Why Has VW Lost Its Appeal?

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By Car Brand Experts


Have I outgrown the scene? Did the Dieselgate scandal mark the beginning of the decline? Has VW shifted focus away from the enthusiast community? I’m uncertain, but I’m not alone in questioning: Have Volkswagens lost their former appeal?

This notion recently initiated a discussion among the editors at The Drive. A number of us were once ardent VW enthusiasts. Personally, I have owned three over the years, including a Mk7 Golf R, an ill-fated W8 Passat, and a Tiguan we’ll leave unmentioned. Jerry Perez possessed a sleek Mk4 Golf R32, while Aaron Cole had a Mk6 Jetta TDi, preceded by a Mk2 Jetta Wolfsburg and an Mk5 Passat. In his teenage years, Caleb Jacobs owned both a Mk4 Golf GTI and a Corrado VR6. Until recently, Chris Rosales cruised around in his Mk6 Golf GTI and still possesses a Jetta TDi. Rob Stumpf had a Mk2 Westy Golf, a “big turbo” Mk4 Golf, and an Mk5 Jetta GLI.

For many of our team, VWs played a vital role in shaping our passions, mechanical skills, and affinity for enjoyable, easy-to-drive vehicles. However, today, the only VWs that remain with us are the two Jetta TDis with Aaron and Chris—impressive cars in their own regard, but not exactly enthusiast favorites. The rest of us have transitioned to other automotive brands; Chris even traded his GTI for a 2019 Honda Civic Type R.

It’s intriguing that despite the presence of the Golf GTI and Golf R, the interest seems to have waned. While updated models of these cars are on the market, maintaining their original essence and garnering generally positive reviews, their reception pales in comparison to the immense excitement surrounding the recent launches of two new hot hatches, the Honda Civic Type R and the Toyota GR Corolla. VW simply isn’t part of the current conversation like it once was.

Moreover, in my decade of covering automotive topics, I’ve observed a decline in enthusiasm whenever we post about the latest releases from Wolfsburg. Even discussions about the next iterations of VW’s last two performance models going all-electric haven’t elicited the same level of interest as similar announcements from other manufacturers. So, what led to this shift? When and how did Volkswagen lose its credibility?

Since that initial conversation with my colleagues, I’ve contemplated this extensively and identified four key reasons why enthusiasts have somewhat distanced themselves from the brand. It all began eight years ago with Dieselgate and its impact on the company’s reputation and marketing capabilities. Consequently, the once-prominent “people’s car” ethos that defined VWs for generations started to fade. Concurrently, VW’s primary rivals began to tap into its niche of producing thrilling cars for the average consumer—just as the influence of the company’s enigmatic leader, Ferdinand Piech, faded from its product line.

A culmination of factors resulted in a paradigm shift. Presently, the company is more inclined towards developing and promoting models like the Tiguan, Atlas, and ID4 crossovers rather than its more engaging offerings. It no longer emphasizes those aspects of its brand as it once did. When was the last time you saw an ad for a GTI?

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Following the aftermath of the Dieselgate scandal in 2015, Volkswagen swiftly ditched its quirky public image for a more mundane presence, which I would refer to as “stealth-beige.” The unconventional and memorable ads, such as those with Peter Stromare un-modifying your vehicle, were replaced by plain and unremarkable promotions that failed to hint at VW’s underlying corporate misconduct.

The advertising became discreetly downplayed.

Even though the automotive industry continued to applaud the Golf GTI and Golf R models in the media, including myself, the marketing strategy for these models was significantly toned down in favor of generic campaigns for the Atlas and Tiguan. The advertisements either mimicked Toyota’s style or simply presented basic features like “Here’s the Taos with automatic emergency braking.” How thrilling.

Stealth beige perfectly encapsulates it all. Initially, my mind reminisced about those GTI ads that reversed modifications, even years later. However, recalling any recent VW commercials is a challenge. The ID Buzz van, arguably VW’s most intriguing project currently, seems absent from its marketing focus, a missed opportunity akin to the New Beetle era.

(There was an entertaining Audi ad from their North American branch, but oddly, corporate swiftly retracted it. The mystery remains…)

Furthermore, while some affordable enthusiast vehicles have faded, surviving models have directly rivalled Volkswagen. The Honda Civic Type R, Subaru WRX and WRX STI, Hyundai Elantra N, Toyota GR Corolla, Focus RS and ST (RIP), and Toyobaru twins all gained significant praise, offering practical performance at competitive prices, once VW’s forte.

In the past, VW relied on its German heritage; renowned for quality and affordability. However, the engineering superiority has waned, evident in the drastic decline in Golf sales since 2018.

In response to the shrinking small car market, VW shifted the Golf GTI and R further upmarket. Customers found themselves selecting premium leather, high-quality sound systems, increased power, etc., resulting in significantly higher prices. The GTI now commences at $30,530 and balloons to $44,740 for the R before markups. In comparison, the Toyota 86, Honda Civic Si, and Hyundai Elantra N are more affordable, while numerous enticing alternatives are available for $45,000. VW’s high-performance lineup has undergone significant changes.

A significant portion of the influence they previously wielded has diminished considerably.  

<em>Chris Rosales</em>

Chris Rosales

The attraction, that never-ending longing, arose from the vehicle’s excessive engineering and appeal not limited to the masses, but to any individual within the enthusiast community. As I conversed with Rosales during the composition of this piece, he remarked, “VW’s vehicles transcended societal classes and financial status. The GTI possessed a universal appeal, suitable for anyone, whether a billionaire in need of a casual ride or a fresh college graduate. An indistinguishable excellence resonated in the vehicles’ design, engineering, and sophistication. They exuded luxury. They excelled in every aspect without any shortcomings. And they possessed a striking aesthetic.”

Author Robbie Bacon echoed similar sentiments, stating “The Golf GTI served as a refined, practical vehicle suitable for daily school runs and spirited drives home, all without a significant increase in cost compared to regular family cars. It was challenging to find fault with it. Yet, as VW endeavors to elevate its status to a more luxurious level, the core essence is being compromised.”

Consequently, Volkswagen’s stylish vehicles have become excessively pricey and lacking in excitement to maintain their appeal today. There is no counter-cultural nuance attached to them. There is no act of rebellion against affluence in what essentially is an economy vehicle. Knowing you possess something remarkable that didn’t break the bank, or flaunting a cool factor without a hefty price tag is fading. These cars are beginning to resemble rebranded Audis, and that does not serve as a commendation.

Furthermore, the past decade witnessed a decline in the introduction of exciting models. Gone are the days of the Jetta GLI, Passat W8, Phaeton, Beetle TSI, or even the diminutive Up GTI, which epitomized a contemporary iteration of the Mk1 Golf GTI. Audi, Porsche, and Lamborghini have continued to unveil captivating products, but VW, once the cheerful face of this industry, has receded. The very essence of being the people’s car, as the name suggests, though its historical ties to Nazi Germany throughout the 20th century should not be overlooked—is what made the Dieselgate scandal in this era all the more agonizing. Fool me once, etc.

Nonetheless, the dearth in the eclectic and cheerful lineup cannot be attributed to a single cause, but in part due to the retirement of Ferdinand Piech in 2015, the former visionary leader of Volkswagen, who, as previously mentioned, possessed a uniquely eccentric leadership style. 

Ferdinand’s legacy continues to cast a long shadow even after relinquishing control of the VW Group back in 2002, andfinally stepping down from his supervisory position in 2015. (He passed away in 2019.) He was the individual behind numerous outlandish innovations of the group, such as the original Audi Quattro, the contemporary Porsche 911s, the initial Bugatti Veyron, along with the Golf performance editions, the W8 Passat (and indeed, all W engine versions), V10 Touareg, and the Phaeton. 

Piech accomplished it all, primarily supporting accessible halo models that genuinely enticed individuals to visit dealerships. He grasped the significance of having stylish vehicles in various segments throughout the range and the impact it had on the brand as a whole. When offering something exceptional, it was feasible to sell a plethora of standard versions by association. He even supervised the assortment of customized creations designed for the annual Worthersee VW car exhibition—which relocated from Worthersee this year—including the twin-turbocharged W12 Golf previously showcased on Top Gear.

For a period, the corporation flourished under the firm grip he maintained, but regressed when he eventually had to relinquish it. VW has witnessed few resounding triumphs since his departure and demise. It is worth noting that the transgressions of Dieselgate commenced during Piech’s reign—but the enterprise he helmed would have rebounded more effectively than the post-2015 VW has. Presently, it is playing it safe, striving for the broadest appeal feasible, resulting in a somewhat… ordinary feel. Consider that it was excessively cautious to even contemplate distributing the ironically titled California camper van in America to capitalize on the evident demand for factory-built van-life vehicles—a financially unwise venture for certain, yet one that unquestionably would have generated significant excitement.

Volkswagen merely exists in the present day. And if pressured, I could accurately describe perhaps only three vehicles in its collection. Naturally, the Golf GTI and Golf R endure, and VW has at least affirmed that they will introduce fresh iterations in the future, safeguarding one of the most pivotal enthusiast badges ever. However, the Volkswagen of yesteryear, that captivating Volkswagen that ignited our enthusiasm for the latest and greatest, or meeting with fellow V-Dub aficionados, appears to be a relic of the past.

One could argue that those polarizing models like the Phaeton or W8 Passat were glaring setbacks. Well, perhaps more than just an argument. Please refrain from informing my spouse about how much I lavished trying to rectify my W8. Nonetheless, they were, and still are, arguably sophisticated, and continue to be discussed to this day. What do we have in 2023 from Volkswagen that we’ll reminisce about in subdued tones, in extensive analyses, or in online posts lamenting how we’ll never financially recover from the purchase in a decade? The ID4? Hilarious.

I lack the means to console all of us long-time VW enthusiasts. There’s no enchanted wand to brandish and immerse ourselves in admiration for a sparkling new VR6. All I have is that inquiry and my hypotheses on why VW dissipated its allure. My apologies for being a buzzkill. 

Now if you’ll excuse me, I’m off to peruse Bring-a-Trailer for pre-owned Golf R32s and sip on some coffee…HOW MUCH!?

Got a suggestion or query for the writer? Reach them directly: Jonathon@thedrive.com

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