Launching its most important model into a falling car market, Volkswagen is betting the look and feel of its Golf VI can win over discriminating hatchback buyers, in the absence of revolutionary advances under the hood.
Learning from the mistakes that beset the last Golf's rollout late in 2003, VW expects easier assembly, improved economies of scale and a smooth production ramp-up will help it earn an initial five-per-cent operating margin after the Golf V took over a year to make a profit.
Described by Automotive Magazine as "the barometer of European markets," the Golf VI's launch on Oct. 10 could also serve as a leading indicator for demand: rival carmakers are set to roll out their latest hatchbacks over the next 12 months.
The car is not expected to hit Canada for a year or two, according to a local Volkswagen dealer.
With forecasters at J.D. Power already predicting car sales in Western Europe will fall in 2009 to their lowest level in more than a decade -- and Volkswagen itself more cautious for next year -- the challenge remains daunting.
At the new compact's media debut in Iceland last week, Volkswagen called the car "the quietest Golf of all time" thanks to extensive acoustic improvements. It pointed to a puristic design and higher-quality materials, which give a greater feeling of comfort and luxury than in the current model.
"In the recent past, the design was overstyled and overdecorated," said group design boss Walter de Silva, who took over from Murat Gunak about 18 months ago and junked his predecessor's plans in favour of a completely different look.
"It had little to do with the VW brand's simplicity and character and the approach was wrong for Volkswagen," he said.
In the industry's most competitive segment, the Golf will contend with about 130 direct rivals, such as this year's upcoming Renault Megane or the Opel Astra, due in 2009. An emphasis on horizontal lines returns the Golf's design to its roots and baroque ornamentation gives way to clear, crisp elegance that will be the face of the brand to come.
"This sets a higher benchmark for the entire Golf class," said Martin Winterkorn, chief executive at VW.
The Golf saved Volkswagen from collapse when it premiered in 1974 and over 26 million have been delivered to customers since. The world's third-largest carmaker needs a home run then, if it is to reach a group sales target of eight million vehicles by 2011.
Since the compact class attracts car buyers from nearly all walks of life, manufacturers must be extremely careful and change only what is necessary to give new models a fresh look.
The Golf VI will retail in Germany starting at 16,500 euros ($24,500 Cdn) for the Trendline version including VAT, roughly 200 euros ($307 Cdn) more than the corresponding Golf V.
The latest model remains unmistakably a Golf, and while Volkswagen dramatically altered the underpinnings of the fifth-generation -- something more likely to be noticed by a mechanic than a consumer -- it has focused this time around on improving the things one can see, hear, touch and feel.
source:canada
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