Beetle's about

By ALASTAIR SLOANE

Volkswagen, with one eye on the value of the New Zealand dollar and the other on sales demand, has priced the entry-level model of the New Beetle at $39,990, a price it said would be out of reach a few months ago.

New Zealand Automotive News has been told that the agents for Volkswagen, European Motor Distributors (EMD), fixed the price with the German carmaker to get maximum sales impact after next month's launch.

However, Volkswagen's sales manager Dean Sheed wouldn't confirm the sub-$40,000 price, saying that his office was still doing last-minute costings.

Demand for the New Beetle in New Zealand apparently gave EMD room to move with Germany when it sat down to work out the price.

More than 120 New Beetles have been pre-sold, New Zealand Automotive News understands. This accounts for the next two shipments.

Buyers who get bitten by the bug after the two-door car is launched in two weeks will have to wait until the March shipment from the factory in Mexico.

The entry-level New Beetle is the five-speed manual, powered by a 2-litre four-cylinder engine. Standard equipment includes air-conditioning, ABS anti-lock brakes, front and side airbags, 16-inch wheels, remote central locking and engine immobiliser.

A couple of years ago, when a New Zealand dollar was stronger, EMD was looking at an entry-level price for the New Beetle of between $36,000 and $38,000.

As the dollar weakened over time the distributor said the standard model would be unlikely to come in under about $43,000.

EMD has obviously got some factory help on the $39,990 price because the dollar hasn't gotten any stronger in the interim.

Three New Beetle models will be available - the standard manual at $39,990, a four-speed automatic at about $40,990 and a turbocharged variant powered by a 1.8-litre engine, the same engine used in the GTi Golf. This model is expected to be considerably more expensive.