VW, BMW Take Aim At Detroit's Big Three

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wsj.com   |  KATE LINEBAUGH   |   January 4, 2009 09:41 PM

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Struggling Big Three auto makers, accustomed to intense competition from their Japanese rivals, face a new challenge from European auto makers.

Sensing opportunity in Detroit's weakness, Volkswagen AG and BMW AG of Germany are gearing up to expand market share in the U.S. in the next few years.

Read the whole story here.

Struggling Big Three auto makers, accustomed to intense competition from their Japanese rivals, face a new challenge from European auto makers. Sensing opportunity in Detroit's weakness, Volkswagen A...
Struggling Big Three auto makers, accustomed to intense competition from their Japanese rivals, face a new challenge from European auto makers. Sensing opportunity in Detroit's weakness, Volkswagen A...
 
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Volkswagen has a lot of talent in designing and marketing cars. If they make a family sedan to compete with the Camry and Accord, Im sure it will be a great car with a lot of charm and personality.

    Favorite    Flag as abusive Posted 10:19 AM on 01/06/2009

PS, my salesman was a long time Porsche salesman at International Autos, but he drove an Oldsmobile, that should have told me something, you live and learn.

    Favorite    Flag as abusive Posted 11:28 PM on 01/05/2009

Back in 2001, I got suckered by Car and Driver articles into buying a E-46 BMW 3 series(a 330 coupe). Great cars unless they are sitting at the dealer getting electronic issues worked out(about 30 days a year). Has anyone looked at where German vehicle rank on JD Powers ratings? You can get a 3 year old low mileage German car for less than half the price the original owner paid for it. That should tell you something.

    Favorite    Flag as abusive Posted 11:23 PM on 01/05/2009
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Ridiculous. VWs are nice, but any comparable Honda is no brainer in this category.

The one series BMW is a luxury car with a three liter six cylinder engine and costs nearly as much as their iconic Three series - way more than a Corolla. It is not very attractive to boot. Haven't seen too many here in car heaven (SoCal). To think that BMW will expand their market with this vehicle is folly. If they are really serious they will build a Honda at Honda prices and they will do it in some right to work hell hole like Alabama.

VW will have to work really hard to beat any Japanese maker in these parts. OK, they are big in China, land of melamine milk, poison air and collapsing school buildings...

Cheers,
Jack

    Favorite    Flag as abusive Posted 11:13 PM on 01/05/2009

This time, European car makers insist more diverse product lines, healthy marketing budgets and access to nonunion labor can overcome past stumbles.

An interesting comment from an industry that is heavily unionized in their own countries...

    Favorite    Flag as abusive Posted 08:29 PM on 01/05/2009
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heavily unionized- yet, somehow, not stupid. germany and sweden are not just "unionized" in the puny, selfish american sense. rather, they are part of a society of integrated effective social institutions that meet human needs.
"unionized" in the american sense, anyway, describes the german workforce like the cub scout manual describes the marines. america has to up it's whole game to compete.

    Favorite    Flag as abusive Posted 09:41 AM on 01/09/2009
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in the boomer sixties, VW, Datsun, Honda, and Toyota made friends with the broke young boomer students everybody else despised. the legendary microbus, the indestructable Toyota pick-ups that dominated the rural west coast. the honda civics with all the leftist bumper stickers that the highway patrol harassed across the country: Movement transportation. American cars were big, flashy, glamourous and fast. exactly what was required to run all the cheap student rides off the road.
so now Dodge Ram is running ads showing insane grown children driving trucks through fire. Subaru is running ads showing young students wilderness camping. "We're still the friends of the young, the socially conscious, those of modest means and more IQ than ego," says Subaru.
So other elements lock in: japanese industry's superior west coast advertising, the rise of the humane, relaxed, tolerant west, the end of the automobile as a symbol, air travel preferred as long distance transportation, the end of the mystique of the road, the end of backyard car repair.
it's not just restructuring or plug-in vehicles. the germans and japanese made friends a long time ago that remain loyal friends and always will. as usual, americans fail to recognize loyalty that's not loyalty to themselves.

    Favorite    Flag as abusive Posted 04:21 PM on 01/05/2009

Even "green" car maker Subaru has recently significantly in creased the size and weight and therfore worsened the mpg of its popular forester

    Favorite    Flag as abusive Posted 05:58 PM on 01/06/2009
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i live in the big city so i don't really need a car. but when i eventually get one it'll be either a VW beetle or a mini-cooper. love those cars.

    Favorite    Flag as abusive Posted 01:29 PM on 01/05/2009

Hey Crayola,

I had a 1995 Volvo and it had it's last days last summer 2008. Since I had buy a car I wanted no other other than a Mini Cooper and it's still my dream car. I went car shopping at the height of the gas crisis and they could not find me a used 2006 or newer mini for less than $20K (bank requirements). Used Mini's were flying off the shelf like hot cakes and at that time the cost of a used Mini was going for the price it sold as new. No one wanted to drive the American made monster trucks. I had no desire for any other car except a Mini. Since I was going to go into debt I at least with a Mini I would go down in style. Anyway, I left the dealership hoping they would find a Mini that the bank would accept, anyway they called and said they just got a red VW Beetle with a sunroof and asked me to if I would consider it. Anyway I got the Beetle and I love it!

I said all that to say... My friend you have GREAT TASTE in cars!

    Favorite    Flag as abusive Posted 09:54 PM on 01/05/2009

They learned their lesson from Daimler Benz. They must take share like the Japanese and Koreans did. They cannot simply buy it.

    Favorite    Flag as abusive Posted 01:07 PM on 01/05/2009

If you just heard a screeching sound, it was Senator Shelby from Alabama having an orgasmic episode.

    Favorite    Flag as abusive Posted 12:45 PM on 01/05/2009

Not really impressed with VW and BMW's offerings, they used to stress compact exteriors and roomy interiors but not so much anymore and they are pretty weak on towing capacity even toyota et al at least can tow 1000 lbs, and a lotta their engines require premium fuel and they are pretty overpriced and did have some quality/reliability issues. Good luck to em but wouldn't be surprised if the close the plants AGAIN!

    Favorite    Flag as abusive Posted 12:29 PM on 01/05/2009

Wow, I wonder which Republican senator from the South they will buy. And Shelby from that "patriotic" Alabama just wanted to give the entire US market over to the Japanese. The Europeans (of course with support from their governments) are gearing up to take market share from the Japanese. Hopefully with proper support and products, the American companies can do the same.

    Favorite    Flag as abusive Posted 10:23 AM on 01/05/2009

Now, if only they can manage the impossible and build VWs that last longer than 70K miles before fuel pumps and the like completely die.

    Favorite    Flag as abusive Posted 08:47 AM on 01/05/2009
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ich bin ein detroiter.

    Favorite    Flag as abusive Posted 08:21 AM on 01/05/2009

detroit misses the boat again. americans have been screaming for years for detroit to build the right cars. they still insist on ramming guzzling trucks, suvs & muscle cars down our throats.

time to trade my toyota in for another toyota. i was counting on detroit to come through so i could buy american. they didn't.

    Favorite    Flag as abusive Posted 07:09 AM on 01/05/2009

rkimball misses the boat again. Since November, trucks and SUVs have outsold small cars as they historically always do. Americans are screaming for the right luxury SUvs , muscle cars and trucks, apparently.

Fact: Americans will always, always, always choose the larger, more comfortable vehicle over the more fuel efficient. It's why every "fuel efficiency" fad since the 60s has been a temporary blip.

The key to the future comes in recognizing this. All the fringe does with its demand that we all drive Priuses is look as foolish as Canute standing up to his waist in salt water. Rather than waste all that energy on an either or total victory solution, both sides need to compromise. Americans will always gravitate towards teh larger luxury cars, the goal should be to make them as fuel efficient as possible. True, an SUV that gets 35 MPG is not the same as a two seater death trap that gets 60 MPG , but it is miles better than an SUV that gets 12 MPG. Of the detroit big 3, Chrysler has the right idea with cars like its Jeep and Minivan EVs which recognize reality.

    Favorite    Flag as abusive Posted 08:47 AM on 01/05/2009

Not all Americans want trucks and hummers. That's why the Japanese and now the Europeans are so successful. My question is why this huge (even though it is in the minority) market is virtually ignored by Detroit. Americans are a very diverse people, and the Big 3 should be catering to that.

    Favorite    Flag as abusive Posted 10:26 AM on 01/05/2009

cheap gas is only temporary. people don't learn. suv sales are climbing again. then peole will complain again. the next gas crisis, i'll be ready. i have a toyota & soon will have a blue tech vw diesel.

who needs detroit.

    Favorite    Flag as abusive Posted 11:45 AM on 01/05/2009
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I have this thing that gets 30 mpg and seats 4 comfortably. It's called a CAR.

Everybody used to drive them back before they convinced every suburban mom she needed a 5,000 pound GMC to haul her one kid to school.

    Favorite    Flag as abusive Posted 03:42 PM on 01/05/2009

Toyotas product mix is over 2:1 trucks, SUVs and crossovers vs cars.

GM actually has more models that get over 30 mpg than Toyota or Honda

US brands have over 50% of the market

GM still sells more cars than Toyota

Ford more than Honda

Chrysler more than Nissan and Hyundai put together

No one forces anyone to buy any car or truck- people buy the vehicles that fits their jobs, lifestyles and tastes and that is their own business what they choose to drive

Car makers build the vehicles their customers want to buy

    Favorite    Flag as abusive Posted 04:22 PM on 01/06/2009

Forgot to mention the number 1 and 2 selling vehicles in the world currently and for 27 years running have been the Ford F Series Truck and Chevy Silverado trucks respectively.

    Favorite    Flag as abusive Posted 05:55 PM on 01/06/2009

I hope they build more Volkswagen TDI stuff here, theyre awesome!

    Favorite    Flag as abusive Posted 03:50 AM on 01/05/2009
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