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Will slashing prices lead to big sales numbers?
Volkswagen wants to be a seriously player in the hot-selling crossover segment in the US. To help make that happen, according to Automotive News, it has reduced prices of its Tiguan three-row crossover by significant amounts. VW informed its US dealerships late last week about the new numbers, beginning with the base Tiguan S price dropping by $600. The mid-range SE and SEL prices were reduced by $2,180 and $1,460, respectively. However, the range-topping SEL Premium price remains unchanged.
With those reductions, the 2018 Tiguan is now priced at $25,495, $27,650, and $31,990 for the S, SE, and SEL FWD trims. The SEL Premium, meanwhile, begins at $37,150. The base Tiguan is more expensive than the entry-level versions of the Honda CR-V, Toyota RAV4, and Ford Escape. However, the Tiguan does offer that third row as standard fare, but only in front-wheel-drive configurations (it’s optional in AWD). Volkswagen realizes that it’s vital to lure crossover-loving Americans into its showrooms in order to continue sales growth. In 2017, overall US sales grew by 5.2 percent thanks in large part to the also new three-row Atlas.
But the Atlas is also more expensive (base price: $30,750), making it out of reach for some. By lowering the new for 2018 Tiguan price, Volkswagen is not only making it more accessible for young families, but also creating a greater price spread between it and the larger Atlas. The crowded compact crossover segment grew by 6.2 percent in America last year and VW is determined to have its share.