VW may axe Taos and Jetta under restructure

[wemay]

VW has shared it's struggles as of late and i understand some models have to go. But why entry level vehicles? Wouldn't this place the brand further out of reach for so many? Hopefully this just speculation.

https://www.caranddriver.com/news/a71921037/vw-jetta-taos-porsche-taycan-chopping-block-report/

 

[dogememe]

That's dumb, that's the only two newer VW products I see on the road on a daily basis. Atlas seemed to do well for a few years but they seem rare now.

 

[skyactiv]

The hard reality is that Americans don't want to buy cars. The Mazda6, Subaru Legacy, Passat and Impreza among others sedans are no more.
Here is a thought I have. Cars like an Accord sell for less than a Honda Pilot. The Pilot cost more to make, but not as much as you'd think. Auto makers make a lot more profit on a mid sized SUV than on a car.

 

[wemay]

The hard reality is that Americans don't want to buy cars. The Mazda6, Subaru Legacy, Passat and Impreza among others sedans are no more.
Here is a thought I have. Cars like an Accord sell for less than a Honda Pilot. The Pilot cost more to make, but not as much as you'd think. Auto makers make a lot more profit on a mid sized SUV than on a car.

I agree. But that still leaves the Taos.

 

[SC Maintenance]

No margin maybe?

Kinda like Ford only wanting to sell trucks?

Short term thinking.

 

[AZjeff]

No margin maybe?

Kinda like Ford only wanting to sell trucks?

Short term thinking.

So makers should sell a few cars at a low margin and higher costs due to low production until people might start buying them again? If people prefer SUVs and CUVs now instead of sedans what will change their mind? Maybe the last maker making sedans will gain the sales needed.

FWIW my daughter's 2025 Jetta base is a nice car with more features than you need and has had no problems. She likes it, I'd never buy one.

 

[MrBubba]

The VW Jetta and Golf are the only VW cars I would consider buying seems like a dumb decision.

The Jetta is their only sedan meanwhile they have 5 different SUV options, that should be where their focus is.

 

[SC Maintenance]

So makers should sell a few cars at a low margin and higher costs due to low production until people might start buying them again? If people prefer SUVs and CUVs now instead of sedans what will change their mind? Maybe the last maker making sedans will gain the sales needed.

FWIW my daughter's 2025 Jetta base is a nice car with more features than you need and has had no problems. She likes it, I'd never buy one.

Not telling anyone what to do. There only obligation is to there shareholders. Only speculating on why they might be exiting those markets?

 

[edyvw]

VW has shared it's struggles as of late and i understand some models have to go. But why entry level vehicles? Wouldn't this place the brand further out of reach for so many? Hopefully this just speculation.

https://www.caranddriver.com/news/a71921037/vw-jetta-taos-porsche-taycan-chopping-block-report/

How else do you think they ended up in this situation?

 

[RBT]

VW has shared it's struggles as of late and i understand some models have to go. But why entry level vehicles? Wouldn't this place the brand further out of reach for so many? Hopefully this just speculation.

https://www.caranddriver.com/news/a71921037/vw-jetta-taos-porsche-taycan-chopping-block-report/

It is the same reason the U.S. car companies like trucks and SUVs - it is a more profitable vehicle that better suits their higher cost base. But it stinks for enthusiasts because cars like the Golf and the Jetta are nicely sized and fun to drive.

 

[macarose]

They have to cut something and the easiest ones to eliminate are the least profitable models.

It's been that way for decades on end. Either you get the very tip of a market nobody really wants anymore (Sebring convertibles, MINI subcompacts) or you take that money and invest in a segment that offers better returns.

 

[SC Maintenance]

They have to cut something and the easiest ones to eliminate are the least profitable models.

It's been that way for decades on end. Either you get the very tip of a market nobody really wants anymore (Sebring convertibles, MINI subcompacts) or you take that money and invest in a segment that offers better returns.

True. But I think it also means there abandoning the developing world and first time buyer. They likely have no choice. So begins the death spiral.