VW New Mid-Size Sedan to Replace, Not Join Passat in U.S.

VW new 2010 mid-size sedan design sketch

By Zack Newmark
October 20, 2009 3:52 PM
Filed Under: Corporate/Financial, German, Rumours, Volkswagen

VW is considering the cancellation of the Volkswagen Passat line within two years. The timing coincides with the anticipated 2011 release of the automakers' upcoming NMS (new mid-sized sedan).

The new sedan will be built in the Chattanooga, Tennessee, and should cost less than the current offering, despite being larger than the 4.8-meter long Passat. In fact, the price cut could be more significant than expected. A press agent for Volkswagen said, "We'll have two sedans coming out at the same time, and the smaller one will cost considerably more than the bigger one," according to Autoweek.

Speculation became more credible when VW Group of America CEO Stefan Jacoby took media questions earlier in October. Pressed on the new vehicle plans, Jacoby said, "We are looking at it in detail."

European customers will continue to see the Passat in VW showrooms. A new version should come on the market in 2011.

Autoweek is suggesting that the new sedan may cost nearly $8,000 less than the 2010 Passat sedan. Passat pricing begins at $28,300, according to the VW website.

Volkswagen is choosing to build the new car in Tennessee to take advantage of the weak dollar. The US dollar has lost nearly 15 percent of its value against the Euro since March 2009. This translates to significantly higher American pricing for any vehicle built in Germany.

The company anticipates selling about 100,000 units of the new sedan every year. Analysts may peg this as overly optimistic, considering current market conditions. The company sold an incredibly low 9,200 Passat units in the first nine months of 2009, and only 30,000 models in the U.S. during 2008. By comparison, the company sold 96,100 units in 2002.

Source: autoweek

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Tags: Volkswagen Passat, VW mid-size sedan, Chattanooga, NMS, NCS, New Medium Sedan, New Compact Sedan, Chattanooga Plant Facility, Chattanooga Plant, New mid-size sedan

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Comments

jandrews90

October 20, 2009 4:36 PM

"We'll have two sedans coming out at the same time, and the smaller one will cost considerably more than the bigger one"

I'm kinda confused, is he refering to the new Jetta? Or another model? If he's refering to the Jetta, is he saying the Jetta will be more expensive than the NMS? Even though it won't be as refined?

jon_leong

October 20, 2009 5:02 PM

I think its like what Honda did with the Accord, one Fat American one, and one Small European one (aka Aucra TSX).

By the way I drive the Euro Accord in Australia, where they sell both Fat and Skinny model under the Honda badge. In Aus, the smaller Euro version is a lot more expensive. (just like the price difference between TSX and Accord in the US)

I think VW might do the same as Honda and make the new Passat compete against Acura, or Lexus, and the new NMS for Camry and Accord.

Edited by user on October 20, 2009 at 5:19 PM

MutantSushi

October 21, 2009 1:21 AM

A new Passat is also planned for 2011 (i.e. it's only planned to be cancelled in the US market), and I'm pretty sure THAT is the "smaller, more expensive" model he's referring to. Given EU:US exchange rates, a German-built Jetta probably IS more expensive to produce than this "NMS" built in Tennessee will be, but VW will likely arbitrage their total production costs amongst their whole US line-up (to match with model image) just as they currently do (i.e. New Beetles made in Mexico and Passats made in Germany are not sold with the same profit margin to actual model-specific production costs, VW just aims for total profit margin on total model line-up, which is standard practice.)

The new Passat, i.e. "expensive + smaller" has a good chance to continue to be sold in Canada and Mexico, so should still be available if you're willing to jump thru some car registration hoops.

(If PASSAT was "small", and this new, bigger car is "medium", what is "large"? ...Maybe I'm just not ordering enough Pizza Hut...)

Edited by user on October 21, 2009 at 1:24 AM

NewsWorthy

October 27, 2009 6:32 PM

(If PASSAT was "small", and this new, bigger car is "medium", what is "large"?) The New Phaeton.

GRAVE

October 20, 2009 4:44 PM

Front headlights looks like a 05 A8, the whole car actually looks like an A8

Edited by user on October 20, 2009 at 4:45 PM

nederina

October 20, 2009 4:53 PM

guess they're building a competitor for the camry and accord

6spdaudi

October 20, 2009 4:57 PM

That drawing looks much like the new Ford Taurus.

SirTristan

October 20, 2009 7:01 PM

theyre suiting american tastes. they'll make a huge thing like this with crappy interior materials and quality, while Passat will be the Euro-quality ConsiderablyMoreExpensiveOne

tbrodie

October 21, 2009 5:37 AM

Speculative arrogance aside, the current Passat hasn't sold well in the US for a variety of reasons. While German automakers tend to be straying from their understated roots with recent models, this model doesn't have the elegance of its predecessor which distinguished it from other value brands. In addition to not being much of a looker, it also doesn't perform substantially better than its competition. Fully opted out, it begins to compete with other German brands, yet lacks their panache, perks, and dealer experience. The market will only pay so much for FWD based cars, even if it ends up being optioned with AWD.

In short, it's ugly, it's pricey, and there are a lot more appealing alternatives; but don't consider those factors Sir Tristan (my gosh, how pompous is that?), just discard any clutter that might necessitate you differentiating any factors. It's probably better that you just think in black and white terms; and if that means smearing a few hundred million people to keep your mental desktop tidy, so be it, you can try to hide behind your illusion of superiority.

Edited by user on October 21, 2009 at 5:41 AM

elanmike

October 22, 2009 6:57 AM

elanmike

October 22, 2009 7:05 AM

VWNA has never really seemed to understand their market. This last Generation Passat was more of a lateral move over the B5 model. It is not an entertaining ride, it has lackluster styling (whats with all that overhang), and it's pretty much just a lardass of a vehicle make . Actually, it is a step back from the B5. I predict a Ford Tauras also.

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