Volkswagen will be reducing its prices in the US market in efforts to catch up with its Japanese rival Toyota. It will also be removing costly frills that many Americans don’t want in efforts to further make the cars more competitively priced.
“We have definitely added too many technical items that American customers don’t want to pay for. Wing mirrors that fold inward for instance, to account for narrow streets and tiny parking spaces. Who needs that in the U.S.? The streets there are so wide,” said Volkswagen CEO Martin Winterkorn.
Comparing Volkswagen and Toyota prices, Volkswagen’s Jetta currently has a US$1,800 premium over the Toyota Corolla, which retails at US$15,200. The Passat starts at US$23,900 while the Camry’s price is US$20,000 for a base model.