Crown Sized
Surving The Recession: A Lesson From VW
The automotive industry came under serious threat during the recession, American giants GM and Ford had to be saved from the brink of collapse by the government, while Toyota almost committed commercial suicide, suffering a raft of near-fatal parts failures leading to a backlash from consumers and a brand crisis leading many to ditch their Avensis’ without a second thought and get another model immediately with temporary car insurance. It is no surprise that, new motors were the first to be struck off people’s shooping lists after the purse strings tightened, to make things worse for manufactures, those that did invest in metal opted for pre-owned as used car prices went into freefall.
Although Britain is now officially in growth, many manufacturers are making a sloth-like recovery, still seeing a lack of profits and sales figures in need of a jump-start. One exception is Europes largest manufacturer, VW. In the first two months of 2010, even when Britain was officially still in recession, deliveries rose a staggering 27% making the Volkswagen group the envy of its peers. The business has enjoyed huge success, rising like a phoenix from the flames of financial ruin, but what are the reasons for this?
The VW group comprises of a large collection of well regarded marques, amongst the stable sits Audi, Lambourgini, Bugatti, Seat and Skoda. This means the group has a vast portfolio of models all entering the market in different price brackets, from the budget Fabia and Ibiza to the pinnacle of the supercar market and official fastest production car in the world, the Bugatti Veyron. This means the marketplace is covered, the VW group is always an option for those perusing a new model. Car shoppers will be able to find a model to suit their needs quicker than they can get an instant car insurance quote
Aside from this, VW simply make good cars. VW and Audi models are renowned for their superior quality in and outside the cabin. Because cars like the ‘jack of all trades’ Golf are used as base for other similar-specced models, the solidarity is transferred across the range, while cars that share the chassis retain their own uniqueness, just as insurance companies offer unique short term car insurance plans. VW is also in receipt of regular critical acclaim, the new polo was recently voted car of the year 2010 by a heft of top motoring journalists. Other manufacturers would do well to take a leaf out of VW’s book to boost their sales post-recession.
John Chiara at Crown Point Press
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