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WOLFSBURG, Germany -- Volkswagen is abandoning its strategy of moving the Jetta upmarket and will remove content from the vehicle for the 2007 model year, slashing the price $1,410.

Adrian Hallmark, executive vice president of Volkswagen of America Inc., said lowering the price of the Jetta, VW's biggest seller in the United States, is part of the brand's return to its volume image. VWoA will abandon attempts to move sharply upscale, at least for a few years, Hallmark said.

"If we are going to be a volume player, we have to play the volume game," Hallmark said at a press event here. "If you look at the price-volume relationship, the decision is really clear."

VW dealers agreed to reduce profit margins to support the move.

Hallmark confirmed that 2007 Jetta prices will begin at $17,105, including shipping. The cheapest 2006 Jetta starts at $18,515, including shipping.

More details here:

http://autoweek.com/apps/pbcs.dll/article?AID=/20060619/FREE/60619003/1024/LATESTNEWS


I have mixed feelings about this report. Many Americans have considered the Jetta an entry-level lux car. Bringing down the price reminds me of the Jaguar's disastrous attempt to enter a similar market with the X-Type.  

who thought of the jetta as an entry level luxury car? i didn't i always though of it as the german variant of the civic or corrola, but maybe thats just me.  

h3nry:
who thought of the jetta as an entry level luxury car? i didn't i always though of it as the german variant of the civic or corrola, but maybe thats just me.

I considered the Beetle in that spot.  

the passat, maybe, the jetta? civic equivalent.  im glad to see the price drop, its makes more sense  

I had the oppertunity to drive the A5 jetta when they were right off the truck. The one I drove still had the plastic all over the interior. I was impressed with it, I thought it was an improvement over the A4, but I got out and looked at the sticker and it was 28K. That was for a 2.5. I told the sales person I tought vw's marketing department was on crack if they thoght they could sell a base jetta for that, when they had Passats on the lot for 26. I think this is a great move, and it doesn't really surprise me since Iheard the rabbits were going to come in much cheaper.

I don't really think they are moving it down market, they are just stopping their push upmarket, so they are staying at the same level.  

the jetta is a young girls car, i think the price drop will help out in dads pocket only, i know a girl who's dad was going to buy her a brand new Mustang GT, but she didnt want it because she thought the jetta was cuter, these are the people driving jettas and i think its a good move to start lowering the price, and plus i've personally never thought of volkswagen as really a luxury car maker  

Burtreyn0lds:
the jetta is a young girls car, i think the price drop will help out in dads pocket only, i know a girl who's dad was going to buy her a brand new Mustang GT, but she didnt want it because she thought the jetta was cuter, these are the people driving jettas and i think its a good move to start lowering the price, and plus i've personally never thought of volkswagen as really a luxury car maker

these are the people driving these cars? I actually drive a VW Jetta, and im a man, and the only thing i have in common with those "young Girls" is that i'd pick a vw jetta over any piece of American crap (including the Mustang GT) anyday of the week.