New New Jetta Chosen to Lead Volkswagen to The Promised Land(of Improved Sales)

LOS ANGELES January 5, 2005; Gary Gentile writing for the AP reported that German carmaker Volkswagen unveiled its new Jetta Wednesday and said it would be the first of nine new models in the next 18 months as the company seeks to boost sagging sales of its vehicles in North America.

The debut took place at the Los Angeles Auto Show.

The new Jetta, the fifth version of the sporty compact since it was introduced in 1980, will go on sale in March with a base sticker price of $17,900, a hike of $220 over the current model.

Sales of Volkswagen vehicles fell 16 percent in 2004. The company said the new models would return to the company's roots of tight-handling European performance cars in an attempt to reinvigorate the brand.

Volkswagen said aggressive incentives and a lack of new models for its core audience contributed to the decline. The company has introduced a new luxury car, the Phaeton, and the Touareg SUV in the past few years.

"I think we did a reasonable job of holding (the decline)," said Len Hunt, executive vice president of Volkswagen of America. "Now it's almost going from famine to feast."

The new models come as Volkswagen celebrates its 50th anniversary in America. The first Beetle hit American roads in 1955.

The new Jetta will be made in Mexico on a stronger frame and will feature a five-cylinder, 2.5 liter, 150 horsepower engine. The car is larger and has more safety features as well and sports a new grill design, which Hunt called "the new face of Volkswagen."

The new model will also have a fully independent suspension system and an optional six-speed automatic transmission.

The Jetta is Volkswagen's most popular model in the United States.