As a part of Volkswagen’s 10-year plan to catch up to Toyota by 2018, Volkswagen of America hopes to increase sales to 1-million units within the next ten-years while focusing on four core vehicles.
While trying to remain a premium brand, attempting to compete with Mercedes and BMW, Volkswagen will price vehicles about 5 percent above its U.S. Japanese rivals. Currently Volkswagen prices cars 10 percent above rivals.
According to the new CEO of Volkswagen America, Stefan Jacoby, Volkswagen will concentrate of four cars designed and targeted for the U.S. The four vehicles will include two volume sedans, the new Volkswagen Tiguan, and a mid-sized SUV. The two volume sedans will replace the Jetta and the Passat (big mistake we think), and will be better positioned to rival the Honda Civic and Accord.
“We have good products,” said Jacoby. But “from an engineering point of view, they do not fit the market…They are overengineered and made for high-speed performance for the European driving environment.”
Volkswagen hopes the four cars will account for about 500,000 to 600,000 units a year. The German giant hopes that Volkswagen sales will more than triple to 800,000, from 2006’s sales of 235,140, while Audi sales would more than double to 200,000, from 90,116 last year.
As a part of the plan Volkswagen also hopes to increase diesel sales, primarily with a new Jetta and Touareg diesel and expand Audi into niches and image cars such as the 2008 A5 and future A7 coupes.
Source: Automotive News (Subscription Required)
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