Browning Out, Horn In As Head of VW of America
Volkswagen of America CEO and President Jonathan Browning has stepped down from his post, with Michael Horn set to assume the role once held by Browning beginning New Year’s Day 2014.
Horn, a VW veteran, replaces Browning, who had been at VW since 2010. While VW is currently the third largest automaker in the world due to growing markets in China and Brazil, the United States remains a market that VW has been unable to crack. The main issue is the lack of a competitor made to take on the Ford Explorer and Toyota Highlander. VW’s current offerings in that space, like the Tiguan and Toureg, are ill-positioned and priced out of the majority of the U.S. SUV market.
On the car front, the Americanized Passat was supposed to be the key component in a strategy to help VW break out of its niche upon introduction 2011. Since then, the car has failed to crack the Top 20 of models sold in the U.S., with sales falling 2.1 percent this year in the face of tougher competition from American rivals.
Browning is said to be leaving for personal reasons, returning to his home in the United Kingdom.
Seattle-based writer, blogger, and photographer for many a publication. Born in Louisville. Raised in Kansas. Where I lay my head is home.
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More important than the latest navigation system is a car that I can start, close the doors, clear away the snow, and NOT lock the goddamn doors while my house key, car key, and office keys are inside a running car that I can't get into. Any person that owns a German car, off warranty, needs their head examined.
Half of Americans want cars that don't break...The other half - Lease. Where does that leave VW? Especially when their Tiguan and Tuareg arn't competitive. WTF does some MBA marketing twit (bumbling, emotionally-crippled, self-important/arrogant, amoral, parasitic, brat) change accomplish? The Internet is making life more difficult for the sales and marketing "Branding" sociopaths. Maybe VW can raise Edward Bernays from the dead. I doubt that would help.
I will bet you that at this very moment VW minions are reading this article and all the comments and, instead of treating it as the most valuable free research they could possibly have, are readying their explanations for the new boss tomorrow morning of why everything they have done is right and how misinformed the stupid American customers are and how it's the fault of the PR people for letting blogs like this get out of control. I've spent plenty of seat time in new Jettas and Passats because there are far worse penalty boxes on the National Emerald Aisle, and with just a few thousand miles, what could really go wrong? They're all right, and they even seem like decent value just comparing size, features, and price with their key competitors. But that's my point. They are JUST ALL RIGHT. They are boring. They both already look about ten years old, and they sure aren't enjoyable to drive like VWs used to be. My view -- in addition to agreeing with just about every post above -- is that customers looking for a mid-sized, high value, ultra conservative sedan, who would be happy with a car as dull as a new Jetta or Passat, are NEVER going to take a chance on a car with the quite deservedly bad quality reputation of VW and its dealers. The customer to whom a Passat appeals is not somebody who enjoys driving ... it is somebody who doesn't want to take a chance on her or his car giving any grief ... a Toyonissonda is the only sensible choice. VW thinks it can change this by firing one boss and appointing another who will no doubt be equally ineffective at fixing what is really wrong. Good luck to him. I'm sure firing the ad agency (again) will be next.
I believe management style drives organizations, which is why Rick Wagoner was such a disaster for GM for a decade or more... When you've got Ferdinand "The world needs a $100,000 VW Phaeton" Piech running things he'll dictate how the world turns and you as a mid level flunky will try to make it spin his way. I was honestly surprised they even bothered building Chattenoga they're so clueless on the US market... the fact that they can't come up with a good product plan now that they have the factory is no surprise either. Watch for more defections or firings from the US management ranks... the beatings will continue until morale improves!!!