Volkswagen Won't Quit the U.S. Consumer, Because Love is Stronger Than Diesel

Steph Willems
by Steph Willems

They’re on a little break right now, but Volkswagen plans to saunter back to America’s door, flowers and chocolates in hand.

As the diesel emissions scandal plods along to its buyback conclusion, the automaker plans to woo U.S. buyers with desirable products and a less confusing brand strategy, Automotive News reports.

Volkswagen brand chief Herbert Diess told reporters in Germany last week that the U.S. was still a target market primed for growth, but first the company must convince those buyers that it has changed its ways, and that it’s ready for commitment.

“We believe that the USA has in fact the greatest potential for Volkswagen worldwide in the next decade,” Diess said, adding, “naturally not in the near future, since we are starting from zero in the U.S.”

To counter a sales slide, Volkswagen is planning a portfolio stocked with the SUVs and crossovers Americans love, and which happen to be very lucrative. An American-built three-row SUV and a midsize SUV similar to the T-Prime concept are among the products planned for the U.S. market, but that’s just part of the strategy.

The brand spent a good part of the last decade confusing buyers on what type of company it really was — premium, plebeian, a little of both? — so that needs to be worked out.

Diess wants to position Volkswagen as the go-to brand of the “aspirational middle class,” which seems to mean middle class people who simply want more. There’s some on every street.

What form that repositioning will take, or how the automaker will avoid stepping on the toes of its premium brands, remains to be seen. Diess said a decision on the strategy will come in June.

As Volkswagen sleeps on its friend’s couch in the U.S., about half of the company’s $18.2 billion scandal fund will be spent buying back or fixing nearly half a million U.S. diesel models, as well as settling (or dodging) lawsuits and funding environment initiatives.

[Image: Volkswagen of America]

Steph Willems
Steph Willems

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  • Gtem Gtem on May 02, 2016

    I just logged 7.5 hours behind the wheel of a well trimmed rentsl Passat 1.8TSI SE (adaptive cruise, sunroof, heated pleather, etc) driving out to K.C. Let me tell you, I was mightily impressed. Perfect car for the job in terms of good highway manners with a comfortable yet stable ride, good nvh suppression, firm but comfortable seats. Fantastic forward and side visibility, rear is average. Radar cruise control worked great and was a real revelation to a Luddite like me. That motor is a peach. I complained on here about the wheezy 1.6EB in a fusion SE that I got barely 30 mpg in with pretty staid 72mph driving. I was floored by this VW mill. An indicated 38mpg with 400+ miles of 75-80 mph cruising, and a very satisfying torque curve that lets this thing very calmly and smoothly get up to speed. DSG was also well tuned, especially when accelerating with a bit of vigor. My one complaint is that low speed responsiveness around town seemed laggy. No idea if that is turbo lag, throttle mapping, or the dsg being a bit slow. Lastly it looks very handsome in white with a bit if chrome gingerbread and the 18 (?) Inch multispoke wheels. I'm a Toyonda buyer if ever there was one but if I was looking for a short term fling with warranty coverage, one of these passats would be a top pick.

    • See 5 previous
    • Gtem Gtem on May 03, 2016

      @threeer A further mpg update: averaging 39.5 mpg on the return leg. Almost exclusively with the adaptive cruise set to 76mph. This thing just gobbles up highway miles. 600+ mile range.

  • Ldl20 Ldl20 on May 03, 2016

    Step 1 in the Resurrection Tour: Take over Cadillac's turf by posing new Alltrak in trendy SoHo district of NYC! Not that that's worked for Cadillac, yet.

  • Probert They already have hybrids, but these won't ever be them as they are built on the modular E-GMP skateboard.
  • Justin You guys still looking for that sportbak? I just saw one on the Facebook marketplace in Arizona
  • 28-Cars-Later I cannot remember what happens now, but there are whiteblocks in this period which develop a "tick" like sound which indicates they are toast (maybe head gasket?). Ten or so years ago I looked at an '03 or '04 S60 (I forget why) and I brought my Volvo indy along to tell me if it was worth my time - it ticked and that's when I learned this. This XC90 is probably worth about $300 as it sits, not kidding, and it will cost you conservatively $2500 for an engine swap (all the ones I see on car-part.com have north of 130K miles starting at $1,100 and that's not including freight to a shop, shop labor, other internals to do such as timing belt while engine out etc).
  • 28-Cars-Later Ford reported it lost $132,000 for each of its 10,000 electric vehicles sold in the first quarter of 2024, according to CNN. The sales were down 20 percent from the first quarter of 2023 and would “drag down earnings for the company overall.”The losses include “hundreds of millions being spent on research and development of the next generation of EVs for Ford. Those investments are years away from paying off.” [if they ever are recouped] Ford is the only major carmaker breaking out EV numbers by themselves. But other marques likely suffer similar losses. https://www.zerohedge.com/political/fords-120000-loss-vehicle-shows-california-ev-goals-are-impossible Given these facts, how did Tesla ever produce anything in volume let alone profit?
  • AZFelix Let's forego all of this dilly-dallying with autonomous cars and cut right to the chase and the only real solution.
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