I took a closer look at what I believe are the main competitors for this car - Passat, TSX and S60. I left the mid-size Lincoln out on purpose as it does not offer 4-cyl engines. I also priced the respective models with A/T as they are the volume sellers. I would assume leather is a must at this price-point so I compared the lowest trim with leather for each vehicle. Volvo does not have the prices yet, but it's safe to assume they won't be the cheapest in any combination. I did not add any other options.
Passat 2.0T Highline w/DSG - $38,175.
Acura TSX Premium Auto - $37,590
Regal 2.0T 6A/T - $34,990
The major feature missing form the Regal at $35K, which is included for the other two, is the HIDs (available), but the $2600 price difference to the next price up (TSX) would most likely cover for it. The difference might as well cover for the fancy adjustable suspension available on the Turbo.
I did not compare all three cars feature by feature, but it seems like the Regal has all the major goodies expected in a premium vehicle.
I think it becomes obvious that the value is there, and it's called the Turbo version if you compare to the intended competitors of the car.
I agree the base engine should've been perhaps DI with 200 hp. However, even for the base trim, I see more value in Regal than the TSX ($32K vs $34.3). The $34K TSX has cloth seats too while the $32K Regal has leather. The Passat Comfortline w/DSG is $32.5K.
I find that as long as the most expensive, fully loaded Regal 2.0T stays under $40K, it’s about right. Add a 2.4L DI 200 HP as the base engine and it will totally make sense IMO.
If they can lower the starting price to start at around 30K once the Canadian production start, this may be a successful model.
Just my 2 cents...