Volkswagen Dials Back On 2018 Milestone
Though Volkswagen had plans to move 800,000 units annually out of U.S. showrooms by 2018, the automaker may now opt to dial back its ambitious plan in light of slow growth and falling sales.
The Detroit Bureau reports VW’s U.S. chief Michael Horn said his goal with the company for now is to focus on “realistic targets,” especially as sales fell against the harsh winter weather earlier this year, and though the main goal is still there, it will be reached in the long-term.
According to industry insiders, the automaker wants to be sure it builds the kind of vehicles the U.S. market desires — such as the upcoming CrossBlue Concept-based full-size SUV — even if it means holding back on products until they are ready for production. Another diversion from the 800,000/year road is China: financing meant for the U.S. market was diverted across the Pacific in VW’s fight to dominate the emerging market, which it hopes will happen by decade’s end.
That said, VW will likely turn more of its focus back on the U.S. in order to shore up its stake in the fight to take the top podium in global sales, such as the impending announcement of where the aforementioned SUV will be built. There, the plants in Chattanooga, Tenn. and Puebla, Mexico are in the running, though the former may be out due to the fallout surrounding the February 2014 battle between the UAW and anti-union forces over organization of the plant.
Seattle-based writer, blogger, and photographer for many a publication. Born in Louisville. Raised in Kansas. Where I lay my head is home.
More by Cameron Aubernon
Comments
Join the conversation
Nice to see that they've finally admitted that they'll never hit 800000 in the foreseeable future. They need to mirror Hyundai's lineup (and throw in the Amarok or some type of pickup) and increase reliability - or even perceived reliability in terms of a much longer warranty, again like Hyundai. Then they need to offer more content in the cars they do sell. The 2.slow in the Jetta still has buyers but I agree that it is a sad engine to be putting in cars in 2014. The new Golf and Golf wagon look good, but no one can buy them at the moment so that's not helping them for several months. An AWD Golf wagon would be a splendid idea. AWD wagons (on stilts) are definitely helping Subaru. I hope the Mexican workers enjoy building the Crossblue. I'd be really surprised if that ends up going to Chattanooga.
VW has done a good job of getting people to buy a first Volkswagen. They have just never grasped the concept of treating them so want to go through the experience again. Too many one-and-done owners.
Volkswagen's US strategy has always been a bit confused, but never more than now, imo. In segments where VW has little or no chance of success, like fullsize SUVs, they prepare new products. In wide-open segments, like CUVs or the new rally-hatch/rally-wagon segment created by Subaru, VW has very few products in the pipeline. In the midsize cars, VW under-promotes, despite having competitive vehicles. In segments VW owns almost exclusively (diesel cars), VW lets the segment languish is modest growth or stagnation. Does anyone have an explanation? Am I missing something?
Is that a dead ringer for an Explorer or is it just me?