Sunday, January 25, 2015

It's All About the Engineering: Why are VWs Premium Priced?

During the 29th All VW Classic/Custom/New-Generation Car Show, it was inevitable that someone was going to ask about the current Volkswagen line-up’s pricing. In particular, how premium it is compared to how it was sold before, which was as “the people’s car”.

Volkswagen Philippines’s Chief Operating Adviser Mr. Klaus Schadewald revealed the answer during a sit down with the media.

“We can do it if we truly wanted to. However, Volkswagen cares about safety and that carries a bit of a premium,” said Mr. Schadewald. “If you were to look at our competitors, they usually have one or two airbags, but we make sure we have a full range of airbags. And that’s not all. Our models also have ABS, ASR [Traction Control] and ESC [Electronic Stability Control] to make sure you are safe.”

Furthermore, Schadewald says that Volkswagen vehicles are engineered to travel at speeds much faster than Filipinos will ever drive them in. With the German Autobahn having no speed limit, well at least in some areas, Volkswagens have to show a sense of stability and control even at high speed. They’re essentially over-engineered for your own protection.

Of course, part of the equation remains taxation and duties, but that is another story altogether.

So next time you start balking about the price of that Volkswagen Jetta, remember that it’s designed to keep you safe and actually designed to travel through one of the world’s most demanding environments. And of course, if you take time to test drive a new VW, check out some intricacies such as the laser welded body seams. You’ll be impressed.


  1. Any way you look at it the ordinary Pinoy will look at the price tag primarily instead of the badge given the same specs. VW entered the market without a splash because they threw in entry level overpriced Polos and Jettas trying to dip the market which is composed of brand just as good.

    1. I agree with you.
      The popular Japanese and Korean car brands are also as good as Volkswagen.