{"id":23835,"date":"2019-06-03T17:51:14","date_gmt":"2019-06-03T21:51:14","guid":{"rendered":"http:\/\/henrypayne.com\/?p=23835"},"modified":"2019-06-03T17:51:14","modified_gmt":"2019-06-03T21:51:14","slug":"vw-sees-opening-in-detroit-dominated-pickup-market","status":"publish","type":"post","link":"https:\/\/henrypayne.com\/index.php\/2019\/06\/vw-sees-opening-in-detroit-dominated-pickup-market","title":{"rendered":"VW sees opening in Detroit-dominated pickup market"},"content":{"rendered":"<p><div align=\"left\"><img decoding=\"async\" src=\"https:\/\/www.gannett-cdn.com\/presto\/2019\/05\/22\/PDTN\/634422a3-4033-47d6-a600-cf4474e1982d-vw_tarok-side.JPG?width=540&amp;height=&amp;fit=bounds&amp;auto=webp\" alt=\"The 2019 compact VW Tarok pickup truck concept is currently configured for the South American market with an economical, 147-horse, 1.4-liter engine. If it was brought to the U.S., VW says that would likely be bumped up to a more capable engine found in the U.S. Golf and Jetta models.\" \/><\/p>\n<\/div><div id=\"module-position-R1eXuRzp7pk\" class=\"story-asset image-asset\">\n<aside class=\"wide single-photo\">The 2019 compact VW Tarok pickup truck concept is currently configured for the South American market with an economical, 147-horse, 1.4-liter engine. If it was brought to the U.S., VW says that would likely be bumped up to a more capable engine found in the U.S. Golf and Jetta models.\u00a0<span class=\"credit\">(Photo: Henry Payne, The Detroit News)<\/span><\/p>\n<\/aside>\n<div class=\"clearfix\">The U.S. pickup truck market has big profits, big segments \u2014 and a big hurdle for foreign makes to clear, given Detroit Three loyalty and steep import tariffs.<\/div>\n<\/div>\n<p class=\"speakable-p-2 p-text\">But Volkswagen thinks there might be an opening.<\/p>\n<p class=\"p-text\">The German manufacturer has introduced two pickup concepts to the U.S.\u00a0market in the last year, and it is particularly bullish on its most recent entry, the Tarok mini-pickup concept\u00a0<a href=\"https:\/\/www.detroitnews.com\/story\/business\/autos\/2019\/04\/18\/top-10-premieres-new-york-auto-show\/3508176002\/\" target=\"_blank\" rel=\"noopener\" data-track-label=\"inline|intext|n\/a\">shown at this year&#8217;s New York Auto Show<\/a>.<\/p>\n<p class=\"p-text\">\u201cAs (midsize) pickups get bigger \u2013 to the stage where they are as big as full-size pickups were not so long ago \u2013 and more expensive and less fuel-efficient, we are trying to see if there is space for a vehicle with a smaller footprint that potentially is more affordable and gets better gas mileage,\u201d says VW Senior Vice President\u00a0for Product Marketing Hein Schafer.<\/p>\n<p class=\"p-text\">With a 193 \u00bd-inch wheelbase, the Tarok is much smaller than, say, the midsize Ford Ranger at nearly 211 inches. But VW\u00a0innovates a\u00a0neat party trick by expanding\u00a0its 4-foot bed into a 6-foot bed by dropping the panel\u00a0behind the rear bench seats and flattening the seat backs\u00a0like an SUV. Like the Rabbit-based, simply named Volkswagen Pickup from the 1980s, the Tarok would sit on a compact-car chassis and be sold as a lifestyle, outdoor truck \u2013 in contrast to the ladder-frame bruisers that dominate larger segments.<\/p>\n<div id=\"module-position-R1eXuRzPJZ0\" class=\"story-asset image-asset\">\n<aside class=\"wide single-photo\"><div align=\"left\"><img decoding=\"async\" src=\"https:\/\/www.gannett-cdn.com\/presto\/2019\/05\/22\/PDTN\/611287d0-f205-4394-9e95-4a18d5a2199c-vw_tanoak-nyc-2018.JPG?width=540&amp;height=&amp;fit=bounds&amp;auto=webp\" alt=\"VW has debuted two pickup concepts in the last two years as it explores the U.S. pickup market. The 2018 Tanoak concept shown here at the New York show is based on the Atlas SUV and would compete in the mid-size pickup market.\" width=\"540\" data-mycapture-src=\"https:\/\/www.gannett-cdn.com\/presto\/2019\/05\/22\/PDTN\/611287d0-f205-4394-9e95-4a18d5a2199c-vw_tanoak-nyc-2018.JPG\" data-mycapture-sm-src=\"https:\/\/www.gannett-cdn.com\/presto\/2019\/05\/22\/PDTN\/611287d0-f205-4394-9e95-4a18d5a2199c-vw_tanoak-nyc-2018.JPG?width=500&amp;height=281\" \/>VW has debuted two pickup concepts in the last two years as it explores the U.S. pickup market. The 2018 Tanoak concept shown here at the New York show is based on the Atlas SUV and would compete in the mid-size pickup market.\u00a0<span class=\"credit\">(Photo: Henry Payne, The Detroit News)<\/span><\/p>\n<\/div><\/aside>\n<div class=\"clearfix\"><\/div>\n<\/div>\n<p class=\"p-text\">VW&#8217;s transverse-engine MQB platform also has the advantage of being made in Mexico. Vehicles built in North America are not subject to the so-called\u00a0&#8220;chicken tax,&#8221; a protectionist\u00a025% tariff applied to pickups imported from abroad. VW currently imports the\u00a0Jetta sedan and Tiguan SUV from Mexico.<\/p>\n<p class=\"p-text\">Import tariffs are a concern for VW even as it enters into a global truck alliance with Ford. VW plans to make a truck-based\u00a0midsize pickup called the Amarok. The problem? It&#8217;s made in Argentina for international markets and would be subject to the 25% tax, which is a dealbreaker.<\/p>\n<p class=\"p-text\">\u201cIf we were to go into the pickup market, we would produce the vehicle in the USMCA area,\u201d says Schafer, referencing the United States-Mexico-Canada Agreement \u2014 the proposed replacement for the North American Free Trade Agreement\u00a0that governs the North American trade sphere and is\u00a0exempt from the chicken tax.<\/p>\n<p class=\"p-text\">VW wants in to the U.S. pickup market because it is a cash machine.<\/p>\n<p class=\"p-text\">\u201cThe pickup market is huge, but we have seen that even the biggest of car companies have yet to make much of a dent in the domestic stranglehold on full-size trucks,\u201d says Schafer. \u201cSo we wanted to show something a bit different \u2014\u00a0something that\u2019s a bit more in line with what a potential VW customer might expect.\u201d<\/p>\n<p class=\"p-text\">Stung by the high costs of Dieselgate and electric car mandates\u00a0in Europe, the German manufacturer is determined to grow in the profitable, less-regulated, SUV-crazed U.S. market.<\/p>\n<p class=\"p-text\">With its three-row Atlas SUV and compact Tiguan ute, VW has shaken off its old, Beetle-car identity to become a full-line SUV and sedan maker with offerings\u00a0in four of the five biggest vehicle\u00a0segments.<\/p>\n<div id=\"module-position-R1eXuRyxKV4\" class=\"story-asset image-asset\">\n<aside class=\"wide single-photo\"><div align=\"left\"><img decoding=\"async\" src=\"https:\/\/www.gannett-cdn.com\/presto\/2019\/05\/22\/PDTN\/7988cdca-a13a-4845-bbf8-38815532901f-vw_tarok-bed.JPG?width=540&amp;height=&amp;fit=bounds&amp;auto=webp\" alt=\"The 2019 compact VW Tarok pickup truck concept expands its 4-foot bed to 6 feet by dropping the panel behind the rear seats.\" width=\"540\" data-mycapture-src=\"https:\/\/www.gannett-cdn.com\/presto\/2019\/05\/22\/PDTN\/7988cdca-a13a-4845-bbf8-38815532901f-vw_tarok-bed.JPG\" data-mycapture-sm-src=\"https:\/\/www.gannett-cdn.com\/presto\/2019\/05\/22\/PDTN\/7988cdca-a13a-4845-bbf8-38815532901f-vw_tarok-bed.JPG?width=500&amp;height=281\" \/>The 2019 compact VW Tarok pickup truck concept expands its 4-foot bed to 6 feet by dropping the panel behind the rear seats.\u00a0<span class=\"credit\">(Photo: Volkswagen)<\/span><\/p>\n<\/div><\/aside>\n<div class=\"clearfix\">The 2018 Tanoak midsize pickup concept shown in the Big Apple was based on the Atlas (which is currently made in Tennessee). But while VW says media and public reaction was positive, the truck would be an expensive proposition to make in a crowded midsize market including established nameplates like the Chevy Colorado and Toyota Tacoma.<\/div>\n<\/div>\n<p class=\"p-text\">VW is also wary of Honda\u2019s experience with the midsize,\u00a0SUV-based Ridgeline pickup. Despite glowing media reviews and a menu of unique features, the Ridgeline has failed to catch fire in a segment where trucks are defined by ladder-frame chassis and big tow numbers.<\/p>\n<div id=\"ad-position-61\" class=\"partner-placement partner-spike partner-placement-visible\" data-ad-placement=\"native-article_link\" data-ad-sizes=\"[&quot;fluid&quot;,[3,3], [2,6]]\" data-monetization-id=\"native-article_link\" data-monetization-sizes=\"fluid,3,3,2,6\">\n<div id=\"ad-slot-7103-mi-detroit-C1561-native-article_link-money-autos-7\" class=\"ad-slot\" data-google-query-id=\"CP2dobKlzuICFQ9lAQodoXcD6Q\">\n<div id=\"google_ads_iframe_7103\/mi-detroit-C1561\/native-article_link\/money\/autos_1__container__\">\n<div class=\"tlod\">\n<div id=\"tltpvid_6775\" class=\"tl-unit-mid-article\">\n<div class=\"plr-rr__content\">\n<div class=\"plr-rr__above_title\">The wee Tarok not only enters pickup white space,\u00a0it also plays on VW\u2019s traditional brand strength of selling well-engineered compacts. Its interior is typically upscale and VW says it has multiple engine options in its toolbox.<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p class=\"p-text\">Autotrader senior auto analyst Michelle Krebs says that the smaller the pickup, the easier it is for foreign brands to gain market traction against the Detroit Three.<\/p>\n<p class=\"p-text\">&#8220;Our research shows there is little brand loyalty in smaller trucks,&#8221; she says. &#8220;Full-size buyers are the most loyal in the industry; smaller-truck buyers are the least. So the\u00a0newest player likely has a good chance of conquesting buyers.&#8221;<\/p>\n<p class=\"p-text\">VW is not the first to look at a compact pickup. Fiat Chrysler sells the cute car-based\u00a0<a href=\"https:\/\/www.thetruthaboutcars.com\/2017\/02\/sorry-america-potentially-popular-fiat-pickup-isnt-fiat-chrysler-design-head\/\" target=\"_blank\" rel=\"noopener\" data-track-label=\"inline|intext|n\/a\">Fiat Toro pickup in South America<\/a>\u00a0and has reportedly looked at bringing it to the U.S. to shore up the struggling Italian brand here.<\/p>\n<p class=\"p-text\">&#8220;Obviously there is a market here for small pickups for young people who don&#8217;t want to spend $40,000 and want a lifestyle vehicle to haul their bikes or kayak,&#8221; says veteran auto analyst Joe Phillippi of AutoTrends Consulting. &#8220;But it&#8217;s a finite number of sales and manufacturers need to make sense of the numbers.&#8221;<\/p>\n<p class=\"p-text\">While VW won&#8217;t talk price yet, Phillippi estimates a small pickup would start in the low-$20,000s \u2014 which is $5,000 under midsize pickups \u2014\u00a0and top out under $30,000 when fully loaded. Targeted at youth buyers on the U.S.\u00a0coasts, it could also bring new customers to VW&#8217;s lineup.<\/p>\n<div id=\"module-position-R1eXuRzDxyI\" class=\"story-asset image-asset\">\n<aside class=\"wide single-photo\"><div align=\"left\"><img decoding=\"async\" src=\"https:\/\/www.gannett-cdn.com\/presto\/2019\/05\/22\/PDTN\/564fa99f-c64c-4ed9-88ef-5b8a807fc419-vw_tarok-int.JPG?width=540&amp;height=&amp;fit=bounds&amp;auto=webp\" alt=\"Likely priced in the low $20,000 range, the car-based, 2019 compact VW Tarok pickup truck concept would feature a typically upscale VW interior.\" width=\"540\" data-mycapture-src=\"https:\/\/www.gannett-cdn.com\/presto\/2019\/05\/22\/PDTN\/564fa99f-c64c-4ed9-88ef-5b8a807fc419-vw_tarok-int.JPG\" data-mycapture-sm-src=\"https:\/\/www.gannett-cdn.com\/presto\/2019\/05\/22\/PDTN\/564fa99f-c64c-4ed9-88ef-5b8a807fc419-vw_tarok-int.JPG?width=500&amp;height=281\" \/>Likely priced in the low $20,000 range, the car-based, 2019 compact VW Tarok pickup truck concept would feature a typically upscale VW interior.\u00a0<span class=\"credit\">(Photo: Volkswagen, Volkswagen)<\/span><\/p>\n<\/div><\/aside>\n<div class=\"clearfix\">Autotrader&#8217;s Krebs agrees that there is an opportunity with young folks &#8212; &#8220;VW has always done well with youth buyers&#8221; &#8212; as long as the price is right.<\/div>\n<\/div>\n<p class=\"p-text\">&#8220;That&#8217;s why avoiding the tariffs and building it in North America\u00a0is key,&#8221; she concludes.<\/p>\n<p class=\"p-text\"><a href=\"https:\/\/newsroom.vw.com\/vehicles\/the-volkswagen-tarok-concept-asks-america-if-its-ready-for-a-compact-pickup-revival\/\" target=\"_blank\" rel=\"noopener\" data-track-label=\"inline|intext|n\/a\">On its website, Volkswagen\u00a0takes a stroll\u00a0<\/a>down memory lane, recalling the Pennsylvania-manufactured VW Pickup that sold over\u00a077,000 copies between 1979-84.<\/p>\n<p class=\"p-text\">&#8220;Is America ready for a smaller pickup again?&#8221; the company asks. &#8220;Based on the reaction to the Tarok Concept in New York, Volkswagen has the potential to make one a reality \u2014 and bring another distinctive vehicle back to American roads.&#8221;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The 2019 compact VW Tarok pickup truck concept is currently configured for the South American market with an economical, 147-horse, 1.4-liter engine. If it was brought to the U.S., VW says that would likely be bumped up to a more capable engine found in the U.S. Golf and Jetta models.\u00a0(Photo: Henry Payne, The Detroit News) [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"_links":{"self":[{"href":"https:\/\/henrypayne.com\/index.php\/wp-json\/wp\/v2\/posts\/23835"}],"collection":[{"href":"https:\/\/henrypayne.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/henrypayne.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/henrypayne.com\/index.php\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/henrypayne.com\/index.php\/wp-json\/wp\/v2\/comments?post=23835"}],"version-history":[{"count":0,"href":"https:\/\/henrypayne.com\/index.php\/wp-json\/wp\/v2\/posts\/23835\/revisions"}],"wp:attachment":[{"href":"https:\/\/henrypayne.com\/index.php\/wp-json\/wp\/v2\/media?parent=23835"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/henrypayne.com\/index.php\/wp-json\/wp\/v2\/categories?post=23835"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/henrypayne.com\/index.php\/wp-json\/wp\/v2\/tags?post=23835"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}