Date: Tue, 4 Jan 2000 17:48:25 -0800
Reply-To: David Marshall <vanagon@VOLKSWAGEN.ORG>
Sender: Vanagon Mailing List <vanagon@gerry.vanagon.com>
From: David Marshall <vanagon@VOLKSWAGEN.ORG>
Subject: Canadian VW News Article in 'National Post'
Content-Type: text/plain; charset="us-ascii"
Beetle acts as catalyst for speeding VW sales
Breaks 31-year record
John Ivison
National Post
Volkswagen Jetta sales soared 55.6% last year on the strength of its
quality engineering and advertising that is 'the best in the industry.'
Volkswagen AG sales in Canada hit record levels last year -- topping the
previous high set 31 years ago at the height of Beetle-mania.
Sales for 1999 totalled 42,000 units, an increase of 11.2% from the 37,763
sold in 1998 and more than the 40,449 sold in 1968.
Bernice Holman, a Volkswagen spokeswoman, said yesterday the launch of the
new Volkswagen Beetle in 1998 acted as a magnet drawing people into the
company's 159 Canadian dealerships.
"But when we got people into the showrooms, many bought Jettas or Golfs,
which are built on the same platform," she said.
The Jetta saw its end of year sales rise 55.6% over the previous year to
20,133 units, while 7,765 Beetles were sold.
Volkswagen, the world's fourth largest carmaker, said U.S. sales rose 43.6%
to 315,563 units, boosted by Beetle and Passat sales.
Volkswagen's Audi division also announced healthy Canadian numbers
yesterday. Total Audi sales in 1999 were 5,044, up 42.5% from the previous
year. U.S. sales rose 38.8% to 65,959, the best result in 14 years.
Dennis DesRosiers, president of DesRosiers Automotive Consultants, said
Volkswagen's success is built on the quality of its engineering. "The
secret of the auto industry comes down to three words: Product, product,
product. And Volkswagen hits on all its products.
"They are well thought through, well-engineered and perfect for the target
market, which is the younger crowd. The ads are nothing short of
spectacular -- the best in the industry, without a doubt."
Mr. DesRosiers said the whole auto industry is trying to connect with what
he called the Net Generation. "Japanese manufacturers connected with the
Baby Boomers in the 1960s and they are still living off people who are on
their eighth, ninth or 10th vehicle. Everyone is looking at the next
generation and Volkswagen has been first class at that."
Volkswagen currently ranks sixth in Canada, but accounted for just 3% of
last year's total auto sales of 1.458 million units. Nonetheless, analysts
consider it well-positioned to take advantage of an expected boom in the
auto market.
A new study by Bank of Nova Scotia's auto specialist, Carlos Gomes,
suggests a robust economy, high consumer confidence and pent up demand will
drive vehicle purchases to record levels in the next few years.
One area that Volkswagen is not well-positioned to take advantage of is the
continuing success of the light truck sector.
Ms. Holman said the company acknowledges it is not represented in the
growing sector, but is currently developing a sport-utility vehicle with
Porsche that is likely to appear next year.
-- David Marshall - - Quesnel, BC, Canada --
-- 78 VW Rabbit, 80 VW Caddy, 84 VW Westie, 85 VW Cabriolet --
-- 87 Audi 5000 Quattro, 88 2.0L VW Syncro Double Cab --
-- David's Volkswagen Home Page http://www.volkswagen.org --
-- Fast Forward Autobahn Sport Tuning http://www.fastforward.ca --
-- david@volkswagen.org (pmail) or vanagon@volkswagen.org (list) --
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