2011 New York: Why VW’s New Beetle Must Challenge Ford’s Mustang

2012 VW Beetle

The 2012 VW Beetle was announced Monday morning as part of a dramatic three city debut in New York, Berlin and Shanghai.  After the drapes dropped and speeches were spoken, I had the opportunity to chat with Kevin Joostema, VW of America’s General Manager of Product Marketing & Strategy.

Joosteema heads the team charged with selling this new Beetle in its most important market in the world.  Make no mistake, though the global tri-city reveal highlighted the importance of China and Europe, America is where it’s at when it comes to 21st century Love Bug.

According to VW, over 26 million Beetles, including the original and New Beetle launched in 1998, have been sold around the world. Over 6 million of those were purchased in the United States, the Beetle’s single largest market. This also put America – and Joostema’s team – in the driver’s seat when it came to the new model.

2011 MINI Goodwood Edition

But our market is filled with plenty of tough competitors.  Who does Joostema see as the Beetle’s chief competition? His answers may surprise you.

“Our chief competition will be with the Mini, in terms of how emotional it is, its life cycle, and breadth of line – the many options and models it offers. Not so much the Fiat 500 – that car is new, doesn’t have as much history (in America), and is at a lower price point,” he added.

“It may sound strange, but honestly, but we need to target Mustang V-6.  Not from a cross shop perspective, because we know they will not be cross shopped. But we have the same mindset for the buyers.  And what we want is what the Mustang has – the loyalty.  The range. The market of one,” he said.

2011 Ford Mustang V-6

“We need to play on those same emotions, and also take on the Japanese sporty coupes, like the [Scion] tC.  And we need see about the new Civic Si [which also makes its debut at the NYIAS]…” Joostema continued. “And we need to be participating in the same field in terms of customization.”

So will the Beetle have special models, similar Scion’s limited edition “Release Series”?

“Absolutely,” said Joosteema without missing a beat. “We call it ‘active lifecycle management’ and we’re looking at the Scion’s approach, but also Mini with the Mayfair and Camden edition.”

“Maybe we do a Surf Model or Baja Model,” Joostema mused.

The reason for all of the increased hype? VW is not content to let this Beetle flounder about without support. For all of its cute nostalgia, the 2012 Beetle is critical to VW of America’s oft cited mission of hitting annual sales of 800,000 by 2018.

2010 Scion xB Release Series 8.0

“The Beetle is a key component of the goal to hit 800,000 – oh absolutely,” said Joostema. “Put it this way; getting from 500,000 to 800,000 will be done by something else, but the Beetle is key to getting from where we are now to 500,000 because it can give us growth in other markets – access to a new, younger buyer who might then continue on with the brand…”

So what does this all mean? You won’t just be seeing Turbos and Cabriolets in the months and years to come, but a whole range of colorfully customized Beetles roaming the streets.  More tomorrow from the 2011 New York International Auto Show.

View the original article here

2011 New York: Why VW’s New Beetle Must Challenge Ford’s Mustang

2012 VW Beetle

The 2012 VW Beetle was announced Monday morning as part of a dramatic three city debut in New York, Berlin and Shanghai.  After the drapes dropped and speeches were spoken, I had the opportunity to chat with Kevin Joostema, VW of America’s General Manager of Product Marketing & Strategy.

Joosteema heads the team charged with selling this new Beetle in its most important market in the world.  Make no mistake, though the global tri-city reveal highlighted the importance of China and Europe, America is where it’s at when it comes to 21st century Love Bug.

According to VW, over 26 million Beetles, including the original and New Beetle launched in 1998, have been sold around the world. Over 6 million of those were purchased in the United States, the Beetle’s single largest market. This also put America – and Joostema’s team – in the driver’s seat when it came to the new model.

2011 MINI Goodwood Edition

But our market is filled with plenty of tough competitors.  Who does Joostema see as the Beetle’s chief competition? His answers may surprise you.

“Our chief competition will be with the Mini, in terms of how emotional it is, its life cycle, and breadth of line – the many options and models it offers. Not so much the Fiat 500 – that car is new, doesn’t have as much history (in America), and is at a lower price point,” he added.

“It may sound strange, but honestly, but we need to target Mustang V-6.  Not from a cross shop perspective, because we know they will not be cross shopped. But we have the same mindset for the buyers.  And what we want is what the Mustang has – the loyalty.  The range. The market of one,” he said.

2011 Ford Mustang V-6

“We need to play on those same emotions, and also take on the Japanese sporty coupes, like the [Scion] tC.  And we need see about the new Civic Si [which also makes its debut at the NYIAS]…” Joostema continued. “And we need to be participating in the same field in terms of customization.”

So will the Beetle have special models, similar Scion’s limited edition “Release Series”?

“Absolutely,” said Joosteema without missing a beat. “We call it ‘active lifecycle management’ and we’re looking at the Scion’s approach, but also Mini with the Mayfair and Camden edition.”

“Maybe we do a Surf Model or Baja Model,” Joostema mused.

The reason for all of the increased hype? VW is not content to let this Beetle flounder about without support. For all of its cute nostalgia, the 2012 Beetle is critical to VW of America’s oft cited mission of hitting annual sales of 800,000 by 2018.

2010 Scion xB Release Series 8.0

“The Beetle is a key component of the goal to hit 800,000 – oh absolutely,” said Joostema. “Put it this way; getting from 500,000 to 800,000 will be done by something else, but the Beetle is key to getting from where we are now to 500,000 because it can give us growth in other markets – access to a new, younger buyer who might then continue on with the brand…”

So what does this all mean? You won’t just be seeing Turbos and Cabriolets in the months and years to come, but a whole range of colorfully customized Beetles roaming the streets.  More tomorrow from the 2011 New York International Auto Show.

View the original article here

Ford’s Fiesta gains customization packages inside and out for 2012

Wednesday, Mar 23rd, 2011 @ 4:07 a.m.

Ford’s new global Fiesta is hardly a year old, but the Dearborn-based automaker has already seen fit to expand the subcompact’s interior color choice list to include some bright new hues, as well as to add some cosmetic bits to the outside for an aftermarket look.

When Ford first began showing off the new Fiesta during the 2010 auto show circuit there were a half a dozen or so customized Fiestas that were enlisted to do the trick, many with custom body kits, blacked out headlamps, carbon fiber odds and ends and a sporty rear spoiler that has been mysteriously missing despite previously being promised as an option. But alas, Ford is ready to deliver many of the attractive bits it used to tease and lure in buyers for the 2011 model year with three new packages for 2012.

The automotive aftermarket in is good for around $6 billion a year, and Ford hopes to tap into that income with accessories and OEM-installed options that would historically be acquired only through aftermarket customization, cutting Ford out of the profit equation. As it stands now, Ford says roughly four out of ten Fiesta buyers adds at least one OEM accessory at the time of a purchase, a figure that Ford wants to increase.

One way to do that is to tap into the well-received European Fod Focus RS’s bag of styling tricks, pulling out the “premium sport package” which includes 16-inch polished alloy wheels, blacked out and smooth side mirrors, headlamps, grille surround, license plate header and a rear upper hatch spoiler with a little more flair than the standard spoiler.

But before you cry “all show, no go” for the sport package, Ford says that if ordered on a manual car, the package will also entail a final gear ratio upgrade to 4.25, rather than the fuel-friendly 4.07.

What about the inside?
The interior changes will likely garner far more attention – and order sheet check boxes – than the somewhat stealthy changes to the outside found in the premium sport package, as they include radical amounts of colorful accents to be added throughout the car. The premium interior package – available on SEL and SES models – is centered around high-contrasting (read: bright) interior accent coloring in either Oxford White or Race Red, which stretch from the seats to the doors to the dash to the steering wheel.

“The inspiration for this package is mainly a result of the trends we’re seeing in fashion,” explained Mark Conforzi, chief designer, Ford Vehicle Personalization. “Designers like Stella McCartney use bold, contrasting color similar to these interior packages, adding a one-of-a-kind design.”

It will be interesting to see take rates for Ford’s new customization packages, as they will surely add to Ford’s already strong profit margins – a welcome change as Ford and other automakers reliant on profitable truck sales will likely see a shift to small cars if gas prices continue their upward trend.

View the original article here