VW Passat, Skoda Octavia - Why do manufacturers sell other models cheaper?

Honest John Back Room » Motoring discussion
View Threaded
Tue 21 Oct 2014 13:58
VW Passat, Skoda Octavia - Why do manufacturers sell other models cheaper? - dac1

Just a quick question.

I understand the VW Passat and the Skodia Octavia are identical cars, apart from their shells and badges. If this is correct then why do manfacturers, in this case VW, make BOTH the Passat and the Octavia but sell the latter for around £5k less? What's the mindset behind this, or am I missing something?

Surely, people would buy the Octavia and save £5k - wouldn't they?

Reply | Report as offensive | Link
Tue 21 Oct 2014 14:08
VW Passat, Skoda Octavia - Why do manufacturers sell other models cheaper? - skidpan

I understand the VW Passat and the Skodia Octavia are identical cars, apart from their shells and badges.

Not true.

The Octavia is the same car under the skin as a Golf, Leon and A3.

The Passat uses a different chassis completely.

Reply | Report as offensive | Link
Tue 21 Oct 2014 14:13
VW Passat, Skoda Octavia - Why do manufacturers sell other models cheaper? - dac1

Ok, then I ask why do VW sell the Leon cheaper than the Golf when they are the same (VW owns both)?

Thanks.

Reply | Report as offensive | Link
Tue 21 Oct 2014 14:14
VW Passat, Skoda Octavia - Why do manufacturers sell other models cheaper? - RobJP

Even if they were the same under the skin (which, as Skidpan has pointed out, they are not), branding comes in to it. After all, most 'own-brand' products in supermarkets are indistinguishable to the more expensive branded items.

A perception of quality is, quite often, more important than the actuality of quality, in the eyes of a customer.

Reply | Report as offensive | Link
Tue 21 Oct 2014 14:20
VW Passat, Skoda Octavia - Why do manufacturers sell other models cheaper? - skidpan

Ok, then I ask why do VW sell the Leon cheaper than the Golf when they are the same (VW owns both)?

Thanks.

Its called marketing.

VAG have 4 companies and from top to bottom they are Audi, VW, and then Seat or Skoda (not sure which order). Some people want to buy a badge with a car attached and are charged for the privilage.

When I bought my Leon the cheapest Golf with the same engine was £6000 more expensive. Ok, the Golf had a bit more kit and some of the plastics were slightly nicer but £6000's worth, no way. If I had wanted more kit could have bought the next spec Leon for another £1500 which was better specced than the Golf.

But a mate of mine will only buy VW. Cannot accept I have exactly the same car and £6000 in the bank.

Reply | Report as offensive | Link
Tue 21 Oct 2014 14:37
VW Passat, Skoda Octavia - Why do manufacturers sell other models cheaper? - daveyK_UK

If only Honda and Toyta did a budget brand, they would soon take over.

Never been able to justify the high list prices and little discount of a new Honda or Toyota vehicle.

If only Daihatsu would come back to the UK

Reply | Report as offensive | Link
Tue 21 Oct 2014 15:32
VW Passat, Skoda Octavia - Why do manufacturers sell other models cheaper? - Auristocrat

Honda and Toyota do sell cars both below their current UK range that we don't see. For example Honda have the Thai made Brio, which is a five door hatchback and saloon around the same size as the Aygo/i10/Up, etc. Toyota also sell re-badged versions of small Daihatsus (and vice versa as regards Daihatsu versions of the Prius, Prius+, etc).

The unfavourable exchange rate between the Japanese Yen and European currencies was the main reason Daihatsu pulled out of Europe, and also partly why Toyota have withdrawn the Urban Cruiser, Verso S and IQ from some European markets.

The next generation of Jazz for Europe will probably see production coming from China rather than Japan, for similar reasons (some of the first generation were made in China and sold in the UK).

Reply | Report as offensive | Link
Tue 21 Oct 2014 15:40
VW Passat, Skoda Octavia - Why do manufacturers sell other models cheaper? - skidpan

The next generation of Jazz for Europe will probably see production coming from China rather than Japan, for similar reasons (some of the first generation were made in China and sold in the UK).

But the European Jazz is made in Swindon.

Reply | Report as offensive | Link
Tue 21 Oct 2014 17:15
VW Passat, Skoda Octavia - Why do manufacturers sell other models cheaper? - Falkirk Bairn

New Jazz 2015 & New HRV will both be Japan sourced for UK market - it was announced 1 month ago IIRC

Reply | Report as offensive | Link
Tue 21 Oct 2014 18:30
VW Passat, Skoda Octavia - Why do manufacturers sell other models cheaper? - craig-pd130

Its called marketing.

But a mate of mine will only buy VW. Cannot accept I have exactly the same car and £6000 in the bank.

As covered in this brilliant question to HJ from his Telegraph column: www.telegraph.co.uk/motoring/caradvice/honestjohn/...l

Reply | Report as offensive | Link