VW could build and sell a truck around $25,000
Scott Keogh, CEO of Volkswagen America, did not temper rumors about a compact pickup truck made by the German brand. This was after the Tarok concept arrived at the 2019 New York Auto Show. Keogh called the Tarok “a trial balloon” and spoke to Motor1.com during a media roundtable.
Keogh called the truck market “probably our largest white space in the portfolio right now.” He pointed out that the rising price of trucks was a motivator for Volkswagen, but at a lower price than the large, brutish half-tons made by major truck manufacturers.
Keogh stated that he sees a market where trucks can be sold at prices as high as $60,000 and $50,000. That is the price for a luxury car. There is a market opportunity, and I believe [Volkswagen] could come in at an extremely sensible price point.” Keogh stated that he did not want to reveal price points and said, “I think you can put a vehicle such as that on the market in the mid-$20,000 with proper engine, proper everything.”
The company has two options right now. Keogh stated that the VW-Ford Motor Company partnership will result in a VW product that is based on the Ranger’s bones. Keogh stated that the vehicle was destined for South America and that the company would “continue looking” for the U.S. This approach has a bigger problem: differentiation.
“If there is a Ranger Ranger or VW Ranger in this market, that’s fine. It’s important to have a different perspective and a differentiation.” Keogh said that it wasn’t VW’s style to badge-engineer. One journalist joked that this was a lesson from the disastrous Routan minivan. Keogh laughed and declined to comment.
Another option is the Tarok, which rides on Volkswagen Group’s ubiquitous MQB platform. This approach would allow the brand to be more flexible in terms of packaging and powertrains. Keogh stated that “We could put a whole array of engines into [an] MQB truck.” If we wanted to, we could achieve upwards of 250 horsepower or 300 horsepower.
Even after Keogh’s comments it is still too early to say that a Volkswagen truck will be a reality. Keogh is right to say that the German automaker needs to decide what it wants its truck to do before moving forward.
Keogh stated that when you enter any market segment, it is important to reflect your brand’s perspective and not copy what’s already out there. “So, obviously we are trying to find our point of view.”
We think that VW is closer than we thought to understanding this point of view if the Tarok was shown in New York by the company.