Volkswagen has announced that it plans to sell 1 million units in the United States by 2018. VW also said that it would focus on four core vehicles. The plan includes increasing VW’s sales to 800,000 — more than triple its 2006 sales of 235,140 — and increasing Audi ’s sales to 200,000 — up from 90,116 last year.
VW will also shift its price point while still trying to be a premium brand. According to Automotive News, its lineup will be priced about 5% above its U.S. and Japanese competition, rather than the current 10%.
VW will also move its focus from several niche market vehicles to four core vehicles designed and targeted for the U.S. market, says Stefan Jacoby, CEO of Volkswagen of America. Jacoby also said that the core vehicles will include two volume sedans — replacing the Jetta and the Passat and aimed at competitors like the Honda Civic and Accord — the recently unveiled Tiguan SUV — set to hit the U.S. market next year — and a new mid-sized SUV. The four vehicles are expected to account for as much as 600,000 of VW’s U.S. sales
VW is also considering a U.S. plant to build such vehicles.
VW has pushed too hard into niches, says Jacoby. “We need to come back to our original roots as the “people’s car’ and “driver’s wanted.’ I don’t want to bring back those campaigns or tag lines, but we have to re-evaluate our position. We have good products but from an engineering point of view, they do not fit the market,†he admits. “They are over engineered and made for high-speed performance for the European driving environment.â€
VW will continue to make niche vehicles like the Rabbit, GTI and upcoming Passat coupe, Jacoby said.
VW’s North American operations lost $843.9 million last year but is hoping to break even in 2009 and turn a profit by 2010.
