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Marty Padgett
Marty Padgett
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Have you driven a VW lately? Okay, so I’m mixing ad metaphors here, but the point remains, when did you last drive a Volkswagen? If it’s been awhile, Adrian Hallmark can’t really blame you. The CEO of Volkswagen of America admits the company generated a lot of “venom” with the massive quality problems it experienced earlier this decade.
Now, add the fact that recent models haven’t been all that exciting – and yet they’ve carried a sizable premium compared to other mainstream marques, such as Toyota or Nissan – and, well, now you understand why the company has been losing sales and a lot of money in the U.S. market.
So, how does VW turn things around? Start by asking a lot of fundamental questions, as it did, several years ago, with Project Moonraker. Based in the L.A. suburbs, the program looked as much at what VW was doing wrong more than what was going right. And the answer was: lots. The question that it raised was how do you fix things?
In a long and surprisingly revealing interview, Hallmark tells TheCarConnection.com that there will be a lot of changes coming. Key products, notably the Jetta and Passat, will be repositioned, meaning price cuts of perhaps $5000 a vehicle. And there’ll be a number of new products coming. Not just the second-generation Touareg, which we review this week, nor the Tiguan, the second, upcoming VW SUV, but also high-style models like one codenamed CC.
Hallmark confirms for TheCarConnection that this “coupe-like sedan” will be added to the lineup late next year. And it will drop into the price ladder about where the current Passat sits today. That’s a significant discount compared to the striking Mercedes-Benz CLS, the first of the latest batch of so-called four-door coupes.
At the other end of the spectrum, VWoA is likely to start importing the tiny Polo, arguably a perfect antidote to the rise in fuel prices. The company is even contemplating a “reevolution” of the Beetle, reveals Hallmark, going back to the iconic nameplates roots as a super-cheap, super-efficient model.
Now, of course, none of this will do much if VW can’t get its quality under control. But if internal corporate numbers are to be believed, defects per vehicle have plunged fourfold in the last three years. On the Touareg, the numbers are even more impressive, the “problem” count down fivefold in two years.
It’s likely to take time to win back angry owners – if they ever trust VW again. But there are signs that the automaker may just be back on track.
2008 Volkswagen Touareg2—TheCarConnection.com
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Daniel in Long Beach Posted: 5/14/2007 8:00pm PDT
Bo Posted: 5/14/2007 11:24pm PDT
John Flood Posted: 5/15/2007 7:18am PDT
Jim R Posted: 5/15/2007 8:17pm PDT
The Friendly Grizzly Posted: 5/19/2007 2:59pm PDT
Don't blame Mexicans for the FACT you have cars with under-built parts and over-complex electricals. German does not automatically mean "good".
Malcolm Ramsay Posted: 5/20/2007 8:25am PDT
My mother's '96 Passat Wagon did have an auotmatic tranny computer issue earlier on that I kept after VW service about for a few days but it was fixed free of charge still under warranty. I do believe that most 'service writer's' don't have much of a clue and not meaning to offend, but, the big, mechanic-tech education houses are not exactly the best source for mechanics. VW has lost their way in this country and that is largely a management issue.
So where do I get my VW fixed? I drive to Upper Michigan to one of the best mechanics in the business - I save money - and I know it's fixed correctly. It's a long drive from Chicago, but it's also what I like - a chance to really drive it. Hang in there and good luck.
BJH Posted: 5/20/2007 2:30pm PDT
Bill Celline Posted: 5/21/2007 7:21am PDT
Thomas Posted: 5/23/2007 2:38am PDT
Andrew Posted: 5/23/2007 12:12pm PDT
Greg Morrison Posted: 5/23/2007 5:26pm PDT
In 2005, my daughter bought a used 97 Passat GLX VR4 (75K miles) against my better judgement. It is a wonderful driving car. However, our local VW dealer couldn't have been more discouraging when she tried to to get a Check Engine Light diagnosed/fixed. The prognosis was vague, but they let her know she should prepare to spend at least $1700.00 for repair; they actually asked if she had considered buying a new VW? A local mechanic found the trouble in melted/deteriorated vacuum hoses on an EGR valve and repaired it for $200.00 including "diagnostics". Since then, she's had heater problems, the security system died leaving her with a car that wouldn't start. When the battery died because of the security system issues, her radio memory was erased. The same VW dealer mentioned above wanted $200.00 to recode it. She put the money into a new Sony radio with CD. 2 door handles have simply broken; turns out it a "trait" of the car. She still has the car because the actual trade-in value is about zero. What happened to the "Peoples Car"??? Even if this car was "reliable" the dealer support has been worse than abysmal. VW's recent ad campaign, that I find arrogant, jingoistic, & anti-Japanese, seems to capture all that is wrong with VW's approach to the American market: We can't fix our own, so we'll destroy the ones that work. I'll never buy VW again nor would I recommend them to anyone. VDub is not in this haus...Word.
William Posted: 5/23/2007 10:04pm PDT
But...my '86 Jetta was the best car I have ever had. The odometer did go out at around 190,000 miles...I had it for a long time after that. Very likely I had over 300,000 miles on the original engine and transmission.
Do you ever have a car that ends up just fitting your rear end and just becomes a part of you? This was the car. Oh, tops of 36 mpg once on the highway, too.
So now I'm looking closely at the new Rabbit. I don't think the diesel pays for itself but it would be nice. (If I'm not mistaken, diesels put out less greenhouse gases than hybrids)
Anyway...They look great. Still checking out things for quality ratings.
The Volvo c30 looks interesting, too.
To mee the japanese cars have the sewing machine feel. I can't think of any american cars that fit into this category.
Jason Posted: 5/24/2007 11:00am PDT
What a tired line. Did it not occur to you that the EPA conducts fuel-efficiency testing in the USA, not the automobile manufacturers themselves. Any anger or disappointment over a discrepancy between as-tested and real-world fuel efficiency should be directed at the EPA, not any automobile manufacturer. Additionally, the real-world fuel-efficiency of hybrid vehicles is much more sensitive to driver behavior than in a conventionally-powered vehicle. If you regularly gun the accelerator and slam the brakes, you are not able to fully utilize the benefits of the electric motor and regenerative braking system that is so important in achieving the EPA-posted mileage figures. Diesels are not as dependent on driver behavior to receive their EPA-posted figures, but they do not quite compare to hybrid vehicles in terms of particulate emissions; both technologies have their strengths and weaknesses.
Chuck Posted: 5/24/2007 4:38pm PDT
John Posted: 5/24/2007 6:17pm PDT
I also believe that VW is focused on quality. It shows in the new Eos, Jetta, GTI/Rabbit and Passat models. We currently own a 2007 Eos and GLI and have not had any issues at all.
Oblio Posted: 5/26/2007 8:15pm PDT
HEAR THIS VW: The last thing I ever want to do with a car is have to take it in for ANY unscheduled maintanance or repairs. Who gives a crap about 'heavy doors' on your Jetta when you are driving a rental because you VW is broke down! It is inconvenient and unnecessary when you simply can go invest in a Toyota or Honda instead and not have to worry about your turn signal shorting-out or your window falling down into the door.
I hope that the 'Marketing Manager for a central Minnesota Volkswagen' dealership takes note of how fed-up people are with VW dealership's arrogant attitude, such that he displayed. Stop trying to blame your customers for your own crappy cars!
Interesting site:
http://myvwlemon.com/
Oblio
Dave Posted: 9/16/2007 12:57am PDT
While VW works on the quality issues, they need some help from the dealers. Consider what happens on a routine service appointment. The "service advisor" (for just about ANY brand of car) will suggest a number of actions based on "what the mechanic found", or just recommendations that are somehow above & beyond the manufacturer's maintenance schedule. Most people say, "Yes" to the optional stuff, not knowing what is truly necessary vs a profit-building add-on. But everyone is aware of the overall maintenance cost of the car. Sooner or later, something REALLY needs to be fixed. By then, the customer is already agonizing over all those $500 oil changes, and is evaluating the cost of their "unreliable" VW compared to a nice new Toyota. By the time the dealership service department is finished selling additonal services, there is zero margin for error. Either the car runs perfectly or it is considered "high maintenance".
A car without maintenance expense would APPEAR to be of higher quality than the Japanese competition. BMW figured this out. They include maintenance during the warranty. Dealerships can perform whatever service or maintenance is necessary. The cars don't have to be perfect because the customer is not paying for service. There is no need to convice the customer to order additional services. Compare this to VW where you can spend quite a bit on a car that is not actually broken, to the point where the first real problem sends the customer looking elsewhere for a new car.
If customers were assured that maintenance and repair would not be their expense, they would evaluate VW on style, performance, handling, and gas mileage. In today's world, potential customers think about the VW quality issues and the high maintenance cost of the car, and the evaluation ends immediately.
VW needs to offer a BMW-style warranty that includes maintenace, with a higher mileage limit than anyone in the industry. Either the cars are truly built to not need the coverage, or VW can eat the parts and labor to make everything right. The dealers need to stop making excuses, fix whatever the customer complains about, and send the bill to VW.
There is truly no alternative. Customers are tired of paying for VW's quality issues -- they won't do it anymore. If they don't want to reorganize service as I have outlined in this article, the BMW 1-series will sweep VW completely out of the US market.
w_caires Posted: 11/5/2007 4:58am PST
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