Volkswagen Leadership Crisis Has Roots In Failure Of Progress In US Market

The confusion that almost made Volkswagen’s Group CEO Martin Winterkorn lose his job the previous week stems from the automaker’s difficult situation in the United States where Volkswagen has made very little progress during the eight years Winterkorn has been in charge.

The whole recent feud between the CEO and the supervisory board head Ferdinand Piech seems to actually come from Piech’s dissatisfaction with the way Volkswagen is doing in the U.S. Analysts agree that the lack of success to get onto the U.S. auto market in spite of large investments stands for a big part in the dispute. Volkswagen invested about $1 billion to build a factory in Tennessee in order to produce an affordable Passat sedan to cater for U.S. customers. The carmaker’s U.S. market share fell 2% in the first quarter of this year, a level which has not been so low since 2009 even with the added tailwinds from the depreciation of the euro in the face of the dollar.
 

TheSteve - 4/21/2015 4:59:10 PM

+2 Boost

I hope you'll forgive me for not taking this article seriously. On one hand, they want to give Volkswagen’s Group CEO Martin Winterkorn grief for not growing VW's presence in the US over the past 8 years, but they don't give him kudos for the Audi's stellar growth worldwide or Porsche's noteworthy growth during the same time, both being part of the VW group.

I know scapegoating and crucifixions are immensely popular, but maybe the problem with the VW brand's lack of growth in the US is due to their products and their legacy, and not the man specifically. Do you think an entire auto enterprise can revise every aspect of itself (without being bought out) to become a stellar success in one decade?

gkearns56 - 4/21/2015 5:04:54 PM

+1 Boost

That because he isn't the present CEO of Audi. Audi CEO Rupert Stadler at Annual Press Conference is the current CEO in charge of Audi now.

atc98092 - 4/21/2015 7:22:09 PM

+2 Boost

He's the CEO of the entire VW Group, so Audi and Porsche do fall under his influence.

atc98092 - 4/21/2015 7:21:09 PM

+2 Boost

In the US, it comes down to product and quality. Personally, I feel their quality has improved since the early 00s. But public perception must be improved. VW has far too many products that are sold everywhere but here, and could help tremendously.

Then they keep teasing some sort of Vanagon replacement, but never follow through. Pickup? They sell one in Mexico that would do well here. But won't bring it across the border.

MDarringer - 4/21/2015 8:02:08 PM

0 Boost

Piech is the problem because his stubbornness refuses to give VW what it needs to succeed here

The Golf, Jetta, and Passat have some major reliability issues. The CC is dumber than dumb. They have no crossovers that are in the hunt. No pickup.

VW needs to look at what Toyota/Honda/Hyundai/Ford offer and match that.

TomM - 4/22/2015 4:36:20 AM

+1 Boost

It is not just the reliability issues - it is also the cost of repairs.
The cost of a transmission replacement is outrageous.

What happened was - people bought the Beetle - not because it was as reliable as a pet rock - but because if something did go wrong - it was cheap to fix. Today - the people who bought VW - did so once, because of the reliability and cost of repairs, and having to wait for parts as well. (And remember - the cost of repair includes lost time too). So they did not buy another.)

Benzes1 - 4/22/2015 11:16:19 AM

+1 Boost

Yep you're right again. They've half-arsed the U.S. market for so long that they really don't have a clue anymore. The new Jetta and Passat were big steps in the right direction, but they they sat on their hands. Audi gets the product it needs here and sales are booming, yet VW can't get it right for nothing. I don't understand how these two can be from the same company. VWoA just sucks all the way around. The Golf R launch is a joke. 500 units and then that is it until July. Who does that? No sunroof, yet all the Mexican built Golf models have an optional pano roof. VW is just dumb as hell when it comes to the U.S. market.

carsnyc - 4/22/2015 7:36:54 PM

0 Boost

The new Golf doesn't even have an USB port!

carsnyc - 4/22/2015 7:36:55 PM

0 Boost

The new Golf doesn't even have an USB port!

MDarringer - 4/22/2015 10:51:02 PM

0 Boost

This is why I ditched my holdings in a VW/Audi/Porsche dealership.

Benzes1 - 4/23/2015 1:59:23 PM

+1 Boost

I've always been curious as to how you can become an investor in a car dealership.