Volkswagen newsmakers on mall tour this weekend

After last week’s game changing debut of Volkswagen models sourced from China (and priced for Asia) for the very first time, the Volks folks are now ready to have their new Santana and Lavida sedans, and their new Tiguan Mk.I crossover SUV, scrutinized and scrutineered by the motoring public. Tomorrow and on Sunday, get up close and personal with the Volkswagen newsmakers they’ll be exhibiting at the Glorietta Activity Center in Makati and at the Eastwood Mall Atrium in Quezon City.

Press Statement by Volkswagen Philippines, “Newly launched Volkswagen models go on weekend mall tour on May 26-27,” 2018:

Volkswagen Philippines, which just launched its five groundbreaking models: the Santana MPI M/T Trendline, the Lavida 230 TSI DSG Comfortline, the Tiguan 280 TSI DSG Comfortline, the Santana GTS MPI A/T Comfortline, and the Lamando 280TSI DSG Highline last May 18 at the Shangri-La at the Fort, now takes its newest vehicles closer to the public via a mall tour this weekend of May 26 and 27.

From 9 a.m. to 10 p.m., mallgoers at the Glorietta Activity Center in Makati City will get to see up close the Santana MPI M/T Trendline, the Lavida 230 TSI DSG Comfortline, and the Tiguan 280 TSI DSG Comfortline. Shoppers at the Eastwood Mall Atrium in Libis, Quezon City will also see these three new vehicles on display from 11 a.m. to 10 p.m. (May 26) and from 10 a.m. to 10 p.m. (May 27). And from 10 a.m. to 10 p.m., Cebuanos will also get to see these three new models at The Gallery of Ayala Center Cebu.

Volkswagen Lifestyle items will be given to customers who will make inquiries, or book a test drive.

The Santana, which was among the 10 best-selling models in China in 2017, is powered by a 1.4-liter Multi-Point Injection (MPI) 4-cylinder gasoline engine mated to a 5-speed manual transmission, with maximum power output of 90 Ps at 5,500rpm and maximum torque of 132 Nm at 3,800rpm. For ride comfort and stability, the Santana features electronic power steering, front McPherson Independent Suspension, and rear composite torsion beam semi-independent suspension. Safety highlights include ISOFIX anchorage points (mounting fixture for two child seats on rear seat bench), Anti-lock Braking System (ABS), and wireless doorlock with immobilizer. Available exterior colors are Polar White, Reflex Silver, Pepper Grey and Deep Black with an SRP starting at P686,000.

The Lavida, which is still one of the best selling sedan Volkswagen model, is equipped with a 1.4-liter Turbocharged Stratified Injection (TSI) 4-cylinder gasoline engine with BlueMotion Technology mated to a 7-speed Direct Shift Gearbox (DSG) transmission, capable of 130 Ps of power at 5,000 rpm and 225 Nm of torque at 1,400 to 3,500 rpm. The interior features and comfort amenities include leather seat material, cruise control, Climatronic air conditioning, and sunroof. Safety highlights include the Electronic Stabilisation Program (ESP) with Brake Assistant, ABS, Electronic Differential Lock and Anti Slip Regulation (ASR), hill hold control, Push Start, and Front and Rear Park Distance Control (PDC). Available exterior colors are Polar White, Reflex Silver, Deep Black, Limestone Grey, Sunset Red, and Opalsilver Metallic with an SRP starting at P1,171,000.

The Tiguan, which has comfortably maintained its position as segment leader, has a 1.4-liter TSI 4-cylinder gasoline engine with BlueMotion Technology mated to a 6-speed DSG transmission. Maximum power output is 150 Ps at 5,000 rpm, while maximum torque is at 250 Nm at 1,750 to 3,000 rpm. Its interior features and comfort amenities include Vienna leather seat material, 2-zone Climatronic airconditioning, Panoramic sunroof, 8 speakers, and driver power 12-way seat adjustment. Safety systems include ISOFIX anchorage points, ESP, ABS, brake assistant, ASR, EDS, EDTC, hill hold control, and rear PDC with acoustic warning signal. Available exterior colors are Polar White, Titanium Beige, Hunting Brown, and Deep Black with an SRP starting at P1,648,000.

The warranty coverage for all these five new models are comprehensive. Aside from the 3 years or 100,000-km general warranty, whichever comes first, Volkswagen Philippines also offers a 3-year warranty for paint and another 3-year warranty for through-corrosion of the main steel body structure.

The periodic maintenance service (PMS) interval schedule for these new models is also structured for its owners convenience. The PMS interval is once a year, or every 10,000 kms, whichever comes first. This is more convenient and more cost-efficient compared to the industry-standard 5,000-km PMS interval.

Beyond the vehicles value-for-money specifications, features, and the warranties and PMS intervals, the five new models unveiled open new chapters to the continuously evolving relationship between Filipinos and Volkswagen, making the world-class auto brand much more accessible than ever to the Filipino car-buying public.

Automotive excellence and heritage unique to Volkswagen are now within reach of the hardworking, daring Filipino. And when these cars eventually bring you to the verge of your own personal breakthrough, thats when you know that with Volkswagen, Your Drive Just Got Better.

The Santana MPI M/T Trendline, Lavida 230 TSI DSG Comfortline, and Tiguan 280 TSI DSG Comfortline are available at all eight Volkswagen Philippines dealerships: Volkswagen BGC at 938 28th Street City Center, Bonifacio Global City, Taguig City; Volkswagen Quezon Avenue at 1229 Quezon Avenue, Quezon City; Volkswagen Alabang at Caltex along Alabang-Zapote Road, Madrigal Business Park, Ayala Alabang, Muntinlupa City; Volkswagen Greenfield District Service Center at 833 Sheridan Street, Barangay Highway Hills, Mandaluyong City; Volkswagen Pampanga at McArthur Highway, Dolores, City of San Fernando, Pampanga; Volkswagen Cebu at A. Soriano Avenue, North Reclamation Area, Cebu City; Volkswagen Iloilo (upper ground level of SM Iloilo along Benigno Aquino Sr. Avenue), and Volkswagen Bacolod (along Araneta Street, Singcang, Bacolod City, Negros Occidental).

For more information, log on to www.volkswagen.com.ph

For us folks once again, Volkswagen

If you recall the time when Ayala Corporation’s Fernando Zobel became the elegant and surprisingly hip model for those Swiss-made but cheap Swatch wristwatches, then the sight of him driving Volkswagen’s newly introduced Santana sedan serves as swift reminder of how that German marque’s direct translation asserts them to be the People’s Car champion.

Last Friday, at an elegant evening event auspiciously attended by leaders of global engineering giant Robert Bosch GmbH as well as those of Ayala Corporation’s other automotive brands such as Isuzu and Honda, Volkswagen Philippines launched five new models that, as they put it, “redefine how the world-renowned German marque in the Philippines will develop and expand its local presence.”

Now, five years after Volkswagen AG had appointed Ayala Corporation as sole distributor to the Philippines in May 2013, after half a decade of marketing models that both brandished and seemed burdened with premium, up-market prices, the country is receiving models designed for and manufactured in Asia, and that are finally priced for emerging markets. The Ayala group’s Arthur Tan (president and CEO of their AC Industrials subsidiary) says that now, five years later, these five new models make them “faithful to the original intent of Volkswagen to offer cars that are accessible to the people.”

Introduced last Friday were Shanghai Volkswagen’s Santana, Lavida and Lamando sedans, and the Santana GTS hatchback–all designed initially for the China market and built on globally standardized Volkswagen platforms. The fifth model introduced was the face-lifted first-generation Tiguan which they continue to manufacture in the China market despite the second generation model having already been introduced here as well as other markets globally. First to become available at all Volkswagen dealers starting last weekend were the Santana sub-compact and Lavida compact sedans, and the Tiguan crossover SUV. The Santana’s GTS sub-compact hatchback version and the large Lamando sedan will be on offer come November.

According to Shanghai Volkswagen first vice president David Powels, the Philippines is the first country ever to receive models from their production lines in China. The timing is understandable with the China market’s unparalleled economies of scale finally being complemented with preferential tariff rates this year under the completed implementation of the ASEAN-China Free Trade Agreement.

Tiguan 1.4L TSI compact crossover SUV, already available at P1,648,000

The ironic new Tiguan’s first generation origin (hidden as it is behind its current-theme facelift) is easily overshadowed by its P1,648,000 price tag that makes it over P600,000 cheaper than the P2,259,000 second-generation Tiguan they had on offer before (and until now, actually, with both models still being featured at the volkswagen.com.ph online showroom). At that price, the new Tiguan which features the same Euro 5 compliant 1.4 liter turbocharged gasoline engine as on the previous, more expensive Tiguan, now squares off firmly against premium compact crossover SUVs such as the Honda HR-V and Mazda CX-3.

Lavida 1.4L TSI compact sedan, already available at P1,171,000

On the other hand, the new Lavida compact sedan’s P1,171,000 price pits it squarely against the Altis of global leader Toyota with its P941,000 to P1,451,000 price range. This while the Lavida features a sportier powertrain, its 1.4 liter turbocharged gasoline engine with stratified injection mated to a Direct Shift Gearbox (DSG, their brand of dual clutch transmission) trumping the Altis’ naturally aspirated 1.6 or 2.0 liter engines being mated to less rugged continuous variable transmissions or CVTs.

Santana 1.4L MPI MT sub-compact sedan, already available at P686,000

The new base-model Santana sub-compact sedan is the actual gem, the very point of this new spear that Volkswagen Philippines is bringing to the fight. Built on the Volkswagen Group’s A05+ platform (the same underpinnings as that of the popular Polo), the Santana brandishes a spartan configuration behind trademark Volkswagen and generally European touches. The Santana with a 1.4 liter naturally aspirated gasoline engine mated to a 5-speed manual gearbox is slightly larger than the market-leading Vios while listing at an astounding P686,000 that lances right through the P629,000 to P791,000 price range of the 1.3 liter manual gearbox variants of Toyota’s popular sub-compact sedan.

Santana GTS sub-compact hatchback, available in November

Volkswagen Philippines’ sudden and extensive competitiveness could have clay feet because of the China connection, but any skepticism about build quality, fair or otherwise, is directly addressed by their unprecedented claim of 10,000km (twice the industry standard) between PMS visits. Ruggedness is presumed and even further guaranteed with the options for a 3-year paint warranty and a 3-year warranty against corrosion of main steel structures, these over and above the standard 3-year or 100,000km general warranty.

Lamando compact sedan, available in November

What about Volkswagen’s other vulnerability, about their reserved design language that’s kept intact among the China-sourced models? This design that’s criticized as not being young enough by them, the young? At the launch, when Fernando Zobel drove in and unveiled the all-important Santana, he matter-of-factly and wordlessly underscored how critics are missing the point entirely, underscored how it takes an iconic and deeply storied brand like Volkswagen to pull off a design like Volskwagen’s.

It takes a brand like Volkswagen to offer up a design that’s bare of frivolous flourishes, that doesn’t stoop to pandering pantomimes of jet-fueled or fire-breathing things, and turns this simplicity into ageless elegance. Remember? It was the Volkswagen Beetle in the 1960s that bucked the trend and pulled the rug out from under those huge land-yachts with their ironic tail fins and gas-guzzling V8s.

Volkswagen Philippines introduces the Crafter at MIAS 2017

Debuting at the ongoing 2017 Manila International Auto Show (MIAS) is the Volkswagen Crafter van. She’s huge for a so-called van, coming in the form of Europe’s ubiquitous do-all white-vans. But this commercial vehicle is meant for tailoring into an utterly private conveyance,  her hugeness leveraged into mobile real estate that Volkswagen Philippines is willing to decorate and landscape to your particular specs.

Remember the old VW Kombi from the 1970’s and 80’s? At some point offered as a minibus it quickly became a people box on wheels, fitted out as anything and everything you could live with to bring around your kinder and kit for all sorts of adventure. On some mods the roof even accordions up so you could almost stand upright in Kombis turned into cozy campers. It started the trend that had folks modifying big Detroit-made vans into rolling man caves, complete with crushed felt trim and other funky accoutrements.

But all of these, from the bantam-sized Kombi to the wide-bodied American makes, were all snug—the accommodations fit just for the hip, them Age of Aquarius roamers, and for single, unencumbered hot-rodders. The Crafter breaks that mold, leastwise enlarges it, raising the roof, literally, over a body that’s half again as big. Under the hood on the semi-forward one-box form is a powertrain that would get a 10-4 nod from any squinty trucker, with the modern safety and driving assist features that a soccer Mom would take for granted on anything sport-utility.

The Crafter on display at MIAS is a sold unit, with bespoke appointments specified by its owner in waiting. As described in Volkswagen’s literature: “The accessorized Crafter L on display is installed with 6 high-back Captain Seats, a 32” Samsung TV, touch-screen multimedia radio with navigation, window framing with van blinds, accent LED lights, and side step board.”

But, think about it, she’s done up as an unobtrusive transport, really. From living room or office desk, you step into the Crafter and pick up where you left off. Some time later you alight at a new place to get done what needs doing. It’s like you moved from one room to another, and then another … subtle luxury that comes at a base price of P4.0M, signing bonus for a limo-grade driver, not included.

Volkswagen launches Ameo, spotlights India-market notchbacks significant even in the Philippines

Volkswagen has just unveiled the Ameo, a compact sedan designed specifically for the India market. Debuted on February 2 and showcased the day after at Auto Expo 2016 in New Delhi, the Ameo could be a game-changer for Volkswagen in India as well as in other small-car dominated markets.VW-Ameo-2

VW-Polo-Sedan-Philippines1
Volkswagen Polo sedan

Based on their popular Polo sedan but with a notchback trunk to trim overall length down to less than 4 meters, the Ameo features either a 1.2L petrol engine with multi-point injection or a 1.5L TDI diesel. Those key specs put the Ameo, unlike the full sized Polo sedan on which it is based, in India’s small car category for preferential 12% excise tax rates. The sedan is an intuitively up-market form-factor compared to tiny-trunked though sporty-looking hatchbacks that otherwise dominate the roads. And premium brand Volkswagen has managed to put a short sedan in a pricing sweet spot for India where 72% of last year’s over 2 million vehicles sold we’re in the small car category.

Judging by Toyota’s reaction, a game changer

The tax benefits redounding to lower price points are significant since the next bracket, the one in which the longer Polo sedan belongs, jacks excise up drastically to 20%. The wide spread in tax rates is significant enough to have prompted world leader Toyota, as reported by Motorbeam.com last year, to ask the Indian government to remove tax breaks for sub-4 meter vehicles. Their argument: the regulations in India give automakers less opportunity for exports. The claim appears self-serving considering that Toyota itself doesn’t have a sub-4 meter sedan to offer and, observers reckon, is still three years from rolling out a model that they’re currently developing for this category.

suzuki swift dzire
Suzuki DZire notchback sedan

Moreover, Toyota’s justification using the export buzzword is rebutted by the performance of Maruti Suzuki, the Indian-Japanese joint-venture that’s the long-standing market leader in India with 45% market share by year-end 2015 (peaking at 50% mid-year). Their top-selling Swift sub-compact hatchback and Swift DZire sub-4 meter sedan have found good market even here where 1.2L petrol-engine variants subsequently introduced by Suzuki Philippines (thereby quietly introducing India’s sub-4 meter category to the country) contributed to their turning in top growth numbers for 2015. Even while the Philippine market showed growth biased towards light commercial vehicles, Suzuki saw a 52% increase in year-on-year sales with 2015 deliveries coming mainly from their mini and sub-compact passenger cars line up (see our story, “Suzuki Philippines is 2015 growth leader with passenger car sales that defy trend for light commercial vehicles”). The Indian government has not granted Toyota’s request.

Toyota-Etios-Liva
Toyota Etios Liva hatchback

Latest 2015 figures put Volkswagen in close second place to Toyota globally, the former’s 9.93 million in unit sales already at 98% of the latter’s 10.08 million. But the   German brand is a relative newcomer to India where it has just a 2% market share to show against Toyota’s 6.5%. This is the one market where it could tap game-changing growth. Now, with the Ameo set to roll out of showrooms by mid-year 2016, Volkswagen will be fielding both the new sub-4 sedan and their Polo hatchback against the Etios Liva, also a hatch and Toyota’s one and only model in India’s small car category until they roll out their short sedan in 2018. It’s an open field where number two Volkswagen can double team number one Toyota, and in a game that could spill over into other territories.

Indian economies of scale bring de-facto Philippine tax breaks

Unlike the specific taxation behind the 4-meter length and small-engine displacement limits of India for a preferential 12% rate, the Philippines uses an ad valorem structure that levies increasing rates on escalating portions of a vehicle’s import or production cost. For Philippine excise taxes on motor vehicles, 2% is used for the first P600K. If the vehicle costs more than P600K, 20% is used for the next P500K. If the cost is more than the P1.1M of the two lower brackets combined, 40% is used for the next P1.0M. If the cost is even more than the P2.1M of the three brackets combined, 60% is used on the excess. These actually depict a lower tax burden than in India. Excise taxes would hit the 12% equivalent of India’s small car category only when those costs approach P1.2M each.

VW-Ameo-5In the Philippine tax environment, it was Suzuki that pioneered a niche for India-market notchbacks that, at the very least, minimizes excise tax. What Suzuki Philippines broke into was a pricing niche for small hatchbacks and sedans that tops off just above that recurring P600K mark. The Swift hatchback 1.2L and Swift DZire 1.2L notchback they brought in (both with engines curiously downsized from the original 1.4L with which the popular Swift was first launched and is still retained in an up-range variant) are obviously like the Volkswagen Ameo—specially configured to fit India’s small car category.

While these do not benefit from any particular Philippine tax break, the specially configured variants do come from having Indian tax incentives that result in sales volumes which keep prices down by sheer economies of scale. Other words, it’s the pricing that’s kept low by successful India sales that get these vehicles the Philippine equivalent of a tax break. It’s like getting hotcakes at half price because neighbors already got things discounted with a large, wholesale purchase.

Philippine niche for India-market notchbacks

The result: P638K for the Swift 1.2L M/T hatchback with P111K savings off the original variant mounting a 1.4L engine (which doesn’t fit India’s small car profile), and an even lower P568K for the Swift DZire 1.2L M/T short sedan which has no other engine option but the one that keeps it in the sub-4 meter category. At prices that stay near or under the P600K SRP level even after covering ship-in costs and mark-ups, excise tax rates are kept down at the lowest 2%, nearly eliminating the bloat it otherwise could put on the list price.

Honda Brio Amaze notchback sedan
Honda Brio Amaze notchback sedan

The situation has created an opportunity for other carmakers, later entrants, also willing to engineer products for the sub-4 meter category (instead of lobbying to abolish its tax benefits). Honda’s Brio Amaze notchback sedan was introduced in India with a 1.2L petrol engine, keeping it in the sub-4 meter category and pitting it against the top-selling Swift DZire 1.2L. By most accounts, Honda’s notchback has been showing well.

brio amaze 2Subsequently, in 2014, Honda Philippines brought over the Brio Amaze, although with a larger 1.3L i-VTEC engine, focusing on performance despite causing a departure from the 1.2L engine that had gotten it a tax break in India. Nevertheless, volumes on the components common to the India- and Philippine-spec models appear to let Honda hit that pricing sweetspot with an SRP of just P629K for the basic E variant with manual gearbox. And if they choose to bring in the 1.2L variant later, like Suzuki did, this could introduce another, significantly lower price-point, like it had for Suzuki.

Point is, India-market notchbacks are already in the Philippines, have been here for several years already, even if the market hasn’t perceived these as such but rather as rakish sedans with trunks truncated for sporty aesthetics. And now, with premium German brand Volkswagen having reworked and shortened their popular Polo sedan to become an India-market notchback, the niche has transcended the esoteric, been made overt and apparent by the world’s second largest marque gunning for top spot.

Another notchback for the Philippine mix?

Volkswagen will be pricing the Ameo very competitively for the Indian market. Ex-showroom prices in India ranging from the equivalent of P422K to P562K have been reported.

VW-Ameo-3Philippine-spec vehicles are typically priced at around 150% of the Indian counterpart models, whether sourced from India or off-shore suppliers. This means that if the opportunities prove compelling enough both for Volkswagen global and Volkswagen Philippines alike, they could bring in the Ameo at an offer price starting at P633K.

That’s a surprising notional SRP for an up-market city-sized short-sedan complete with modern staples such as a full-fledged infotainment system, power windows and locks, rearview camera, cruise control, dual airbags, ABS and electronic stability control. A surprising price particularly for a Volkswagen that’s acclimatized for the Philippines with what looks like the same high, 170mm ground clearance of the Suzuki Swift hatchbacks and sedans for negotiating the rough inter-city roads and high speed-bumps in India. A surprising price for Volkswagen with their current lowest priced model, the Polo sedan 1.6L A/T listed P200K higher at P840K. A surprising price for the recently returned European Volkswagen marque that’s premium enough to command a P4.29M price for its SUV top Touareg model. Basically, that notional P633K for the new Ameo is a surprising price for a Volkswagen, period.

Toyota Vios sub-compact sedan
Toyota Vios sub-compact sedan

Still, it’s just a notion. But think of how a P633K Volkswagen Ameo can upset the status quo not only in its role evolved for India where driving conditions are apparently worse and more diverse than in the Philippines, but also in a market other than India where arch rival Toyota doesn’t have a counterpart model and instead has the Vios sedan as the closest thing to one.

VW-Ameo-6The Vios, Toyota Philippines’ best-selling model showcased for its track-ready handling in much publicized one-make races, with its near single-minded focus on a ground-hugging ride having committed it to the low, 147mm of ground clearance that causes the occasional underbody scrapes even with just two on board. And lastly, the slightly larger, sub-compact Vios sedan with its less finely trimmed 1.3L J M/T base variant selling for a near-equivalent P630K.

VW-Ameo-4Having spotlighted the India-market notchbacks already in the Philippines and their unique draw amongst region-wide third-world sensibilities, the Ameo should be coming to Volkswagen Philippines showrooms, and coming soon.   This is too good an opportunity, even for Volkswagen global, to pass up.

VW-Ameo-front-quarter-press