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German automaker's upcoming models to take on Toyota and Honda in the American market.
PARIS -- Volkswagen AG, once a leading foreign carmaker in the U.S. market, hopes to increase its dwindling presence by rolling out new models targeting big, mainstream segments dominated by the Japanese.
In the next few years, Volkswagen will launch five new models in the United States, including an as-yet-unnamed sedan that it will build in Tennessee and field in the mid-size car category led by Toyota Motor Corp.'s Camry. VW also is developing a smaller car to compete against the Honda Civic and Toyota Corolla, and a sport utility vehicle that would be priced below the Touareg SUV, which ranges from $39,300 to $68,340.
"We need to get more into the sweet spots of the market," said Stefan Jacoby, president of Volkswagen's U.S. operations. Currently, the German automaker's richly-equipped Passat sedan and smaller Jetta are slightly too expensive to compete in the high-volume car segments. The Passat starts at $23,990, and the Jetta at $16,990.
VW will continue to offer the Passat in the U.S., but it is developing larger models tailored for American customers and driving conditions, Jacoby said at the Paris car show. "A lot of the specifications of the Passat are made for Autobahn necessities," he said, referring to Germany's high-speed motorways. He said VW isn't pulling features, but does plan to tailor the Passat more to American tastes.
Jacoby estimates that VW will be able to sell between 130,000 and 150,000 mid-size cars and an equal number of compacts annually. By comparison, it sold 37,182 Passats and 98,951 Jettas in the United States last year, according to Autodata Corp.
VW's U.S. sales peaked in 1970 at 570,000 vehicles, when it was offering the original Beetle, a sturdy and affordable car. But its U.S. sales went into decline, sinking to as low as 49,000 in 1993, as Japanese automakers established themselves in the U.S. car market. Last year, Volkswagen sold about 330,000 VW-badged vehicles in the United States, and it has been losing money in the U.S. for more than five years.
Full Story:
VW to renew efforts in U.S. | The Detroit News | detnews.com
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