Jetta Life Cycle Challenge

Topics: Mexico, Developed country, North American Free Trade Agreement Pages: 3 (1067 words) Published: May 30, 2009

Role Played by Jetta in Mexico and Other Markets:

Jetta was introduced as Atlantic in Mexico in 1980. At the same time it was introduced under various brand names and various configurations in other markets across the world. The idea behind different brand names seem to differentiate the product offering based on level of economic development of various market segments and hence different level of sophistication demanded by market in terms of the features of the car. After the initial introduction Jetta A1 went through several facelifts followed by A2, A3 and A4 models with upgraded configuration to match the changing demand of Mexico market (and other markets) based on the increasing economic development achieved in Mexico. In essence a single product was serving different markets all over the world in different segments throughout 1980 to 2005. During these periods, Jetta was produced both in Mexico and Germany with Mexico serving North American market and Germany serving the European and Asian Market. However seems more and more production of Jetta was being done in Mexico, highlighted by fact that 80% of VWM production was exported. In Mexican market, each version of Jetta was discontinued after a new version was introduced. So in period from 1980 to 2005 various models of Jetta grew Jetta served as VW’s answer to a along with its main target segment A. As Jetta growing market segment in was evolving, plant in Mexico was also taking more responsibility with taking design Mexico from 1980-2005 at the responsibilities with A3 model. Continuing same time Puebla plant with tradition of growing Jetta with the market established itself to serve other Segment A, A4 was launched in 2000. However, sales in this segment were continuously markets across the globe declining from 32% to 26% of the overall market, indicating PLC stages of maturity and decline with respect to change in market segment demand. These numbers highlight the...
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