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VW is lining up products better tailored to fit the U.S. market, while banking on a growing acceptance of diesel engines.
With a renewed focus on vehicles tailored to the North American market, Volkswagen has a slew of products in the pipeline.
In the coming years, look for a return of the top-of-the line luxury Phaeton, a new four-door pseudo-coupe slotted just below it, and a replacement for the Passat that is substantially larger then today’s model, as well as a minivan and an emphasis on diesels, Stefan Jacoby, president and CEO of Volkswagen of America, tells Car and Driver in an interview.
Starting from the top of the line, VW is investigating the return of the Phaeton to the North American market, says Jacoby, who recently moved from Germany to oversee U.S. operations.
“I think it fits perfectly in the market. We will bring it back,” he says, adding the automaker is sorting out timing and specifics.
Bigger, More Powerful Phaeton Launched in the U.S.
The sedan, which marked VW’s first foray into the high-end luxury segment, was first introduced in Europe with a short wheelbase and V-6 in 2002. American officials argued for a bigger, more powerful version and convinced the parent company to engineer a stretched Phaeton with a choice of a 335-hp, 4.2-liter V-8 or 420-hp, 6.0-liter W-12 engine for North American debut a year later.
The automaker invested $212 million in the showpiece Die Glaserne Manufactur—the Transparent Factory—in Dresden, Germany, that essentially is a glorified trim line. It finishes 30 or 40 painted car bodies a day that arrive by train, as well as serving as a distribution center. Excess capacity now is being used for final assembly of the Bentley Continental Flying Spur (Silver Spur in Europe) to help the Crewe, U.K., plant meet demand.
The Phaeton, which was offered as a four- or five-seater in the U.S., sold a fraction of its forecast, with consumers seemingly reluctant to buy a luxury vehicle with a VW badge that didn’t look much different from a lowly Passat. Volkswagen pulled the Phaeton from the North American market in 2006, but continued to sell it in Europe.
The sedan will rely on a face-lift until the next generation bows in a few years, Jacoby says. The U.S. must wait for the second-gen Phaeton, he confirms. And he hints strongly that under the hood will be a diesel—and perhaps only a diesel—a bold but risky move in this market.
We expect there will be only one size Phaeton when the replacement bows—the stretched version. That leaves more room for a vehicle positioned between the Passat and the Phaeton.
CC to Fill Gap Between Phaeton and Passat
Back in 2003, the vehicle envisioned to fill this white space was known as C1, the child of an alliance between Audi AG and Maserati SpA that was to spawn a vehicle from the Maserati Quattroporte platform. The alliance fell apart and the C1 project was scrapped. But the idea lived on, remanifesting itself as a new sedan dubbed the CC.
Jacoby says the CC is coming in September 2008 as a 2009 model. This four-door with the lines of a coupe will be positioned between the Passat and the Phaeton. Based on the Passat, it is expected to be about an inch longer. Powertrain speculation for North America centers on a 1.4-liter four-cylinder Twincharger (it uses both turbo- and super charging), a 2.0-liter four-cylinder turbo, and a 3.2-liter V-6. Europe will have a choice of diesel engines, as well. And while we’d like to think CC denotes coupe/convertible, we suspect it actually stands for C-segment coupe.
In a further realignment of product, Volkswagen likely will discontinue the current Passat for North America and replace it with a new vehicle sized between the Jetta and CC.
Next-Gen Passat Must Be Significantly Larger
Jacoby says the Passat replacement needs to be tailored to the U.S. market, which means it must be larger to better compete with the Toyota Camry and Honda Accord that define the segment. Jacoby says the current Passat is about 20 percent too small to be competitive.
VW also is preparing to launch the new Tiguan SUV, and has a new minivan coming in the fall of 2008. Audi’s global lineup is expanding with the A1 small car, A3 cabrio, A7 coupe, Q5 crossover due in 2009, and potentially a smaller Q3 SUV, too. The new A4 sedan bows in the fall of 2008, and diesel and hybrid versions of the Q7 are expected in early 2009 as 2010 models.
VW’s new North American chief is pleased that the automaker is discontinuing its past practice of designing vehicles for Europe and selling them almost as an afterthought in North America, to mixed success. He applauds the commitment by Volkswagen AG chairman Martin Winterkorn to develop and engineer cars for North American customers, targeting segments that are popular in this market, while being careful not to lose any VW DNA in the exercise. It is part of Winterkorn’s goal to reach 1 million sales annually (VW and Audi) in the U.S. within 10 years
VW Launches Dieselution Tour in U.S.
Jacoby revealed all this in an interview following a media event as part of VW’s “Dieselution Tour” to promote its clean diesels among consumers as part of an overall commitment to the environment. A tractor-trailer containing an interactive exhibit is on a four-month tour across the U.S.
“Diesels and the TDI brand are a big deal for us in the U.S.,” Jacoby says, adding that VW’s goal is to be the volume player for accessible diesels. The automaker’s history of offering diesels in this market dates back to the 1977 Rabbit hatchback, and officials say they have sold 815,000 diesel-powered vehicles here to date, but diesels as a percentage of total sales in the U.S. have shrunk from about 50 percent in 1981 to about 11 percent now.
In a bid to boost that figure, VW is preparing for the May 2008 launch of the 2009 Jetta TDI sedan and Sportwagon, with a 2.0-liter diesel engine that is clean enough to be sold in all 50 states. It works with B5, meaning a blend of gasoline and up to five percent biodiesel. The technology would allow B20, but VW will not allow that high a blend until standards ensure the integrity of the fuel.
Jacoby says he expects 25 percent of VW sales will be diesels that also emit 40 percent less carbon dioxide than comparable gasoline engines, and he expects 30 percent of Jetta sales will be diesels.
Touareg First of Larger Vehicles To Go Diesel
He says the intention is to expand diesels to larger vehicles in the future, starting with the 2009 Touareg V-6 TDI slated to go on sale in the first quarter of 2009.
And that means looking seriously at making diesel, as well as gasoline engines, in North America in the future, augmenting gasoline engine production currently in Mexico. “We need to define our overall North American engine strategy,” Jacoby says. He promises a decision will be made soon.
And VW is studying building a new vehicle assembly plant in North America as well, as a hedge against currency exchange. Officials say the plant in Puebla, Mexico, that makes the Jetta (sold as the Bora in other markets) and the New Beetle, doesn’t have enough capacity for the automaker’s North American plans.
Volkswagen Phaeton, CC, Passat replacement for North America - Car News - Car and Driver October 2007
Interesting. They think the Passat's size holds it back, uh...no its price!!! Ditto for the Jetta, but less so. I still don't think VW gets it with talk of another Phaeton. That isn't the what the U.S. market needs from VW. Still though it is at least encouraging seeing them talk exclusively about the U.S. market and how to be more competitive. Still though 1 million sales a year between Audi and VW in the U.S., good luck.
M
