Volkswagen Tiguan

Keogh to Volkswagen: A Brilliant Move

October 11, 2018 by admin 1 Comment

Audi’s U.S. chief heads to Volkswagen.

2018 Volkswagen Tiguan — The VW Tiguan is a roomy, compact SUV.

Audi of America’s loss is Volkswagen of America’s gain. This week, Volkswagen announced that Audi’s president will become president and CEO of the Volkswagen Group of America as well as head the Volkswagen brand in North America, beginning November 1, 2018.

Scott Keogh’s appointment is significant as it comes just as the Volkswagen brand seeks greater recognition in the ultra-competitive U.S. market. Notably, the German automaker forfeited its place as America’s favorite import brand of the 1950s and 1960s, allowing upstarts from Japan to take its place. Only recently, Volkswagen has been trying to expand its reach by introducing a pair of updated or new crossovers in the compact Tiguan and the midsize Atlas.

Moving Audi Forward

Keogh joined Audi in 2006 as its chief marketing officer. In 2012, he was appointed president just as Audi was undertaking a stateside expansion that doubled sales from 2010 to 2015. Today, Audi is the fourth best-selling luxury automotive brand in the U.S., trailing only Mercedes-Benz, BMW and Lexus.

Scott Keogh, from Audi to Volkswagen Group leadership.

Through September, Audi’s U.S. sales are up 3.92 percent on 164,834 units sold. For the same period, the mainstream Volkswagen brand is enjoying a 5.45-percent increase based on 266,217 units sold.

Both brands are thriving in a marketplace where overall sales are down 4 percent so far this year.

Audi’s ascendancy, of course, cannot be attributed to just one person. That said, Keogh has instilled confidence in the brand and will turn over the reigns to Mark Del Rosso, who is currently serving as the head of Bentley of the Americas.

Del Rosso will assume his new position on December 1. His replacement has not yet been named.

Finding Volkswagen’s Place

Although Keogh joins Volkswagen as is sales improve, the brand is still attempting to find its way in a fast-changing market. The earlier diesel scandal still looms over the company, which has had to pay tens of billions of dollars in fines and compensation costs. Importantly, its once trusty line of diesel engines is now gone. The automaker has since redirected its investment strategy to electric vehicles, but the company is still playing catch up.

Volkswagen’s strongest vehicle lines have long been the Golf and Jetta, along with their many variants. But as consumer interests shift to crossovers, Volkswagen has been making the transition too. Indeed, in recent years we have seen an all-new Tiguan, a compact crossover SUV, updated to take on its current competitors. The previous model was considered too small to matter much, but the new model corrects that deficiency.

2018 Volkswagen Atlas — The VW Atlas is this brand’s largest SUV.

The surprise hit (for some analysts, but not this one) is the Atlas, a seven-passenger, midsize crossover SUV. The new model succeeds in a segment led by the likes of the Ford Explorer, Toyota Highlander, Chevrolet Traverse, Honda Pilot and Nissan Pathfinder.

Though its sales pale in comparison to the best sellers, Volkswagen moves more Atlas models than the Buick Enclave and Mazda CX-9.

Keogh and the Challenges Ahead

Besides electrification, Volkswagen has other challenges to tackle. Likely, we’ll see additional variations on the VW Atlas theme, with five-passenger and hybrid versions likely. A subcompact SUV is very much needed, although we like VW’s strategy whereby the Golf SportWagen and Golf Alltrack supply something different for the market.

Volkswagen must also decide whether the midsize Passat sedan deserves a lease on life. Built at the company’s Chattanooga, Tennessee, manufacturing plant, that space might be better used for a utility vehicle. We think Volkswagen will eventually discontinue the Passat, while introducing the new Arteon sedan. It’ll stay with its core Golf and Jetta cars and lean on an ever-widening range of people movers to increase market share.

If Keogh is able to replicate at least a portion of Audi’s success while overseeing the Volkswagen Group, the automaker may very well find itself taking away customers from its many competitors. That’s something that should send a shudder through corporate boardrooms in Detroit, Tokyo, Seoul and elsewhere.

Volkswagen Arteon — This sleek Arteon may replace both the CC and Passat.

See Also — First Impressions of the Second-Generation Volkswagen Tiguan

Scott Keogh and VW Arteon photos copyright Volkswagen Group of America; all other photos belong to Auto Trends Magazine.

First Half 2017 US Auto Sales Highlights

July 3, 2017 by admin 1 Comment

Sales are down, but a few manufacturers are enjoying success.

June’s auto sales figures came out today and for people taking an extended four-day weekend to celebrate America’s Independence Day, poolside chatter may have silenced the news.

Nevertheless, some of us are on duty — including yours truly — tracking certain auto trends or should I say sales trends, which we’ll amplify here.

To that end, the following are the chief takeaways for the first six months of the year as well as my guess on what the remainder of the year may look like.

1. The sky isn’t falling, but sales are slipping.

US auto sales are down 2.1 percent year-to-date through June 2017, what represents only a modest decline (8,456,896 v. 8,641,718). Still, experts now see yearly sales falling short of the 17 million mark and that concerns some.

One big concern doesn’t have much to do with sales numbers, but how those numbers come about. Specifically, customers are buying in part because of big, costly, profit-eating incentives. Coinciding with June’s sales release story, Automotive News reported that the average new car incentive offered by manufacturers was $3,550 in June, up slightly over the previous month, but 9.7 percent higher than a year earlier.

Price discipline is something automotive executives talk about and insist that they’ll follow as sales begin to slide. But, if the dam breaks, incentives may push ever higher — that’s terrific news for consumers, but not so much for each automaker’s bottom line.

2017 Lincoln Continental — Continental sales continue to power Lincoln’s renaissance.

2. Is Tesla on the brink?

Tesla Motors has long enjoyed out-sized news coverage despite its relatively minuscule sales. Indeed, for a company that recorded just 22,000 units sold in the second quarter, it is receiving a lot of press. As a point of comparison, Ford sells as many F-150s in about 10 days.

But Tesla is the darling of the stock market, environmentalists, and technology fans, so it merits attention. Moreover, CEO Elon Musk dropped a bomb today when he said that the Tesla 3 is ready for production, with the first model slated to roll off an assembly line this Friday according to Reuters. This means the $35,000 sedan has received federal approval and the first 30 people who ordered one will take delivery by the end of the month.

Importantly, this will be the first time Tesla released a model on time. Also of importance, the all-electric automaker anticipates production ramping up fairly quickly, hitting 20,000 units per month by December. Heck, this long-time doubter may soon become a true believer if Tesla pulls this off.

Tesla Model X sales may quickly fall behind Model 3
sales when the compact sedan debuts this month.

3. What’s up with Jeep?

Fiat Chrysler is not having a banner year. Sales are down 6.7 percent with only Ram (up 7.6 percent) showing an increase year to date. This also means Jeep is down and that brand’s 12.7 percent sales drop accounts for more than half of FCA’s first-half pull back.

That Jeep sales are down is a curiosity. Customers are shifting their purchases to SUVs and that’s all that Jeep makes. A new Compass is out, but sales are down by 49 percent. Patriot sales are also down by 49 percent, but that model is being phased out. Cherokee sales are down 19 percent and that represents yet another drag on the brand.

The good news for Jeep is that an all-new Wrangler is due by year-end. That release alone will begin to turn around sales, but it may not be enough to offset the earlier losses.

Two overarching concerns about the brands are as follows: 1), Jeep pricing is high on some models, such as the Cherokee. Customers are price sensitive and will look elsewhere if they find a better deal. 2), Jeep quality routinely trails nearly everyone. Although the quality wasn’t a factor when sales were robust, it may be a larger factor than before.

2016 Jeep Renegade — Renegade sales aren’t enough to offset Jeep’s decline this year.

4. Nissan may overtake Honda.

In most every other market in the world, Nissan outsells Honda. In the US, Honda almost always beats Nissan and in some years, decidedly so.

Nissan has started the year strong before, only to see Honda slip past them once summer ends and sales pick up steam in the fall. That happened last year, but this year things are looking up for Nissan. And we’re not including Mitsubishi sales in that number even though Nissan now has a controlling interest in the junior automaker.

Last year, Nissan had a 5,700-unit lead at the halfway mark. This year, its edge is almost 20,000 units. Rogue sales alone may give Nissan the victory as sales are up a whopping 31.4 percent to 195,689 units. There’s a very good chance Rogue sales will top 400,000 units, even dethroning the Toyota Camry as America’s best-selling “car” in the process.

2017 Nissan Rogue — This compact Rogue is helping Nissan to a greater share of the sales pie.

Moving Forward

My best guess is that sales will fall this year and could take a nasty tumble if the stock market has a major correction. Automakers say they always anticipate a drop, but until it happens, they plan for ever-increasing sales.

Nissan, Jaguar Land Rover, Subaru, and Volkswagen seem like the best bets to gain share this year, along with specific brands such as Ram, Buick, Lincoln, Audi, and Porsche also benefiting.

See Also — US Auto Trends: First Half 2016

First Impressions of the Second-Generation Volkswagen Tiguan

June 22, 2017 by admin 8 Comments

The 2018 VW Tiguan debuts in late July.

Volkswagen’s rejuvenation continues apace, with its second all-new SUV this year set to arrive later this summer. The 2018 Volkswagen Tiguan launches this compact SUV’s second generation, a model that is larger, updated and offers the latest technologies.

The 2018 Tiguan (pronounced tig-wahn) follows the 2018 VW Atlas to the market, giving Volkswagen a strong 1-2 punch in the continually expanding SUV segment. VW still has the low-volume, five-passenger Touareg SUV, but the company hasn’t said whether it will return for another model year.

Modular Transverse Matrix (MQB) Architecture

The Tiguan along with the Golf and Atlas are each based on Volkswagen’s MQB platform. As a modular platform, MQB may be infinitely resized to accommodate a variety of vehicles and powertrains. The upfront costs are steep, but long-term gains come from expanding MQB to multiple models.

At a press event held in Denver, Colorado, and attended by this writer (Volkswagen covered the airfare and hotel accommodations to make this trip possible), company representatives took turns explaining what the Tiguan is about and VW’s outlook.

Restoring Customer Confidence

Once again, Volkswagen acknowledged that it needed to regain customer confidence, lost when a 2015 diesel scandal revealed widespread cheating. The automaker paid billions of dollars in fines, repurchased affected vehicles, and fixed others. A company spokesperson explained that the automaker could regain customer trust by building good product.

Enter the 2018 Volkswagen Tiguan.

The first-generation Tiguan was a bit player in the market, easily outsold by nearly every model, including the Honda CR-V, Ford Escape, Toyota RAV4, Nissan Rogue, Chevrolet Traverse, and others. When introduced in 2009, the market was already shifting to larger compact models. Unfortunately, the original Tiguan was one of the smallest in its class — size matters and customers shopped elsewhere.

The original Tiguan’s shortcomings served as a lesson for the automaker, something taken into account while developing a new model. Indeed, the company looked specifically at the US market and decided to redesign and engineer the next Tiguan with the American consumer in mind.

That decision produced a model that is 10.6 inches longer, with much of that gain apparent between the wheels. Instead of being the smallest SUV in the compact range, the 2018 Tiguan is now one of the largest. And so much so that the front-wheel drive models automatically include a third-row seat with the extra row serving as a $500 option on all-wheel drive models.

2018 Volkswagen Tiguan

Volkswagen offers the 2018 Tiguan in four grades: S ($25,345), SE ($29,080), SEL ($32,550), and SEL Premium ($36,250). Add $900 for destination and another $1,300 for all-wheel drive.

All 2018 Tiguan models have a single powertrain offering. A 2.0-liter turbocharged four-cylinder engine with 184 horsepower and 221 pound-feet of torque moves each one.

Volkswagen says the updated engine features a modified Miller cycle for greater efficiencies. Fuel economy is now 22/27 mpg city/highway, up from the previous 20/24. Also helping matters is an all-new eight-speed transmission, offering two additional gears than before.

On the Road

Volkswagen held nothing back when mapping drive routes for us follow. I teamed with Derick Page of Black Book, taking turns behind the wheel as we embarked on a pair of 50-mile drive segments.

In Denver, you’re already starting your drive at a high elevation — the Cherry Creek section of the city measures 5,358 feet, just above the 5,280-foot “mile high” designation. Our initial trip started out on the interstate before connecting with Colorado SR 36 pushing through Boulder.

The real fun began when we made our ascent through Rocky Mountain National Park on two-lane roads with some of the most amazing scenery in the west. As we climbed ever higher, the valley below faded to near nothingness. Yet we remained thousands of feet below several distant summits (including Longs Peak), still snow-capped even as our local conditions neared 90 °F (32.22 °C).

Volkswagen supplied us with sufficient warning that the paved roads would eventually give way to gravel and just like that they did. Our test 4Motion with Active Control (all-wheel drive) features four settings — on-road, snow, off-road and custom off-road. A quick switch to the off-road setting provided improved handling management, especially as we edged perilously close to the side with no guard rails and only thin forest present to slow what could have been a deadly descent.

Under most conditions, the 2018 Tiguan’s engine performed admirably, although on the steepest inclines it labored a bit. We topped out at 8,018 feet with the turbo adjusting just fine to the thinner air. Steering is sufficiently weighty, handling adept, and the firm brakes quickly brought our Tiguan to a firm stop.

Parting Thoughts

My first impressions of the 2018 Tiguan were mostly favorable. Then again, we had access only to well-equipped SEL models due to time constraints which meant that we gave the S and SE trims only a cursory inspection.

That said, the new Tiguan offers an exterior look that is more polished and upscale than before and an interior supplying a healthy mix of premium and common materials. On the tech front, the only fault we found was the size of the screen, but it still offered a clear presentation. I’m familiar with VW’s Car-Net connectivity system and I like its usefulness.

As for the third-row seat, consider it sufficient for youngsters, although cramped legroom is in the offing. If you choose the all-wheel drive model, it may not be worth the $500 investment to gain the extra seat. Otherwise moving up to the midsize Atlas supplies the best balance of passenger and utility space for large families.

2018 Volkswagen Tiguan Specifications

Volkswagen	Tiguan
Segment	Compact SUV
Base Sticker Price	$25,345 ($26,245, including $900 for destination)
Price as Tested	NA
Standard Engine	2.0-liter, turbo I4
Transmission	Eight-speed manual
Horsepower @ RPM	184 @ 4,400
Torque (lb.-ft.) @ RPM	221 @ 1,600
Seating	2+3+2 or 2+3
Curb Weight (pounds)	3,885 to 4,043
Wheelbase (inches)	109.8
Length (inches)	185.1
Width (inches)	72.4
Height (inches)	65.3
Headroom (f,m,r — inches)	39.6, 39.1, 33.8
Legroom (f,m,r — inches)	40.2, 36.5, 27.9
Shoulder room (f,m,r — inches)	57.0, 55.9, 47.8
Hip room (f,m,r — inches)	NR, NR, NR
Storage (cubic feet)	3-Row Models: 12/33/65.7; 2-Row Models: 37.6/73.5
Gross vehicle weight (pounds)	NR
Towing (pounds)	1,500
Payload (pounds)	NR
Fuel	regular
Fuel Tank (gallons)	15.3 (FWD); 15.9 (AWD)
EPA Fuel MPG (city/highway)	FWD: 22/27; AWD: 21/27
Manufacturing Plant	Puebla, Mexico

See Also — Big-Time Hit: 2018 Volkswagen Atlas SUV

Driven: 2016 Volkswagen Tiguan

December 15, 2016 by admin 9 Comments

Available permanent all-wheel drive gives the VW Tiguan an important edge.

Taking delivery of an outgoing model year vehicle is always a bit of a challenge. On the one hand, customers are looking for information about the very latest model. On the other hand, if the differences between the two are minimal — as I soon discovered with the 2016 Volkswagen Tiguan — then just getting the opportunity to drive one is all that’s needed.

That said, my test subject 2016 Volkswagen Tiguan R-Line model is now called a 2017 Tiguan Sport. The same renaming transition took place for the SE as it has been replaced by the Wolfsburg edition. Yes, there are a few trim differences, but essentially they’re the same grades, but with new names.

The 2016 Tiguan is offered in S, SE, R-Line, Sport, and SEL trims. One powertrain combination is available: a 2.0-liter, turbocharged four-cylinder gasoline engine is paired with a six-speed automatic transmission. This engine makes 200 horsepower and 207 pound-feet of torque.

The front-wheel-drive model makes an EPA-estimated 21 mpg in the city and 26 mpg on the highway. The all-wheel-drive version comes in at 20 mpg in the city and 26 mpg on the highway. This model takes premium gasoline.

TIGer + igUANa = TIGUAN

Certainly, the Tiguan name isn’t one that easily rolls off the tongue. Pronounced TIG-wohn, the name is not quite a portmanteau of two words, rather it is a unique melding of the same. Take half a tiger and half an iguana and you have the whole of a tiguan. To explain its naming convention, Volkswagen ran a clever ad a few years back — you can find it on YouTube.

Nine years is a long time to stay with a model before bringing the next-generation vehicle to the market. Introduced to US consumers in 2009, the first-generation model is coming to an end — the second-generation Tiguan arrives sometime next year.

In the meantime, consumers shouldn’t automatically rule out the Tiguan and for the following very good reasons:

1. Turbo + 4MOTION = Awesome — Not all Tiguan models are all-wheel drive, but those that are provide this handling advantage all the time. In other words, power is sent to all four wheels at all times — not just when the system “thinks” you need it. The advantage translates to reliable traction delivered when you need it, supplying drivers with an important safety advantage. Of course, if you live where snow is not common, sticking with front-wheel drive may be best. But never underestimate the advantage AWD provides on twisty roads and slick surfaces. You don’t need to live in snow country to want that edge.

2. A proven model — Yes, nine years is a long time to market a vehicle, but there is an advantage that shouldn’t be easily dismissed: you have a proven model to consider. Importantly, the Tiguan hasn’t been without its share of updates and refreshes — in 2012 the Tiguan received an exterior styling refresh. Specifically, new equipment was added to the SEL line and fuel economy was improved. By 2013, all models were outfitted with a leather-trimmed steering wheel. In 2014, Volkswagen introduced its new Car-Net telematics service. A rearview camera, five-inch touchscreen, and an iPod cable were added in 2015. For 2016, keyless entry, push-button start, upgraded upholstery and heated front seats were made standard. Looking ahead to 2017, the 6.3-inch screen is now standard as is HD and satellite radio plus the Car-Net App. Car-Net rolled out in 2014 and includes the usual telematic features.

3. Incentives are strong — As we come to the end of a calendar year, Volkswagen has become very aggressive and is offering incentives that are hard to beat or ignore. Through Jan. 3, 2017, Volkswagen is running its “Sign, Then Drive Event.” What’s significant about this offer is that if you lease most models and certain trims, you won’t be putting cash down, including a security deposit or the first month’s payment. Further, no other upfront cash is required other than the tax, title, and dealer fees. If you prefer to finance, highly qualified customers will pay 0.9-percent for 60 months. Both national offers are outstanding.

Making Room for the Tiguan

If there is a disadvantage with the Tiguan, it has everything to do with its size. Yes, it does seat five. But it does so with a wheelbase that is at least two inches shorter than such competitors as the Nissan Rogue, Toyota RAV4, and the Honda CR-V. Further, its overall length falls six to 10 inches shorter than the competition. Thus, there is a bit less legroom in the second row. Moreover, the storage space measures just 23.8 cubic feet or 56.1 cubic feet with the rear seat folded. Compare these numbers to the Ford Escape (34.3 and 67.8 cubic feet, respectively) and that’s one area of concern that may be hard for some consumers to overcome.

Where the Tiguan shines is in the quality of materials used as well as with its fit and finish. Especially as you move up through the trim levels you’ll find leather touches and equipment befitting a premium model. As far as the interior, it is well ordered, clean, and consistent. The same as the outside and everything you would expect in a Volkswagen. Notably, the front seats are firm and supportive — and just as comfortable as the seats found in some luxury models.

At the same time, this model lacks the “wow” factor you would expect. Blame its aged design in part for a lack of needle-moving style or the cutting-edge technologies some other models provide (although this writer was pleased with the Car-Net App). In any case, there is only so much you can do for an SUV rolled out in another generation.

On the Road

Where the Volkswagen Tiguan shines is on the road, especially when equipped with all-wheel drive — same as our test model. The VW 4MOTION all-wheel-drive system is permanent and that means it is always at work. To explain things simply, instead of kicking in when you need it, the system sends torque to the front and rear wheels under all driving conditions.

Some people find 4MOTION light to the touch and lacking the dynamics you’d expect with such a system. That’s a fair assessment. At the same time, handling is nimble and the suspension system does a stellar job in absorbing impacts. You’ll feel in complete control at all times.

Another strong suit is this model’s off-the-mark acceleration. Stomp the accelerator and the Tiguan pushes forward. Yes, a turbo is at work and the expected lag is apparent. Fortunately, it isn’t a show stopper and that means pushing up to highway speeds is effortless. When desiring passing power, the turbo responds, delivering a decisive kick to help you pass.

Looking Ahead

Volkswagen is in the midst of an overhaul, due in part to the turbo-diesel scandal, which has cost the automaker billions of dollars and at a loss of much goodwill. Consequently, the automaker has effectively abandoned the diesel market in the US, choosing to concentrate on improving its current models, adding new product, and investing its resources in vehicle electrification.

Speaking of new models, a three-row Volkswagen Altas model debuts next year, likely just after the second-generation Tiguan rolls out. An all-new Touareg won’t be far behind and that means by 2019 Volkswagen will have three SUV choices for consumers.

Parting Thoughts

As for the model at hand, the Tiguan is clearly outpaced by more updated models. Its one-choice powertrain puts it at a disadvantage too — for instance, the Ford Escape offers three choices. That said, what seems to be helping this model right now is the deep, seasonal incentives as no other manufacturer is offering anything like a “sign and drive” event. That said, Toyota and Honda sell eight times as many RAV4s and CR-Vs, demonstrating that an all-new model can only help Volkswagen get noticed.

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