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VW Canada plans to survive market ''shakeout'' with new models

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Alex Law
While other car companies (most notably GM and Mercedes-Benz) have gone against the tide recently and launched several Canada-only models, we should not expect VW Canada to follow suit. While the U.S. and Canadian markets are different, White says, VW needs the ''synergies'' of doing a car in conjunction with the Yanks to make it work.

Some time back that had been noises from the head office in Wolfsburg about the need to move the VW brand all upscale a little, to get a little of the ''premium car'' action that appeals to so many other car companies, but White says that's not going to happen in Canada.

''We're not looking to do that,'' he says, ''because it would affect our sales. Packaging and models are determined for Canadian needs, and our needs are different. Buying patterns and installation rates suggest our cars are not as highly equipped as similar models are in the US. We're in the mid-range and increasing transaction range would impact sales.''

About 40 percent of the VWs sold in Canada run on diesel engines, White says, and some of that is business the company wouldn't otherwise have. So he's going to continue to market it hard, and try to create other opportunities to buy diesels.

One change that future model buyers will see involves three items that turn up repeatedly on owner satisfaction surveys -- the cupholders, AM radio reception, and the range of the remote control units. All of these things will be addressed in future models, White promises, starting with the Jetta that's now arriving.

Overall, White says VW will continue to be about ''value for money, and being fun to drive. Our cars not for everyone,'' he admits, ''but we have a very ardent following. We hope to stay there going forward.''
photo:VW of America
Alex Law
Alex Law
Automotive expert