(autoinsidernews) - Following its unsuccessful attempts to move upmarket, Volkswagen of America Inc. will lower prices reflecting the brand's repositioning as affordable German engineering. For 2007 models, VW has three vehicles priced below $18,000 compared to a single model last year вЂ" the Golf.
For 2007, the Rabbit, which replaced the Golf, has a starting base price of $15,620, over $1,000 less than the 2006 Golf. The 2007 Jetta is over $1,400 less than the 2006 model ($17,120 vs. $18,530). And the 2007 New Beetle has a starting base price of $17,120, compared to the 2006 model that started at $17,810, reports Trend.
While Volkswagen has been successful in moving upmarket in Europe, with the Phaeton luxury sedan and the Touareg SUV, the strategy was less than a success in the States. U.S. sales of the Phaeton were halted after the 2006 model year, and while has done better, sales are still less than what VW had hoped. So VW brand chief Adrian Hallmark launched a price/value strategy in the middle of 2006, which emphasized the brand's German engineering but lowering prices.