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Volkswagen adds City Golf and City Jetta to its lineup at subcompact prices

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Michel Deslauriers
Volkswagen is getting back on track. After a few lean years with aging products on their lots, the manufacturer is proud of its 10.9% increase in sales compared to the same period last year. Now that the Rabbit has hopped its way into showrooms and the new Jetta is selling more than last year, it's time for VW to take action in a growing segment of the automotive marketplace, the subcompact category.

2007 Volkswagen City Golf (Photo: Philippe Champoux, Auto123.com)
According to Bruce Rosen, General Manager of Marketing Communications for VW Canada Inc., the company wondered what the customer would prefer between a subcompact and a low price. The latter is what they think we'd find most interesting, and they've got a point. Instead of developing a brand-new subcompact, or modifying an existing one from Europe in order to certify it for sale in Canada, Volkswagen decided to rely on tried-and-tested models.

The 2007 City Golf is based on the outgoing 2006 five-door Golf model, which makes way for the new Rabbit. Built in Brazil, the City Golf makes sense, since its development costs, dealer training and assembling equipment are all paid for already.

2007 Volkswagen City Jetta (Photo: Philippe Champoux, Auto123.com)
The 2007 City Jetta is based on the previous-generation model that we last saw in 2005. It's also built in Brazil, alongside the City Golf. Both vehicles will be sold only in Canada, and not in the U.S.

Power for both cars is VW's familiar 2.0-liter 4-cylinder engine that produces 115 horsepower and 122 pound-feet of torque. A 5-speed manual is standard, although a 4-speed automatic is optional.

Standard equipment for both the City Golf and City Jetta include four-wheel disc brakes with ABS, dual front airbags, a CD/MP3 player (with 8 speakers in the Golf, and 6 in the Jetta) and 15-inch wheels. The Jetta also gets power door locks. The options list features air conditioning, a power group, stability control, side airbags, a power sunroof and alloy wheels, and heated seats.

2007 Volkswagen City Golf (Photo: Volkswagen Canada)
The 2007 City Golf comes in at a very attractive price: $14,900. That's over $3,500 less than 2006 Golf CL, and right in subcompact price territory. So, it costs the same as a subcompact but has the interior space of a compact, along with the driving pleasure and nicely-appointed cabin of a VW. In fact, they named the Honda Fit, Toyota Yaris and Nissan Versa as the main competitors for their new old Golf.

The 2007 City Jetta also carries a bargain sticker: $16,700, or roughly $8,300 less than the next-cheapest sedan currently in VW's lineup, the 2006 Jetta 2.5. Target competition includes the Mazda3 GX, the Nissan Sentra 1.8, the Honda Civic DX and the Toyota Corolla CE.

2007 Volkswagen City Jetta (Photo: Volkswagen Canada)
Now, is this a desperate marketing move from a manufacturer that has no model to offer in a now-crowded subcompact field? Or, is it a clever way to sell to outsmart the competitors by offering more car for the same money? My guess is that if the City Golf and City Jetta meet their sales targets of 1,500 units in the last quarter of 2006 and 12,500 units through 2007, then we'll probably see a new VW subcompact here in a few years.

According to Volkswagen, German cars have never been so affordable, and they just might be right. As for the question above: would you choose a subcompact, or a low-priced VW compact? Not an easy choice, but you have until October 14th to decide, when these two old new cars hit Volkswagen showrooms.
Michel Deslauriers
Michel Deslauriers
Automotive expert
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