Diesel drives VW's local revival

Buyers of the latest Volkswagen Golf have made the 2.0 TDi diesel version the single most popular model when it now accounts for over 50 per cent of all Golf sales.

After it gained a major jump over several small car diesel rivals that are yet to be released, this benchmark model further staked its claim in the local market with a choice of a six-speed manual or VW's ground-breaking six-speed DSG transmission which replicates an automatic transmission, only more efficiently. Over 70 per cent of Golf TDi buyers are ordering this new transmission.

Demand for the milestone Golf GTi became a major goodwill issue when some buyers were caught in a waiting spiral that blew out to eight months. VW's local Managing Director, Jutta Dierks assured CarPoint that the back order will be built by the end of June and rectified by the end of July.

However, Golf GTi orders have taken off again, possibly as a result of dealers knowing that supplies are about to catch up with demand. The company also acknowledged that the successful launch of Ford's new Focus XR5 Turbo may have sparked new interest in this hot hatch segment.

The Polo GTi also went on sale to an enthusiastic local reception with Australian demand delaying supplies to the UK market. While VW is working hard to ensure that both the Polo GTi and Golf GTi are available on immediate delivery, specific option and colour combinations not in stock will take up to three months to fill.

Despite its availability as a manual only, the new Polo TDi diesel hatchback already accounts for 35 per cent of Polo sales and rising as it sets a new benchmark for frugal diesel motoring in the low $20,000 price range.

The new Jetta which replaced the Bora early in 2006 has also won new sales as the latest 2.0 TDi diesel version accounts for 50 per cent of Jetta orders. Even the new Passat 2.0 TDi diesel range is generating orders in the high 30 per cent range while the Passat 3.2 V6 4Motion is the single most popular Passat model.

As for the Transporter range, virtually 99 per cent of sales are diesels as fleets and small businesses are making the switch.

Volkswagen used the success of these models, which only two years ago would have been dismissed as low-volume niche models, to provide a context for last week's launch of its budget-priced seven-seater Caddy Life based on the Golf and the recreational Kombi Beach based on the Transporter range.

"What may be a niche market today could be a big segment tomorrow" is Volkswagen's own take on its phenomenal revival in Australia.