Can VW End Its Skid?

[Deserion]

Can VW End Its Skid?

By Gail Edmondson Mon Feb 13, 9:38 AM ET

Ever since Ferdinand Piech took an 18.4% stake in Volkswagen through Porsche last October, financial analysts have been buzzing about the chances for faster restructuring at Europe's largest auto maker. On Feb. 10, Volkswagen finally issued the news that markets have been waiting for, announcing plans to cut up to 20,000 jobs and renegotiate labor contracts to help bring costs down. [/URL]
"The restructuring will definitely move faster. Piech is the owner now, not just the supervisory board chairman," says one former VW senior executive. "There won't be a lot of resistance."
Thanks to changes to the board, Production Chief Wolfgang Bernhard, who joined Volkswagen in 2004 after having co-authored the turnaround at U.S. auto maker Chrysler, should enjoy the backing and the freedom to do even more restructuring. The VW brand unit, for example, barely broke even in 2005, even though management claims that an earlier restructuring plan is saving the company $4.2 billion a year.
Challenge From Japan.

Instead, the key profit drivers were VW's premium Audi unit and the financial-services unit, which powered group operating profit to 3.6%. "The VW brand itself is still in trouble," says Juergen Pieper, auto analyst at Metzler Bank in Frankfurt. For 2005, VW's group net profit rose 62%, to $1.32 billion on revenues of $114 billion, triggering a 7% rise in VW's shares. One key agent of change is likely to be Porsche CEO Wendelin Wiedeking, who says VW must benchmark itself to Toyota (NYSE:[URL="http://us.rd.yahoo.com/dailynews/finance/bw/bs_bw/storytext/bw20060210611156/18049194/*http://finance.yahoo.com/q?s=tm"]TM (http://us.bc.yahoo.com/b?P=E5Oxi0SOwhUZRcoNQjuANgjpRJrxJUPxlPcAAQHw&T=1a5o0secu%2fX%3d1139905783%2fE%3d38322104%2fR%3d news%2fK%3d5%2fV%3d2.1%2fW%3d8%2fY%3dYAHOO%2fF%3d3 774786103%2fH%3dY2FjaGVoaW50PSJuZXdzIiBjb250ZW50PS JoZWxwO2Z1ZWw7cmV0aXJlbWVudDtJdDtpbnZlc3RtZW50O3Jl ZnVybF9uZXdzX3lhaG9vX2NvbSIgcmVmdXJsPSJyZWZ1cmxfbm V3c195YWhvb19jb20iIHRvcGljcz0icmVmdXJsX25ld3NfeWFo b29fY29tIg--%2fQ%3d-1%2fS%3d1%2fJ%3d0247BFD1&U=139k3h637%2fN%3dYCihKNG_Ru8-%2fC%3d396094.7934959.8812067.1442997%2fD%3dLREC%2 fB%3d3293374) - News (http://us.rd.yahoo.com/dailynews/finance/bw/bs_bw/storytext/bw20060210611156/18049194/*http://finance.yahoo.com/q/h?s=tm)). Analysts say Toyota has moved upmarket in Europe and is determined to position itself exactly as VW has traditionally positioned itself -- as the most reliable brand, whose fuel-efficient cars offer a great value.
"The biggest challenge for VW is Toyota," says Philipp Rosengarten, senior analyst at market researcher Global Insight in Frankfurt. "Today's message is that the restructuring plan is delivering savings, but not enough."
Analysts expect VW to step up the pace of restructuring by hiving off several unprofitable German component plants, including axles, transmissions, and motors. That would bring employment down by some 5,000 to 7,000 workers. High on the list are VW plants in Braunschweig, Salzgitter, and Kassel.
Breaking The Deadlock.

The other 13,000 to 15,000 job cuts will come through early retirement or individual payouts of at least $120,000, says the former VW executive. "It will be expensive. It will cost VW at least $2 billion." On top of all that, the decision comes late. Rivals have already moved faster than VW to slash workers, outsource components to low-cost suppliers, and shift production to Eastern Europe and other low-wage zones. Finally, VW's management will seek to raise the workweek from 28 hours back to 35, or even higher, without raising pay. That would help neutralize the 20% premium VW long ago negotiated to pay its workers over the national steelworkers' agreed wages.
Piech's control of VW, through his family's 51% stake in Porsche, breaks the nettlesome deadlock between labor, management, and the state of Lower Saxony, which holds 18.2% of VW's shares. It's hardly a secret that Volkswagen's German factories are the company's Achilles' heel. Its 100,000 workers earn the highest wages and enjoy the shortest workweek.
Family Affair.

Unable to close down capacity or let go of workers, VW's German factories operate at about 70% capacity, losing money. Wiedeking himself has already signaled that Porsche, as shareholder, expects to see a decent return on its $4 billion investment. Those close to Piech say he's driven to restore Volkwagen's competitiveness and ensure that the company founded by his engineer grandfather Ferdinand Porsche doesn't head down a dead end. To get the job done, he will have to keep costs down sharply, even as VW reengineers its model line back to "People's Car" basics.
"The company will be run more and more by Wiedeking, who turned around Porsche in the 1990s, and Bernhard," says Metzler's Pieper, who believes a well-managed VW could eventually produce an operating margin of 8% to 9% -- a level that only a clutch of German luxury auto makers and Japanese rivals earn today. Investors are just hoping the Wiedeking-Bernhard duo keeps looking like a dream team.

Source (http://news.yahoo.com/news?tmpl=story&cid=2632&ncid=2632&e=29&u=/bw/20060213/bs_bw/bw20060210611156)


Des

[mentalVdub]

Analysts say Toyota has moved upmarket in Europe and is determined to position itself exactly as VW has traditionally positioned itself -- as the most reliable brand, whose fuel-efficient cars offer a great value.

:lol:

yeah right, in what life time? maybe the 1.6 is fuel efficient.

toyotos are so much better all the way around and people know it. good engines, proficient power, insane gas mileage, and all together a pretty good looking car. and hey, they don't have stupid little things breaking like VWs.

i love my car, but the new vehicles out there by the japanese auto manufacturers are really really hawt.

[Bugmonkey]

VW reengineers its model line back to "People's Car" basics
I think that line there is the key to VW survival. Nobody wants or can affort a Phaeton, and the Toureg is expensive for it's class. They need to tighten up the current models. Bring us the Polo. Emphesis what they have that no one else does, the TDi, and concentrate on being "peoples car" again.
As for the Beetle. The Beetle is VW. People go on a VW lot expect to see Beetles. There needs to always be a Beetle.

[Fuseli]

while Japanese cars may be more reliable, they are certainly not more fun to drive, toyotas are wonderful cars, but ever driven one? look how boring your moms honda civic is to drive, they're about as bad as that. Numb, dull, i'll take my quirky German car over a boring Japanese car any day...

[Porkchop]

while Japanese cars may be more reliable, they are certainly not more fun to drive, toyotas are wonderful cars, but ever driven one? look how boring your moms honda civic is to drive, they're about as bad as that. Numb, dull, i'll take my quirky German car over a boring Japanese car any day...

Actually, my impression of the fit/finish/quality of our 2000 Beetle can be summed up as "rattle-trap". It doesn't feel like a solid quality car - never mind all the little niggling things that keep breaking. My wife, who is certainly no car person, rode in a friend's Alero one day and although she (rightfully) thinks its one boring ride, she commented on how much more solid and better put together it felt riding in it compared to the Beetle.

From what I've heard, this is where the new Jetta excels - in feeling more like the sort of money you're spending on it. Which is great - but the styling is fairly blah - and I don't want to bring up the whole Corolla-look-alike controversy again, but it really does look very Japanese-ish in styling.

Everything VW does just makes it more and more obvious that have no real strategic vision or direction and hopefully this latest change will finally get them on the right path.

[mentalVdub]

while Japanese cars may be more reliable, they are certainly not more fun to drive, toyotas are wonderful cars, but ever driven one? look how boring your moms honda civic is to drive, they're about as bad as that. Numb, dull, i'll take my quirky German car over a boring Japanese car any day...

yeah yeah yeah, my mom's honda... :lol:

but i'll tell ya what randy, that damn thing got really good gas mileage when we went to san diego and back. and when we go to disneyland all the time, the gas guage barely budges. my 2.0 would be at half tank by the time i got back from d-land.

yeah, the honda is boring as hell to look at, and there are certain aspects of it that blow, but for the price that was paid and what we've all gotten out of it... it's not too bad of a car.

oh, and yes! i HAVE driven a toyota.

[Phxcoop]

I think I need to chime in here since I just had to do the whole car shopping thing. Yes Honda's are very boring cars to drive. They have no personallity and you really do not know if you are diving or not with those cars. With that said, IMHO the new civic's are far from having very nice fit and finish, the inside seems like crap to me. For the crazy prices they are charging for a civic ex auto, I expected it to have better fit and finish than the Beetle. The 2006 beetle by far had beter fit and finish than the new civic's. But the Accord had one of the best I have seen. But I just did not like the car. I was very close to buying the civic. What stopped me? Well the car rattled a lot. Too much noise, very cheap plastic. When you can see the push outs of the plastic mold, you know something is wrong. The paint was comming off the car and this was brand new. These are not just isolated issues, apprently, honda is having all kinds of issues with their new car.

I am sorry but the inside of most of the Toyota's now a days are just crap also.

I do hope VW can pull it together cause they do have some of the most intresting products to offer.

[PhoenixRising]

Hmm. I own two TOYOTA products, and think they are rock steady cars. My PRIUS just passed the 10,000 mile mark last night. Not a problem yet. And about 48 MPG, on average, so no complaints.

I think that it's a lot more sturdy then my Beetle ever was. HOWEVER, I really would love for VW to mount a comeback. I would love for the POLO to come here...

I hope to someday, own another VW. I just want it to be as well put together as my TOYOTA is now.

[pdoel]

Yeah, VW does have it's quality issues. I've been rather lucky with mine. One MAF, one O2 sensor, and one temp sensor. None of which left me stranded. Other than that, just routine maintenance which only helps me spend extra time with my car.

Toyota's quality is definitely up there. I just manage to get weird problems with mine. My first Toyota had a bad clutch pedal assembly (known problem, they all had them). Toyota just wouldn't fix it. Had it in about 8 times in 2 years for it. They replaced it twice, greased it many times, and even tried replacing the master and slave cylinder. Dealership often told me it was normal and that even the brand new vehicles had the problem. I finally gave up.

My second Toyota suffers from a rattling seat. It moves on the track, the pivet points to adjust the seat rattle and move. Every Sport Edition 4Runner has the same problem, even right out of the factory. They did finally seem to fix this one (according to the message boards). I also go through brakes quite a bit. First set lasted 17,000 miles. Second set lasted 7,000 miles. The third set got to 2,000 miles before they started squeeling. On this issue, however, I think it's dealer related. They squeel even when I'm not depressing the brakes, think the calipers are sticking.

Other than annoyances, the Toyota goes strong. Never had so much as a valve or sensor to replace. And never worry about being stranded.

The VW, while it has never left me stranded, I sometimes think, "It's gotta happen someday". But, I will say. The Toyota has NEVER put a smile on my face like the Beetle has.

:)

[Beeble]

You guys who complain that your sporty turbos don't get good gas mileage should have thought of that before you bought them. The TDIs have been getting 40+ mpg for years, so it's not a secret that there is an efficient NB that's also fun to drive.

Our other car is a 1993 Toyota van with over 153,000 miles on it. There have been a few little dinky mechanical problems with it, but it's been hit twice and I keep getting the bodywork done because it gets 25mpg, carries seven people and has never let me down. It squeaks and rattles like crazy, but then so do I. I'll get back to you in thirteen years and let you know if the NB did as well.

[Porkchop]

You guys who complain that your sporty turbos don't get good gas mileage should have thought of that before you bought them. The TDIs have been getting 40+ mpg for years, so it's not a secret that there is an efficient NB that's also fun to drive.

Actually, she has a 2.0L. And so do I. And 26 mpg for a 2.0L, 115hp 4 cylinder is lousy.

I'd love to have a TDI, but after the recent gas scare the premium everyone is selling the TDI's for, won't make up the additional fuel cost of a gasser. Kinda like the hybrids... :)

[jiggseob]

Can VW end its skid? Can VW stop losing customers to Toyota and Honda?

The big question is WHY are VW freaks like us even considering Toyota and Honda?

The answer is design/build quality.

A while ago, I was in the VW stealership for some service on our '98 Beetle tdi. I ended up waiting around the service department for more than an hour, because I was early to pick up the car.

What an eye-opening experience. Almost every customer was irate about something. Several customers came in riding with a tow-truck driver with their car on the hook. Electronic problems. Power windows. Brakes that last 16,000 miles and are not warranty. The service advisors got yelled at A LOT.

My 98 Beetle experience concurs with what I observed at the dealership. The problems we've had, some of them more than once: hood release mechanism, fuel door release, oodles of burnt out headlights, fuse box meltdown, sound system meltdown, engine plug in heater, belly pan, power window regulators, power window switches, MAF sensor, MAP sensor, hvac fan switch, dash lights, clogged intake manifold, and the list goes on.

The design/build of my Beetle is just awful; trim that comes unglued, the belly-pan that self-destructs, the horribly inadequate interior light, and all of the aforementioned failures.

VW's skid can be illustrated up by this situation: the self-clogging intake manifold on all TDI's. THIS IS THE ONLY CAR IN THE WORLD THAT DOES THIS. PERIOD. When the TDIs first came out, VW said it wasn't a problem, and you should use Stanadyne fuel conditioner. Then they say it IS a problem, and the owner should pay the dealership many hundreds of dollars to clean the intake every 50k miles. Customers are not stupid. This is the only model of car in the world that does this, and every single one does it, and that makes it a DEFECT. VW should FIX IT without making owners pay. This situation clearly illustrates a corporate attitude towards the customer - and its a bad corporate attitude that the customer doesn't get from Toyota or Honda.

The other part that drives me nuts is the knee-jerk reaction of blaming the corporate difficulty on the labour situation in the German factories. The current problems facing VW are not due to paying a domestic worker a decent wage in decent working conditions. These problems are due to bad strategic decisions at the corporate level, and decisions at the manufacturing level to cut every possible penny from a design before putting it into production.

My first automotive experience was bench-pressing an air-cooled flat-four up into the engine bay of my '64 Beetle. Then, I owned a few A1 and A2 cars. VW enjoyed amazing success in the 80's and early 90's with those cars. Solid, reliable, and a notch or two above the rest of the pack in terms of build quality and "driving feel". How things have changed... talk about "driving feel" to someone who is riding with the towtruck operator with their Jetta on the hook. One word - HONDA.

Smart Cars of Europe currently offer the Smart For-Two model in Canada. Its a two seat, diesel (800cc) powered shopping cart that doesn't have enough room to carry a bag of hockey gear. Its twice the price of a Chev Cavalier, and is selling like crazy. The VW Polo would sell here, but instead VW gives us the Tourageg....

Yes, the current state of VW is regretful. For a VW freak like me to be thinking Honda, and for other similar VW freaks to be thinking Honda and Toyota, it brings a tear to my eye...

Mathew Banack
Round Hill, Alberta, Canada

[lugh]

You guys who complain that your sporty turbos don't get good gas mileage should have thought of that before you bought them. The TDIs have been getting 40+ mpg for years, so it's not a secret that there is an efficient NB that's also fun to drive.

Geraldine makes me smile whenever I just look at her. And when we bang along the twisties. bringing expressions of "Huh? Whazzit??" on other drivers' faces, it's just soooo satisfying. We use Bio 100 (mix in a little kerosene in the cold months)and get high performance, incredible mileage, total comfort, complete reliability, and smiles smiles. I know I'm preaching to the choir, but for me it's not a mind thing. Geraldine is a whole lot more than an efficient appliance could ever be. Different strokes, I guess.

[60KGhia]

I am constantly comparing my 98 Beetle with my girlfriend's 99 Mazda Protege.
The Beetle is quieter, has a vastly supierior interior design (it's a designer car after all), better interior components, better brakes, and is a little better in the snow. On the other side, the Protege, feels faster, gets better mileage, handles better, has phenominal radio reception, better visibility and engine access is far superior to the VW. The Mazda also cost less when new, even with the full option package (sans leather). The VW is the base model.
I love my Bug, and it will be worth more than the Mazda at resale time, but there's got to be more value for dollar if VW wants to compete with the US and Asian manufactuers.

[Cody]

I sympathize with the complaints of others here, owning a 1999.5 Jetta, but I have to say -- look at what VW is doing now. New cars, new engines, new platforms. They're trying this out. Don't say that VW is nosediving because of your 98NB, when they've had brand new models out for a year now. They're working on it. We now must simply wait and see.

Cody

[from Margaritaville...]

The bottom line is that ALL car mfgr. are suffering due to the market dominance by the big three automakers (Toyota, Honda, and Nissan not GM, Ford, and Chrysler). It's not their styling, it's not their pricing, IT"S THE QUALITY!!! Stop blaming everyone else and everything else. Selling quality vehicles for 35 years in the U.S. has people flocking to their showrooms. Employee discounts and paint jobs peeling off in sheets? HAH!...

[from Margaritaville...]

By the way, my '98 Toyota Sienna just turned 140,000 miles and drives just like the first day. I wonder how I'll be describing my Beetle at 140,000 mi.???

[PurpleHaze]

Why will VW not bring in some of their other models? Saw a couple that I thought were practical and had style, in the Dominican Republic the other week, one was called a GOL and the other a FOX. Nice interior also, don't know if they were deisel or not but the wife commented that she would drive one if they had them here. VW has to get away from the big flashy models and get back to their roots.
;)

[Breez]

hey, they don't have stupid little things breaking like VWs.

i love my car, but the new vehicles out there by the japanese auto manufacturers are really really hawt.


I understand, I almost got a toyota because 3 of my friends have mid 90s camrys and I swear they just do oil changes, its never any costly repair...

I had my windows/regulators/clips replaced over 6 times on my 1998 Jetta GLX VR6 and it was always little stuff (which is still 200-600 dollar repairs at the dealership).
But you guys are right, the Toyotas drive funny, and it seemes everyone has a boring Honda (I did test drive the Honda Hybrid V6 Accord last month and it was sweet, but still boring, even with the bells and whistles)

I honestly would pay a little more to have the products made in Germany or even USA and not Mexico, that would make me feel a little better too.

PS I would go back to making car payments if they made a hybrid/electric/enviromentally cool NEW car... (I know the diesels are nice, my ex had a Jetta TDI, and it was great...) but the beetle does scream to be something even cooler and a concept of something so modern... the beetle should have been the first hybrid/electric/whatever on the market!!! And now years later, its still just the gas or diesel

[bockegg]

I honestly would pay a little more to have the products made in Germany or even USA and not Mexico, that would make me feel a little better too.

Reply:
It is not the Mexican plant. I live in PA and when the New Stanton plant was here the quality was dismal. I had a '81 Rabbit (New Stanton, PA), a '82 diesel jetta(Wolfsburg, Germany), a '84 GTI-Germany, a '85 Jetta(Germany), a '86 Quantum(Germany), and a '94 Audi 5000S (Germany). Let me tell you that the quality, build and reliability of the German and American cars were not the best. I switched to other brands from '85 until 2003 when I purchased a NBC.

Also, the worst reliable car I've ever owned was a 2002 Mercedes ML 320 and it was built in Alabama.

Mike

[Breez]

It is not the Mexican plant. I live in PA and when the New Stanton plant was here the quality was dismal. I had a '81 Rabbit (New Stanton, PA), a '82 diesel jetta(Wolfsburg, Germany), a '84 GTI-Germany, a '85 Jetta(Germany), a '86 Quantum(Germany), and a '94 Audi 5000S (Germany). Let me tell you that the quality, build and reliability of the German and American cars were not the best. I switched to other brands from '85 until 2003 when I purchased a NBC.

Also, the worst reliable car I've ever owned was a 2002 Mercedes ML 320 and it was built in Alabama.

Mike

Thats good to know, Thanks for sharring your information. I like this thread, there is always something to learn. My Jetta had really nothing wrong except the windows, and that was made in Mexico.

I just got frustrated because I know my mothers volvo was imported from sweden and its a great car, no problems.

And my best friends Hondai was from the US and seems to be quite sturdy. (we will see as time goes by.)

I had just read somewhere that the plant (s) in mexico had quality control issues. Is it true that the Passat and others are made in Germany? I got the impression from the dealer that it was the beetle and Jetta that were made in Mexico.
In my case I have always owned "german" cars. I had a 1995 5.25i BMW, until 1998 when I got my dream car, Jetta and now my beetle.

I guess what bothers me about VW, is that when little stuff happens, they need to step up to the plate and just take care of it (but instead they just make you pay for a costly repair)... admit that there is a problem, for example with the windows, and then instead of replacing it with the same plastic clip, retro fit a better quality peice so that customer can tell his/her friends that not only does the car drive like a dream, but that VW takes great care of you. (or they can do quality in the first place, especially with little parts... argh.

[bockegg]

You are correct. The Mexico plant does have its problems, but the overall problem lies with globalization, outsourcing, and ultamately the VW management. Mercedes has major problems with the quality of the plant in Alabama. I was stung with my 2002 Mercedes.
I still like the way VW and german cars feel and I probably will stay with a German engineered car.
I also have a 26 year old Classic Mercedes (Germany) and it starts every time I turn the key. All the parts, windows, locks, clock, etc. work perfectly.

[bockegg]

[QUOTE=Breez]In my case I have always owned "german" cars. I had a 1995 5.25i BMW, until 1998 when I got my dream car, Jetta and now my beetle.

I love the Jetta but didn't you take a step back going from the BMW 525 to the Jetta?

[Breez]

I love the Jetta but didn't you take a step back going from the BMW 525 to the Jetta?

Good point. My mother owned her own small company and was using it as a company car, it was a 3 year lease... She ended up not really needing to use it, so I was "glad" to help take it off of her hands and not make car payments. I finally got my dream 1998 GLX VR6 2.8L Jetta, and was nutty about it.

Yes, it was a small step down, and I could tell a small difference... but as this thread posts keep saying, it was "german" hence, it drove like a dream. My GLX had heated seats like the 5.25i, a Bose stereo system with cassette and 6 disk cd, a integrated aftermarket car phone (hehehe, that was hawt to have the deactivated car phone for the past 6.5 years) and most of the similar bells and whistles I still enjoyed. Its not like it was a GL... so it wasn't too much of a step down, and I ALWAYS had wanted a Jetta III. :D (It was the last year of the III style, and I heard rumors that the GLX VR6 2.8 wasn't going to continue being made:( in the new body style) wow, that still seems like yesterday. (I do remember going to the dealership and seeing all these crazy beetle waiters, talk about a long order waiting list!!!):rolleyes:

Now-a-days I always talk about beemers and veedubs, so I complain sometimes, but I don't know if I could leave the family. (maybe volkswagen knows this and keeps stringing me along LOL, since I replaced 6 darn windows...) and a stupid brake sensor on the beetle.

So I went from a 5.25i, to a Jetta, to a GLS Beetle... my ego has been shot down a little bit, but this .org thing has me pumped up about "BB" and I am very excited to spend the next few years with her :D

[Breez]

You are correct. The Mexico plant does have its problems, but the overall problem lies with globalization, outsourcing, and ultamately the VW management. Mercedes has major problems with the quality of the plant in Alabama. I was stung with my 2002 Mercedes.
I still like the way VW and german cars feel and I probably will stay with a German engineered car.
I also have a 26 year old Classic Mercedes (Germany) and it starts every time I turn the key. All the parts, windows, locks, clock, etc. work perfectly.

I can't agree with you more, your point about globalization etc...

My close friend had a 1970's Mercedes and its still going strong... excellent points:D

[EvilinaDM101]

So I went from a 5.25i, to a Jetta, to a GLS Beetle... my ego has been shot down a little bit, but this .org thing has me pumped up about "BB" and I am very excited to spend the next few years with her :D

YAY!! Don't ya just LOVE this place!! :D

[kingofgrills]

Every car manufacturer has its host of problem cars. VW is no different than the others in that regard. My 2000 NB Turbo has been great so far. It has 45,000 miles now, and I've changed the MAF once, an oxygen sensor, and a cup holder. That's it. The car has held together extremely well and is rock solid.

It gets great gas mileage for a performance car, delivering 25-31 mph, so there's no complaints there. That's right in line with my '84 GTI and '90 Corrado, which is typical of VW's 1.8 liter power plants. By contrast, my Durango delivers 11 mpg, so I'd take my VWs gas mileage any day.

My wife's family swears by Volvos, and only buys those, but I cannot tell you how many problems they've had. I think the dealership should keep a service bay roped off just for them.

Every car manufacturer has their host of problems - Mercedes, Volvo, Porsche, Ferrari - you name it. I think it's helpful to do plenty of research ahead of time, so you have reasonable expectations. Even doing that, however, will not fully save you from potential problems. Oh, and never by the first model year of a car. That usually never bodes well for reliability.

[bockegg]

Every car manufacturer has its host of problem cars. VW is no different than the others in that regard. My 2000 NB Turbo has been great so far. It has 45,000 miles now, and I've changed the MAF once, an oxygen sensor, and a cup holder. That's it. The car has held together extremely well and is rock solid.

It gets great gas mileage for a performance car, delivering 25-31 mph, so there's no complaints there. That's right in line with my '84 GTI and '90 Corrado, which is typical of VW's 1.8 liter power plants. By contrast, my Durango delivers 11 mpg, so I'd take my VWs gas mileage any day.

My wife's family swears by Volvos, and only buys those, but I cannot tell you how many problems they've had. I think the dealership should keep a service bay roped off just for them.

Every car manufacturer has their host of problems - Mercedes, Volvo, Porsche, Ferrari - you name it. I think it's helpful to do plenty of research ahead of time, so you have reasonable expectations. Even doing that, however, will not fully save you from potential problems. Oh, and never by the first model year of a car. That usually never bodes well for reliability.
You are right. It is largely chance, although reliability is with the Asian automakers. I got the first year 2003 NBC. Everyone I know with '04 on up has problems with the top and with the flaps. Luckily not me. I also got the 1st year ('05) new Jeep Grand Ch. Limited. So far so good.

[straycat]

I have an '06 TDi Beetle...I havent found anything out there better. I also own a Boxster which I bring out of the garage and "wring out" about twice a week...but , for everyday use my Beetle will match anything on the road. Although I have a great respect the Japanese vehicles, I prefer what I have.
my Beetle gets 51mpg...my Boxster gets 25-28 depending on how hard I push it. My neighbors Corolla does not do much better milage wise than my Boxster...but it is a matter of choice , nothing more.
this is merely one opinion and I am sure there are countless others.

[SilverSportNOLA]

From looking at what the drivers complaining about their Dubs drive I notice a trend. Almost all had a 2.0. I luv mine ... but it's all in what you want to get out of a car. What else can you get a few months old for 15K and add another 2K to 7K and have something that will out run and out drive cars for twice the price that are marketed as Macho Cars. If you want your 2 door to give you the ride of a DeVille .... you better get the DeVille. I do agree ... VW has priced themselves out of a lot of markets, they might learn from Toyota, they already have the Audi ... so drop the Pheaton and Tourag and create a line like the Scions and bring us the Polo, I would personally love to see one of those with a VR6 mod.

[Alan From NYC]

... VW has priced themselves out of a lot of markets, they might learn from Toyota, they already have the Audi ... so drop the Pheaton and Tourag ...


According to recent comments from Saturn, the car people, not the planet, VW's marketing niche is now "low end luxury."

They droped the [sic] Pheaton from North America, reasoning that we're not ready for a VW with a Mercedes price tag. The [sic] Tourag is sellling, so it stays. Besides, VW wants very much to be on the SUV bandwagon.

Audi has accordingly moved upscale.

Toyota, which began it's history in the US by making econoboxes, has, over four decades, expanded it's lineup to appeal to car buyers of just about all markets except for midlevel luxury. They created Lexus for that. Toyota is successful because of this and because Americans are convinced that Toyotas are pretty much bulletproof.

[Beetlebomb]

The issue of Time Magazine dated 10/30/2006 has an article about VW's problems and future plans entitled "How VW Can Get Hot Again," for any of you who are interested. It starts on p. 61.

[skimble]

With the recent models looking good so far, I have high hopes for VW. As much as I wanted a new GTI, I just couldn't get past VW's reliability, and I ended up with a Civic Si. When it's time to shop for a replacement for my Hondas, maybe they'll have shown a dramatic turnaround in quality.

[71beetle]

VW has to get this. People in the USA take the J.D. Powers auto survey's seriously. If J.D. Powers sinks you on quality issues, you have a really big problem here selling cars.

[seano1]

It’s strange how may people look completely past the actual content of the article. I suppose most people assume that VW is doing as well in Europe as they are in the US and that it’s model lineups is basically the same. This is not the case. In Europe VWs are cheaper, both overall and compared to other makes, then in the US. They have more engines available that get better mileage. Biggest of all the don’t have the reliability problems.

If you actually look at the numbers VW isn’t doing bad. Profit 62% up, shares up 7% this is good performance, especially for a large company in a mature market. Their high-end cars may be the most profitable, but that not unusual. The author of the article tries to spin it as if the union and Lower Saxony are driving VW out of business when they'er are in fact doing great.

[Beetlebomb]

VW has to get this. People in the USA take the J.D. Powers auto survey's seriously. If J.D. Powers sinks you on quality issues, you have a really big problem here selling cars.
I completely agree with you on this!

[from Margaritaville...]

VW has to get this. People in the USA take the J.D. Powers auto survey's seriously. If J.D. Powers sinks you on quality issues, you have a really big problem here selling cars.

Consumer Reports has a considerable following which weighs on market share...

Just imagine how many more vehicle VW would sell here if their ratings were actually as high as the many Asian imports...

This is NOT rocket science. Stop re-inventing the wheel...

[Beeble]

Consumer Reports has a considerable following which weighs on market share...

Very true. Visited a friend I hadn't seen in a while last weekend and he asked if I still liked my Beetle. I told him I loved it. He asked if I had had a bunch of electrical problems with it. He not only read the CR report, he still remembers it a year and a half later and believes that all VWs are electrical nightmares.

I did mention that the security LED on the driver's door lock doesn't blink. I don't think CR mentioned that....

[Hambug]

Just be thankful VW's aren't like the Yugo's of years past. I remember the Yugo commercial where they had their car suspended in a machine, turned it upside down and shook it while the narrator said: "See, nothing falls out of this year's model"

[Danbike]

Go take a look at the story.

http://news.yahoo.com/s/nm/20070906/bs_nm/volkswagen_america_dc_1

[englishman11]

Sorry to resurrect an old thread here, but I'd like to add my two or three cents on this subject.

I've oned only 2 Volkswagens so far. One is a '68, which wasn't in good shape when I bought it. It had a charm that I have never felt from even looking at any other car. I currently drive a '98 NB. This car has been nothing less than superb for me. It's had some minor problems here and there, but nothing even close to major. It's been reliable, pretty efficient (not as much as my Geo Metro!) and over all the funnest car I've owned so far. I know for a fact that I'm not the only person out there that has had a pleasant experience with a VW.

The break switch recall deal is the only thing that nipped me in the butt so far, but I got to spend the night at 2 hot chicks' apartment because my battery drained. :D :D :D ! Thank you VW!

Would Honda, Toyota, Mazda, Mitsubishi, or Nissan do that for me? I think not.

[Mutato]

Actually, she has a 2.0L. And so do I. And 26 mpg for a 2.0L, 115hp 4 cylinder is lousy.

I get 27mpg in my 1.8T, boy is if fun. :)