VW in deep trouble? ...

[Decolliber]

http://online.wsj.com/article/0,,BT_CO_20040210_004666,00.html?mod=aut%2Dmre%2Da up

The above is just the latest. Goldman Sachs advises sell VW (I sold my meagre 200 shares at $10.25). VW's problems:
1. Very high production costs
2. Has difficulty moving production outside Germany because its major shareholder (state of Lower Saxony) expects it to be a social welfare agency in that state.
3. Wasted huge amounts of money on unprofitable luxury cars (Bentley, Bugatti, Lamborghini, Phaeton)
4. Heavily invested in the overheated China market, which has massive overcapacity.
5. Significant quality problems (like DCX) and dealer service issues in US market.
... and finally ...
6. IMHO, the new Audi styling for the next A6 and A8 (enormous front grill) is not attractive, though not as hideous as the Bangled BMWs.

[chibone_914]

VW is going to have to resurrect the "Old Beetle" to get back on track and trash the high-end BS cars.

[concentric]

Not surprising.
It is apparently a requirement for my peers in SoCal to own VWs, and it's quite shocking how much VWs quality has gone downhill. I own a 1996 Jetta GLX VR6, and it's been a pretty good car, overall. The interior is still nice, and just a few things have gone wrong since I bought the car in early 2000. New VWs have bad trim and electrical problems from what I've seen and servicing them is a total *****. It seems like they just don't care about quality any more, just catchy advertising.

JCM

Originally posted by Decolliber
http://online.wsj.com/article/0,,BT_CO_20040210_004666,00.html?mod=aut%2Dmre%2Da up

The above is just the latest. Goldman Sachs advises sell VW (I sold my meagre 200 shares at $10.25). VW's problems:
1. Very high production costs
2. Has difficulty moving production outside Germany because its major shareholder (state of Lower Saxony) expects it to be a social welfare agency in that state.
3. Wasted huge amounts of money on unprofitable luxury cars (Bentley, Bugatti, Lamborghini, Phaeton)
4. Heavily invested in the overheated China market, which has massive overcapacity.
5. Significant quality problems (like DCX) and dealer service issues in US market.
... and finally ...
6. IMHO, the new Audi styling for the next A6 and A8 (enormous front grill) is not attractive, though not as hideous as the Bangled BMWs.

[BlueSkyJaunte]

Their production costs shouldn't be that bad...I thought most of the Beetle platform cars (Beetle, Jetta, Golf) were made in sunny Mexico.

Of course, the quality shows...

[surflvr911sc]

Maybe Porsche will buy them, at least they'd be making their own engines again.

[Decolliber]

Originally posted by BlueSkyJaunte
Their production costs shouldn't be that bad...I thought most of the Beetle platform cars (Beetle, Jetta, Golf) were made in sunny Mexico.
Of course, the quality shows...

Quite right. Those cars for the North American market are made in Mexico, and I think all Beetles for the global market are made there too. Its the German labor costs that are killing them in Europe.

[UconnTim97]

When I was at the Philly Auto show, the had Phaeton for $104k. That seems pricey for a VW.

[BlueSkyJaunte]

Originally posted by Decolliber
Its the German labor costs that are killing them in Europe.

Time to move the plant to Bangalore, India.

[osidak]

I have a 2000 Jetta TDI. My car has not been to a stealership for regular service since her 20,000 mile check up. I perform 99.9% of all service on the car from simple oil changes to the 2 timing belts I have replaced on it (that takes an amazing 4.5 hours)

Over all the car has been pretty damn good. Great performance and 50 mpg's to boot.

What is killing VW is their dealers and service departments.

Brake jobs (simple pad and rotor replacement) that are quoted at $700
Timing belt quoted as high as $900 (99.5 to 2001 cars have 40K intervals)
MAF which are known pieces of junk that run $345 at the dealer and they want 2 hours labor to install a part that should take an idiot 10 minutes to do.

Last year I had a tractor trailer dig into my car with his front wheel. Those retarded lug nuts can do a nasty amount of damage. In any case it bent my rear spindle so I had the dealer replace the piece. Cost was $2100 (paid by the truck driver) and it only took them 5 weeks to do. They could not figure out how to install a bearing or something. Finally gave up and flew some one from VW in Michigan to fix the problem.

When I went to pick up the car my beige interior was covered in black grease. I went back inside and asked the service manager if he felt that was an appropriate way to release a car to a customer. He said no and took the car back to be cleaned. When he returned there was still grease on the seats. I sent him back a second and third time.

With this kind of service VW will not sell many $100,000 cars

Oh yeah another gripe, I had a window regulator fail 70 miles out side of the meager 24K mile warranty. I called the dealer and they sure we will fix it for $400. You are out of warranty so it will cost you.

Well since then I have replaced all regulators twice so 8 times $400. I found a dealer that did them all for free. Needles to say I go to them to buy my filters and repair parts