Volkswagen Drops Price of Passat by $7,000


While the price of just about everything seems to be going up, Volkswagen is bucking that trend, dropping the price of the revamped 2012 Passat by $7,000.

According to a report from Automotive News, when the Passat hits showrooms in the fall the base price will be $20,765, down from $27,945 for the 2010 model.

VW wants to position the Passat to challenge the Toyota Camry, Honda Accord and Ford Fusion.

Jonathan Browning, CEO of Volkswagen of America, said the "price puts us squarely in that mid-sized sedan segment. When you look at the offer, we are making sure it's affordable but very well equipped."

Christian Klingler, head of sales and marketing VW said the new Passat will signal that "VW is back" in the United States. "Our intention with this Passat is to broaden the appeal to more customers," he said.

The base model comes with a standard 2.5-liter, in-line five-cylinder engine that generates 170 hp. There is also a 3.6-liter six-cylinder option.

You could also get a diesel engine if you so desire -- the only mid-sized sedan offered with a diesel option, claims VW. The diesel engine is a 2.0-liter, four-cylinder turbo that gets 43 mpg on the highway.

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