Bojan Vrbnjak
The time is very unfavorable and inopportune. Amidst the crisis and related headlines, VW is raising the prices of its new cars with internal combustion engines in Germany. Starting September 12, the prices of many models will increase. This comes from the current circular that VW sent to its dealers and is available to the trade magazine Automobilwoche. This was also reported by the industry magazine "kfz-betrieb".
Depending on the model, sales prices will increase by an average of 2,1 to 3,2 percent. For example, the basic version of the VW Golf model now costs EUR 28.330, which is EUR 1.150 more. Passat and Tiguan went up by EUR 1.325 and EUR 1.100 to EUR 43.490 and EUR 38.250, respectively. The highest increase is for the Touareg, which will be 2.490 EUR more expensive and will cost at least 73.765 EUR in the future. The least expensive will be the Taigo, which will cost 490 euros more (22.865 euros). This does not affect the entry-level Polo model, the basic version of which will continue to cost 19.835 euros. In addition, the prices of many equipment options, such as a panoramic roof or a head-up display, will increase.
According to Automobilwoche, the decision met with little sympathy in the profession. It says verbatim: 'The reorganization approach with higher prices has not worked so far and has only ended up stifling demand. The new price step is 'completely counterproductive', one knowledgeable VW dealer is reported to have said. On the other hand, others feel that the move is simply irrelevant. "The price is determined by the market, not the manufacturer," says one of VW's main partners. VW could raise prices, but if customer demand didn't materialize, it would end up being forced to increase sales through sales promotion measures. The e-cars of the ID family are not mentioned in the letter, as VW sells them through a so-called "non-genuine agency model", where dealers have no direct influence on prices.
VW's measure is also interesting because of the restrictions on the EU fleet from 2025, when penalties will apply from 94 grams of CO2 per kilometer. To avoid them, VW would have to sell a good 14 percent fewer internal combustion engines and increase the number of electric cars by the same amount. Fittingly, the rather frugal Polo is exempt from the increased prices. So will price hikes for internal combustion engines serve as a ban while electric cars soon hit the market thanks to cheap leases? That will be interesting to see.
