Originally Posted By: JHZR2
Case-in-point, wife's VW rabbit was made in Germany. An equivalent Jetta was made in Mexico. The delta in price was within a few hundred - the real cost, likely thousands of dollars different. Now, one may say that the Mexican sales are subsidizing the price of the German-made car, but show me proof to such a concept. i have yet to see it.
I'm guessing it's a bit more complicated than this. If Jetta cost thousands less than Rabbit/Golf, it would be perceived by the marketplace that it is somehow inferior, less of a car - an image which VW wants to avoid. They want you to feel that you're getting the same quality, regardless of where the car is made. Or, alternatively, nobody would buy the Golf thinking that it is way overpriced in comparison. I seriously doubt many people would dish out a few extra grand for it just because of country of origin. Besides, the 2.5-liter engine in that German Rabbit/Golf is still made in Mexico... the transmission comes from yet somewhere else...
Case-in-point, wife's VW rabbit was made in Germany. An equivalent Jetta was made in Mexico. The delta in price was within a few hundred - the real cost, likely thousands of dollars different. Now, one may say that the Mexican sales are subsidizing the price of the German-made car, but show me proof to such a concept. i have yet to see it.
I'm guessing it's a bit more complicated than this. If Jetta cost thousands less than Rabbit/Golf, it would be perceived by the marketplace that it is somehow inferior, less of a car - an image which VW wants to avoid. They want you to feel that you're getting the same quality, regardless of where the car is made. Or, alternatively, nobody would buy the Golf thinking that it is way overpriced in comparison. I seriously doubt many people would dish out a few extra grand for it just because of country of origin. Besides, the 2.5-liter engine in that German Rabbit/Golf is still made in Mexico... the transmission comes from yet somewhere else...