Volkswagen Expects 'Limited Growth' In US Through 2017, Supplier Arrives In Tennessee
Volkswagen USA CEO Michael Horn says the automaker expects “limited growth” until its new SUVs arrive, while one of its suppliers sets up shop in Tennessee.
Though parent company Volkswagen AG had once hoped for 800,000 units sold by 2018 in the United States, Horn downplayed the target’s importance, Reuters reports:
[The 2018 sales target] is still a relevant objective… but, on the other hand, if you just focus on one year and one number you would do crazy things, so the most important thing is to have a long-term strategy.
For now, Horn states VW will need to defend its position from now through 2017, when the redesigned Tiguan and the Chattanooga, Tenn.-built midsize SUV both hit the showroom floor. Other products, including a $20,000 compact SUV and a large pickup due in 2020 at the earliest, would soon follow.
As for the 2018 target, sales fell from 440,000 in 2012, to 367,000 last year, and have fallen 4 percent since; VW’s U.S. sales peak came in 1970 with 570,000 units. LMC Automotive says the new models in 2017 will help, but would only push sales to a projected 495,000 in 2018.
Meanwhile, Spanish automotive supplier Gestamp is setting up shop near the Chattanooga facility, where it and Volkswagen will unveil a new pressing plant Tuesday. The plant would create 500 jobs, and has been described by the automaker as a “major economic development.”
(Photo credit: Volkswagen)