- Volkswagen sellers are marking up the ID Buzz as excessive as $20,000 over sticker value
- The model’s former Americas CEO beforehand pressured that sellers “can’t have markups”
- This is not a terrific search for VW’s most vital halo product in a long time
I am shocked. Shocked, I inform you. Shocked to study that sellers are ignoring Volkswagen’s now-former CEO’s strongly-worded warning for dealerships not so as to add further seller markup the already costly ID Buzz.
Okay, effectively, perhaps not that shocked. However it’s taking place—dealerships are doubling down on Volkswagen’s egregiously-priced electrical individuals hauler by including markups as excessive as $15,000, successfully locking out customers who had been already stretched skinny on their finances following the German automaker’s surprisingly excessive value announcement earlier this 12 months.
Picture by: Volkswagen
Latest information popped up when a Redditor reached out to Herman Cook dinner Volkswagen in Encinitas, California. The salesperson reportedly informed 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 informed that the seller had not but selected a markup however it will doubtless be between $10,000 and $15,000.
Because it seems, that appears to be the norm.
One other Redditor posted a screenshot of an electronic mail reportedly with Citadel 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 will “observe the market” and search between $5,000 and $10,000 over sticker.
“Worth [gouging] at its greatest,” wrote the Redditor. “This dealership shouldn’t be allowed to function.”
One other two posters cited further 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 individuals with a Buzz.” One other with a further $8,000 on high—which put the car inside simply $3,000 of a Porsche Macan. After all, 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 will have with the launch of the Buzz.
A Swing (And Miss) At Nostalgia
Picture by: Volkswagen
The ID Buzz seemed to be some of the thrilling Volkswagens in years. A halo product meant to invoke BMW ranges of emotion in homeowners—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 really excited about proudly owning considered one of these items which speaks volumes for vee-dub in fashionable instances.
Then got here the official debut with full specs and a price ticket. Let’s simply say that reception was less-than-stellar. Actually, it won’t 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 worth. Would-be patrons anticipated the Buzz to be priced someplace round different minivans—you realize, within the $40,000-ish vary. However, after all, it is a BEV we’re speaking about, so value 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 related?
Nope. The bottom-trimmed single motor Buzz begins at $59,995 earlier than the $1,550 vacation spot charges, all the way in which 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 patrons, 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 world 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 purported to inject some new life into VW’s lineup and excite patrons. Possibly even give them a purpose to check out different ID automobiles.
Earlier than it even introduced the worth, 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 value on the mannequin.
“We can’t make a mistake [with the ID Buzz]. With respect to the shopper, let’s talk about it. We now have a great relationship with the [dealer] community,” stated former CEO of VW North America, Pablo Di Si, who was just 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 gives, too beloved to be ignored, and more and more weak to seller markups. If Volkswagen does nothing, it may 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.
