Image via WikipediaThe Michigan Business News Blog may be a venerable outlet, but I don’t know where they are getting their figures regarding the Routan. They miss the fact that it is doing what no other mini-van has been able to do—sell to the under-35 “I wouldn’t be caught dead driving a mini-van like my soccer Mom” crowd.
The Routan is holding it’s own. http://routanowner.blogspot.com/2010/10/routan-september-2010-ytd-sales.html In fact, Routan’s portion of the American mini-van market (3.51%) is more than 50% greater than VW’s share of the overall American market (2.2%). Routan is selling into a younger mini-van market, which is in keeping with the younger market VW wants for the Jetta. 23.3% of Routan buyers are under the age of 35. The only vehicle with a higher percentage of under-35 owners is the Volkswagen GTI at 23.4%. http://routanowner.blogspot.com/2010/05/top-10-models-for-young-drivers.html
Image via WikipediaVW has the mini-van for the younger driver. Only the Mazda 5 shows up in the top-30 with 17.7% young ownership. All other mini-vans have under 35 owner percentages between 16.2% and 6%.Michigan Business News Blog
So far, VW has made some inroads. Through September, its U.S. car sales are up 20.6%, a growth rate outpaced only by Subaru and Ford Motor Co. among mass-market manufacturers. Market share for the VW brand has ticked up to 2.2% so far in 2010, up from 2% a year ago. (Counting in Audi sales, VW's U.S. share is 3.1%.)
Its biggest test comes next year with the launch of a larger sedan intended to replace the Passat. The new Chattanooga plant will have the capacity to build 150,000 of them, 11 times the Passat's current sales, and they'll compete in the auto market's toughest segment—against the Toyota Camry and Honda Accord.
"Hyundai is extremely aggressive, and Toyota and Honda are going to spend lots of money to hold onto everything they've got," Mr. Ellis says.
VW's struggle with its Routan minivan, introduced two years ago, underscores the challenges the car maker has had in selling cars with more conventional American appeal under a brand that takes pride in German engineering.
After dropping plans for a modern version of its Microbus for fear it would be too niche and costly, it signed a deal with Chrysler to modify and rebrand the U.S. car maker's Town & Country minivan under the VW Routan name. VW tightened the minivan's suspension, gave it a sleeker front end and kept it in the same price range as the Chrysler. With an ad blitz featuring Brooke Shields, it aimed to capture 5%, or 45,000, of the 700,000 annual minivan market.
But the Routan's launch coincided with the auto industry's nose dive in late 2008. So many of them sat unsold on VW dealer lots last year that the auto maker asked Chrysler, which builds them at its Windsor, Ontario, plant, to temporarily halt production. While much of the rest of the minivan market has rebounded, Routan sales have slipped 0.8% to 12,539 vans so far this year, one-seventh of the number of Town & Country sales in the same period.
VW officials argue that the Routan has enabled them to sell to a key new customer segment. The company still expects the Routan's market share to grow as more consumers become aware of it as a minivan option.
