SMART Business Or POOR Management? VW SKIPS The U.S. Market Two Times In One Week

For as long as I can remember, Volkswagen has a seemingly long track record of limiting what comes to the U.S. market place. Still, some Veedub lovers and enthusiasts cling to the brand, stronger than ever. Others are starting to shrug their shoulders and look elsewhere.

But while I was perusing this week's latest news items, I couldn't resist commenting on not one, but TWO items that VW passed on for the U.S. marketplace. As VW has pushed forward -- very strongly -- with the goal of doubling its sales, there have been some drastic changes that have, in some cases, alienated the loyal followers that really built a foundation for the marque.

The first idea was a Passat CC-inspired Golf/Jetta. Much like the Mercedes-Benz CLS-inspired Volkswagen Passat CC, the Jetta CC would essentially follow the steps of Mercedes-Benz's CLA. For those of you saying it doesn't exist yet, yes you're right; however, the CSC Concept provides some color on what to expect.

The second item that struck a chord was the Passat R-line, which also will NOT be making its way to the States. While it's easy to down this argument because it is a different vehicle than the Chatanooga-based, U.S. version of the Passat, it raises a good question: Why hasn't VW tapped into its R-Line to spice up the newer Passat sedan?

This raises a VERY valid point and relevant question to VW's positioning in the U.S. market today: Is VW making SMART business decisions OR is it's management making POOR decisions?

Before you answer, take two things into consideration:

1) Sales remain strong -- if you look at the April 2012 and use it as a snapshot, the new Beetle and new Passat are what's keep numbers up.

2) VW has begun decontenting its products and shifted its strategy in how its vehicles are equipped.

USNA1999 - 5/4/2012 9:25:06 AM

+2 Boost

POOR MANAGEMENT decision! Does VW expects to keep their sales momentum making decisions like this? Is it because of the EURO and the outrageous cost of producing and importing the cars over here?

AlleVier - 5/4/2012 1:03:54 PM

+2 Boost

Audi is the profit king for VW, but it's not as well-established here as in the rest of the world. Any VW product that overlaps in the slightest with an equivalent Audi product (such as a performance, mid-sized sedan) is not going to be considered for this market. Sales won't matter, profit will.

mini22 - 5/4/2012 6:38:12 PM

+1 Boost

The article mentions the 2 things into consideration-strong sales for VW and decontenting. It's hard to argue their approach as their sales performance is clearly better. I am sure part of this is from decontenting. VW is in a political dilema. They really cannot market too many products that step on Audi's toes. In the US anyway they are and most remain the bottom rung of the VAG empire.Therefore what ever they choose to sell has to really be more exclusive to VW and not Audi and visaversa.A Passat R in price steps on Audi's toes. Further a CC version ups the cost on a Jetta to Passat levels if not more. If VW has learned anything for this country average costs must remain in a lower price strata $15-$35 grand appoximately or sales aint happening.This obviously dissapoints the original hardcore VW faithful. Un fortunately this is a very small sliver of the buying population and VW cannot afford to rely on them. Therefore every product is geared toward affordable mass mainstream appeal.

CarCrazedinCali - 5/4/2012 7:40:27 PM

0 Boost

Their loss...

Tarzan - 5/5/2012 1:07:04 AM

0 Boost

When they focus on only the profit and not the art of the car, then they have lost their way. Whats next, made in China? Plastic body panels? 3 wheels?

I95SPEEDINGTICKETS - 5/6/2012 11:06:20 AM

+1 Boost

As GM and FOrd will tell you, it is possible to sell lots of cars and still run at a huge loss.

VW is only interested in running a successful PROFIT MAKING BUSINESS MODEL.

So if the value of the $ makes it not sensible to bring a particular model to the US Market, they will not do it.

SIMPLE.