Volkswagen to Modify New Vehicle Introduction Strategy

The problem the brand faces now is that while the Touareg luxury sport utility and the low-volume full-size luxury Phaeton have come on line this year, many of its core products are in need of updates. The Golf has been released in Europe, and after a slow start due to intense competition for compact

While new cars like the Touareg and Phaeton are causing a buzz, VW really needs the updated Golf to boost sales. (Photo: Shawn Pisio, Canadian Auto Press)

hatchbacks is now getting the attention its maker feels it deserves. While the competition in North America has heated up this year with the new Mazda3, the 2005 Golf shouldn't face any initial sales problems when it finally arrives. A new Jetta is expected shortly thereafter, followed by a completely revised Passat. Somewhere along the way a Golf/Jetta based SUV is slated to pump up the brand's sales volume, but again it won't get here soon enough to solve VW's current slow sales crisis.

Volkswagen will begin to break up its current launch clustering pattern after the next run of new models, expected to have run their course in just over a year's time. Until then the automaker's U.S. division will counter the rising euro with incentives averaging approximately $2,000 per car. The company expects to achieve similar a similar sales volume as last year, equaling about 300,000 units.