Reeling from unsuccessful attempts to move upmarket, Volkswagen of America Inc. is lowering prices to reposition the brand.
In the 2007 model year, VW will have three vehicles priced below $18,000. Last year, only the aging Golf was in that range. Its replacement, renamed the Rabbit, has a base price of $15,620 including shipping.
Prices on other 2007 models also have been lowered (see box).
Matthias Seidl, COO of VWoA, says the strategy reflects the brand's repositioning as "affordable German engineering."
"Some might argue we have left the affordability side of the equation," Seidl says. "This is proof that is not our strategic intent."
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