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Volkswagen Group: Struggling in the U.S., Succeeding Everywhere Else

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It’s no secret Volkswagen’s U.S. efforts have struggled over the past couple years. In 2012, the brand sold 438,134 vehicles, while in 2014 that number dipped to 366,970. This slide contrasted industry growth at over 5% annually. We’ve also seen shopper traffic at Kelly Blue Book drop 14 percent over the last 12 months. These figures might have U.S. customers and analysts thinking the automaker is in serious trouble, but is that an accurate impression? Consider two impressive milestones Volksvagen Group (including Audi , Bentley, Bugatti, Ducati, Lamborghini, Porsche , Seat and Skoda) hit for the first time in 2014: 10 million global vehicle sales and €200 billion in revenue. With things going so well globally why are we not seeing the fruits of VW’s labor in the U.S., and how long before the automaker’s success is reflected here? After attending a series of meetings at Volkswagen headquarters in Germany we came away with a clear picture of the automaker’s U.S. strategy, and why it makes sense from a long-term perspective.

Perhaps the biggest key to Volkswagen Group’s global plan is reflected in its MQB platform. This is the Group’s strategy for shared modular construction of automobiles across its many brands, creating efficiencies in production methods regardless of vehicle size, type, or brand. For instance, the current U.S. Audi A3 and Volkswagen Golf share the same MQB platform, allowing lower development costs and shared parts. In 2014 the Volkswagen Group sold 2 million vehicles on modular platforms. By 2018 it expects to sell 7 million vehicles utilizing MQB, all produced at maximum speed and cost efficiency. The current Golf was Volkswagen brand’s first MQB vehicle offered in the states, and its been extremely well received. Beyond winning multiple high-profile awards VW sold 8,120 Golfs in the first two months of 2015, a 141.6% increase compared to the first two months of 2014.

 

2015-Volkswagen-Passat.jpg

Source: http://www.forbes.com/sites/kbrauer/2015/04/06/volkswagen-group-struggling-in-us-succeeding-everywhere-else/?ss=vehicles

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Hate to say it but bland and not emotionally driving or inspirational. There are superior options out there to this.

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