The Volkswagen Golf 7.5 launched – Too expensive?

Volkswagen Passenger Cars Malaysia (VPCM) showcased the new Volkswagen Golf variants this morning and is now accepting bookings for them. You can get more details from Volkswagen Malaysia’s website.

Four variants are available for booking ;

Golf 1.4 TSI (Sportline and R-line variants)

The Golf 1.4 TSI is available in both Sportline and R-Line.

Highlights;-

• 1.4TSI turbocharged engine (output of 150PS and a torque of 250Nm between 1,500 to 3,500rpm)
• 7-speed dry clutch direct shift gearbox (DSG)
• The Golf R-Line comes with ‘Vienna’ leather seats, 17” Singapore alloy wheels, 12.3” Active Info Display, 8” composition media with App-Connect as well as LED headlights with Static and Dynamic Cornering Lights.

Golf GTI

Highlights;-

• 2.0TSI turbocharged engine  (output of 230PS with torque of 350Nm between 1,500 to 4,600rpm)
• 6-speed wet clutch direct shift gearbox (DSG).
• GTI ‘Vienna’ perforated leather seats,
• 18” Milton Keynes alloy wheels,
• 12.3” Active Info Display,
• 8” Discover Media with App-Connect,
• LED headlights with Dynamic Cornering Lights,
• LED taillights with Dynamic Indicators
• Adaptive Chassis Control (DCC) with driving mode selection.

 

Golf R

Highlights;-

• 2.0TSI turbocharged engine (output of 290PS and a torque of 380Nm between 2,000 to 5,400rpm )
• 7-speed wet clutch direct shift gearbox (DSG)
• 4MOTION all-wheel drive system
• R ‘Vienna’ perforated leather seats
• 19” Pretoria alloy wheels
• 12.3” Active Info Display
• 9.2” Discover Pro with App-Connect with Gesture Control
• LED headlights with Dynamic Cornering Lights
• LED taillights with Dynamic Indicators and progressive steering

First and foremost, I’d like to thank all readers at kensomuse Facebook page who’ve shared their opinions in a manner that’s reflective of their maturity. Much respect and love for you guys!

Let’s start by addressing the elephant in the room;

PRICE

For the same price, I can buy a Camry/Accord

Prices of the four variants are;-

The Golf Sportline- RM155,990
The Golf R-Line – RM169,990
The Golf GTI – RM239,990
The Golf R – RM295,990

All Golfs are CBUs and therefore subjected to full tariffs/taxes/levies imposed on all fully-imported models. Therein lies one of the key reason why it’s priced as such.

That said, it is indeed true that you’re paying a D-segment sedan equivalent value. But that’s not how a typical Golf buyer thinks. Such as in my case with my Mk VI, my criterias back in 2011 was;-

1. must be a continental vehicle (this is after I got used to owning one and no longer find existing Asian-made cars as interesting to drive)
2. must be a hatchback as it’s primarily driven by other members in my household who’s used to driving hatches
3. must offer better driving experience than the Peugeot 308THP that I owned before

From this, I had only considered the Polo hatch but it was a significantly smaller vehicle than the 308. Ultimately took the Golf despite it’s RM157k price back then because it matched the 308-equivalent cabin size.

So if the buyer is one that equates price to size, then D-segment sedans and SUVs would fit their needs better.
If the buyer does not prioritize size (especially boot size) and wants a usable day-to-day vehicle that drives and feels expensive without paying luxury marque prices, then the Golf fits that profile.

But that’s the Sportline and R-line. What about the GTI’s asking price of RM240k? You can afford a BMW 330e for that kind of money.

That’s certainly true and no one is going to fault one for choosing the Beemer over the GTI (because BMW?). But again, the GTI has a cult-like status among VW fans and people buy it simply because it’s a GTI.

This leads us to the next concern;-

 

DISCOUNTS

I don’t want to be the guy who pays full price only to discover massive RM30-40k discounts few months later

The 2016 Firesale is one of those nightmares owners like us want to avoid. While we can understand why VW Malaysia had to do it (2-years worth of stockpile that needs to be cleared to make way for new models to be brought in), it destroyed the VW market. Owner’s second hand value plunged and the trust the brand had (or what little it had then) was further shattered.

It worked though – VW managed to clear the backlog but it had set the precedent that it’s better to just wait for the brand to be more desperate before they offer discounts (again)

 

Here’s what many people don’t realize;-

The backlog consisted primarily Passats, Jettas and Polos. These are all CKD models and they’ve been sitting there since 2014 when the trust level started to erode.

The Golf on the other hand is a CBU and like all CBUs, it depends on allocations by HQ. As I’ve said before, the principal would understandably serve those markets that represent the highest returns first. Malaysia had a critical brand crisis and until that was resolved (and existing stocks moved off the yard), the focus of selling Golfs is as important as attending to a bruise on your knee when you’ve got a gunshot wound on your chest cavity.

Some has also highlighted that this facelift took 1 1/2 years to come and a new Golf 8 is due to be launched in a few years time (some say mid 2019) so this variant may be rendered ‘obsolete’ in a very short period based on its product life cycle. My argument is again, it all depends on allocations and the Malaysian market’s volume isn’t as great as other markets so it’s likely Volkswagen AG, the parent company would focus on satisfying the European market demands first before considering any allocation for Malaysia. So relax – it may take a while before we see the Mk VIII here.

The fact that VPCM has reintroduced the Golf into the fold is a testament of their confidence that the brand trust has been restored to a more stable and sustainable point; and this is what Mr Erik Winter, Managing Director of VPCM  (the gentleman posing with all the Golfs here) meant when he refuses to disclose any expected sales numbers and instead talks about sustainable growth.

Does this mean it’s all roses and daisies for the brand?

Of course not – there’s still plenty of work to be done but for me, I applaud this move (of pricing the Golf as such).

IMHO, they have no business in competing in the Asian-made bracket but due to the urgency of stock clearance, it brought its affordability to a level where buyers who’re ill-prepared to deal with the intricacies of owning a continental vehicle are purchasing them only to find out it’s not as simple as owning an Asian-made car.

Just as there are property buyers who are willing to invest more in a home and expect similar classes of buyers as neighbors, VW (to me at least) has always stood as a pseudo-premium brand that sits between non-luxury and luxury marques. As a seller, VPCM needs to answer only one critical question; why should I buy your product?

The answer? It should make them (the customers) feel special. If they wish to charge extra, they’d have to go the extra mile in ensuring an extraordinarily positive ownership experience. That’s something VPCM’s predecessor, Volkswagen Group Malaysia (VGM) did not understand.

But VPCM does and is revamping its entire operations to reflect this.

Additionally, I don’t believe the Golf is positioned as a volume seller (something many people fail to understand as they criticize it’s price point) and while I cannot discard the possibility of future discounts especially festive seasons and year end sales, I doubt the volume brought in is great. It makes more sense for VPCM to focus on the CKD variants while positioning the Golf as an aspiration model for Polo owners to upgrade to.

Along that line of reasoning, this price point makes perfect sense and is one that I wholly endorse as part of VPCM’s brand re-positioning strategy. Do not discount but continue to build value and make every buyer feel special. Would I buy one? No, but that’s because my need for a larger vehicle disqualifies the Golf . The Passat however is another matter altogether …..