Volkswagen Says New SUV Will Reverse Sales Plunge - Why Is That Not Going To Work?

Volkswagen AG plans to redouble efforts to boost flagging sales in the United States as well as grow in Brazil as Europe’s largest automaker chases Toyota Motor Corp.’s global lead.

VW laid the foundation for growth in North and South America with the decision to make a mid-sized SUV for the U.S. market, build a new Audi factory in Mexico and revamp its model lineup in Brazil, the company said in a statement in advance of the annual shareholders meeting today.

“The Americas are a significant cornerstone of the 2018 strategy,” CEO Martin Winterkorn said in the statement from the meeting in Hanover. “We want to and we must grow there substantially and profitably.”