Rumoured Golf pricing bad news for Skoda?

[BluChris]

Surely they'd have to offer it on Skoda too? If not, then yes the brand will really struggle.

Given the strength of VW, and especially Golf, in Australia, this will also be a huge issue for the other manufacturers. If Golf VII has the improved reliability it needs (no more dodgy 7 speed DSGs, disintegrating engines etc), then with reduced price and capped price servicing they will sell bucketloads. Honda especially should be worried - in the doldrums sales wise, not especially price competitive and 6 month service intervals with no capped price servicing.

OTOH dealer attitudes to servicing also need some work. Hopefully VAG will impress this upon the less helpful out there that customer service is paramount.

[Dutch77]

Keeping in mind a $20k Golf would be bare bones and 77TSI.. whereas I think base Octavia is 90TSI and I assume there is more room in these? They start at $25k which is where a 90TSI Golf currently sits as well, so if VW were consistent and knocked this price down, then Octavia would probably need to follow suit.

Question is whether they leave 77TSI as a price leader down low, then keep 90TSI equivalent at the $25k mark with more options. Guess it's all speculation for now.

(But I suppose my point is people are still buying up Octavias that are priced in line with Golf models)

[zei20t]

id buy a skoda purely on fixed price servicing! you get more car for your money than the equivalent golf. and I don't mean physical size

IMO the skoda is a better choice, but some people don't like the styling. I only semi-like it. but its so much fun to drive!

[PassatB6]

There will have to be a Skoda price drop. Otherwise people will simply move from Skoda to VW, which is probably no advantage to VAG. This would cause VW to cannibalise its own profits. The aim is not to compete with Skoda but with Hyundai. A cheap Golf is an attempt to get at Hyundai/Toyota etc.

[woofy]

The one thing to keep in mind though, is that a Rapid and the new Octavia are much bigger cars inside. If they drop the Jetta pricing, that is when things will get worrying.

The main models that will be affected will be the Roomster and the Fabia, but likewise the Polo will be under some cannibalism there. I'm sure the Rapid will be priced with the Golfs new pricing in mind.

[K1W1]

Keeping in mind a $20k Golf would be bare bones and 77TSI..

No. they are talking about a model with a smaller engine (1.2L?) than the current 77TSI.
Sure it would be a loss leader but if you are Mr or Ms Average and you want to buy a new car and you see $19,990 on road (or whatever) for a new GOLF which dealership are you going to head straight towards? You may not drive out with a $20k car but you sure as hell are going to give the VW salespeople a fair chance of selling you something. Why would you even bother to go to a dealership selling cars (Skodas) that you may know nothing about?

[K1W1]

is it me or is there no advertising for the Octavia?

What can they advertise?
All that is around is 12-18 month old stock in limited colours and options. I doubt that they are even taking orders for the new model yet and they will be 8-10 months away before delivery. Do you seriously think a $25-35k new car buyer would be prepared to wait that long?

[K1W1]

A cheap Golf is an attempt to get at Hyundai/Toyota etc.

I reckon that they are after the Mazda 3.

[K1W1]

This is not where I first saw the story but it's the same story in a different newspaper.

Selective quotes;

"“At the end of April we are unveiling our prices, and you will be astonished,” she says."

“We have created a new entry level model with the Golf that we will present to you, and we’ve added a lot of value to the car as well.”

But read the whole story (Link) for yourself.

[Rooboy]

I've just been having a quick look through some old issues of Wheels and we are really spoiled for choice and value now.

Back in 2001 there were 38 manufacturers listed in the showroom section growing to 41 in 2006 and currently it stands at around 50 with a huge growth in niches and models. The base list price of a 323/Corolla was just under $21k while the Golf was $26k. The price of the 3 and Corolla have remained the same or a bit less but the Golf has dropped to $22k just to compete. I think this is due to the improved quality and features of the Japanese and, particularly, the Korean cars eroding the premium that a Euro model used to command. It's meant that VW have had to reduce the prices to maintain growth rather than relying on people paying the extra for the higher quality product. Its also had the flow on effect of pitching the Golf in direct competition with Skoda rather than a complementary sales strategy of Skoda as the price fighter entry model and VW as the aspirational premium model.

VAG have invested far too much bringing Skoda here to just let it go but they do need to re-think their current strategy. I guess we'll find out more when the Rapid pricing and equipment levels are announced.

I really can't believe the Hyundai coupe cost more back then than the 86 does now

[Dutch77]

No. they are talking about a model with a smaller engine (1.2L?) than the current 77TSI.
Sure it would be a loss leader but if you are Mr or Ms Average and you want to buy a new car and you see $19,990 on road (or whatever) for a new GOLF which dealership are you going to head straight towards? You may not drive out with a $20k car but you sure as hell are going to give the VW salespeople a fair chance of selling you something. Why would you even bother to go to a dealership selling cars (Skodas) that you may know nothing about?

I didn't read it that was initially but yes I see what you're saying, it's quite possible they go for this other 1.2 model / 66TSI as the Brits have.

I also agree that yes people are going to gravitate to that as well. I don't know how the Skoda dealers are set up elsewhere, but here in Adelaide it sits next to the VW dealer and I get the impression a lot of people stroll through while they're looking at the VWs but end up staying with the VW in the end.

[brad]

No. they are talking about a model with a smaller engine (1.2L?) than the current 77TSI.
Sure it would be a loss leader but if you are Mr or Ms Average and you want to buy a new car and you see $19,990 on road (or whatever) for a new GOLF which dealership are you going to head straight towards? You may not drive out with a $20k car but you sure as hell are going to give the VW salespeople a fair chance of selling you something. Why would you even bother to go to a dealership selling cars (Skodas) that you may know nothing about?

One of my mates went to buy a base model polo. Drove it & hated it. Drove a 77tsi & could see the value in forking out a few thousand more.

OTOH, when I was at Toyota we would buy 10 basic Corollas (no rear parcel shelf & no radios IIRC). They would price them very keenly & advertise in Saturday mornings paper -all 10 would be sold by Sat lunchtime & the smart sales guys would upsell AC & a cheap radio. In addition we'd probably manage another 10-20 sales of the better models. I'd have my arse hanging out on the Monday doing PDs & AC/accessory installs as these buyers wanted the car NOW!!! or they would walk.

[Dutch77]

One of my mates went to buy a base model polo. Drove it & hated it. Drove a 77tsi & could see the value in forking out a few thousand more.

OTOH, when I was at Toyota we would buy 10 basic Corollas (no rear parcel shelf & no radios IIRC). They would price them very keenly & advertise in Saturday mornings paper -all 10 would be sold by Sat lunchtime & the smart sales guys would upsell AC & a cheap radio. In addition we'd probably manage another 10-20 sales of the better models. I'd have my arse hanging out on the Monday doing PDs & AC/accessory installs as these buyers wanted the car NOW!!! or they would walk.

^ this..

I went to look at an R, let the mrs test drive the up!, noticed discounting on the Polo, saw cost to go up to 77 was ok, dealer had one with sports pack on the floor, deal done.

Lol @ a/c upsell.. I'm guessing this was some time ago.

[VAG newbie]

As we have discussed before in many other threads, VWa's goal is not for Skoda to be a success or major player here. All they want is getting the Toyota/Hyundai buyers to go VAG. Whether u buy Skoda or VW, they don't care.

IMHO I believe initially VWa was hoping Skoda could attract some of those Hyundai/Toyota buyers into buying Skoda. However, it didn't really work (multiple factors: brand awareness, quirky styling, over pricing, poor dealer network...etc), so VWa has now decided to leave Skoda in the niche and focus on VW.

At $20k, Golf will definitely hurt Skoda. But since VWa won't let it be a major player, they don't care. There will still be some buyers, like many of us, who will find Skoda meets our need more than VW and stick to it. Lets face it. If you are a father with 2 kids who needs a family car, a Golf will definitely be too small, but an Octy will meet that need.

Will I get another Skoda? It's hard to say. I love it in every way. But with similar pricing, I could get a better equipped Passat / Mazda6. This will definitely affect my decision. Lets see how Skoda will respond. But don't be too optimistic.

[K1W1]

As we have discussed before in many other threads, VWa's goal is not for Skoda to be a success or major player here. All they want is getting the Toyota/Hyundai buyers to go VAG. Whether u buy Skoda or VW, they don't care.

So first of all you have inside information as to VW's corporate strategy

IMHO I believe initially VWa was hoping Skoda could attract some of those Hyundai/Toyota buyers into buying Skoda.

Then you "believe" that you know what they intended to do

But since VWa won't let it be a major player, they don't care.

Then you once again know VWs strategy.

It seems to me that you are the only person who has this information and almost every post you make in the Skoda section of the forum is negative towards Skoda and purports to have inside information about VW so as I have asked you before please put up or shut up.
Your posts are contradictory and do not make you look at all good. All they do is indicate that you have a personal bias against Skoda that you attempt to present as fact.