Monday, November 21, 2005

$100,000 Volkswagen...Would you buy it?

Yes, if this is your first time hearing it, than that $100,000 price tag is correct. VW has made a small move into the luxury market in 2004 with its Volkswagen Phaeton. Their reasoning behind this move is to offer their loyal VW owners whose salaries and aspirations have grown beyond the company’s core models, like the Golf, Jetta and Passat, a top-notch luxury sedan. And, to prevent them from transitioning into the typical high-end automobile market such as BMW, Audi or Mercedes-Benz.

However, this endeavor goes against the grain of what this company was founded on years ago which is being a "people's car", translated in German is Volkswagen. This could be the main reason why the cheap Beetle was so successful.

Since the birth of the VW Phaeton sales have not been that pleasing and I believe the reason is due to the fact no one wants to pay $60,000-$100,000 for a Volkswagen. As a marketing person I believe this venture could have yield a greater return if instead of making an epensive VW they could have made an cheap Bentley (which VW also owns). Cosumers would more likely run after a deal with a $100,000 Bentley versus a $100,000 VW. Below is a way to determine whether a person should or should not buy the VW Phaeton.

Is this Phaeton for you?

Buy This Vehicle If: You had a Beetle in college, a Golf hatchback for your first job, a Jetta sedan when you had more money in the bank and a Passat when you got married and settled down. The next-step Phaeton will keep you in the VW family. Then again, isn’t that what Audi is for?

Keep Looking If: You demand a luxury badge to go with the luxury price; you like a sportier ride and/or better fuel economy.

Who Fits?: The Phaeton is commodious and easily accommodates five adults, unless equipped with the four-seater package. Power-adjustable seats should keep occupants of all sizes comfortable.

Options Worth Splurging On: Parking assist ($700)

Closest Competitors:
Audi A8
BMW 7 Series
Infiniti Q45
Jaguar XJ
Mercedes Benz S-Class

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Blogger Kyle Wilt said...

That is a pretty sick ride. However it is a VW. I would stay german and go with the s500 or a bmw745. What do you think?

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