Luxury Site Gilt To Sell Volkswagen Jettas For $5,995December 15, 2010
Wall Street Journal
by Jonathan Welsh
Starting today the luxury goods site Gilt will sell one Volkswagen Jetta a day for three days, for $5,995 each. It’s a price that recalls the super-low stickers of Hyundai and Yugo subcompact models of the 1980s. Adjust for inflation and the Volkswagen is considerably cheaper than those notorious clunkers.
The sale of the three cars is part of an agreement between Volkswagen of America and Gilt Groupe, which is known for its online surprise or “flash” sales. A car will be sold each day at beginning at noon ET. Volkswagen said it dropped the “1″ from the car’s usual price of $15,995 as a way to promote its “Great for the Price of Good” marketing campaign. The car maker says it is the first car brand to be sold on Gilt.
Access to today’s sale will be available only through Gilt’s mobile applications on iPhone, iPod touch, iPad, and Android devices. On the following two days the sales will be on Gilt.com as well as the mobile apps. Access requires Gilt membership.
Volkswagen says the cars will be presented in “Gilt Gold” wrapping and about $18,000 in proceeds from the sales will be donated to the charity Dress for Success.
The new-for-2011 Jetta, which has a relatively low price and revised design that make it a big departure from earlier models, reached U.S. showrooms in October. The car is part of Volkswagen’s strategy to significantly boost its market share. Its everyday price is meant to make it competitive with a broad range of economy cars that used to undercut the Jetta by thousands of dollars.
After the flash sales, Volkswagen says it will offer a special incentive to Gilt members who add the Jetta to their “Wait List.” The incentive can be redeemed at participating Volkswagen dealerships.