It appears that Volkswagen wants to dump its premium pricing strategy in order to compete with Japanese competitors in the compact and mid-sized sedan segments.

The first step begins with the redesigned 2011 Jetta sedan which will go on sale in October. The new Jetta pricing will start from $16,000, down from $18,435 for the current Jetta (both include shipping) and the entry-level version is offered with stability control and air conditioning. Regarding the competition, the entry-level 2010 Toyota Corolla starts at 16,200 while the base 2010 Honda Civic is offered for $16,405, including shipping. The Jetta will be the most affordable car from Volkswagen in the United States, slotted below the Golf which starts at $18,370, including shipping. Apparently, the Jetta price was lowered because it is Volkswagen’s “bread-and-butter car and the potential in sales is sizable” according to Mark Barnes, COO of VW of America.

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