Lower Price Leads to Record Sales for Volkswagen Jetta

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Volkswagen had an interesting theory for its redesigned 2011 Jetta last fall -- cut the price by $1,600 and sales will soar. Well, it worked, and sales are at a record pace.

The base price of the mid-sized Jetta was set at $15,995 (it has since gone up $500), the kind of price you see only on compact vehicles.

People flooded VW dealerships, and the model had its best month ever in June. Automotive News reports that 17,105 Jettas were sold, up 88% over last year. For the first six months of the year, sales are at 91,752, up 66%.

Oddly, buyers are drawn in by the low base price, but when they add options, they are actually spending more.

"We are selling more units above $19,000 than ever before," said Jonathan Browning, CEO of Volkswagen Group of America.

The new Jetta is built bigger and more towards American buyers' tastes. As Automotive News put it, "After decades of trial and error, VW has figured out what Americans want."

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