With annual sales BELOW what Oldsmobile was when GM axed them and just ahead of Mercury's all time low numbers, VW is desperately seeking to stay relevant in todays market... With quality problems and one of the industries horrible reliability rankings, VW is looking hard at finding a way to grow numbers and stay here State Side...
Here is a great short story on their facing problems and what they are looking to do to fix them...
Despite struggles, VW sets bar high for sales in U.S.
Sunday, September 16, 2007Joe Guy CollierDetroit Free Press
Despite years of sliding U.S. sales for Volkswagen, the company is optimistic the brand can hit annual U.S. sales of a half-million vehicles within five years.
Adrian Hallmark, Volkswagen of America executive vice president, said he's pushing hard for the German automaker to build a new assembly plant in North America.
If successful, it will mark a dramatic turnaround for Volkswagen. Europe's largest automaker has been struggling to find traction in the United States, leading some to question whether it can compete in this country.
The German company announced Sept. 5 that it was pulling its North America headquarters out of Auburn Hills, Mich., and moving to Herndon, Va. About 900 of Volkswagen of America's 2,000 U.S. employees are based in Auburn Hills.
In a recent interview with the Detroit Free Press, Hallmark said Volkswagen is committed to the U.S. market. Volkswagen's North America unit has lost about $4 billion over the past four years.
"If you'd lost a billion or two over a couple of years, you'd think twice," said Hallmark, a former Bentley and Porsche executive who came to Volkswagen of America two years ago. "But if you want to be a global volume player, how can you not be in the biggest global market?"
Volkswagen will retain some presence in Auburn Hills and is assessing its North American operations, including the possibility of building a new assembly plant.
"If there ever were a factory investment, then you'd definitely want to look at where that is and put some administrative support there," Hallmark said. "If we invest and expand, that's good news, but how it will look - not yet determined."
Volkswagen's assessment of its role in the United States comes at a crucial time for the company. Quirky vehicles like the Beetle and Microbus struck a chord with U.S. consumers in the 1960s.
The fuel-efficient Rabbit hatchback gave Volkswagen reason to believe mass-market growth was ahead. The German automaker opened an assembly plant in New Stanton, Pa., in 1978