Good Car Bad Car - VW making the tough business decisions

[JeffKeryk]

Good Car Bad Car article...
VW is considering altering product mix, consolidating configuration options including drivetrains and collapsing factories. Business will be brutal; I salute CEO Blume for making the tough decisions and wish him well. As a veteran of Silicon Valley High Tech I am all too familiar with tough business decisions.

"The model lineup will be streamlined by up to 50 percent and concentrated on the segments the group considers most attractive. Product and variant complexity, meaning the trims, powertrains, and equipment packages a buyer can order, comes down by up to 75 percent. Production capacity gets resized toward roughly nine million vehicles a year. Halving the model range is among the largest product retreats any German automaker has put on paper."

Beyond that, the China EV market is proving to be tough and EV piece of the biggest car market is about 46%.

 

[Passport1]

They should bring back the original beetle. Air cooled engine, original body 100%, bare bones interior. Would sell millions of units the first year. VW lost their compass years ago.

This is the way back out of the Black Forest.

Hemmings

 

[fantastic]

Yep, VW is in trouble.

 

[Zee09]

They should bring back the original beetle. Air cooled engine, original body 100%, bare bones interior. Would sell millions of units the first year. VW lost their way years ago.

This is the way back out of the Black Forest.


View attachment 347952
Hemmings

Nah my favorite

 

[fsdork]

They should bring back the original beetle. Air cooled engine, original body 100%, bare bones interior. Would sell millions of units the first year. VW lost their way years ago.

This is the way back out of the Black Forest.


View attachment 347952
Hemmings

Besides being non-compliant with regulations and therefore impossible to sell in developed countries, that's a fantastic business plan.

 

[AZjeff]

They should bring back the original beetle. Air cooled engine, original body 100%, bare bones interior. Would sell millions of units the first year.

And any thoughts of safety be ****ed.

 

[JeffKeryk]

They should bring back the original beetle. Air cooled engine, original body 100%, bare bones interior. Would sell millions of units the first year. VW lost their way years ago.

My '64 bug was one of the greatest vehicles I've ever owned.
I've always wanted a split window... Beautiful!

 

[Number_35]

Besides being non-compliant with regulations and therefore impossible to sell in developed countries, that's a fantastic business plan.

I think VW would do much better updating the c. 1975 Rabbit to modern safety standards (that is, offering a space-efficient affordable hatchback), and offering their EV bus as a hybrid/PHEV, and/or ICE vehicle. A camper-version (Westphalia) option would probably sell well.

 

[JeffKeryk]

Yep, VW is in trouble.

Reluctance to change is human nature.
Change is the only constant. I salute CEO Blume for making the tough decisions. Will they work? Some will and some won't. But inaction is death.

 

[supton]

I think VW would do much better updating the c. 1975 Rabbit to modern safety standards

Haven't they done that already, with Jetta or Golf or whatever? Continuous improvement.

IIRC the '75 Rabbit was on the small side... like Mitsubishi Mirage sized. The Mirage sold well and was in high demand, right?

 

[fantastic]

Reluctance to change is human nature.
Change is the only constant. I salute CEO Blume for making the tough decisions. Will they work? Some will and some won't. But inaction is death.

Very true, they all think they have the winning formula but the pressure of change needs to be followed. I still hope all of these automobile manufacturers survive, as you well know, competition is what us consumers need.

 

[tcp71]

75 Rabbit was the first vehicle I drove once I got my license...4 door in orange...1.5liter 4 speed manual.
I used get a ride to school in a buddy's 68 beetle. In the winter you had to start the separate gasoline heater to gain a few degrees from the outside temperature and scrape the windshield on the inside with an ice scraper to see forward. The wipers were useless. NOT the good-old-days in any way.

 

[fdcg27]

Reluctance to change is human nature.
Change is the only constant. I salute CEO Blume for making the tough decisions. Will they work? Some will and some won't. But inaction is death.

It may be that having recognized the problems early enough VW can survive and prosper.
OTOH, very few companies have been able to shrink to profitability.

 

[Passport1]

Reluctance to change is human nature.

But change happens when the cost of staying the same exceeds the cost of change.

 

[Allaned]

I think VW would do much better updating the c. 1975 Rabbit to modern safety standards (that is, offering a space-efficient affordable hatchback), and offering their EV bus as a hybrid/PHEV, and/or ICE vehicle. A camper-version (Westphalia) option would probably sell well.

They have updated the Golf Rabbit and call it a GTI. Safety standards have made it heavier and more expensive (maybe not due to inflation and technology). It is certainly safer and is a space efficient hatchback Lots more power than the '75 edition. I have one (see it in action at the autocross in my picture). I love driving this fun car.

Occasionally they have a "Rabbit" edition which is mostly badge changes from the regular GTI.

 

[crashz]

Wonder if they will continue with the Scout investment? That has to be costing them $$$.

 

[Vil_Riker]

But change happens when the cost of staying the same exceeds the cost of change.

They are retooling VW factories in Germany to make weapons. Brings back uncomfortable memories.

 

[JeffKeryk]

But change happens when the cost of staying the same exceeds the cost of change.

That's all too often true, and is costly.
On the other hand, leaders, by definition, don't follow.

 

[edyvw]

Their “strategy “ in the US is indicative of arrogance and hubris of this company.
In EU they are selling hybrid Tiguan for 6 years, here it will come, maybe, in 28/29. Just small example.

 

[Number_35]

Haven't they done that already, with Jetta or Golf or whatever? Continuous improvement.

IIRC the '75 Rabbit was on the small side... like Mitsubishi Mirage sized. The Mirage sold well and was in high demand, right?

You're probably right.

My tastes are out-of-sync with those of the general public.