VW may axe Taos and Jetta under restructure

I really think manufacturers should focus on making one really cheap car in their lineup. The smart people in the next generation isn't going to drop 40k on an equinox, they'll be driving used cars and cheap sedans because they can't afford anything more expensive or less fuel efficient. Now there will be plenty of people who just go deep in debt for the car they want, but I don't know if that's the customer base a company wants for long term stability
It'd be nice if they had a strategy of having a cheap car for new college grads or high schoolers, try to get them into their ecosystem early on. Then bigger and better vehicles for when they get older and have more income.

But I don't know if it worked. Toyota did the Scion thing and found they sold to old folks instead. And these days no one wants to wait in life to have the better things--they'd rather have it now. Even if it takes financing.

And since many have shown that they are happy to roll negative equity and keep on buying... why would an OEM change? The OEM tends to worry about this quarter's sales, not a decade down the line (most of the execs will be elsewhere by then). Only when sales drop do they care. And these days, by focusing on higher profit margins, they can get by with lower unit sales. If people will buy no matter what, then dropping the lowest profit models and focusing on the money makers is just straight capitalism.
 
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