|Quote, originally posted by Passat94VR6 »|
|VWoA - what don't you get?! Small cars are BIG again in the US. Bring it over and you won't regret it!|
With USD 1.40 for every Euro, there's plenty to regret. Right now, importing any form of Polo would be a reckless act on the part of VWGoA, and it would further deepen their existing Eurozone product losses. A lemonade stand business sense is not appropriate when you have to multiply your production and import costs in Euros times 1.4 or worse.
Just to break even on importation to the US, they'd have to price the car well beyond what the current market segment would bear ...this is obviously the reason why they did not pull the trigger sooner. The break even scenario starts to crumble in the fact that they would be restricted in the range of build variants and they'd have to commit to export production volumes on par with the European home market in order for the build factory to make any money.
Small cars are indeed bigger in the US/CDN, but the total market saturation for this class in the US alone is chump change compared to Europe, and let's not get started on discussing the up-and-down volatility and fickle nature of the total US market. Importing the existing car from Germany simply is not feasible right now.
Regardless, rumour has it that a US market specific Polo is being considered, and that the Honda Fit was used as the benchmark. Production would have to be local (Puebla, Curitiba, Chattanooga?), or if built in the Eurozone, have the losses of these offset fully by profits from future Chattanooga production.
Don't get me wrong or shoot the messenger, ...I dearly love the Polo (I always drive Polo on business in the Fatherland) and would spring for one in a New York minute if offered here. I'd just prefer to see the VW brand survive in the US, have VWGoA continue to live within their means and keep their employees, contractors and their families safe and sound. Don't forget that they currently are the only importer subsidiary of a global OEM that does not produce volume product on US soil ...allowing US product profits to offset Eurozone losses as is the case with Mercedes and BMW.