Golf R pricing was set in mid-2020, and "locked in" in the first half of 2021. Since then, supply chain shocks have had substantial cost effects. On some models we can absorb this via reduced incentive spending - not as necessary when supply is restricted - but not so for a Golf R where the car sells incentive-free even in normal times. Cost is cost, and at the end of the day, we don't operate a charity.
To the points above, inflation is fairly standard in the industry, and normally we'd wait for a model year change. But we currently live in extraordinary times. I get daily reporting on inflation actions across the industry - they're literally happening daily right now, from all brands. At the same time as Golf R pricing was adjusted, Tiguan and Atlas also saw increases of $400 and $500, respectively.
The Golf R is sold out for roughly a year, and out of respect for our customers, all existing orders were protected under the old pricing. Only the people joining the back of the queue since January 5 pay the higher pricing. To that end, it basically is like we're doing this at the model year change - because of the incredible demand, we simply have to draw the line a lot sooner to "catch" the order bank.
