VW Exec Says Its Chasing Relevance In The US — How Many SUVs Will It Take?

VW Exec Says Its Chasing Relevance In The US — How Many SUVs Will It Take?
Volkswagen AG is seeking to end its bit-player status in the U.S. with an expanding line-up of the crossovers and SUVs that Americans love to buy, aiming to more than double market share in the coming years.

“We have a plan to become successful here in the United States in the next years as a relevant volume player,” Herbert Diess, global head of the Volkswagen brand, told reporters at the company’s factory in Chattanooga, Tennessee. “We can’t win America over in two years’ time. It’s a 10-year plan, but we are committed..."

...The plan to expand its U.S. role in the lucrative SUV segment comes as VW ramps up output of its newest large vehicle, the Atlas. VW’s factory in Chattanooga is producing 400 Atlas SUVs a day, and still has capacity to fill, said Antonio Pinto, head of the plant. The long-awaited model, with a name chosen in consultation with U.S. dealers, is a key part of VW’s strategy to meet the needs of American consumers with growing families.

VW aims to become “relevant” in the U.S., as “right now we are a niche player,” Woebcken said, adding that the brand is committed to launching two new or redesigned models a year in the country. “We want to deliver and not only announce numbers.”

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MDarringerMDarringer - 9/2/2017 4:50:38 PM
-2 Boost
The USA would respond to the TRoc and Amarok and the fact that they are not here is moronic.

The USA does not need the Touareg, Arteon, Scirocco, and possibly not even the Golf (the TRoc could easily displace it).

VW's electric cars need not to be tokenism and tokenism is VW's current plan.

I'd keep the GTI, but replace the Golf with a VW from China that is surprisingly affordable and well equipped because there will ALWAYS be a market for a budget sedan/hatchback.

I'd lose the Passat but keep the name, and replace the car in with Jetta-named sedan.

A VW Passat coupesedan based on the Jetta as a Prius-fighting hybrid and an everyman's Tesla S (EV) would be a good repurposing of the name.

Add hybrids as low-cost upgrades to most lines.

Go to a 10 year 100K mile warranty.

See to it that when comparably equipped, the VW model costs a bit less than Toyota/Honda i.e. the Hyundai/Kia strategy.

Buy Ram and Jeep.

Relevance achieved.

Then staunchly keep Audi OUT of VW's market.


Agent00RAgent00R - 9/3/2017 4:53:34 PM
-4 Boost
Completely nailed it with the T-Roc, not sure about the Amarok.

Agree that the Golf should be killed but keep the GTI.

Passat does OK for them sales wise, I wouldn't kill it.

No way they'll go that high on a warranty package. You and I both know they couldn't sustain that.

Buying RAM and Jeep is definitely an interesting idea but I think they're probably headed to a Chinese buyer.


MDarringerMDarringer - 9/3/2017 5:40:02 PM
-1 Boost
The Passat does NOT do OK in sales. Selling at 1/5th the pace of the market leaders is a disaster. Hell, the Chrysler 200 that got killed for being a poor seller, sold more than double the volume of the Passat.

Americans buy trucks. Not having an offering is leaving money on the table.

The bottom line is that in addition to desperately needing relevant product, VW needs to do a much better job of retaining customers. The Passat blistered them. It simply was not up to the standard of the Camry and sales have collapsed.


Agent00RAgent00R - 9/3/2017 6:57:04 PM
-4 Boost
Rather than compare against the likes of the Camry, Altima, Accord, etc., why don't you look at the volume of the Passat vs. other VW products YTD?

It's one of the marque's volume products.


MDarringerMDarringer - 9/4/2017 8:45:56 PM
0 Boost
@Agent00R So by your logic because VW has a stable of poor-selling vehicles and the Passat is one of their higher volume poor sellers that it's a sales miracle?

The market is the reality not the silly bubble that VW chooses to live in.

The bottom line is that VW needs cars that need no excuses. Not for design...not for cost...not for reliability...not for volume.




TomMTomM - 9/2/2017 5:04:10 PM
+1 Boost
VW has TWO problems that won't go away as quickly as they think.

1 - The cheating reputation has pretty much ended diesel sales in the USA for cars - trucks are a different matter. Those who bought VWW because of the Diesel engines are likely to look around for other alternatives - Chevy will have diesels is one. However- Hybrids - that can get the MPG - are not the same driving experience as a good diesel is. EVs are really not a solution - since there is no availability of the Model 3 = the other Teslas are out of the price range - and the Bolt - which is starting to sell - is wierd looking.

2 - THe biggest problem for VW is the one they have not changed - People buy a VW or Audi once - and if they are lucky to get a reasonably good car - they might buy again - However - VWs have reliability problems - and they cost mega - dollars to fix when they do. VW made its USA name by having a car that would run forever - they don't have a replacement for the Bug. And - VW has attempted to move upscale - and for a while their prices were too high. If they try to do that again - they are doomed.


atc98092atc98092 - 9/2/2017 5:57:16 PM
+3 Boost
The only reason I'll look for an alternative to VW is to get a diesel, since they seem to have given up on them. I would buy a diesel Tiguan today if I could. But Mazda or Chevrolet might get my money instead.

I haven't had any reliability issues with my VWs since the 2002 Jetta. It had coil pack and window clip problems, plus the transmission started acting up shortly before I traded it in 2006 for a new Jetta. That one was fine, and I only traded in 2011 because I wanted a small SUV (Tiguan). The Tig was fine, but I wanted a diesel, so I bought a Passat in 2014. There was nothing wrong with it when they bought it back, and the only reason I didn't keep it was the buyback offer was too good to pass up. VW reliability isn't the issue it once was, but almost all manufacturers can and should strive to be even better.


bw5011bw5011 - 9/2/2017 10:55:18 PM
+2 Boost
I've purchased three Audi's and will get a fourth soon. Your logic is off based


MDarringerMDarringer - 9/3/2017 3:22:45 PM
-3 Boost
@atc98092 So the transmission was 4 years old and was acting up and you think that's normal????


Agent00RAgent00R - 9/3/2017 5:10:45 PM
-2 Boost
Tom, you nailed the reliability issue.

My 2004 Touareg was a total and utter nightmare. I had dated someone who had multiple Jetta TDIs and they were problematic — MKVI and MKVII.

My 2012 Golf 2.5, on the other hand, has been completely A OK.


atc98092atc98092 - 9/3/2017 8:43:17 PM
+2 Boost
@Matt: no, I don't consider that normal. I was already waiting for a TDI to arrive at my dealer when the trans started acting up. But again, that was the 2002 model, and yes the early 00s were a sore spot with VW reliability. From my 2006 (2.5L, not the TDI) to my 2014 Passat I had no issues to speak of. The RNS-510 in my Tiguan had to be replaced, but nothing mechanical needed attention.


TomMTomM - 9/4/2017 10:48:56 AM
0 Boost
Sorry - bw-5011 - I know what I am talking about. YES - you can get a reliable one - and even be lucky and get several BUT when the one you get is not reliable - they tend to have MAJOR problems - the Auto Trans and computer can run 6K if you need both and they don't like replacing just the trans and take the chance. Many of the early TURBO engines simply fry themselves - and engine replacement is get another car time.

My sister in law bought an A4 that had two transmissions replaced and three engines under warranty - and when the warranty was up - she - as I recommended - replaced the car - with another A4 - and it started again - this time the car spent over 300 days of the first year in service and was taken back under the lemon law. I agree this was an extreme case - but the cost of dealer repairs (Lots of other places do not spend the money to get a scanner that will access all the VW codes) - is over the top. AND ONE owner with a bad experience is a disaster for a dealer - several can mean real problems.


MarathonBobMarathonBob - 9/3/2017 9:24:07 PM
+1 Boost
Just purchased my college aged son a Passat - a great deal with a lot of safety features. I'm crossing my fingers that its reliability is at least average. I couldn't help but notice the new Atlas on the show floor. It's a large ugly unstyled box and I was shocked that so many panels were misaligned.


MDarringerMDarringer - 9/3/2017 10:41:02 PM
-1 Boost
How much cash on the hood?


MarathonBobMarathonBob - 9/3/2017 10:45:30 PM
+2 Boost
6k discount


MDarringerMDarringer - 9/3/2017 10:52:34 PM
-1 Boost
That's fire-sale pricing. And to think I thought what there is on the hoods of Fusions and Malibus locally is a lot (averaging $3500).


TomMTomM - 9/4/2017 10:42:07 AM
+4 Boost
The local KIA dealer is also offering a 6K discount - and the Hyundai dealer across the Highway - has no choice but to match that. The ONLY way they make money is on the financing which is sky high % - but local banks are starting to lend for car loans and offering a better deal.


MDarringerMDarringer - 9/4/2017 12:04:46 PM
-2 Boost
I don't know what planet you live on @TomM, but if someone is paying sky high financing, they cannot afford the car in the first place. Financing rate is directly proportional to the risk factor of the loan after all. People with normal credit scores are getting rather LOW rates in addition to the money on the hood.


TomMTomM - 9/4/2017 12:09:39 PM
+1 Boost
Sorry - Matt - but Dealers often have much higher rates on their Financing than is offered elsewhere - and that has ALWAYS been the case. Banks MAY charge proportional to the risk factor - BUT at dealerships they allow higher rates for all so that they can get marginal risk buyers approved. And unless a person with good credit complains - or unless the Manufacturer offers cut rate or no interest financing as part of a promotion - the dealers get a kickback from the finance company - and I am sure you KNEW that one. And that is another reason why the rates at a dealer are higher than might be.



MDarringerMDarringer - 9/4/2017 12:17:42 PM
-2 Boost
Once again, @TomM you're talking out of your ass and making a moron of yourself. The credit arm of most manufacturers ROUTINELY underprice banks and furthermore, a bank loan of often NOT the best lending percent.


atc98092atc98092 - 9/4/2017 4:20:23 PM
+3 Boost
Matt, even when I agree with you I can't "agree". You always have to either start name calling or bring politics into it. Can't we just discuss cars without the rest?


MDarringerMDarringer - 9/4/2017 5:01:53 PM
-2 Boost
@atc98092 And who exactly appointed you the morality police? I'm F-A-R...FAR from being the most egregious case of the "scrapping" that goes on here. So singling me out is just your attempt at brow-beating and bullying. But even if you did list all those here who scrap here in your admonition, you'd still be moralizing and trying to glorify yourself at the expense of others.


atc98092atc98092 - 9/4/2017 7:40:22 PM
+3 Boost
See, you just did it again. I was not moralizing, but simply asked to keep the discussion centered on automobiles. I agree that you are not alone in it, and I have asked others to do the same. Somehow I don't see my comment as brow-beating or bullying. I suspect my personal leanings are closer to you than you might think, but I don't intend to discuss them here.

Go in peace, I'm not participating any longer.


MDarringerMDarringer - 9/4/2017 8:33:00 PM
-2 Boost
@atc98092 Now you're revising reality. You did way more than "simply ask to keep the discussion centered on automobiles." You sought to blame and shame and got it shoved down your throat. I don't suffer inauthentic people very well. Jai guru deva om.


TomMTomM - 9/4/2017 12:15:03 PM
+1 Boost
The point I was trying to make about VW - was that their reputation was built on the BUG - and while it supposedly had legendary reliability - that is a Myth. In fact - there were a lot of problems that happened regularly with them - BUT - the fact is - it was a cheap car to fix - especially for the third or fourth owner. AND - most of the parts - were easy to replace. People often simply removed the Engine/trans - and put up a used unit and in one day - the car ran again. THere was a time when it has ONE vacuum hose. Of course - no radiator - and little else as well. ANd if you lived where heat was not needed - you could keep it forever - replacing parts as you went.

The current VW models are expensive to fix - with VW parts priced as if they were from an A8 sometimes. AND - because "they will never break" often you have to dismantle a lot to get to parts.


dumpstydumpsty - 9/5/2017 3:23:49 PM
+3 Boost
VW models now offer nothing more than what I can find in the typical Honda/Toyota/Nissan/Chevy/Ford. Why must I pay more for the basic "same-ness"?

I've never really been impressed with the VW exterior designs...as they typical look like watered-down versions of Audi designs.




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