Where is the VW Microbus?

Back at the 2001 Detroit auto show, we were introduced to the Microbus concept vehicle that recalled the look of the air-cooled classic but with a modern reinvention. It reminded us of what Volkswagen had done with the New Beetle. As it toured the international circuit, it was received with wide acclaim; the VW designers were retro-cool rock stars.

As the fervor faded, I recall the goatee scratching over how to convert such a snub-nosed design into a production vehicle that could meet front crash requirements. No doubt, that would be a challenge. But, with money and reputation on the line, at least I had confidence that the Germans could engineer their way around this road block.

In 2004, Volkswagen issued an encouraging statement that the Microbus was on track for production in 2007, albeit with changes to better address international market opportunities.

We lose by a nose.

But here we are at the 2008 Chicago show with a Dodge Grand Caravan given "Das auto" treatment. Sorry, this one is not straight out of Wolfsburg.

I knew it was rude, but I couldn't help it. At the press conference, I stared at the abundant front overhang on the latest VW model to bear an unpronounceable name. It… is… huge. The Routan is no Microbus. (Perhaps it should be dubbed the "Rhinoplasty.")

What happened? Business realities came crashing in. Engineering a Microbus that could meet increasingly stringent safety regulations in the States and abroad was adding significant cost, according to Volkswagen, and thereby reducing its market and profit potential.

The short-term fix in the United States was to partner with Chrysler, a relationship not unlike those VW had struck with other automakers in Europe through the years. From a business standpoint, this arrangement makes a lot of sense. Volkswagen of America was seeing a steady stream of customers outgrow their wagon offerings and want a larger people hauler. The Touareg kept some in the fold, but others fled to competing brands to buy a minivan or larger, three-row SUV.

Within about two years, Chrysler and Volkswagen were able to cost-effectively develop a Grand Caravan variant. Even at the likely modest sales volume, the Routan can be quite profitable. And because it shares the production line with other minivans, the factory can readily adjust to accommodate fluctuations in demand over its life cycle. Low risk, high profit potential, what's not to love?

The basic unibody structure and glass is shared with the other minivans, leaving the Routan to be distinguished by a unique front end, interior, and suspension tuning. VW passed on the clever Stow N' Go, instead developing plusher, more comfortable seats. Less is more, as they say.

The Routan strategy is sound, and it is well timed. With the weakened dollar, VW would have had no chance of profiting from importing a German-built minivan. The local manufacturing is a solid hedge against currency fluctuations.

Plus, it's interesting that VW wants to join the minivan market when two of Detroit's heavy hitters (GM and Ford) have abandoned it.

I've been told the Microbus isn't off the table, but it will be at least a model generation before it would happen, if ever. Hopefully the Routan proves to be better than the sum of its Mopar parts. Of our Chrysler Town & Country and Grand Caravan test vehicles, we wrote, "Despite some notable new features, though, they haven't risen to the level needed to compete against better models from Japan and South Korea."

We'll withhold judgment until we purchase and test one, of course. But I can say with confidence, this is no Microbus.

—Jeff Bartlett

Read our complete coverage of the 2008 Chicago Auto Show.