although, the Passat does have the largest rear seats and a huge trunk, both aspect that will appeal to the buyers who want more space for less $.

dwharwood says:

01:22 PM, 05/27/2011

The real story here is the appearance of the car with the VR6 and the DSG.  You can't get that on the US CC.  The top of line Passat will then be potentially the highest performance regular-line up VW in the U.S.  Barring an 4Motion compatiblity issue, I'm hoping this means VW will put the DSG in the CC and put in some of the Euro-model options like adjustable suspension.

As far as the reliability issues and why someone would buy a VW in this class, blueguydotcom, people overlook the fact that VW scores very high in "initial appeal".  The have a look and feel a cut above their class.  This helps explain their loyal fan base in spite of reliability woes.  So, as for why someone would buy the Passat over a Camry, note that Toyota finishes second to last in appeal in JD Power, propped up by Jeep, while VW is in near the top. Honda is also way down there also, and Nissan is between them.

VW are not stupid---they know their problems, but they also know the weaknesses of the competitors. Toyota, in particular, has frumped-out their cars to the extreme. Sooner or later someone will come along and say, you deserve a nice car; you don't have to drive a hairshirt to prove you value your money. This is what the Koreans and now VW, in divergent approaches, aim to do.

top_hat says:

11:34 AM, 05/27/2011

I don't think this is an especially agressive pricing strategy.  The top line model still is priced well above the competivition and the starting model is stripped and gets lowsy gas milage.  Now it just isn't finished off better than the competition like the old model.  And unless US built VWs have better quality, I can't immagine that they will gain any market share.

albook says:

06:50 AM, 05/27/2011

"But if you don't care for the way the car drives (or can't tell the difference), then obviously you aren't the target market anyway."

The target market IS Camry buyers. I don't know where the VW fans are getting that this car will drive superior to other cars on the market just because it's German. It's significantly larger and has less power (in base form) than its predecessor. The math just doesn't add up.

And whoever said Jettas are flying off the lots, let's take a look at those sales again in 6-12 months, then compare them with Focus/Elantra/Cruze sales....

ttbuyer says:

05:38 AM, 05/27/2011

Sure, the price of entry is low but you must remember to factor in all the $$ you'll need to spend on rental cars while your VW is in the shop for warranty repairs.

Free scheduled maintenance does not begin to address the inconvenience caused by VW's dismal reliability record.

If VW wants to get me back into their dealerships they are going to have to GUARANTEE a free loaner car is ALWAYS available.  

Oil changes are cheap, a week's worth of rental car costs significant money.

1198sp says:

05:15 AM, 05/27/2011

"Where do people get their info an VW reliability (other than browsing VWVortex)?"

Don't bother citing reliability studies, here are the replies you will receive:

JD Power is biased.
German Technical Inspection Agency (TÜV) is biased.
Consumer Reports is biased.
Warranty Direct is biased.
WhatCar is biased.
Allgemeiner Deutscher Automobil-Club (ADAC) is biased.

Please trust anecdotal reports posted anonymously on the Internet instead.  Good day.

blueguydotcom says:

12:03 AM, 05/27/2011

@bestjinjo - saying a car has european handling really doesn't make it so magically.  There's no indication VW will offer a superior level of ride/handling with the current gen passat (the last gen was a doughy mess) when they've decreased the engine power and warranty in an effort to take the car downmarket.  They're aiming at the corpulent mid-section of America now.

People buying Camry, Accord, Fusion, Sonata models don't give a damn about euro handling anyway.  They want space, efficiency and reliability mixed with a good enough amount of power.  The Sonata walks away with that race.  The VW doesn't even show up (no power, poor efficiency, exceptionally bad warranty/reliability).  It's like VW is stuck in a time machine and didn't realize their car is not even competitive on day one.