Get It Straight--the Routan Is A Phenomenal Seller

"Image by Getty Images via @daylife"

Volkswagen may or may not discontinue the Routan. For that matter, Chrysler (Fiat) may or may not discontinue the Grand Caravan (GC) and Town & Country (T&C). Understand why before you throw the baby out with the bath water.

Fiat might discontinue or sell off the mini-van line because "that is not the business we are in." That doesn't mean that mini-vans are not profitable or selling well. In fact, the GC and T&C are the best selling mini-vans in the United States.

Why might Volkswagen discontinue the Routan? Corporate management is "less than enthusiastic about it," but why? Is it because VW is about to lose its supplier? If Chrysler/Fiat discontinues-limits-consolidates their mini-van, Volkswagen does not have an American supplier for the Routan. VW doesn't have a viable replacement in their stable. As popular as the Sharan may be outside the U.S., it doesn't have power sliding doors, is smaller than the top 4 mini-vans selling in the U.S., and I suspect hasn't started the lengthy U.S. certification process.

But the Routan is a phenomenal seller. As often as the motor press says otherwise doesn't make it so. There are three solid reasons why the Routan can be considered a great seller.

1. At introduction, VWoA head Stephen Jacoby said management was expecting to capture 3-5% of the U.S. mini-van market. The mini-van market has been hit hard by the Great Recession, but the Routan has captured about 4% of that shrunken U.S. market.
2. Volkswagen has less than 2% of the overall U.S. auto market. The Routan exceeds in its class VW's market share by 100%. Something that sells twice as well is not a bad seller.
3. The Routan has the youngest average ownership of all the mini-vans sold in the U.S. Volkswagen is strongest in the younger market--many of their models have the youngest average ownership in their class. The Routan either draws or feeds the primary market segment of VWs stable.

We also have to take into consideration corporate politics. The Routan was introduced on Jacoby's watch. Jacoby is leaving for Volvo. Whoever takes his place, the Routan will not be "their car." That alone could kill it.