Wednesday, July 18, 2007

Is Volkswagen considering pulling out of the US?

It's no secret that Volkswagen is either near or at the bottom of many things as of late, from reliability surveys to profitability in the US. The launch of the new Rabbit/Jetta and Passat were not profound successes in the US, at least not as much as Volkswagen hoped they would be. So after all that, is Volkswagen thinking of pulling out in the US?

BusinessWeek is reporting that it may just come to that if Volkswagen executives are to get their way. A source close to the matter says that many sentences in Wolfsburg regarding the US market have lately begun with the preamble "If we are to stay in the US..."

But it looks like Volkswagen isn't going down without a fight. BusinessWeek says that there is a turn-around plan characterized as a "last ditch effort" to return the US market to profitability. Things like marketing and quality are likely to be tackled by the plan.

This report comes at the heels of news that Volkswagen is also considering to set up a factory right in the US. It may in fact be part of this plan, which would aim to lower model prices for the US and improve quality at the same time.

Source: Winding Road

2 Comments:

Anonymous Anonymous said...

By "U.S.", I assume the article means "North America" or "Canada/U.S.".
Perhaps VWoA should bring us what the rest of the world, especially Europe, gets.
Lots of small (smaller than a Golf) foreign cars in my area.
How about offering N.A. drivers what they want, not what VWoA wants.

Wed Jul 18, 01:33:00 PM  
Blogger phaeton said...

I highly doubt VW will leave the American market.

With a new Minivan on the horizon and JV with Shanghai-VW to build a family sedan.

VWoA are only just starting IMO.

Wed Jul 18, 05:41:00 PM  

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