Showing posts with label market share. Show all posts
Showing posts with label market share. Show all posts

Friday, June 17, 2011

VW Routan cool enough for the gang

Minivan outdoes hippie-mobiles

Pittsburgh Post-Gazette

Image via Wikipedia

Pittsburgh Post-Gazette

Wednesday, June 15, 2011
By Richard Williamson, Scripps Howard News Service
Some would argue that the first minivan was a Volkswagen Microbus.
The ubiquitous hippie-mobile that crisscrossed the country in various patterns of paint in the 1960s showed that baby boomers would bond with a car that looked and ran like a loaf of bread.
When it came time to raise a family, however, the boomers were looking for something with more status, safety and functionality….
Volkswagen never made much of a dent in the U.S. market with its Vanagon and Eurovan, minivans that sometimes seemed unnecessarily eccentric.
RoutanImage via Wikipedia

Other than its name, there's nothing eccentric about Volkswagen's current minivan, the Routan. That's because it is a rebadged version of the Dodge Grand Caravan built on Chrysler's Windsor, Ontario, assembly line. …
With its first minivan since it discontinued the Eurovan in 2003, Volkswagen aimed for 5 percent of the U.S. minivan market. But economic travail sidelined those goals.
Recalls also have caused some distress. The 2009 models were recalled along with their Chrysler platform mates last June for a fire hazard stemming from an improperly routed wire harness.
Those issues aside, the Routan, like its Chrysler cousins, is a terrific vehicle that deflects "soccer-mom" aspersions with a long, flat-roofed profile, brusque front end and blunt tail. In dark paint, this minivan could accommodate a crew of gangsters without hurting their rep. …
Designed to seat seven in three rows, the Routan comes with Chrysler's amazingly simple stow-and-go third-row seats that flip into a container to create a large, flat storage surface. The loops that you pull are numbered 1, 2, 3, 4. In a few seconds, the seats are gone and the floor is utterly flat.
All Routans are powered by a new 3.6-liter engine mated to a six-speed automatic transmission that deliver 283 horsepower and 260 lbs./ft. of torque to the front wheels.
With fuel economy of 17 city and 25 highway mpg, the estimated annual fuel cost is $2,250. And the Routan does not require premium unleaded.
Standard 12-volt power outlets are provided for cell phones, MP3 players and game consoles.
The comfortable seats are covered in leatherette with pillow-top armrests. The second row is a set of captain's chairs, while the third row is a split-folding bench.
All 2011 Routan models include an all-new leather-wrapped steering wheel with multifunction controls, a leather-wrapped shift knob and a full array of gauges.
Storage includes dual glove boxes, a floor console with cup holders, an optional highline console with a large storage compartment, ceiling storage, door sill and rear quarter storage bins, various cargo nets and a variety of coat and bag and purse hooks.
All three seating rows get LED reading lights, while sunshades filter harsh light.
A Garmin Navigation system is optional for the SE, while Sirius Travel Link and integrated iPod interface are added to Routan SEL with Navigation.
Dual power sliding doors with power windows are standard, along with a power lift gate.
Remote keyless entry can be upgraded to a remote vehicle start system.
The Routan's ride and handling are deft and comfortable, making the minivan an outstanding road car.
Passenger protection includes front, side and head-curtain air bags, along with a knee airbag for the driver.
Active safety features include anti-lock brakes and engine braking control, along with electronic stability control.

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Friday, April 8, 2011

Volkswagen's U.S. CEO Pushes For Bulli Concept Production

The Car Connection
2011-04-06T11:00:00-07:00
VW Bulli Concept, from Volkswagen AG
VW Bulli Concept, from Volkswagen AG
Enlarge Photo
Jonathan Browning, president and CEO of Volkswagen of America, has the Bulli microbus concept at the very top of his “unfunded projects he’d like to see in production” list.
Kia SoulImage via WikipediaShown at this year’s Geneva Motor Show, VW’s Bulli combines styling elements from the 1950s VW Type 2 Transporter and their 2001 Microbus concept. Unlike either of these earlier models, the Bulli is quite a bit smaller and meant to compete against the Kia Soul, Scion xB  and Nissan Cube. At the same time, a production Bulli wouldn't steal market share away from VW's Chrysler-sourced Routan minivan (a Camper variant of the Bulli would be all but useless).
2009 Scion xB photographed at the 2009 Washing...Image via WikipediaStill, the Bulli’s styling and urban functionality would be enough to lure both former VW Bus owners, as well as a new generation of buyers, into Volkswagen showrooms. …
[Automobile via 4 Wheels News]
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Monday, February 28, 2011

Volkswagen Plans For World Domination

Motor Trend
…How will VW do it? Unless it quickly develops a $30,000 Honda Pilot competitor off the new Passat's platform, plus perhaps a new Microbus-style minivan to replace the Chrysler-based Routan -- two models that combined could add more than 200,000 units to annual sales -- the Passat and Jetta will have to become best-sellers in their segments with sales topping 300,000 per year each. Should total U.S. sales volume not reach 17 million, the 200,000 range is more likely, competitive with Hyundai Sonata, Ford Fusion, and Chevrolet Malibu. That's about 400,000 for Jetta and Passat, just half the '18 goal.
2012 Volkswagen Scirocco Front


Click to view Gallery
Golf-based Scirocco
Hackenberg and Browning emphasize efforts to improve quality scores in the U.S., long a major problem for the brand. They say much of VW's quality problems relate to design features that confuse and annoy Americans -- an explanation (or excuse) several competitors also use. While they talk about biting into Toyota and Honda sales, they don't mention Hyundai, which expects to sell 590,000 in the U.S. this year, or Kia.
"German engineering still has a very good image in the USA." Hackenberg says. "It is our job, and the job of Mr. Browning, to bring that to the customer."
VW has tried competitive pricing with Japanese brands and "affordable German engineering" in its marketing before, though not both at the same time. A mix of big, low-priced German sedans for the American market, and more interesting cars like the GTI and CC, might work this time. Until it does though, we don't envy Mr. Browning his task.
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Friday, January 21, 2011

December 2020 YTD Sales Figures

Volkswagen of America, Inc. today reported that December 2010 marked a 17 percent increase over prior year sales for the entire line of vehicles. In addition, 2010 achieved a 20 percent increase over 2009 total year sales. Increased sales numbers resulted in best annual sales since 2003 and best December sales since 2005.


With the growing popularity of Volkswagen's SUV models, the Tiguan achieved its best month ever, selling 2,551 vehicles, a 42 percent increase from the same month last year. Bolstered by the all-new model, the Volkswagen Touareg ended the year positively with a 68 percent increase compared to 2009. Other top selling vehicles included the Jetta with a 34 percent increase, Golf with a 72 percent increase and Routan with a 50 percent increase compared to December 2009.

PRNewswire published the December and YTD sales figures of the auto-makers who sell in the U.S. From these reports, we glean the following data:

Brand YTD -  12/10


Chrysler   112,275

Dodge      103,323

Honda      108,182

Kia         21,823

Mazda       15,683

Nissan         177 (discontinued)


Toyota      98,337

Volkswagen  15,961



Total      475,761
Volkswagen's market share of van sales is 3.35%, in the target range declared when the Routan was introduced.
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Tuesday, December 7, 2010

November 2010 YTD Sales Figures

2009 Volkswagen Routan photographed in College...


Volkswagen's Routan achieved a 98.5% increase and Golf and Tiguan also experienced strong increases in sales compared to November 2009.


Volkswagen's TDI clean diesel models had another strong month with 4,304 total sales.

"It's no surprise the all-new Jetta and Touareg models did well for November but it's also good to see increases from models such as the Routan, Tiguan and Golf," said Mark Barnes, Chief Operating Officer, Volkswagen of America, Inc. "Our TDI clean diesel products continue to gain popularity as customers realize the benefit of this product."

PRNewswire published the November and YTD sales figures of the auto-makers who sell in the U.S. From these reports, we glean the following data:

Brand YTD  - 11/10


Chrysler   102,495

Dodge       89,057

Honda       98,035

Kia         20,151

Mazda       14,892
Nissan         177 (discontinued)
Toyota      89,509
Volkswagen  14,714

Total      429,030
Volkswagen's market share of van sales is 3.43%, in the target range declared when the Routan was introduced.


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Monday, November 15, 2010

October 2010 YTD Sales of Routan

Routan
Image via Wikipedia


In addition to the Jetta, Volkswagen's Routan, Golf and GTI models had increases in sales compared to October 2009. The Routan sold 1,103 units, a 64.9 percent increase from the same month last year.

PRNewswire published the October and YTD sales figures of the auto-makers who sell in the U.S. From these reports, we glean the following data:


Brand          YTD - 10/10
Chrysler       95,952
Dodge          83,158
Honda          89,230
Kia            18,872
Mazda          14,039
Nissan            177 (discontinued)
Toyota         81,384
Volkswagen     13,642

Total         396,454

Volkswagen's market share of vane sales is 3.44%, in the target range declared when the Routan was introduced.
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Wednesday, November 3, 2010

Volkswagen's U.S. Sales Grow 17.9 Percent in October 2010

Green Hotel : Bangkok Thailand

Volkswagen's U.S. operations posted a strong sales increase in September 2010, but the company continued its march forward with an equally impressive October showing. Last month, the German automaker reported a 17.9-percent increase over the same period last year.

VW of America's U.S. deliveries totaled 20,084 vehicles in October 2010, 3047 cars more than the brand moved last October. As usual, the brand's strength lies with its compact offerings, especially the Jetta. 11,958 examples were sold in October, with roughly half of that figure -- 5464 cars, to be precise -- attributed to the all-new 2011 Jetta sedan.

Unsurprisingly, the next-best selling model in VW's North American portfolio remains the Golf and GTI hatchback -- combined, the two accounted for 1905 deliveries, which marks a 62-percent increase from last October. Volkswagen's Tiguan sales grew 49 percent to 1453 deliveries, but surprisingly, the largest growth lies with the Routan. Only 1103 examples of the Chrysler-built minivan were sold in October, but that marks a 65-percent improvement over the same period in 2009.

A zero-percent, 72-month financing deal may have helped the Routan's figures, but other vehicles applicable for the deal -- the Eos and New Beetle -- didn't benefit quite as much. …
…Thus far in 2010, the automaker's U.S. sales are up by nearly 20 percent.
Credit: Automobile Magazine
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New Models Drive Luxury Sales in October; Momentum Continues for Others

Auto Observer
Volkswagen of America Inc., which has ambitious U.S. sales goals, increased October sales by nearly 18 percent from a year ago. Its sales were paced by the new Jetta, which had its first full month of sales and its best sales month since 2005, with the exception of last year's Cash for Clunkers period.
Volkswagen has taken heat for its price-reduced new Jetta, which critics charge the German automaker has cheapened too much in its effort to make it affordable to more customers. In addition to heavily advertising the Jetta's affordable price, Volkswagen is offering one of its biggest incentives ever for the nameplate.
2009 Volkswagen Routan photographed in College...Image via WikipediaAlso chipping into Volkswagen's total were higher sales of the Chrysler-built Routan minivan, Golf and GTI.
"Volkswagen continues to grow sales in all models and products through October," said Mark Barnes, VWoA's Chief Operating Officer. "It is good to see the all-new Jetta getting off to such a promising start and our TDI products continue to do well."
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Wednesday, October 20, 2010

Volkswagen’s Future Products Revealed for 2011, 2012, and Beyond

cars motor
[The following must be machine-translated. I don’t know what the originating language is, but this article proves that you can’t leave translation to a machine.
2009 Volkswagen Routan photographed in College...Image via WikipediaI think the post says that the Routan will continue through the model cycle, and that it is doubtful that it will get Stow ‘n Go. VW will not bring the mini-minivans (Sharan and Touran) to the U.S. The Routan will be replaced with something the same size. The new Routan will have more VW characteristics. It won’t be a Microbus (Transporter). The Transporter available in Europe would cost about $60-70,000 here.
VW TouranImage via WikipediaThis news follows what I have heard or surmised in the past. The current model cycle continues through 2013. I’m curious to see who will build Mark 2, and when the minivan will get a diesel. I’d buy a new one with a diesel in a heartbeat.]
VW Sharan, Sondermodell SkaterImage via WikipediaRoutan – The Chrysler-sourced minivan will abide through its artefact cycle, and it is absurd that it will anytime get Chrysler’s Stow ‘n Go folding second-row seats. The Routan will be replaced with a similar-size vehicle, not a abate mini-minivan like the European Sharan or Touran, as has been appear elsewhere. VW is absurd to add added minivans to it artefact portfolio in the accountable future.
Microbus – Volkswagen will not acceptation a minivan from Europe to the U.S. The accepted Transporter awash in Europe would amount $60k to $70k if awash in the U.S. That said, VW hints that the abutting adaptation of the Routan—or whatever it’s called—will accept added VW cast characteristics. Like, say, a Microbus badge?
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Wednesday, October 13, 2010

Video of Routan Launch San Francisco 10/7-9/08



Visit www.autonetwork.com to view the entire event. Bret Scott, Manager of Product Plotting, gives an overview of Routan Minivan to journalists at launch of Volkwagen’s VW first minivan the Routan held in San Franciso, Oct. 7-9, 2008.

Wednesday, October 6, 2010

VW Has Bigger Share of U.S. Under-35 Market Thanks to Routan

RoutanImage via Wikipedia
The 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
Mazda 5Image 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%.
Volkswagen’s other models are positioned for the younger driver. Volkswagen has 5 of the top 30 cars for the under-35, matched only by Mazda.

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.
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Friday, October 1, 2010

Routan September, 2010 YTD Sales

This is not an official release from Volkswagen of America.

Volkswagen is not discontinuing the Routan. We will see how the current management positions the Routan--the van is frequently tied to the departed CEO Stefan Jacoby. However, the Routan's market share is in line with targets set at its introduction. See the article Get It Straight--the Routan Is a Phenomenal Seller on this blog for a discussion why the Routan would not be discontinued because of sales numbers.

Research by Truecar.com indicates that 23.3% of Routan owners are younger than 35. Only the Volkswagen GTI has more owners under 35 in the U.S. at 23.4%. It would appear that Gen Y views the Routan as the best choice if they have to drive a minivan. Once they buy it, they seem to love it, as seen by their entries on blogs and Twitter.

On February 6, 2008, Associated Press reported, in part: "[Volkswagen of America President and CEO Stefan] Jacoby said the minivan market still is approaching 1 million vehicles a year, and Volkswagen would like to capture 3 to 5 per cent of that." Jacoby has since left the company to go to Volvo, but the Routan is still doing what they expected it to do.

PRNewswire published the September and YTD sales figures of the auto-makers who sell in the U.S. From these reports, we glean the following data:



Brand YTD - 9/10

Chrysler   87,493


Dodge      74,954


Honda      79,725


Kia        17,217


Mazda      12,865


Nissan        177 (discontinued)


Toyota     72,131


Volkswagen 12,539


Total     357,101

Volkswagen's market share of van sales is 3.51%, in the range Volkswagen of America was aiming for. This is, by the way, nearly twice their overall market share.


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Friday, September 17, 2010

Which Vehicle Classes Are Strongest Sellers in CPO Market?

NOVATO, CA - MARCH 20:  A certified pre-owned ...Image by Getty Images via @daylife

By Joe Overby, Staff Writer
September 17, 2010
BANDON, Ore. — While each market performs somewhat differently, some certified pre-owned vehicle categories tend to be hot sellers, whereas others are perhaps not so popular.
So what has Art Spinella, of CNW Research, discovered? He found that near-luxury, luxury and hybrid CPO models have been healthy as of late, while smaller, budget cars have been the slowest to move.
That said, CPO trends do vary on a regional basis, he pointed out. …
And, of course, different automakers are seeing somewhat varying trends within their own certified operations, though some similarities exist.  
Toyota, for one, has certainly experience segmentation in its CPO figures, said Jason Cropper, who is the Toyota Certified Used Vehicle Operations manager.
Specifically, Cropper said the Camry has been continuing its dominance in CPO sales, actually increasing its share from a year ago.
The automaker is also seeing the small SUV segment grow stronger, as well.
…"Similar to what the industry is seeing on the new-vehicle side of the business, we also see increased volume in the small SUV segment, which for us is the RAV4," he added. "RAV4 as a percentage of our total TCUV volume was up to 8 percent, while other SUVs and light trucks actually contracted as a percentage of our total TCUV volume."
As far as the reasons for why some vehicles sell better than others, Cropper pointed to consumer demand and the effect of the changing dynamics the new-vehicle market is having on inventory on the certified side. …
Offering the perspective of Volkswagen, Rob Martin, CPO manager for VW sales operations, explained: "We continue to see strength in the Jetta and Passat, but we are also seeing the start of our newer model vehicles entering the CPO fleet, including Tiguan and Routan.
"This is encouraging and by having vehicles to sell in other segments, the Volkswagen brand hopes to continue our growth in market share," Martin continued. …
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Tuesday, August 3, 2010

Routan YTD July, 2010 Sales


This is not an official release from Volkswagen of America.

Volkswagen is not discontinuing the Routan. We will see how the current management positions the Routan--the van is frequently tied to the departed CEO Stefan Jacoby. However, the Routan's market share is in line with targets set at its introduction. See the article Get It Straight--the Routan Is a Phenomenal Seller on this blog for a discussion why the Routan would not be discontinued because of sales numbers.

Research by Truecar.com indicates that 23.3% of Routan owners are younger than 35. Only the Volkswagen GTI has more owners under 35 in the U.S. at 23.4%. It would appear that Gen Y views the Routan as the best choice if they have to drive a minivan. Once they buy it, they seem to love it, as seen by their entries on blogs and Twitter.


On February 6, 2008, Associated Press reported, in part: "[Volkswagen of America President and CEO Stefan] Jacoby said the minivan market still is approaching 1 million vehicles a year, and Volkswagen would like to capture 3 to 5 per cent of that." Jacoby has since left the company to go to Volvo, but the Routan is still doing what they expected it to do.
PR Newswire logo 
PRNewswire published the July and YTD sales figures of the auto-makers who sell in the U.S. From these reports, we glean the following data:


Image via Wikipedia


Brand YTD - 07/10

Chrysler     69,020
Dodge       57,678
Honda       62,278
Kia            13,312
Mazda       10,610
Nissan            169 (discontinued)
Toyota       53,482
Volkswagen 9,773
Total        276,322

Volkswagen's market share of van sales is 3.54%, up from June and still in the range Volkswagen of America was aiming for. This is, by the way, is nearly twice their overall market share.


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Tuesday, July 6, 2010

Plenty of mileage left on Routan, officials say

Canada.com
By Grace Macaluso, The Windsor Star July 6, 2010
A Volkswagen Routan minivan is shown in this file photo.
A Volkswagen Routan minivan is shown in this file photo. Photograph by: DAN JANISSE, The Windsor Star
The Volkswagen Routan isn’t headed for the scrapyard despite growing speculation that the German automaker will likely discontinue the vehicle, which is assembled at Chrysler’s Windsor Assembly Plant, a company spokesman said Monday.
“That’s news to me,” said Peter Viney, spokesman for Volkswagen Canada. “We are finalizing the next model year with Chrysler right now. We have a five-year contract with Chrysler so we are going to work within the terms and conditions of that contract so anything with respect to production ending in October is not what we understand.”
In an interview with Dow Jones Newswires, Jill Bratina, spokeswoman for Volkswagen Group of America, said the automaker was gearing up for a overhaul of its U.S. product lineup in an effort to turn around its North American operations and boost its presence there.
But the future of the Routan minivan was uncertain, she added. “No decisions have been made regarding the Routan,” Bratina, said, noting that the minivan segment was “significantly impacted by the economic downturn and has not fully recovered.”
Rick Laporte, president of CAW Local 444, said the plant is producing 40 Routans a day from a peak of 500 a week in 2008, when it was first launched.
“We were producing those numbers to fill their showrooms, to get them out there, but then the big economic crunch took place and it dwindled and dwindled and things only got worse,” LaPorte said.
In the U.S. the Routan makes up about four per cent of sales in the minivan segment, while in Canada it constitutes 1.4 per cent of sales. …
© Copyright (c) The Windsor Star
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Thursday, July 1, 2010

YTD to June Routan Sales

This is not an official release from Volkswagen of America.
Routan showed a percentage gain month-over-month and year-over-year.

The press is playing up the possibility that the Routan may be discontinued. See the article Get It Straight--the Routan Is a Phenomenal Seller on this blog for a discussion why the Routan would not be discontinued because of sales numbers.
Research by Truecar.com indicates that 23.3% of Routan owners are younger than 35. Only the Volkswagen GTI has more owners under 35 in the U.S. at 23.4%. It would appear that Gen Y views the Routan as the best choice if they have to drive a minivan. Once they buy it, they seem to love it, as seen by their entries on blogs and Twitter.

On February 6, 2008, Associated Press reported, in part: "[Volkswagen of America President and CEO Stefan] Jacoby said the minivan market still is approaching 1 million vehicles a year, and Volkswagen would like to capture 3 to 5 per cent of that." Jacoby has since left the company to go to Volvo, but the Routan is still doing what they expected it to do.

PRNewswire published the June and YTD sales figures of the auto-makers who sell in the U.S. From these reports, we glean the following data:

Brand          YTD - 06/10

Chrysler           60,937

Dodge             49,923

Honda            52,567

Kia                10,012

Mazda            9,295

Nissan               167(discontinued)

Toyota          43,101

Volkswagen    8,090

Total            234,092

Volkswagen's market share of van sales is 3.46%, up from Mayand still in the range Volkswagen of America was aiming for. This is, by the way, nearly twice their overall market share.






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Friday, June 25, 2010

Get It Straight--the Routan Is A Phenomenal Seller

BERLIN - MAY 04:  A Fiat logo on a keychain da..."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.
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Wednesday, June 2, 2010

YTD to May Routan sales


This is not an official release from Volkswagen of America.
Routan showed a percentage gain month-over-month and year-over-year.
The Routan is getting good exposure in the media. Deutch is placing the "Dad drives around the block twice" commercial on family oriented channels, where it airs frequently. Additionally, Apple uses a Routan to demonstrate the iPhone's ability to act as a car remote in the "My iPhone is the family's iPhone" commercial.
Research by Truecar.com indicates that 23.3% of Routan owners are younger than 35. Only the Volkswagen GTI has more owners under 35 in the U.S. at 23.4%. It would appear that Gen Y views the Routan as the best choice if they have to drive a minivan. Once they buy it, they seem to love it, as seen by their entries on blogs and Twitter.
On February 6, 2008, Associated Press reported, in part: "[Volkswagen of America President and CEO Stefan] Jacoby said the minivan market still is approaching 1 million vehicles a year, and Volkswagen would like to capture 3 to 5 per cent of that."
PRNewswire published the May and YTD sales figures of the auto-makers who sell in the U.S. From these reports, we glean the following data:
Brand YTD - 05/10
Chrysler 51,342
Dodge 41,265
Honda 43,296
Kia 7,909
Mazda 8,236
Nissan 166(discontinued)
Toyota 33,744
Volkswagen 6,561
Total 192,519
Volkswagen's market share of van sales is 3.41%, up from April and still in the range Volkswagen of America was aiming for.

Tuesday, May 25, 2010

Automakers' pursuit of youth

MySanAntonio.com

G. Chambers Williams - G. Chambers Williams III

Web Posted: 05/22/2010 12:00 CDT

A new study by the auto website TrueCar.com suggests Volkswagen is doing a good job appealing to youthful consumers. Its GTI compact hatchback had the highest concentration of owners younger than 34, with 23.4 percent. The Routan (above) was the second-highest with 23.3 percent. COURTESY OF VOLKSWAGEN OF AMERICA

… TrueCar uses the 18-to-34 age bracket in its definition of “young” and says its study showed that 18.3 of Mitsubishi's customers are in that bracket, as are 18 percent of Mazda's and 17.6 percent of Volkswagen's.

…Among specific vehicles identified by TrueCar as having the highest concentration of owners younger than 34 were the Volkswagen GTI compact hatchback and Routan minivan, at 23.4 percent and 23.3 percent, …

“Even though customer loyalty is not what it used to be, capturing young buyers is still critical to the longevity of the automakers,” said Jesse Toprak, TrueCar's vice president for industry trends. “Not only do these younger consumers buy cars for themselves, but they also often influence purchase decisions made by their families and friends.”…

TrueCar says the average age of Mazda buyers overall, 47, is the lowest in the industry. Others that come in younger than 50 are Mitsubishi at 47.2; Volkswagen, Audi and Hummer at 47.5; Mini at 48; BMW at 48.5, Jeep at 48.6; Acura and Nissan at 48.7; Infiniti at 48.9; Porsche at 49.1; Dodge at 49.6; Saab and Honda at 49.7; and Suzuki at 49.9….

Toyota came in at 51, tied with Subaru and just barely beating Mercedes-Benz at 51.1 and both Ford and Chevrolet at 51.9. Hyundai's average buyer age is 52.3, reflecting its popularity among retirement-age buyers who are also quite price-conscious. Kia, the Hyundai subsidiary, came in at an average age of 50.2…

Lexus and Jaguar were in the middle at 53.6 and 53.2, but Chrysler skewed a bit older, at 54.5.

Volvo came in at exactly 50, while the GMC truck brand was at 50.1 and the Smart minicar at 52.3.

The automotive columns of G. Chambers Williams III appear Friday, Saturday and Sunday in the Express-News Drive section. Contact him at (210) 250-3236; chambers@express-news.net.

Wednesday, May 12, 2010

Record Month of April for Volkswagen Canada Sales

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Volkswagen Canada announced today that it set a new record for sales in April with a total of 4,394 new vehicle deliveries (2009: 3,496), resulting in a 25.7% increase versus the same time period last year.

As in March, new models again contributed to this sales increase, including the new Golf with a 112% increase, and an 87.5% upswing for the Golf GTI. Other Volkswagen models which enjoyed rising sales during the month were the Jetta Sedan (+62.7%), Tiguan (+36.9%), Routan (+56.1%), Eos (+15.5%), New Beetle (+77.3%), and Touareg (+156%).

The Volkswagen Brand increased its overall share of the total Canadian light vehicle market for the month of April to 2.94% (2009: 2.43%) as industry figures released today showed an increase of 4.0% against the same time period in 2009.