VW Loses Its Way

VW is shaking up its top executive management and changing its strategy to focus on the American market, and it couldn't come at a worse moment. The North American market is probably permanently downshifting to a lower level of sales, and it is narrowing the mass market segment, while also increasing segmentation in the luxury segment.

VW's always had wonderful, German characteristics: tight, precise steering; great brakes; a good front suspension; reliable gearbox and short throws, to name a few. Plus, they were economical and flat-out, fun to drive. My last VW, a German-built diesel got 50 mpg in New York City driving in the eighties and cost me nothing to maintain.

Now comes the news that they are going to "Americanize" the car. Big mistake. They were so close to having the right car in the Jetta, which had Rabbit-like performance in a big, comfortable sedan. They never got it quite right, but they were very close. They should go over the finish line with the Jetta platform. Apparently, it's back to the drawing board, and I don't think it will work. We have Saturns, Hyundais, Accords, Camrys, Nissans and Mazdas. Another me-too model won't work, and without the Teutonic flavor, VW will lose all its distinctiveness.

Some consumers regarded VW higher-end Jettas as BMW for the Ordinary Joe. Now their cup of Joe is going to become a cup of Sanka. Too bad.