Commentary on the Press Launch of the 2012 Vw Passat
Back in the mid-1990s, Volkswagen of America was in trouble. The company’s former glory years of the 1960s were becoming more distant as sales of both domestic brands and Asian imports now dwarfed those of the German automaker. In an attempt to cut costs and unfavorable currency exchange rates, Volkswagen built an assembly plant in the US that operated from the late 1970s until well into the mid-1980s. The plant was located in Westmoreland, Pennsylvania and produced Rabbits, which were known as Golfs on the other side of the Pond.This presented a problem, for the American-built models suffered from major quality issues while those assembled in Germany were top-notch cars. Unfortunately for US buyers, the European models were not available. Thus, in America, the company earned a reputation for poor workmanship. As a result, sales of Volkswagen models across the board were less than half of what they were during the 1960s. For starters, the legendary Beetle had been dropped over a decade earlier in 1979, and far more competition from Japanese automakers also played a major role.Finally, in 1998, the launch of the New Beetle saved Volkswagen from an almost-certain death in the US market, and for a while, things were looking pretty rosy. The German automaker was enjoying sales numbers unseen since the early 1970s;mainly due to the New Beetle’s halo effect. Unfortunately, the novelty wore off after a couple of years, and VWoA sales once again began to fall. Notorious electrical issues in particular didn’t help matters, either. Now add tough exchange rates between the American dollar and the German deutschmark to the equation, and Volkswagen once again found themselves losing money on every car sold in the United States.With the exception of 2008, when the economy was in its worst shape since the Great Depression, sales had begun to climb again. The past electrical gremlins had long been resolved, but the exchange rates between what was now the Euro and the dollar were still resulting in losses. A company can only bleed for so long, and so VW decided to try aUS assembly plantonce again.Chattanooga, Tennesseewas chosen for the location and construction began in 2009.All the while, it was said that a new US-specific midsize sedan would be built there and released as a 2012 model to replace the Passat. The Passat dates way back to the 1970s. However, in the US market, the car was first known as the Dasher and later, the Quantum. While it was always called the Passat in European markets, the US wouldn’t get this name until 1990. Regardless of what the car was called, sales of this model really didn’t take off until it was totally redesigned in 1998. It also helped that when nostalgic Beetle owners of the past flocked to VW showrooms to see the just-released New Beetle finally saw the Passat as a worthy competitor to popular sedans such as the Honda Accord and Toyota Camry.Thus, when it was announced in 2009 that the US market would be getting a Passat replacement, sedan drivers who had become loyal to the Volkswagen brand didn’t know quite what to think. In the late part of the 2000s, the German automaker set some rather ambitious goals. First, VW made it clear that they wanted to outsell Toyota and become the world’s largest automaker. In order to achieve this goal, sales in the US would have to triple by 2018. At this writing, that is just a bit over six model years away. By building a US plant, the company could once again realize a profit, and more importantly, American-specific cars could be built there.There are quite a number of enthusiasts who prefer the tight road-handling manners of European cars, and it just so happens that Volkswagens are the most affordable. However, according to Volkswagen, the average American driver wants large, roomy sedans with plenty of cup holders along with the smooth ride of something such as a Buick or a Lexus. The “mystery” sedan was announced, and even a few sketches were drawn by speculative artists and placed in automotive publications. It was simply labeled the “NMS,” or New Midsize Sedan.Well, as it turns out, some things never change, and at the same time, they do. The “NMS” will retain the Passat nameplate, but at the same time, the latest model is an abrupt departure from past models. Volkswagen did keep their promise. The 2012 Passat built in Tennessee will be exclusive to US and likely Canadian buyers. But here’s a twist: Passats geared for European markets will still be built overseas and retain the sporty handling and sharper styling cues. Thus, VW enthusiasts over here in the USA may find themselves disappointed, for the Chattanooga-built version looks like your average Chevy or Buick driven by either the typical family guy or; in the case of the latter, someone who has been in bifocals since the Reagan Administration. The good news? Thebase pricehas been substantially dropped.For the enthusiasts who prefer German styling and engineering, this leaves the much-pricier CC or Jetta GLI as the only other sedan options on these shores. Volkswagen is taking a chance by de-contenting this popular sedan as it were, but if the executives’ sense of intuition proves to be correct, sales of VW sedans to the Average Joe or Josephine should indeed start to climb. As large as the VW enthusiast and show circuit may be in this country, the fact remains that survival is dependent on sales to the former demographic.Will the 2012 Passat prove to be a winner in the US? Only time will tell.
