Has Volkswagen Set Itself Up For A Sales DISASTER? When Didn't VW Get The Memo About THIS...

In recent years, it's become very clear that the automotive market has changed in a big way. Since the macroecomic events that created systemic panic across all industry verticals, not only have manufacturers changed their product portfolio mix, they've also changed design and how quick all-new vehicles go from concept to production.

Of course that's unless you're Volkswagen.

What is going on over there, already? It seems like they're stuck in the mud. According to the Bloomberg article attached, VW's product schedule works like this: it completely revamps a nameplate every seven years and updates them every four.

Now VW will switch to rolling out all-new products every five years with refreshes happening in three.

Considering the competitive landscape, is it me or is VW REALLY behind the ball on this one? Not to mention the company is shooting for an optimistic 800,000 units moved annually by 2018.

Consumers, now more than ever, are lacking brand loyalty and want the latest and greatest. Shipping the dullest and oldest isn't going to move vehicles off showroom floors. C'mon VW!

Volkswagen AG (VOW), Europe’s largest automaker, is preparing to bring new and updated models from its namesake brand to the U.S. on a shorter timeframe to meet American demands for revamped products more quickly.

The VW marque will introduce new products every five years, with major refreshes after three years, Michael Horn, head of VW’s U.S. operations, said in an interview. VW currently introduces completely revamped vehicles every seven years, tweaking them after four.

“Customers want quicker change,” Horn said...

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MattDarringer - 6/1/2014 7:29:28 PM

+1 Boost

VW is about to implode in the USA. They need the Up @ $13K to battle the Spark and Mirage. They need the Polo in hatchback and sedan forms for the hotly contested B segment. They need B, C, D segment crossovers that are priced right. They need a VW Avalon. They need the Amarok.

In short they need to borrow a page from Hyundai.

First they need a 10 year / 100K mile warranty because VW quality reliability is that class trailing. Hyundai did 10/10 as a marketing ploy saying they had confidence in their car, but the reality is that they committed to satisfying customers at all cost.

Secondly, VW need gotta have break out styling.

Thirdly, VW has to make products the USA wants. A VW "Mustang" is not on their radar, but recasting the Scirocco or Corrado as a front engine RWD coupe would let them tap into a lucrative market.

Fourth, hybrids and plug in hybrids IN ADDITION to TDI products.

Finally, can they create a new icon? Not a new new new Beetle, but a product that is as iconic as the Beetle in its own right.

atc98092 - 6/1/2014 7:58:13 PM

+3 Boost

VW reliability has improved tremendously over the past five years. However, I agree with you that they need a warranty that shows they stand behind the product. Their current warranty leaves something to be desired.

MattDarringer - 6/2/2014 6:05:39 PM

+1 Boost

@atc98092...VW reliability by their own admission is still below average and Consumer Reports is of similar mindset.

@reviews WRONG don't let your anti-Korean bigotry cloud the fact that Hyundai/Kia has a very LOW warranty incidence rate. The 10/100 was a brilliant fake it till you make it move. H/K does not need the 10/100 anymore but they keep it for PR.

Now before everyone starts trotting out JD Power, get a clue and realize that JD Power's job is to sell its seal of approval so therefore they have a vested interest in having the top dog change from time to time. What JD Power does not publicize is that they change their study design methodology to skew the outcome as desired.

freeagent - 6/1/2014 9:11:06 PM

+2 Boost

Three year refreshes and five years for new models is class leading. You don't know what your talking about.

cidflekken - 6/2/2014 12:28:37 PM

+1 Boost

Bland designs. VW needs to address that major issue first, then worry about everything else. You cannot sell cars that people don't remember seeing on the road or that don't create a desire for people to be seen in. The Jetta and Passat should be VW's bread and butter, but they are two of the most undistinguishable cars on the road. And it didn't help that the Passat current design practically apes the previous generation Impala.

kingsley - 6/3/2014 9:47:41 AM

+1 Boost

Hardly worth commenting. People who keep cars for three years or less are just throwing money out of the window. I come from a planet where people buy cars they love and keep them until they have lost all their depreciation and have given good service. In Europe VWs are like this. To say the current American Passat apes the Impala is incredible. GM are only capable of imitation. Jetta and Passat are classic looking cars that do not go in and out of fashion. Surely that is the point of good quality, classy consumer goods? Today people seem to want more and more novelty, cars are 'dated' after 3 years. This is a crazy world. We kept our Passat 12 years and were sorry to see it go when we went for a three and a half year old Phaeton V8 in 2012. Dream cars. Are 'modern' people capable of seeing beyond fashion? Or just a bunch of spendthrift sheep? Fashion victims.

MattDarringer - 6/5/2014 11:56:11 AM

+1 Boost

You're actually money ahead these days to do a manufacturer subsidized lease for 2-3 years and then lease another than to buy a car over 5-6 years. Contracts for a car purchase are trending to 6 to 7 years and the interest that comes in is cha ching cha ching money. Right now many manufacturers are offsetting the depreciation in a lease and gambling on selling the car as a CPO.