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Report: Slumping VW rolls back US sales targets

Filed under: Etc., Volkswagen, Earnings/Financials

After three years as one of the fastest-growing car brands in the US, Volkswagen has hit a sales rut, and it can’t get out. In response, Volkswagen Group of America downgraded VW’s 2013 US vehicle sales target to 440,000, from the original target of about 486,000, reports Automotive News. The stair-step incentive program under which dealerships earn bonuses also was restructured early this month, yet VW USA remains committed to its goal of producing 800,000 cars annually by 2018.

Many VW dealerships rely on bonuses earned from an incentive program to make a profit, and the program was built around sales targets. But the reality of VW sales in 2013 had a number of dealers resorting to sales tactics that strained relationships with customers and other dealers in an attempt to meet the targets. This was reflected in a recent National Automobile Dealerships Association’s survey that ranked VW’s dealer policies last.

Volkswagen of America COO Mark McNabb has indicated that, through lowering US sales targets, simplifying bonus calculations and giving the incentive program clearer goals and more predictable monthly payments, VW is trying to ease the pressure on dealerships that rely on the bonuses, Automotive News reports.

Dealers are confident that sales will pick up when new models roll in, but VW dealership owner and chairman of the company’s national dealership council, Jim Ellis, admits that right now VW is “getting kicked around a little bit here,” reports Automotive News, by stronger-than-expected competition in the compact and midsize sedan segments.

Slumping VW rolls back US sales targets originally appeared on Autoblog on Tue, 23 Jul 2013 10:58:00 EST. Please see our terms for use of feeds.

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Report: Proposed class-action lawsuit targets ‘defective’ MyFord Touch

Filed under: Government/Legal, Technology, Ford, Lincoln, Mercury, Infotainment

A national law firm, Hagens Berman Sobol Shapiro LLP, has filed a proposed class action lawsuit whose presupposition is that MyFord Touch is defective. Specifically, the complaint states that the system – as well as the MyLincoln Touch and MyMercury Touch clones – often freeze, fail to respond to voice or touch commands and have issues connecting to mobile phones.

According to Hagens Berman managing partner Steve Berman, MyFord Touch is a theoretically “brilliant idea” that falls short in actual execution. Said Berman in a press release, “In reality, the system is fundamentally flawed, failing to reliably provide functionality, amounting to an inconvenience at best, and a serious safety issue at worst.”

Other MFT issues enumerated within the 41-page filing include problems controlling the window defroster, rear-view camera and navigation system. The suit maintains that Ford is aware of the problem but has yet to submit a workable and acceptable solution to MFT customers. Scroll down if you’d like to read the full press release.

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Proposed class-action lawsuit targets ‘defective’ MyFord Touch originally appeared on Autoblog on Tue, 16 Jul 2013 15:58:00 EST. Please see our terms for use of feeds.

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New York 2011: Shelby targets younger crowd with GTS Mustang

Filed under: Aftermarket, New York Auto Show, Coupe, Performance, Ford

2012 Shelby GTS

2012 Shelby GTS – Click above for high-res image gallery

Designated as the spiritual successor of the Shelby GT that was built from 2007 to 2008, the new GTS represents the base model in the Shelby lineup. According to company president John Luft, Shelby’s average buyer is in their late ’50s, and the iconic tuner hopes to bring in a younger crowd with a more affordable offering.

Available as a post-title package on both the Mustang GT and the Mustang V6, the GTS includes a variety of upgrades including a Ford Racing handling pack, Borla exhaust system, Baer brakes, unique front fascia, Le Mans stripes and a deep-draw hood. Optional components include superchargers for both the V6 and the V8, a Watts-link rear suspension system, upgraded brakes and more.

Pricing for the Shelby GTS starts at $9,995, not including the base car, which means a customer can get their hands on one for as little as $32,000. You can read more details about the Shelby GTS in the official PR after the jump.

Gallery: 2012 Shelby GTS: New York 2011

Gallery: 2012 Shelby GTS

[Source: Shelby]

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New York 2011: Shelby targets younger crowd with GTS Mustang originally appeared on Autoblog on Thu, 21 Apr 2011 14:59:00 EST. Please see our terms for use of feeds.

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Volkswagen gives price points for 2012 Beetle, targets Mini

Filed under: New York Auto Show, Coupe, Budget, Volkswagen

2012 Volkswagen Beetle reveal in NYC

2012 Volkswagen Beetle reveal in NYC – Click above for high-res image gallery

Elaborating on our previous details from the New York unveiling of the 2012 much-altered Beetle, Volkswagen North America CEO Jonathan Browning has told Autoblog, “We’re aiming to essentially go after the Mini so far as market positioning and price offerings.”

That means a price range from $20,000 to $24,000 when the coupe launches worldwide in late September, and between $25,000 and $29,000 for the 2013 convertible. These price ranges take into account the three engines on offer at the start of deliveries: the 2.5-liter five-cylinder, 2.0-liter TDI diesel, and 200-hp 2.0-liter TFSI. There’s no telling what the price will be on the hot Beetle R foreseen for mid-2013 with the newest 261-hp 2.0-liter turbocharged inline-four from the Scirocco R, much less the rumored 337-hp Beetle RS with turbo inline five “W28” engine for 2014.

Wheels available at launch will range from a standard 17-inch set to optional 18-inch and 19-inch, the latter set being the size shown on all of the Beetles that you’ll see in our photos from the 2011 New York Auto Show.

VW global branding boss Luca De Meo tells us, “We want to avoid the almost total lack of rollout planning that the former New Beetle suffered. That car had a couple of pretty good years and then it fell dramatically. We want to keep offering new things that are significant this time around so as to keep the car fresh.”

Though Volkswagen could rely on its vast worldwide manufacturing network to build the Beetle for Western Europe, China, and North America, bosses in New York say that all Beetle manufacturing will remain exclusively at the Puebla, Mexico plant.

Gallery: 2012 Volkswagen Beetle: New York 2011

2012 Volkswagen Beetle

Volkswagen gives price points for 2012 Beetle, targets Mini originally appeared on Autoblog on Tue, 19 Apr 2011 15:59:00 EST. Please see our terms for use of feeds.

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