The Quality Challenge

It's clear that to reinvigorate sales, and to build upon Touareg's halo power, VW must not repeat the quality gaffes that threatened to alienate early owners. And it must sustain the momentum it claims to have gained by improving the SUV's reliability.

In 2004, Touareg owners reported three problems per 100 vehicles, nearly triple the industry average. Price characterized the problems mostly as glitches in engine management systems, instrument panel displays, and climate control systems. "It was niggling little stuff," he said.

Touaregs tested by Consumer Guide over the years experienced squeaks, rattles, and flashing antilock-brake and airbag warning lights for systems found to be operating normally by a dealer technician.

2008 Volkswagen Touareg
Previous-generation Touaregs were plagued with problems like glitches in
engine management systems, instrument panel displays, and climate control systems.

The goal of trouble-free motoring is an elusive one for VW. It finished 35th among 39 brands in the J.D. Power and Associates Vehicle Dependability Study released in August, 2007. The study evaluates vehicle quality after three years of ownership. And in the latest J.­D. Power measurement of customer satisfaction with the dealer service experience, VW ranked ahead of only Land Rover and Jeep.

This not a good recipe for success when VW says Touareg's chief rivals are the Lexus RX350 and Acura MDX. Leon Ostrander, head of VW sales training, said some VW salespeople feared Touareg could jeopardize relationships with loyal customers. "We had sales people say, 'We don't maybe want to hand over the keys to a Touareg because we didn't want to see them again in a couple months.'"

VW responded by providing dealers a detailed roster of repairs and preventative service measures. It showered Touareg owners with loyalty coupons good for credit toward another VW, and it bought back some Touaregs with persistent problems. It tried to make certain Touareg owners in for service got Touaregs to drive. "No Touareg owner wants to come in and have a Jetta as a loaner," Wilson said.

By 2006, Touareg's reported problems per 100 vehicles had dropped to 1.5, Ostrander said, adding that in 2007, it was at the industry average of just over one per 100 vehicles. VW also says Touareg's warranty claims decreased 70 percent between model years 2004 and 2006.

Though it all, Touareg's supporters still find reason to believe the SUV is doing something special for its owners.

Ostrander says on-line Touareg owner sites are rife with suggested fixes for common problems. "People say, 'If you have this, this, and this done to it, it's a great vehicle.'"

Adds Wilson: "Seriously. People say that when it runs, man, it's a great vehicle."