Monday, February 28, 2011

Volkswagen Plans For World Domination

Motor Trend
…How will VW do it? Unless it quickly develops a $30,000 Honda Pilot competitor off the new Passat's platform, plus perhaps a new Microbus-style minivan to replace the Chrysler-based Routan -- two models that combined could add more than 200,000 units to annual sales -- the Passat and Jetta will have to become best-sellers in their segments with sales topping 300,000 per year each. Should total U.S. sales volume not reach 17 million, the 200,000 range is more likely, competitive with Hyundai Sonata, Ford Fusion, and Chevrolet Malibu. That's about 400,000 for Jetta and Passat, just half the '18 goal.
2012 Volkswagen Scirocco Front


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Golf-based Scirocco
Hackenberg and Browning emphasize efforts to improve quality scores in the U.S., long a major problem for the brand. They say much of VW's quality problems relate to design features that confuse and annoy Americans -- an explanation (or excuse) several competitors also use. While they talk about biting into Toyota and Honda sales, they don't mention Hyundai, which expects to sell 590,000 in the U.S. this year, or Kia.
"German engineering still has a very good image in the USA." Hackenberg says. "It is our job, and the job of Mr. Browning, to bring that to the customer."
VW has tried competitive pricing with Japanese brands and "affordable German engineering" in its marketing before, though not both at the same time. A mix of big, low-priced German sedans for the American market, and more interesting cars like the GTI and CC, might work this time. Until it does though, we don't envy Mr. Browning his task.
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