Stefan Jacoby, president of Volkswagen of America, has detailed the company’s plans to sell one million vehicles on the American market per year by 2018.
The German carmaker has set an ambitious plan to boost its sales to one million units per year in the US by 2018. In 2007, it sold 230,572 vehicles in 2007, representing a decrease of 1.9% from the 235,140 units sold in the prior year. The one million figure will be comprised of 800,000 Volkswagens and 200,000 Audis.
On the Volkswagen side, the company plans to downsize the Passat model that will also lose its nameplate. It will decrease its selling price from about £12,000$24,000 for the entry model today to £10,000/$20,000 similar to that of the Chevrolet Malibu and slightly more expensive than that of the Toyota Camry saloon. The carmaker realised that its strong brand image in Europe didn’t cross the ocean. Drivers are not ready to pay a premium for a Volkswagen model. In the same way, the next-generation Jetta will be less expensive with a targeted price of £7,500/$15,000.
Volkswagen will also boost its sales by expanding its lineup. To the ten models offered today, the company will add new models, a pickup and a compact model based on the Up! concept cars. The Phaeton will also return on the American market as a smaller a cheaper saloon than the unsuccessful current Phaeton. Some versions of the next-generation Polo might also be sold there.
Volkswagen also plans to increase its share of diesel cars. Indeed, a recent J.D. Power report said that diesel sales were expected to increase from 3% of vehicles to 7% in the US, Stefan Jacoby wants the company to lead the market.
The other major part of the plan is a possible factory built in the US. The carmaker hasn’t given the green light yet although the company has already entered into talks with a few states to determine the best location. A plant in the US would enable the company not to be penalized by the weak dollar.