FIRST DRIVE ~ 2012 VW PASSAT

CHATTANOOGA, Tenn.: Volkswagen is intent on growing its car business in North America and has put its money where its hopes lie.

A new (US) $1.1 billion assembly plant was officially opened in late May in Chattanooga, Tenn. to build the redesigned 2012 Passat sedan.

Undoubtedly, the plant that sits on nearly 1,400 acres just outside the city of Chattanooga, will build other vehicles on its flexible assembly line in the near future. But for the time being, it is the sole source of all North American production of the mid-size 2012 Passat.

When in full gear, the 2.5-million-sq.-ft. facility will be churning out 31 cars an hour with the potential for 150,000 units a year. With a few modifications the current structure could produce 250,000 units with expansion possibilities to take it up to 500,000 a year.

The new Passat will arrive at Canadian dealerships in late September and it has been tailored to the North American buyer, said John White, president of Volkswagen Canada at Passat.

Larger in every way than the previous Passat which was last sold here as a 2010 model, the 2012 Passat has the longest wheelbase among its core competitors and has best-in-class interior room.

While it is classified as mid-size, in reality it is more like a full-size car. But what is most intriguing is the price. Starting at $23,975 in Canada, the new Passat is $3,800 cheaper than the outgoing model and $7,000 less than in 2008.

Volkswagen hopes to sell about 8,000 of them a year in Canada, a huge jump from the 3,644 combined Passat and Passat CC units that were sold for the2010 model year.

The Passat, along with the Golf, Jetta and Tiguan will make up 90 per cent of Volkswagen Canada’s overall volume, said White.

“I believe that with a full portfolio, the VW brand has the opportunity to do Mazda and Nissan volumes in Canada,” said White, noting the company is on pace to sell about 53,000 vehicles here this year, up from 45,000 in 2010.

While small cars dominate in Canada, the mid-size or intermediate class is key to the U.S. car market. So for Volkswagen, the Passat’s success is important and part of a new strategy, which involves building cars in the markets where they are sold.

Fully 85 per cent of all components of the new Jetta are sourced from North American suppliers, helping eliminate currency fluctuations and import duties, both of which play havoc with the pricing.

The 2012 Passat comes to Canada with a wide choice of powertrains and trim levels, with prices topping out at $37,475 for a V6 Highline with automatic transmission.

It is expected about 90 per cent of overall volume will be split between a 2.5-litre five-cylinder gasoline engine (170 hp, 177 lb/ft of torque) and a 2.0-litre turbo diesel (140 hp, 236 lb/ft of torque).

The 2.5-litre will be offered with a five-speed manual or six-speed automatic, while the 2.0L diesel comes with a six-speed manual or six-speed DSG automatic, the only transmission available with the 3.6-litre V6 (280 hp, 256 lf/ft of torque). The TDI clean diesel comes at a $2,600 premium over the 2.5-litre model.

There are four trim lines— Trendline, Trendline Plus, Comfortline and Highline.

Even at the base level, features such as electronic stability control, dual zone climate control, multifunction steering wheel, multifunction trip computer and leather wrapped steering wheel, shift knob and hand brake lever are all standard.

During a drive from Chattanooga to Nashville that took us along high-speed freeways and meandering back roads, we drove through historic Lynchburg, home of the world-famous Jack Daniels whisky. En route I had an opportunity to drive both the TDI and V6 models.

Of the two, the TDI would definitely be my choice. Fuel economy for that car is estimated at 6.5L/100 km city and 4.5L/100 km highway, and some of my colleagues were able to match that highway figure during their travels.

One of the reasons for the high hopes Volkswagen has for the new Passat is that although it is German engineered, it is built with a North American audience in mind.

It is a bigger car all-round with lots of interior room, good trunk capacity (430 litres), and features like larger seats, more cup holders and Bluetooth mobile phone connectivity.

The steering is light and precise and the car is easy to manoeuvre in both city and highway situations.

The independent suspension soaks up all but the stiffest jolts with a ride that is geared more to a family car than a sports sedan.

For those who haven’t experienced the new breed of diesel engines, it’s amazing how quiet and clean the new ones are. Take one out for a test drive and see for yourself.

If fuel economy is high on your wish list, there’s no need to go the more expensive hybrid route to get amazing results.

Styling-wise, the new Passat is pleasant and elegant to look at, but it doesn’t break new ground like the eye-popping 2011 Hyundai Sonata. The front end features a grille with three chrome crossbars and the ubiquitous VW logo but it has a bit of a squared-off look that may polarize opinion.

Although the price has been dropped considerably from previous Passats, the interior is still nicely finished. There is a bit of a grainy look to some of the trim pieces, but it is soft to the touch and the Nut burl wood trim on the Highline model adds a touch of elegance.

For audiophiles, a killer Fender premium audio system is available. Developed in association with Panasonic, the eight-speaker, 400-watt system is standard on Highline and optional on Comfortline trims.

Fender brings its expertise in making top-of-the-line guitars and amplifiers to the table in this system that is exclusive to Volkswagen.

With this new Passat, Volkswagen clearly has its sights set on taking away market share from the Honda Accord, Toyota Camry, Mazda6, and market leaders like the Ford Fusion, Hyundai Sonata, Chevrolet Malibu and Nissan Altima. Add to mix the redesigned 2011 Kia Optima that is now coming to market and the mid-size segment becomes even more competitive.

Volkswagen has taken the redesigned 2011 Jetta down market from previous offerings and it has played a huge part in Volkswagen Canada’s 19 per cent sales increase to date in 2011. The Jetta alone makes up 48 per cent of all VW Canada business.

With the Jetta’s success, repositioning the price point of the Passat in North America may be the key to Volkswagen making further inroads into the mid-size segment.

 

BODY STYLE: mid-size four-door sedan.

DRIVE METHOD: front-engine, front-wheel drive.

ENGINE: 2.5-litre inline five-cylinder gasoline (170 hp, 177 lb/ft of torque) with five-speed manual or six-speed automatic transmission; 2.0-litre turbocharged inline four-cylinder (TDI) diesel engine (140 hp, 236 lb/ft of torque) with six-speed manual or six-speed Direct Shift Gearbox (DSG) automatic transmission; 3.6-litre 24-valve VR6 six-cylinder engine (280 hp, 258 lb/ft of torque) with six-speed DSG automatic transmission.

FUEL ECONOMY: 2.5-litre manual, 10.1/6.5 L/100 km city/hwy; 2.5-litre automatic, 9.6/6.7 L/100 km city/hwy; 2.0-litre TDI manual/automatic 6.5/4.5 L/100 km city/hwy (estimated); 3.6-litre V6 automatic 10.9/7.4 L/100 km city/hwy.

PRICE: $23,975 to $37,475.