Recently released photos of the sixth-generation German-market Volkswagen Golf (above) show the redesign preserves the current model's general dimensions and appearance.

Consumer Guide’s Impressions of the 2010 Volkswagen Rabbit

Europe’s number-one automaker makes a new assault on the U.S. market, led by a redesigned and more affordable Rabbit. The aim: Topple Toyota as the world’s biggest car company.

What We Know About the 2010 Volkswagen Rabbit

Things are changing at Volkswagen. Newly determined to topple Toyota as the world’s number-one vehicle producer, Europe’s top-selling brand has embarked on a 10-year offensive, dubbed “Strategy 2018,” that aims to more than double VW sales both globally and in the lucrative North American market--to about 10 million and 800,000 units per year, respectively. Those are ambitious targets. For calendar 2007, U.S. VW-brand sales totaled 230,572, down two percent from ’06. Global 2007 sales for the entire VW Group, which includes Audi, Bentley, and several nameplates not sold in the U.S., were about 5.7 million, versus some 9.4 million for number-one Toyota. Among the key elements of “Strategy 2018” are a new U.S. assembly plant and products better tailored for American tastes and market conditions, headlined by a redesigned 2010 Volkswagen Rabbit.

Though its premium Audi brand has been going great guns here, VW itself has lately struggled for sales with Eurocentric vehicles that aren’t price-competitive because of a steadily weakening dollar (down 40 percent against the euro since 2001). Indeed, VW’s North American operations lost nearly $844 million in 2006 alone.

To get around this problem, VW is setting up a new U.S. assembly plant in Chattanooga, Tennessee. Reports say this plant could be online in early 2011 and will have a capacity of up to 150,000 vehicles per year. The first product is said to be a new midsize sedan that the company is developing specifically for the United States. Eventually, VW also plans to build engines and transmissions here, and to source as many components as possible from domestic suppliers. When the new plant will start to turn out VW’s most popular existing North American models, namely the Jetta and Passat sedans, and the just-introduced Tiguan compact SUV is unclear. We've also heard rumors of a new midsize SUV or crossover, but again there are no solid details. The New Beetle would probably continue to be built exclusively at VW’s Puebla, Mexico facility, an important currency hedge itself. The 2010 Volkswagen Rabbit and niche models like VW’s Eos convertible would presumably still be imported from Western Europe, though sourcing from lower-wage countries, including China, is a distinct possibility.

Beyond shifting production venues, VW hopes to be more price-competitive by redesigning its vehicles to be simpler and less costly to build. Because of strong pressure from labor unions, especially in Germany, VW has some of the highest manufacturing costs in Europe, and that’s reflected in sticker prices. And because its products tend to be tailored primarily for Europe, they end up somewhat over-engineered for American tastes, which only adds to VW’s price disadvantage here. So do premium standard features that Europeans happily pay for but which put off American buyers who still equate small with cheap.

The 2010 Volkswagen Rabbit will be a key test of the company’s overall efforts to lower costs and improve productivity. Keep in mind that the bunny badge returned for 2007 for the U.S. version of the fifth-generation Golf hatchback. (The Rabbit name was revived from 1975-84 to replace Golf as a sales-boosting tactic.) Sources say the replacement “Mark VI” Rabbit/Golf will be simplified in both design and content to achieve lower base prices, though VW says its compact will still cost 5-10 percent more than a comparable Honda Civic or Toyota Corolla. That’s partly because VW sees itself as more of a premium brand than Asian competitors, and thinks pricing should reflect that.

The 2010 Volkswagen Rabbit reportedly switches to VW’s new “MQB” front-wheel-drive architecture, which is destined for a host of future compact and midsize vehicles. Recently released photos of the sixth-generation German-market Volkswagen Golf show the redesign preserves the current model's general dimensions and appearance. The crisp new outer body panels impart a look that seems to be a cross between the new Volkswagen Scirocco and a VW Touareg SUV. Many underskin components will be replaced or modified, again to reduce manufacturing costs. U.S.-market powertrains are thus far unknown, but we wouldn't be surprised if the current 2.5-liter 5-cylinder engine returns with a standard 6-speed manual transmission, replacing a 5-speed unit, or an optional 6-speed torque-converter automatic. However, the Mark VI VW Golf is launching in Europe with 6- and 7-speed versions of Volkswagen's DSG automated-manual transmission, in lieu of a conventional automatic. Availability of the DSG in the new Rabbit will likely be decided by the accountants. The 2010 Volkswagen Rabbit may also list the new 2.0-liter turbocharged 4-cylinder diesel engine that is available on the VW Jetta.

Most all these changes would also show up in the Rabbit’s sporty cousins, the two- and four-door GTI hatchbacks, as well as the related Jetta sedans, VW’s top-selling U.S. cars. The 2010 Volkswagen GTI should reprise a 2.0-liter turbocharged 4-cylinder gasoline engine linked to a 6-speed manual transmission or the new 7-speed DSG, but expect a horsepower bump to around 210. The extra-sporty all-wheel-drive R32 may not return, and some reports say it will be replaced with a GTI-R model that gets a 265-horse four and all-wheel drive.

VW was America’s number-one import brand in the 1950s and ‘60s, but has since shown a curiously cavalier regard for the world’s richest car market, thus allowing Japanese nameplates to take over. Though VW fans might cheer a renewed focus on North America, we wonder whether the company can gain much lost ground simply with cheaper, re-tailored products. After all, VW tried selling domesticated Rabbits from a second-hand plant in Westmoreland, Pennsylvania, back in the late 1970s and couldn’t stop buyers from defecting to Toyota, Nissan, and Honda. Will things be different this time? Well, VW acknowledges that it must deliver not just lower prices but also better quality, reliability, and customer satisfaction, so they seem to know what they’re up against.

Rabbit's crisp new outer body panels impart a look that seems to be a cross between the new Volkswagen Scirocco and a VW Touareg SUV. The sixth-generation German-market Volkswagen Golf is pictured.

A Notable Feature of the 2010 Volkswagen Rabbit

Thrifty diesel engines account for some 50 percent of all car sales in Europe, where gas costs more than double what it does in America, so VW and other European automakers are experienced “oil burner” advocates. VW has long offered a diesel option in many of its cars, including the Rabbit/Golf and Jetta. Indeed, those VWs have been the only diesel compact cars available in the U.S., and their “TDI” (Turbo Direct Injection) engine has won a small but loyal following for its high fuel economy--an easy 45-mpg in Consumer Guide tests.

Now VW has a new 4-cylinder “clean diesel” engine that rolls out this summer as an option for Jetta sedans and wagons. We expect it will eventually migrate to the hatchback line, though perhaps not before the redesigned 2010 Volkswagen Rabbit reaches showrooms.

Replacing the familiar 1.9-liter TDI, the new 2.0-liter turbodiesel four reportedly spins out 140 horsepower and a strong 235 pound-feet of torque, up from 100 horsepower and 177 pound-feet. Sources say an “after-treatment system” and a particulate (soot) filter will allow sale in all 50 states despite much tougher U.S. standards on diesel emissions. Like the old TDI, the new one will carry a price premium over standard gasoline engines, but VW has yet to suggest what that might be.

Buying Advice for the 2010 Volkswagen Rabbit

We know VW wants to deliver more car for the money, but the trick is to take cost out in ways that buyers won’t notice. Assuming VW manages that--and the equally difficult tasks of improving reliability and customer satisfaction--the redesigned Rabbit should be a more compelling compact car choice. But competitors will be busy too, and some of them have better brand reputations to boot, so VW must climb several big hills to reach its ambitious new sales goals. In the meantime, smart shoppers will want to consider all the class contenders, not just “default” choices like the Toyota Corolla and Consumer Guide Best Buy Honda Civic, though they’re certainly tough to beat for value and overall appeal.

2010 Volkswagen Rabbit Release Date: A Euro-market debut is reportedly slated for October of 2008. For various reasons, U.S. sales would likely be delayed to fall 2009 at the earliest.

2010 Volkswagen Rabbit First Test Drive: If the above timing proves out, U.S. media previews would likely be staged in the second or third quarter of 2009.

2010 Volkswagen Rabbit Prices: We know VW wants to hold the line as much as possible, so we’d expect modest hikes on the order of $800-$1200. That suggests new-Rabbit base prices could range from around $16,500 to just over $20,000. The 2010 Volkswagen GTI would likely move up into the high $20,000s.

Updated by Don Sikora II 08.07.2008

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