VW mum on Routan's future

[rickaren]

VW mum on Routan's future


By Grace MacAluso, Windsor Star February 22, 2011


The Routan has different sheetmetal, but it is essentially the same as the Dodge Caravan/Chrysler Town & Country.




Volkswagen has not decided whether to continue production of the Windsor-built Routan after its contract with Chrysler Group expires in about two years, according to a spokesman for Volkswagen of America.

"No decision has been made," Corey Proffitt, VW's product communications specialist," said Wednesday. "We're still evaluating the plan, but a seven-passenger vehicle is very important to our product lineup."

The VW Routan, which is built at the Windsor Assembly Plant, shares a platform with the Dodge Grand Caravan and Chrysler Town and Country minivans.

Launched as a 2008 model, the Routan's current production schedule at the plant is scheduled to end in 2013, said Rick Laporte, president of CAW Local 444.

If Volkswagen decides to kill the vehicle, it "would not have much impact on the workforce," Laporte added. "We may lose a few jobs, but I think the company would pick up the production on Chrysler minivans to fill that gap."

Volkswagen sold just under 16,000 Routans in the United States last year, up almost nine per cent from 2010, said Proffitt, adding that the automaker is pleased with the vehicle's sales.

Volkswagen introduced the Routan as part of its strategy to increase market share in North America, said Aaron Bragman, senior analyst at IHS.

"They're looking to expand their business in North America and the Routan is really just a stopgap measure to do that," said Bragman.

The vehicle hasn't make much a dent in the minivan segment in part because it is viewed as a pricier rebadged Chrysler minivan, he added.

"It is not significantly differentiated from the Chrysler minivans upon which it is based," said Bragman.

The Routan also does not "fit with Volkswagen's image," he added. "It's an odd vehicle for Volkswagen and it's more likely they'll end their relationships with Chrysler and develop one on their own."

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