2012 Passat base price ~$20k?! [The Force SuperBowl Ad]

[sgori]

Now that the Aussie dollar, US dollar, and Canadian dollar are all jostling around similar values, "around $20,000" (according to the ad end caption) seems awfully low, even for a base price.

Did they cut every corner? Thoughts? Reasons? Enlighten this newbie.

[anthony]

VW are becomming very aggressive in the US market,and have priced the new Jetta ,its top selling car,to compete directly with the top selling Corolla sedans and Civic sedans,while the all new Passat will be priced to compete directly with the top selling Honda Accords and Toyota Camrys.
This policy is working,as the new Jetta has been selling like hot cakes in all markets where it is allready on sale,and they are hoping it will work just as well with the Passat.

[phaeton]

Now that the Aussie dollar, US dollar, and Canadian dollar are all jostling around similar values, "around $20,000" (according to the ad end caption) seems awfully low, even for a base price.

Did they cut every corner? Thoughts? Reasons? Enlighten this newbie.

One difference is they're building the US Passat in the US so that stops fluctuations occurring in the price other than that US VWs are one of the cheapest in the world.

Also remember we're RHD and have Australian Design Rules legislation that all manufacturers have to meet.

[anthony]

[QUOTE=phaeton;619132]One difference is they're building the US Passat in the US so that stops fluctuations occurring in the price other than that US VWs are one of the cheapest in the world.

VW have a brand new plant in Chatanooga,Tennessee.
The new Passat will b e the first model built there,production starts in March 2011.

[Dubious]

I've generally found US spec cars to have lower-grade interior finishings, which make them feel built down to a price. The reviews of the new Jetta in the states make this same observation.

That said, it pisses me off how despite the AUD being at parity with the USD, cars like the Passat will still cost at least twice as much in this market. I don't buy the whole RHD argument as 1/3 of the world is RHD.

[pologti18t]

People should stop comparing prices of cars in this market compared to the USA.

[Static]

People should stop comparing prices of cars in this market compared to the USA.

I think that's true but it is interesting. As for the ADR's and the RHD absolutely true. Just look at NZ where the lack of ADR's mean just about anything can be sold there - with no real volume.

It's also true that the cars we get here (well the CC) anyway are very well spec'd for Oz. A lot of the included extra would sure add up.

More bloody rain here in Brisbane !

[bigfoot]

People should stop comparing prices of cars in this market compared to the USA.

+1...it's depressing

[pologti18t]

+1...it's depressing

So is their unemployment rate and their base wage rates.

[Dubious]

I think that's true but it is interesting. As for the ADR's and the RHD absolutely true. Just look at NZ where the lack of ADR's mean just about anything can be sold there - with no real volume.

How do ADRs add anything to the price? ADRs basically mirror a lot of other countries' requirements (particularly EU).

NZ actually does require all vehicles sold there to meet either Australian, European, US or Japanese vehicle standards.

[elephino]

How do ADRs add anything to the price? ADRs basically mirror a lot of other countries' requirements (particularly EU).

NZ actually does require all vehicles sold there to meet either Australian, European, US or Japanese vehicle standards.

Australia has a few unique rules in the ADRs. Not anywhere near as many as there used to be about 10-15 years ago, though quite a few are because they've been picked up by other countries. Some ADRs are also considered if they meet other country's rules but this is only a limited number.

As for the price of fish...I mean cars, the US market is a bit weird in regards to cost. Margins are very low, spec can be very different to other countries and then there are wages, taxes and other things which are different to Australia.