Blog: Dave LeggettVolkswagen's brand premium; Ford Europe woes

Dave Leggett | 9 October 2003

How much more do you think you'd pay in Europe - on average - for a Volkswagen Passat over a Ford Mondeo. Well, the list price difference is a staggering 14% according to data derived from industry sources and published by I didn't think the Volkswagen price premium was that high, but that gap would help to explain why Ford is finding it so difficult to turn a profit in Europe. And VW makes a lot more Passats than Ford does Mondeos, so there's a unit cost advantage for VW also. But at least Ford has its innovative flex capacity in Europe right? Well yes, but canning plans for the Focus at Genk actually removes the ability to flex between Mondeo and Focus according to fluctuations in market demand.


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