mlhm5 Posted October 3, 2007 Share Posted October 3, 2007 How is it possible to purchase a VW Passat cheaper here than the Taurus when the Passat is made in Europe where the Euro = $1.40, workers work 37 hours per week, get off 5 weeks vacation plus bank holidays and have retirement benefits? Quote Link to comment Share on other sites More sharing options...
BlackHorse Posted October 3, 2007 Share Posted October 3, 2007 How is it possible to purchase a VW Passat cheaper here than the Taurus when the Passat is made in Europe where the Euro = $1.40, workers work 37 hours per week, get off 5 weeks vacation plus bank holidays and have retirement benefits? Three letters U -- A -- W lol Quote Link to comment Share on other sites More sharing options...
Pioneer Posted October 3, 2007 Share Posted October 3, 2007 Three letters U -- A -- W lol Yeah. Because we all know that the Germans don't use unionized labor. Try again. How about, because the Passat isn't even in the same class of vehicles? Duh. Try comparing like vehicles. Like the Fusion to the Passat. Dumbasses. Quote Link to comment Share on other sites More sharing options...
silvrsvt Posted October 3, 2007 Share Posted October 3, 2007 So much for the Passat being cheaper: Taurus SEL FWD 23,995 Passat Turbo w stick 24555 Not to mention the Passat goes for nearly $38K with a V6 in it! Quote Link to comment Share on other sites More sharing options...
Pioneer Posted October 3, 2007 Share Posted October 3, 2007 (edited) So much for the Passat being cheaper: Taurus SEL FWD 23,995 Passat Turbo w stick 24555 Not to mention the Passat goes for nearly $38K with a V6 in it! Yeah, I just did a comparison too. LINK Imagine that. Even with the UAW, you can get a larger American made vehicle with more standard features than a smaller foreign built vehicle. Dumbasses. The both of you. Edited October 3, 2007 by Pioneer Quote Link to comment Share on other sites More sharing options...
UltimateX Posted October 3, 2007 Share Posted October 3, 2007 Because in Europe they collect VAT on all new cars, which is basically how the corporations pay taxes, but when they export they get a full VAT credit. This effectively making all exported vehicles tax free to the corporation. Europe basically has a consumption based tax system, where as in the US we tax based on income. Because of the US tax structure we are actually at a disadvantage exporting to foreign countries. They have also been absorbing the cost of the dropping dollar, but apparently have reached a point where they can no longer do it, so expect to see a price increase on European cars in the very near future. Quote Link to comment Share on other sites More sharing options...
johnnyb82 Posted October 3, 2007 Share Posted October 3, 2007 Because in Europe they collect VAT on all new cars, which is basically how the corporations pay taxes, but when they export they get a full VAT credit. This effectively making all exported vehicles tax free to the corporation. Europe basically has a consumption based tax system, where as in the US we tax based on income. Because of the US tax structure we are actually at a disadvantage exporting to foreign countries. They have also been absorbing the cost of the dropping dollar, but apparently have reached a point where they can no longer do it, so expect to see a price increase on European cars in the very near future. They tax income in Europe too. Also, when you tax consumption goods you are in effect taxing income anyway as the income you pay can afford less because of the increased price of goods. Quote Link to comment Share on other sites More sharing options...
BlackHorse Posted October 3, 2007 Share Posted October 3, 2007 Yeah. Because we all know that the Germans don't use unionized labor. Try again. How about, because the Passat isn't even in the same class of vehicles? Duh. Try comparing like vehicles. Like the Fusion to the Passat. Dumbasses. Hey I just thought it was funny that a 37 hour work week, plus 5 weeks off vacation, bank holidays and retirement benefits still isn't even close to what a UAW worker gets. lol Dumb ass is two words by the way not one. Dumb ass. Quote Link to comment Share on other sites More sharing options...
Pioneer Posted October 3, 2007 Share Posted October 3, 2007 Hey I just thought it was funny that a 37 hour work week, plus 5 weeks off vacation, bank holidays and retirement benefits still isn't even close to what a UAW worker gets. lol Dumb ass is two words by the way not one. Dumb ass. "Dumbass" is one word used to describe an idiotic person. "Dumb ass" is a stupid donkey. I guess either will do in your case, but I prefer the former. Quote Link to comment Share on other sites More sharing options...
BlackHorse Posted October 3, 2007 Share Posted October 3, 2007 "Dumbass" is one word used to describe an idiotic person. "Dumb ass" is a stupid donkey. I guess either will do in your case, but I prefer the former. Oh calm yourself Pioneer, it was just a little UAW joke and look at you, you're all wrapped around the axle ready to take the gloves off. You're too high strung boy. Who cares if the Passat is cheaper then the Taurus or the other way around? From the pricing I've looked at they're pretty much priced in the same ball park so it's just going to come down to what the individual consumer wants. Quote Link to comment Share on other sites More sharing options...
jasonj80 Posted October 4, 2007 Share Posted October 4, 2007 Its not -- they just sell it that way to get people in the show room, there's a reason VW lost 1,000,000,000 dollars here last year. The Euro is killing them, just as its killing Volvo, BMW, Benz. The cost of a 3 series is up 20% in 5years, and the euro is up 40%. That is the reason VW has said if it wants to compete here it MUST have a plant here. The question is how is GM making a profit on a $16000 car, made in germany. Your telling me it only costs 8,000euros to make an Astra? Quote Link to comment Share on other sites More sharing options...
ANTAUS Posted October 4, 2007 Share Posted October 4, 2007 Forget the price, who would want to buy a VW? One of the most unreliable cars I've ever had to deal with at arms length...it's down there in reliability with Kias and other substandard products. Nasty little cars... Although I do give them credit for their interiors...Nice materials, great presentation and tactile feel....when it works.... Quote Link to comment Share on other sites More sharing options...
old_fairmont_wagon Posted October 4, 2007 Share Posted October 4, 2007 Actually, the cost to produce a vehicle in Europe isn't much different than it is here. The adjusted cost of the materials is similar to what we pay in the US. Their true labor cost may be lower than ours (they have socialized medicine and retirement benfiits where here the companies have been responsible to provide for that) but they loose it in some of their taxes. So, out the door, production costs are comparable. They gain on not having a VAT for exports, but loose in the exchange rate. This should be a wash, but, lately, the Euro has been outstripping the dollar to a higher degree and costing them money. Quote Link to comment Share on other sites More sharing options...
Tico Posted October 4, 2007 Share Posted October 4, 2007 VW loses money on the plant in Germany where the car is made. http://www.theautochannel.com/news/2006/05/15/006786.html They are considering moving prodution to Mexico. Sounds like any of the big three, huh? Quote Link to comment Share on other sites More sharing options...
LincolnFan Posted October 4, 2007 Share Posted October 4, 2007 Isn't the P-ass-at made in Mexico? Blame the Mexican union! I am sure Pioneer would be the first to ! Quote Link to comment Share on other sites More sharing options...
Michael Reynolds Posted October 4, 2007 Share Posted October 4, 2007 Passats are made in Germany. Jettas, Golfs and New Beetles are made in Puebla. I had a Passat for a rental, and trust me the new ones aren't anywhere as nice as they used to be. Quote Link to comment Share on other sites More sharing options...
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