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Comments
M
As far as the Passat W8, they still need something inbetween. They have the 190 horspower 4 motion model for 30,000 and the 270 horspower W8 model for 38,000. They need at least a 210 horspower model. Bring out the Audi 3.0!
I think VW has the right idea though. It worked for the Americans back in their glory days: Having 3+ engine and drivetrain options in the same car. It allows people to buy more of what they want and less of what they dont want, and not have to pay for the stuff they dont want.
Although I have been still unlucky at actually driving the new Passat W8 and of course have never seen a Phaeton in the flesh, everything I read about these cars -- and the special dealers that will represent them -- makes me think that they are bargains. VWGUILD is correct -- check the prices of the competition (or at least the intended competition). These new upmarket, uppriced VW's are offering value. That 2003 Passat W8 with sport and 6spd manual will still be in the $38K range -- that's less than a V6 Audi A4 quattro with sport. I know they are not the same -- but they are not THAT far apart.
As my friend says "there's no replacement for displacement. . ."
I think VW will sell as many of these new upmarket cars as they can screw together.
But I've been wrong before.
Anyway -- thanks JP.
Another thing to consider about resale values is that they are calculated off of sticker price. Sure your average Chevy may loose half it's value in a couple of years, but if you figure in the price that was actually paid (because of rebates, dickering with the dealer etc.) the depretiation is not nearly as bad. The reverse holds true for high demand vehicles. They hold their value so well because people paid more than sticker, so the car can be worth several thousand less after a year but still be worth sticker price.
So demand for a vehicle plays a large part in depreciation, it is not all about the quality of the car. A Toyota Corolla has excellent resale value. An Infiniti Q-45 has horrible resale value. One is a mundane badge, the other is a luxury badge.
But also keep in mind that VW is only building like 5000 W8s a year. I am sure they will sell them all, that's hardly anything.
Youaredumb, I understand this is a forum for automobiles. If you don't like Phaeton, at least from what you have heard, please illustrate why thoroughly. Why is it that the Phaeton will be bad choice for people shopping for cars like this?
We've been invaded by a many-times-banned troll - I've removed all of his posts and some of your responses. I will continue to remove his posts, so please don't respond.
Thanks!
Pat
Sedans Host
I would take it one step further and say that many wealthy car buyers actually avoid the snobish badges because they do not want to call attention to themselves. People like this would welcome a sleeper car like the W-8 or the Phaeton.
Remember many rich people did not get that way by overspending just for the sake of prestige. They make wise decisions in business, and that carries over to their personal lives.
For the people that feel a luxury car from VW group should have the Audi name on it. How do you feel about almost every part on an Audi having the VW name on it?
CAR (British) questioning Piech's strategy.
It's kind of ironic that the company that invented the "Lexus concept" before Toyota did is now risking throwing it away.
2001 BMW 330ci/E46, 2008 BMW 335i conv/E93
2009 BMW 335i, 2003 Corvette cnv. (RIP 2001 Jaguar XK8 cnv and 1985 MB 380SE [the best of the lot])
I like to travel to Europe -- a lot -- so I live in a less expensive house and drive a less expensive car than I can "afford." I had an Audi A8 in 1997, having it meant I could only go to Europe three times a year -- but I could afford it. I have since had three A6's, most recently an A6 4.2, the year I got this car, I went to Europe on vacation 6 times. I can't afford an A8 or a million dollar house because I can afford to go to Europe.
Let's not go down the affordability path -- from certain points of view, the Phaeton, I am convinced will be perceived as a very inexpensive car. My "compass" is set to "afford" cars that top out around $50K -- but my bank will let me go for much more.
I think the Phaeton's future is not certain, but I'll wager that it will be very affordable for far more people than there will be cars available.
http://www.germancarfans.com/photos.cfm?PhotoID=3020523.002
M
I do not believe VW will have much success with the Phaeton. Sure they will sell a few but customers with that sort of cash would prefer to to own an Audi, BMW, or Mercedes.
Does that mean that people who would never consider purchasing a high end VW are snobs. No... It just means that established luxury brand dealers are able to deliver a level of service that VW simply cannot match. Also when you decide to spend big bucks on a car, resale value is very important.
Have you seen the Letter from the Town Hall Manager on the Town Hall Welcome page? If not, you might want to follow that link to have a look.
And hang on to your seats. Change is never easy - for any of us - but resolving the Search problems we've had will be worth the pain.
Pat
Sedans Host
(I'm allowed to spam. You're not. Ha ha ha - just kidding!!!)
M
people are paying more for cars becaue they want a particular experience, whether it be driving, the leather, the heads they turn (i'm quite tired of being told on this forum that audi owners somehow suffer from insecurity more than any other auto owner), or the dealer experience.
the point is this: vw does not have that brand marquis established in this country to justify the cost of the car. yes, it's a truly gorgeous engine (i'll reserve comment on the body--i think the back looks like a corolla), and car enthusiasts will beat a path to it's door to sing it's praises (and call those of us "dumb" enough to buy an acura snobs).
the argument really is whether vw will be a success selling this product, whether it will cannibalize the audi line, and if the phaeton will go anywhere beyond the die-hard vw fan or die-hard engine block fan.
my guess is, right or wrong, that in this country, it will have an uphill battle. and jamrock4 put it best: us dumb folk aren't gonna shell out that kind of money for that kind of experience when it tells me before i even get in the car that the car company is not known for top of the line ANYTHING, be it dealers, service, reliability, engines, or just plain leather.
if it were the same car with the four rings of audi on the back of the toyota corolla, as dumb as i and the rest of us swayed by brand perception are, it would be a different story.
dumb move, vw.
produced for the existing Volkswagen Enthusiast that is maturing both chronologically & financially...The customers are Different, Original, Honest, Friendly, and Approachable and
so are we at Volkswagen...That is the VW Promise.
Without these products VW Customers have been
forced to leave the Brand for BMW, MBZ for a more
powerful and luxurious car or an SUV.
If some other folks want to jump on as well; that is great, but we are here to provide Value...if
someone needs to see a star on the hood; go down
the street...
Audi has taken lots of sales from BMW and Mercedes in Europe and could do so in America much more so than "upmarket" VWs.
2001 BMW 330ci/E46, 2008 BMW 335i conv/E93
Engineers may not understand this but as a marketing guy I'll tell you brand equity is an extremely valuable resource. VAG is largely wasting the equity it owns in brands like Bugatti,
Auto Union and Horch and now with the Phaeton is jeopardizing the equity they own in Audi.
It's possible that the Passat W8 could hurt Audi even more than the Phaeton. An A8 competitor is one thing but an A6 competitor strikes at the heart of the brand.
The historical antecedent is the introduction of the Chevy Impala in 1958 which by giving the pedestrian Chevy brand a powerful, luxed out, "aspirational" car diminished the equity of the Pontiac, Olds, Buick and even Cadillac brands causing the eventual collapse of the Sloan Paradigm on which GM was built.
They've been trying to recover ever since.
2001 BMW 330ci/E46, 2008 BMW 335i conv/E93
Now, in Europe, people are more focused on overall quality than a brand name. You can read tests where a Ford Mondeo would beat say an Audi, and noone would come and say: How can you even compare the two, the Audi is a luxury car! That simply isn't true. I think people buy a car because it's good, and not because they need to show off the three-pointed star on the hood. That is why they could never sell a re-badged Camry or a even worse, a re-badged Chevy/GMC truck (as Cadillac for twice the price).
While I am not sure if the Phaeton will be a success in the brand-concious US, it is very likely that it will be a success in Europe, which is the target market. The Phaeton was not developed for the US market, unlike the Touareg or the Mercedes M-class or BMW X-series (or any other SUV), they are specifically targeted for the American market.
Overall, if the VW holds what is promises, that is, give S-Class quality for a low price, then I am in for it. And the people who need a brand name to show off are usually the people who can't afford it anyway, so who cares about them. Millionaires usually don't get rich by showing off and spening money stupidly, they get rich by making wise financial decisions.
I'm still more worried about the Passat W8's effect on Audi A6 sales than I am about how the
Phaeton affects A8 sales.
2001 BMW 330ci/E46, 2008 BMW 335i conv/E93
I am in Germany for the summer and I went to the VW dealership down the street to get a look at the New Phaeton. The car is AWESEOME. It has absolutely everything one could imagine, even air conditioned leather seats! I wish I could have test driven it. It was released here at the beginning of May.
Anyway, the car I saw had a W12 engine and was loaded with every option. Price was 108,000 Euros or about 102k US dollars.
The sales guy was nice and he told me an intersting tid bit about the car -- The German Chancellor, Schroeder, drives a New Phaeton. He was givin the first one by VW AG. LOL.
In the long run VAG gets the money either way but if it gets too confusing I just might consider other alternatives.
The great thing about the Sloan hierarchy was that it kept people focused on the next step up the ladder. That made a lot of money for the General.
Does that make any sense to you?
2001 BMW 330ci/E46, 2008 BMW 335i conv/E93
I've struggled over last several months with new car decision and was all ready to go with the A6 3.0 quattro.
But, I just had two days of test drives to evaluate the W8 at length and what an impressive car. It's only not a threat to Audi for those folks that really want another 5 cu ft of trunk space, dual-zone temps, 12-way seats, all 1-touch windows, full-size spare, folding rear seats, 1st aid kit and warning triangle, and the 2" of rear leg room along with a few other items. Otherwise it's a great value and impressive engine for sure. The big impact item for me is the trunk and rear seat space.
Bring on the Phaeton, I can't wait to see & drive it in person!
these three products...W8, Touareg, and Phaeton...
are Primarily designed for the long standing VW
customer that is now older and wealthier than when they first started driving and loving Volkswagens. These very precious folks have been
forced to leave the Brand to find a more luxurious and/or powerful car or and SUV. Focus groups & Marketing surveys have determined that
less than 4% of Audi Customers have been cross-
shopping for the past few years(98/99 to today).
Also important to remember is that although these products are new to you, they are not new to VW
Staff...All of these cars, and a few more were
on display for the 2001 Dealer Meeting in Berlin.
The points of differentiation are still obvious
to me, particularly in terms of styling, and *aggie76* clearly points out the others...
At that price point the only reason the car would fail would be VW's lousy U.S. dealer setup. I truly think an ideal VW dealer with a 62K 12-cylinder car will cause a many E500, S-Class, 7-Series, LS430, XJ8, and A8 buyer to seriously pause. I think Automobile may be way off on the price, it'll probably be closer to 75K for the W12. In short VW AG has done their job now it's up to VoA to do theirs.
M
all these techies and lawyers in my neck of the woods (DC burbs) with all of this money, and they only have the 7, S-class, and LS430 to really consider. VW will sell each and every Phaeton they can get over here.
i just hope that VW dealers get their dealers to offer good service, all of the time. it is not that they don't know how, it is that parts take too long, and they don't have enough space. VW sales have EXPLODED, but the service bays have not.
go Phaeton!!
ps. not sure the W8 Passat will go anywhere....
M
but...
Only select Dealers will be handling the Phaeton,
Touareg, The MicroBus...Those Dealers that meet
Brand Standards; those that don't will be left behind...
To illustrate my point Toyota, Honda, and Nissan have made big bucks by each creating an upscale brand to sell dressed up versions of their midsize sedan for big bucks. Mazda tried to sell an upscale sedan the millenia under the Mazda brand name and it was a dismal failure.
Here is a thought. Forget about trying to sell the Phaeton as up upscale VW sedan. VW should ditch the AUDI A8 which has been a boring sedan that has generated few sales in America and replace it with the VW Phaeton. But instead of calling it the VW Phaeton how about calling it the AUDI A12 and selling it at a base price of $75,000 dollars.
Lets get real. None of my friends who own a BMW 7 series or Mercedes S class would be caught dead in a VW. However they would all give SERIOUS consideration to an AUDI A12 (twelve cylinder) vehicle that costs less than a V8 from BMW or MB.
To make things more interesting if the Audi A12 has a 12 cylinder engine that is capable of shutting down 4 cylinders for those times when you are driving less aggressively then the gas mileage might be comparable to a V8.
The preceding is not science fiction, the tecnology exists today to make it happen. Not sure if VW is able to create a sophisticated 12 cylinder as I described that is economically feasible, however if they offered an Audi A12 for less than the price of a MB or BMW V8 the Volkswagen Corporation would be poised to make a signicant dent in the high end luxury sedan market.
"Lets get real. None of my friends who own a BMW 7 series or Mercedes S class would be caught dead in a VW."
What does that say about your friends ?? You can answer that ...
There are more than a couple of people in this world, even though they have money, would prefer to get value for their money. Putting Audi on it would force them to jack up the price more, how ridiculous !
Le moi est haissable, who said that?
VW, as has been pointed out, has a luxury division in Audi. However, there are people out there (like timtran and myself) that wouldn't want to buy an upscale luxury vehicle like a MB, BMW, Lexus etc., because of the associated "snob" factor that comes with those vehicles. That having been said, I don't know if the Phaeton will be a hit or a miss here in the states but it will be interesting to see what the result is. One thing I can say is that the Phaeton should separate those that can afford high priced cars into two catagories: Those that want to DRIVE a luxury vehicle, and those that want to be SEEN driving a luxury vehicle.
Just my $.02
You might say, why buy a luxury car, if you don't want the upscale brand. The answer is simple, safety. Only the more expensive cars offer the safety features that I feel are necessary. Most of them can't be found in cheaper cars.
If Volkswagon made a $100,000 car that safer than anything else there on the road, I would most definately buy it. You only live once, and everyone gets into one major car accident on average.
"I am quite well off myself, but I would never want to be caught driving a Mercedes or BMW."
Both positions are valid but the number of consumers holding the first position far outnumber those believing the second. I think VW is targeting a certain niche and will succeed, but if VW expects to generate sales figures equivalent to say a Mercedes S than they pretty much have to compete for "status seekers."
"One thing I can say is that the Phaeton should separate those that can afford high priced cars into two catagories: Those that want to DRIVE a luxury vehicle, and those that want to be SEEN driving a luxury vehicle."
There will be plenty who want both.:)
I think you underestimate those who do not seek status. Until now, there has been not one full luxury car that has not sought out a prestigous name. Toyota gave us lexus, Nissan gave us Infiniti...etc.
The "status seekers" will always show their face in the entry luxury class...like the BMW 3 series and the Mercedes C class. As you move up the price ladder, you will most likely find that less and less people buy the S class and 7 series for status.
VW is catering to a market that has huge potential, but has never been addressed before. The number of people that can afford a $75,000 luxury car in this country is absolutely huge, however luxury car sales do not reflect this at all. VW will be marketing this car to those who can afford and those who want the powerful and luxurious car, but would hate to be seen in something that would tell the world that they are rich.
I know my fair share of these people too. There is nothing they despise more than money seeking, or fair weather friends, and flaunting wealth on the order of the Tri-Star is only attracting that.
No I don't think I underestimate the number, BUT I'm not saying they are so few and rare as to be ignored. Like I wrote earlier, I believe VW will succeed with the Phaeton with this group simply not in comparable numbers to Mercedes for a long time if ever.
"The "status seekers" will always show their face in the entry luxury class...like the BMW 3 series and the Mercedes C class. As you move up the price ladder, you will most likely find that less and less people buy the S class and 7 series for status."
Agreed for the most part although I see my fair share of guys stretching to get to S and 7. They may not be buying s and 7 series for status alone, but it is certainly important to many of them. This is reflected throughout consumer behavior from home purchases to those delightful Viking gourmet ranges. There is far more conservatism as you go up the price ladder. Yes I know not everyone who can afford it automatically targets the largest home in the poshest district or an S or 7.
All I'm trying to say with zero value judgement is that I understand where the previous "anti-snobbery" posters are coming from but VW would be foolish if they ignored this sentiment:
"Lets get real. None of my friends who own a BMW 7 series or Mercedes S class would be caught dead in a VW."
M
"Lets get real. None of my friends who own a BMW 7 series or Mercedes S class would be caught dead in a VW."
"
They arent that foolish. That is why they have the Audi A8! The A8 doesnt sell well right now, but that is because it is the oldest model in the lineup, and is due for a replacement very soon. A stunningly beautiful and impressive replacement, I might add.
I am saying that VW is going after a certain type of buyer...a buyer that is capable of spending the money, but would never buy a flashy luxury nameplate. For those who wont buy a $80,000 car without a premium badge on it, that is what the Audi is for.
You see, I think it would be foolish to badge this car as an Audi, because it does nothing to the current Audi market, but will take advantage of a very capable market that hasnt been touched yet.
And hopefully, if successful, we will start seeing Toyota Altezzas and Nissan G35s(Skylines), Nissan Glorias, etc...