- Volkswagen sellers are marking up the ID Buzz as excessive as $20,000 over sticker worth
- The model’s former Americas CEO beforehand pressured that sellers “can’t have markups”
- This is not a terrific search for VW’s most necessary halo product in a long time
I am shocked. Shocked, I let you know. Shocked to study that sellers are ignoring Volkswagen’s now-former CEO’s strongly-worded warning for dealerships not so as to add extra supplier markup the already costly ID Buzz.
Okay, properly, perhaps not that shocked. But it surely’s taking place—dealerships are doubling down on Volkswagen’s egregiously-priced electrical folks hauler by including markups as excessive as $15,000, successfully locking out customers who had been already stretched skinny on their funds following the German automaker’s surprisingly excessive worth announcement earlier this yr.
Picture by: Volkswagen
Current information popped up when a Redditor reached out to Herman Cook dinner Volkswagen in Encinitas, California. The salesperson reportedly instructed the potential buyer to anticipate a markup of between $10,000 and $20,000 on the ID Buzz—when the person iterated VW company’s directions not to markup the Buzz, the salesperson thanked the would-be buyer for his or her time and ended the dialog. InsideEVs reached out to the dealership and was instructed that the supplier had not but selected a markup however it might probably be between $10,000 and $15,000.
Because it seems, that appears to be the norm.
One other Redditor posted a screenshot of an e-mail reportedly with Fort Volkswagen of Downers Grove, Illinois. The salesperson stated that “as a result of demand,” the dealership could be asking “round $10k over MSRP.” The dealership confirmed to InsideEVs that it might “comply with the market” and search between $5,000 and $10,000 over sticker.
“Value [gouging] at its greatest,” wrote the Redditor. “This dealership shouldn’t be allowed to function.”
One other two posters cited extra dealership experiences within the $10,000 ADM vary. And one other in Oakland, California citing a $15,000 markup simply to have the chance “to be one of many first folks with a Buzz.” One other with a further $8,000 on high—which put the car inside simply $3,000 of a Porsche Macan. In fact, some had been extra affordable, with a markup of simply round $4,000, however that is nonetheless a far cry from the markup-free expertise that the general public assumed it might have with the launch of the Buzz.
A Swing (And Miss) At Nostalgia
Picture by: Volkswagen
The ID Buzz one of the vital thrilling Volkswagens in years. A halo product meant to invoke BMW ranges of emotion in house owners—a feel-good household cell with a nod to the 70s that tugged on the heartstrings of nearly anyone who ever fantasized about proudly owning a contemporary VW bus. I imply, of us had been truly excited about proudly owning one among these items which speaks volumes for vee-dub in trendy instances.
Then got here the official debut with full specs and a price ticket. Let’s simply say that reception was less-than-stellar. In actual fact, it may not be far off as to say that Volkswagen shot itself within the foot with the launch, as a result of the web was straight-up pissed.
First was the value. Would-be consumers anticipated the Buzz to be priced someplace round different minivans—you realize, within the $40,000-ish vary. However, in fact, it is a BEV we’re speaking about, so worth parity is not going to occur. However have a look at the Kia EV9—Kia managed to throw sufficient incentives on the household SUV to get it into the mid-$40,000s, so certainly VW would do one thing comparable?
Nope. The bottom-trimmed single motor Buzz begins at $59,995 earlier than the $1,550 vacation spot charges, all the best way as much as $69,995 for its Buzz Professional S with twin motors, an iconic dual-tone paint job, and a myriad of tech-first options. That pricing put the ID Buzz out of attain of many would-be consumers, and its abysmal 231 miles of vary was sufficient to shock many others.
A Downside Volkswagen Cannot Afford
Picture by: Volkswagen
This is the issue: these aren’t simply grumpy prospects taking out inflation-induced infuriation on VW—it is a headache that Volkswagen cannot afford proper now.
VW is hurting large time. Its CFO articulated that the model has “perhaps two” years to get it collectively or else succumb to the mounting strain that’s international EV manufacturers who can do issues cheaper and extra targeted. Its ID household of autos has been underperforming expectations and feeling the squeeze from Tesla, Ford, Hyundai, and others. The ID Buzz was imagined to inject some new life into VW’s lineup and excite consumers. Perhaps even give them a purpose to check out different ID vehicles.
Earlier than it even introduced the value, Volkswagen knew it could not afford markups on the Buzz. That alone ought to have been a key indicator that the automaker anticipated a excessive worth on the mannequin.
“We can’t make a mistake [with the ID Buzz]. With respect to the client, let’s focus on it. We have now a great relationship with the [dealer] community,” stated former CEO of VW North America, Pablo Di Si, who was lately ousted from his place after simply two years. “We can’t have markups.”
So right here we’re, in EV purgatory with the ID Buzz. It’s too costly for what it affords, too beloved to be ignored, and more and more weak to supplier markups. If Volkswagen does nothing, it might probably kiss new gross sales of its flagship product goodbye. And if it tries to punish sellers, then it wants to make use of its enamel as a substitute of simply empty phrases.
