Volkswagen may have been depending on the sales of the Golf V to boost revenue, but low demand and technical problems are causing some concern. Could this impact on the Golf V’s reception in South Africa?

Volkswagen may have been depending on the sales of the Golf V to boost revenue, but low demand and technical problems are causing some concern. Could this impact on the Golf V’s reception in South Africa?

VW chief executive Bernd Pischetsrieder told a German newspaper the company would build about 25 000 fewer than the planned 135 000 of the new model in 2003 because of technical problems in production, the news agency said.

Apparently, there are problems relating to the building of chassis, doors and windows. Pischetsrieder reportedly said they would be solved in time for VW to achieve its target of building 600 000 Golf V’s in 2004.

He added that there were no problems with the quality of the new Golf, saying "feedback from traders and clients is excellent."

However, a German motor industry newspaper reported that traders there were disappointed with demand for the new Golf, which went on sale in October. In Volkswagen’s biggest market, Germany, demand was reportedly much lower than expected and sales were below levels for the Golf IV.

In October, Volkswagen said it expected its 2003 profits to be less than half those of the previous year. There was talk of adding extra production shifts to meet expected high demand for the new Golf as the range traditionally accounts for about half of the VW brand’s profits.

Original article from Car