Could this be the end of the VW California?

[T6Beach]

VW plan to cut 30,000 jobs, and 23,000 are going to be in Germany ( yes twenty three thousand) As we alll know the California is a loss leader for VW so it could be something they look at losing?

I hope not!

 

[Hotel California]

624.000 workers worldwide so i read in todays newspaper
282.000 in Germany allone.....might be good to loose some.

As i read it will be contractors and pensions that will get to the 23.000 that are gonna be lost.

 

[RoB5urf]

As we alll know the California is a loss leader for VW

I didn't know that!

 

[Hotel California]

Why is the California a loss?

It's based on the T6 witch follows up the suc6 from the previous models.
Building a campervan in it with thesame knowledge and tools in the factory as 15y ago( been there this week) they are working 24h/day mo-fri. And if they produced even more they simply sell more Cali's.
I should think the California should add value

 

[GrannyJen]

I think VW have more deserving models to cut back on than something which is recognised as a world leader.

 

[Adamvanman]

I didn't know that!

Their bread and butter is cars and proper commercials, I imagine the California is seen to VW as hassle. If they do stop making it I am sure Wesfalia will be back making it again.

 

[briwy]

Can't possibly see how they make a loss on a Cali. Van cost about£25- £30k so no way does it cost another £20k to fit out a Cali especially as all the tooling cost must have been paid for ages ago. Loss leaders are items sold cheap (which a Cali isn't) to induce people to use the brand for other products which make a profit. I can't see many people being swayed to buy another VW product by buying a Cali. If you are prepared to spend upwards of £45k then you are presumably already happy with the brand.

 

[Hotel California]

Their bread and butter is cars and proper commercials, I imagine the California is seen to VW as hassle. If they do stop making it I am sure Wesfalia will be back making it again.

Maybe we on the forum could start a fundraising buying the California factory?

 

[GrannyJen]

Thinking about it, and I know thinking is a process that I have ceased to undertake recently, the roof fiasco perhaps not fixed, Westfalia possibly waiting to take over California production again, a fringe product and a basket-load of problems that the commercial dealerships seem unwilling to be interested in .... it could all make sense.

 

[Adamvanman]

I went to the Cali factory back in 2014 with the FB club and the amount of man hours that goes into building a Cali you would be astonished, I am talking about just the production line, you have also then got all the parts which are specially built such as the cupboards, roof etc.. I am sure they make a profit but I think there is much easier profit in selling a transporter, Crafter etc. . Don't forget all the warranty claims that the Cali attracts, in my first two years I think I must of had around £4-5k of claims for one thing or another and I know I am not alone.

 

[Hotel California]

I went to the Cali factory back in 2014 with the FB club and the amount of man hours that goes into building a Cali you would be astonished, I am talking about just the production line, you have also then got all the parts which are specially built such as the cupboards, roof etc.. I am sure they make a profit but I think there is much easier profit in selling a transporter, Crafter etc. . Don't forget all the warranty claims that the Cali attracts, in my first two years I think I must of had around £4-5k of claims for one thing or another and I know I am not alone.

I visited just this week the VW T6 factory and the California assembling factory
https://vwcaliforniaclub.com/threads/hannover-t6-factory-visit-and-california-factory-visit.16332/
And also think thesame , the manhours put in makes you wonder why a Cali not cost the double..

 

[briwy]

So basically you are saying that it costs the same to convert a van to Cali as the price of a Golf. Parts are bought in and motor manufacturers are notorious for screwing suppliers so are relatively low cost. Whichever way you look at it it's still a converted van.

 

[motacyclist]

I wonder if the California is in as much demand as the long waiting lists seem to indicate. The dealer stock ones seem to be sticking. On my recent visit to the dealers there were a lot of T6 Oceans and Beaches sitting around, some of them looked familiar, and I think they were there months ago when I last called in.

Maybe most buyers want to spec them up themselves and not just take what the dealer puts on?

I noticed also discounts in excess of £5k on new Transporters.

 

[Amarillo]

On my recent visit to the dealers there were a lot of T6 Oceans and Beaches sitting around, some of them looked familiar, and I think they were there months ago when I last called in.

Maybe replacement showroom demonstrators are facing similar delays.

 

[Spitfire]

I wonder if the California is in as much demand as the long waiting lists seem to indicate. The dealer stock ones seem to be sticking. On my recent visit to the dealers there were a lot of T6 Oceans and Beaches sitting around, some of them looked familiar, and I think they were there months ago when I last called in.

Maybe most buyers want to spec them up themselves and not just take what the dealer puts on?

I noticed also discounts in excess of £5k on new Transporters.

I don't really get these posts. There are only nine Oceans for sale on the VW website across the whole country, and it would be hard to make a loss when you're charging at least the same as bespoke converters but have the benefit of far greater volumes and can use a base vehicle that you make yourself.

 

[525107]

I don't really get these posts. There are only nine Oceans for sale on the VW website across the whole country, and it would be hard to make a loss when you're charging at least the same as bespoke converters but have the benefit of far greater volumes and can use a base vehicle that you make yourself.

Don't get this loss leader label either, across the VW Group, the California (along with RS 4, R8 et al) are considered a 'Pull' asset. Other assets such as Polo, Golf, Passat etc are 'Push'. Sales staff work harder selling Push assets than they do Pull assets. Pull assets attract potential buyers into Centres with little effort from sales personnel.

 

[blakeley]

I don't really get these posts. There are only nine Oceans for sale on the VW website across the whole country, and it would be hard to make a loss when you're charging at least the same as bespoke converters but have the benefit of far greater volumes and can use a base vehicle that you make yourself.

Converters use cheap panel vans, the Cali is based on Caravelle

 

[sidepod]

Maybe Westfalia will get the gig back.
Proper job at last?

 

[Flood51]

The USA have only just started to drain VW of its cash through their "legal" system. They will keep it on life support to insure a steady income stream. Land of the free has two rules, one for foreign companies and one for its own, Texaco in Ecuador or Dow in Bhopal, etc etc etc

 

[Skylark2.0]

I wonder if the California is in as much demand as the long waiting lists seem to indicate. The dealer stock ones seem to be sticking. On my recent visit to the dealers there were a lot of T6 Oceans and Beaches sitting around, some of them looked familiar, and I think they were there months ago when I last called in.

Maybe most buyers want to spec them up themselves and not just take what the dealer puts on?

I noticed also discounts in excess of £5k on new Transporters.

It's the winter. Most people don't by campers in the winter. Mind you if you do there are good deals to be had...