Hot off the press - vw price reductions!!!!

[Brian]

Some say, the GTIs coming to Australia are now coming from the China factory. Haven't seen anything concrete on this but could explain the exchange rate difference???

[Maverick]

Some say, the GTIs coming to Australia are now coming from the China factory. Haven't seen anything concrete on this but could explain the exchange rate difference???

Some say absolute bulls**t. All Golfs (except the Golf Wagon) come from Germany. VW China only makes car for domestic use and it's unlikely this will change.

[hooba]

The currency discussion is based upon the massive assumptions that A) VWA pays for it's product in Euros and B) that the price paid is based upon the current exchange rate. Without knowing what the details of the arrangement are, everything else is speculation. Most likely VW has a mechanism in place designed to give the consumer certainty in the face of currency fluctuations, and them realising that they are in the auto business and not in the currency speculation business, have structured the arrangement so that they neither benefit or suffer from short term currency fluctuations. I know of a worldwide IT company that has been running its business based upon a $0.61 AUD/USD exchange rate since the late 1990s.

Back to the previous topic on getting the price reduction passed on after a contract has been signed, I don't understand why people have this expectation. So many peoples' lives would be far less stressful if they could comprehend and accept that a signed contract is a binding agreement on both parties, and once signed, that is it.

[night_flight]

no thats cool fine I was only saying that I was really close and actually have ordered honda type R which are made in the UK and the dealer told me along the line that Honda has the right to change the prices from now till the car is actually delivred based on the current exchange rate. She showed me the old prices and said but dont worry about it as we are waiting for the new price to be confirmed.... Which I said is fine no big issue if it goes up it does so goes down even better... Certain people on here almost are to take your head off in a second I was questioning it if VW would do something similiar. I dont really care mine is almost signed sealed and few more days delivred.

[Brian]

Well said, hooba. If one had a real estate contract written in $A then thats what the settlement price will be in, even if the other parties currency tanks it or goes through the roof. I would expect that VW and all o/seas manufacturers would have hedging contracts in place to compensate for any deviation in exchange rates. Hence, what YOU sign up for in $A is what you should pay, regardless of whatever the rest of the worlds currencies are doing.