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SHORT SHELF LIFE; New VW Golf to be replaced by 2008.(News)

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| April 03, 2006 | COPYRIGHT 2006 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: GREG KABLE

Volkswagen's new Golf-scheduled for introduction later this year in the North American market-is headed for one of the shortest product lifecycles in history if VW boss Wolfgang Bernhard gets his way.

Word out of Germany is Bernhard plans to chop two years off the existing model's lifecycle in an effort to improve production efficiency and add profitability to a car that is considered crucial to the carmaker's financial future.

Conceived to remain in production beyond the end of the decade, today's fifth-generation Golf is now scheduled for replacement during the third quarter of 2008, meaning it will have been on sale here for about two years before a cheaper-to-build sixth-generation model is unveiled in Europe. The fifth-gen Golf has been on sale in Europe since 2003, but the first version of the car didn't arrive in the United States until the Golf-based 2006 GTI went on sale in February ("Top of the Line,'' Jan. 9).

First introduced in 1974, the Golf has traditionally operated on at least a seven-year model cycle. However, the inherent sophistication of the latest model coupled with excessive build times at VW's heavily unionized Wolfsburg plants in Germany has made the Golf "horrendously expensive to produce,'' according to one high-ranking Wolfsburg source. Currency imbalances further diminish Golf's profitability in the United States.

VW wants to pull the introduction of the new model forward, streamline production operations and diversify the Golf ...

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Source: HighBeam Research, SHORT SHELF LIFE; New VW Golf to be replaced by 2008.(News)

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