Volkswagen Says New SUV Will Reverse Sales Plunge - Why Is That Not Going To Work?

Volkswagen Says New SUV Will Reverse Sales Plunge - Why Is That Not Going To Work?
Volkswagen AG plans to redouble efforts to boost flagging sales in the United States as well as grow in Brazil as Europe’s largest automaker chases Toyota Motor Corp.’s global lead.

VW laid the foundation for growth in North and South America with the decision to make a mid-sized SUV for the U.S. market, build a new Audi factory in Mexico and revamp its model lineup in Brazil, the company said in a statement in advance of the annual shareholders meeting today.

“The Americas are a significant cornerstone of the 2018 strategy,” CEO Martin Winterkorn said in the statement from the meeting in Hanover. “We want to and we must grow there substantially and profitably.”


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MattDarringerMattDarringer - 5/14/2014 7:02:00 PM
0 Boost
The 3 row crossover was overdue 5 years ago. The fact that it still is not in the dealer is asinine.


PUGPROUDPUGPROUD - 5/14/2014 7:31:38 PM
+3 Boost
VW's are simply not an emotional purchase for many reasons and as a result those looking for basic transportation can fulfill their needs elsewhere at a lower cost. Until they take some risks to truly differentiate their offerings and create styling and design that causes consumers to want their products over all others sluggish sales and big discounts are in VW's future as has been the case in the recent past. They do not want to go down market though that's their heritage (think original Beetle) and cannot go up market because they bump into Audi. VW will likely struggle for some time in US.


MattDarringerMattDarringer - 5/15/2014 8:26:24 AM
+1 Boost
@PUGPROUD You nailed it. As long as VW mistakenly thinks it's better than Toyota, Honda, Ford, or Hyundai it will be adrift. In addition to creating captivating products that do NOT command a price premium over the competition, they have to RADICALLY reduce the amount of time their cars come in for warranty work. VWs simply are not reliable enough.


MattDarringerMattDarringer - 5/15/2014 7:20:33 PM
+1 Boost
@reviews My business associates and I have interests in the following brands: VOLKSWAGEN, Porsche, Audi, Hyundai, Kia, and Ford. JD Power is NOT unbiased. JD Power SELLS its endorsement to manufacturers to use in MARKETING and therefore they have a vested interest in having musical chairs in reliability.

The Passats come in about 5-6X the number of times that a comparable Fusion, Sonata, or Optima come in for unscheduled warranty work at the store. We love it because that means big dollars to us, but if you want reliability, VW ain't it.

@cidflekken because the SUV would go up against the wildly popular Explorer et. al. and put VW in the hunt. But you are correct. VW needs a relevant portfolio. Neither the Toejam or the Tijauna are competitive designs. We (dealers) keep telling VW we want the Up, Polo, an "Avalon", "Escape", "Explorer", Amarok.


cidflekkencidflekken - 5/16/2014 2:56:15 AM
+1 Boost
Yes, maybe the new SUV can be competitive and be in the hunt, but there are just too many good alternatives. Explorer, Traverse, Pilot, Pathfinder, Highlander, Durango, Santa Fe, Acadia, CX-9, and Sorento. Not one of them is a poor seller. Based on the concept, the new SUV is going to look pretty ordinary despite how much it apes a Grand Cherokee and soccer moms still like to look stylish.

Look at the Passat. The past 2 iterations were widely lauded by the automotive press. Yet it's barely made a dent amongst the Camry, Accord, Fusion, Altima, Sonata, and Optima. I think the new SUV will meet the same fate.



dumpstydumpsty - 5/19/2014 2:08:41 PM
+1 Boost
@cidflekken: Good points. But based on how wide the competition is spread today, if VW can build something that is comparative in pricing, power, & in fuel consumption (or better) they will sell. The newest Touareg is still a really nice SUV, but honestly it costs too much & no V8 is offered anymore...thought the V6 TDI is plenty powerful as well. They don't necessarily have to throw a bunch of chrome on it, they just need it to look sporty. That way they can make the next Touareg look more "serious" & well-worth the higher price. --- now mirror that argument for the Passat & CC ---

I've seen concept pics for the next Tiguan - looks like a 3/4ths version of the Touareg with a bit more sporty-flowing exterior body lines. Hopefully this next full-size SUV will do more than just ape the Grd Cherokee.



Vette71Vette71 - 5/14/2014 8:41:30 PM
+1 Boost
VW has trouble understanding what Americans value. VW will need to figure out how to cram the vehicle with features and up to date electronics at a attractive price even if it bites into Audi turf. History says they won't and the VW SUV will disappoint relative to the new GM Lambdas, new Jeep GC and Wagoneeer, and a host of other new rides all hitting that market segment at that same time.


chewychewy - 5/14/2014 10:31:38 PM
+2 Boost
Hopefully it stays as true to the concept as possible. Too bad VW is too confused over where to build it, not even any mules running yet.


MattDarringerMattDarringer - 5/15/2014 8:30:43 AM
+1 Boost
It's not being built in Chattanooga because VW has allowed the union in Germany kill power over its decisions and that union wanted Chattanooga unionized. Because the workers kicked the UAW's crown of poop to the curb, the German union is retaliating by threatening crap storms in Europe if VW expands Chattanooga to build the VW Sharquada SUV. VW thinks that being one with the union is good for their business model. It isn't. VW is the "old GM" but in Europe. VW will implode sooner or later. The brand differentiation between VW/Skoda/SEAT is as lacking as was Chevrolet/Pontiac/Oldsmobile back in the day.


HughJassHughJass - 5/15/2014 11:16:59 AM
+1 Boost
Because Hyundai/KIA already put them on notice?


MattDarringerMattDarringer - 5/15/2014 7:21:05 PM
+1 Boost
Actually Honda, Toyota, and Ford to be specific


cidflekkencidflekken - 5/15/2014 5:20:48 PM
0 Boost
For a company to rely on one single car to revitalize a brand should be, in itself, very worrisome for all involved. On top of the fact that this SUV is just going to join an already-robust market with alot of really good options. If the Tiguan and the Touareg weren't able to come close to impacting sales, how do they expect a plain-wrapper, boxier SUV to make any difference?


mini22mini22 - 5/17/2014 12:15:32 PM
+1 Boost
Well all good points. Clearly lack of product, very conservative styling, and reliability issues still plague VW in the US. Matt pointed out that more Passat's seem to come in for warranty work than any of the other brands his group represents. These cars are the built in VW supposedly state of the art facility in Chattanooga. That is very troubling. Until they can figure out a way to reduce warranty costs it is had to see how VW can be successful in the US. Further why doesn't the Passat also offer AWD? Why can Ford give us the Fiesta but VW can't give us the Polo? Why not offer the Jetta CC from the auto show circuit?Why is it taking VW so long to offer a reasonably priced smaller and midsize SUV. What is so different about what VW does in other markets that they are not doing here. All I can say is that Michael Horn an any future US head of VW can only do so much if the Parent company will not listen. And for God's sake bring the Flippin Scirocco into the US lineup once and for all.


MattDarringerMattDarringer - 5/17/2014 6:18:50 PM
+1 Boost
Amen @ mini22 And...Kicking the Germans out of management and handing the entire company over to Mulally would put Volkswagen right.

American dealers DO NOT want the Scirocco. That is why it's not here. The Scirocco would base a MINIMUM $5K higher than a GTI and offer no advantage. It's a 3 door hatch like a GTI 4 door. American dealers would love the Scirocco to be like an FRS or a Mustang (i.e. affordable RWD). Affordable RWD is a decent market for share size and VW has nothing. An RWD "Scirocco" would serve as a great platform for a new Porsche 944. We would love a Porsche coupe at a base of $45K.


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