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Volvo XC90 vs VW Touareg |
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VW Handicaps Itself With Choice Of Name, Brand Will anti-SUV movement make it all moot anyway? Financial Times Wants Us To Give Them Up Volvo and Volkswagen have come up with their first Sport Utility Vehicles (SUVs) at last, but they may well too late to make the fat profits that these controversial gas-guzzlers generated through the 1990s. They may also fall foul of a growing movement in the U.S. and Europe to ban or least rein in these behemoths. Until that happens though, Volvo and VW will be pushing the virtues of the XC90 and Touareg. The Volvo has the edge in safety and brand power. A couple of extra seats in the back will win over many buyers. The VW has great technology appeal with its amazing top-of-the-range 313 bhp V-10 diesel. It is streets ahead in the off-road stakes, although both these qualities are probably more for show than practicality. They both will have to win out against established machines like the BMW X5, Mercedes M-class, Land Rover Discovery and Range Rover, and Jeep Grand Cherokee. Why Isn’t It An Audi? Both the Volvo XC90 and Touareg base models are priced close to £30,000 (¤43,500.00), and at this price, VW does seem to have a big disadvantage. Who is going to part with this much money for a VW badge? Can VW vie with Range Rover with its £50,000 range-topper? It is very hard to see why VW didn’t use its Audi badge to sell into such upmarket territory. VW has been attempting to change the market position of its various brands, and has already launched the Phaeton, a Mercedes S class rival, to push VW upmarket. Under the leadership of CEO Bernd Pischetsrieder, VW brand policy is now divided, rather arbitrarily you could say, into “sporting brands” - Audi, Lamborghini and Seat – and “classic” brands – VW, Bentley and Skoda. The aim is to differentiate the brands more strongly and avoid cannibalisation. Marketing Gobbledygook In fact this looks like a classic business school exercise – strong on textbook marketing gobbledygook, and unrelated to the real world, where in buyers’ eyes Audi represents luxury cars, and VW solid, value for money. As for the rest, trying to pretend that Seat is “sporty” and Skoda “classic” is simply laughable. Challenged about this, VW executives, go a bit quiet, as though they are not really convinced that it makes sense to try and redesign the working class VW brand into an upmarket one. Maybe this will all make more sense in the longer term. Twaa Reg Please They will have an easier time pointing to the qualities of the Touareg, which we must remember to pronounce as “Twaa Reg”. The Touareg was developed jointly with Porsche (a relationship which doesn’t seem to appear in any VW publicity material), which has just launched its Cayenne version. Maybe because of this link with Porsche, the Touareg does look lower and sportier than the XC90. It is definitely a handsome beast. VW makes much of the Touareg’s mud-plugging qualities, offering a day’s off-road course for all buyers. VW reckons that the market for SUVs is still growing, but the market, particularly in the U.S. is becoming saturated. But VW, and Volvo’s, timing doesn’t look too good. SUVs have been money-spinners for the car companies, which used out-of-date truck technology to build vehicles which caught fire in the marketplace and earned fat profits. “Time To Forgo The SUV” The positive aura around these big beasts is clouding, with the cranking up of an anti-SUV climate in the U.S. and Europe. The Financial Times has been pontificating on the subject. In an editorial earlier this year headed “End of the road – It is time to forego the sport utility vehicle” the FT said SUVs were a safety hazard, they encouraged aggressive driving, and consumed absurd amounts of petrol. |
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“Sooner or later, anti-SUV sentiment will sweep the world, and these vehicles of destruction will reap the whirlwind,” boomed the FT without a hint of irony. “Their drivers still pursue all those exciting off-road opportunities in Manhattan and the West End, But the SUV will not be around for long,” the FT said. Jeepers. Jesus Wouldn’t Drive One Environmental groups argue that SUVs contribute to global warming, and religious groups in the U.S. are saying that Jesus wouldn’t drive one. One conservative commentator in the U.S. recently launched a TV add campaign tying SUVs to terrorism, because their poor fuel economy was generating unnecessary income to Arab states. 12,000 Deaths A Year Safety issues are also beginning to eat away at the attractiveness of SUVs. Many SUV lovers say they buy them for safety. The bulk and height makes them feel safe. In fact it appears that these qualities are far from safe, and almost 12,000 people are killed very year in SUV rollover accidents. That’s almost 25% of all the road deaths annually in the U.S. Volvo makes the point for its XC90 that it has incorporated safety measures to make it more difficult to roll. It has also designed a feature which attempts to level the playing field if it hits a smaller car. Tax Anomaly In Danger And if that’s not enough SUV disadvantages for you, there’s more. A growing movement exists in the U.S., where most XC90s and Touaregs would be sold, to remove a tax anomaly which has boosted sales over the years, and another to remove their exemption from fuel efficiency rules. Current U.S. tax law allows small business buyers of SUVs, pickup trucks and vans to get a tax break in the first year of more than $30,000. California Democrat U.S. Senator Barbara Boxer has proposed that this loophole be closed for SUVs. Some Republicans have joined her. Another California U.S. Senator, Dianne Feinstein, has introduced legislation to treat SUVs and light tracks the same as cars and require manufacturers to gradually improve fuel efficiency. In Europe of course there are no such hindrances yet, and SUVs are an expanding market. 9-Week Course VW makes much of the sophistication, luxury and safety of its Touareg. The Touareg systems are so high tech that mechanics will have to attend a special 9-week course. “In refinement, the Touareg bears comparison with luxury saloons, thanks to careful attention to the reduction of cabin noise and vibration. All models in the range are well appointed and equipped, and there is a comprehensive array of optional luxury equipment,” VW said. The Touareg offers a choice of 4 engines – 3.2 litre V6, 4.2 litre V8, 2.5 litre diesel, and that 5.0 litre V10 diesel. A six speed auto box is available on all engines; a six speed manual is available on the 2.5 diesel and V6 models. Prices start at £28,600. The base model 2.5 litre diesel includes a radio-CD system with at least 10 speakers, cruise control, alloy wheels, and curtain airbags. Front seat passengers have individual air conditioning controls. The range-topping V10 has air suspension, bi-Xenon headlights, keyless entry and engine start, and electric seats with memory. The suspension progressively lowers itself as speed increases. Unlike the Volvo, there is no 7-seat option. The Volvo has only two engine choices – a five-cylinder 2.4 litre diesel, and a six-cylinder 2.9 litre petrol Standard specification on the Volvo includes 17-inch wheels, CD player, and eight-speaker audio system. An SE upgrade adds larger wheels, leather seats, and powered driver’s seat with memory. Separate Audio Controls A net Volvo touch is separate controls for rear passengers for the audio system so the children in the back can listen to their own “music”. The centre armrest in the front is removable to allow the middle passenger to have extra legroom. The XC90 has 7 seats, a serious advantage in this competition. Two forward facing seats in the back fold down flat when not in use Addressing the SUV rollover safety issue, the XC90 has what it calls the Roll Over Protection System to combat the higher centre of gravity. This uses a gyro sensor to monitor the car’s roll angle and speed. If the roll angle becomes critical the system automatically applies the brakes and activates stability systems to help the driver maintain control. The XC90 also has lowered part of the structure behind the front bumper so that impacts with smaller vehicles can engage with their protective structure and crumple zones. Gruff And Gutless There is not a lot to choose in the driving performance of the two SUVs. The Volvo diesel engine seemed a bit gruff, gutless and noisy under acceleration, but smoothed out to give a terrific motorway cruising performance. The technology seems to work on the roll factor, and the XC90 seemed to lurch less than a Range Rover on high-speed curves. But the Touareg seemed pretty stable too. The Touareg’s V-10 diesel puts it into a different class, but the price – over £50,000 means that this version doesn’t really feature as a XC90 competitor. What’s In A Name? There seems to be some argument about the meaning of the word “Touareg”. Some say it refers to wandering Arabs known as knights of the desert who are known for their pride, intelligence, dignity and ability to adapt to difficult conditions. Others say it means “Abandoned by God”. Either way, this unpronounceable word is not a great name to use, considering current hostilities. As for choosing between these two vehicles, the Volvo does seem to have the edge, even if the reasons are a bit superficial – the Volvo brand is likely to have more power in this market where women drivers are going to have a big influence. I’d be forced to change my mind it was competing against the Audi Touareg. Neil Winton April 3, 2003
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