Frankfurt: VW Says U.S. Operations 'In Crisis'

[SobeSVT]

AP
VW Says U.S. Operations 'In Crisis'
Monday September 12, 8:32 am ET
Volkswagen Says U.S. Operations 'In Crisis,' Hopes to Be Profitable Within Three Years

FRANKFURT, Germany (AP) -- Volkswagen AG's U.S. division, which has posted losses amid fierce competition, is in crisis, the head of its VW unit said Monday, but added that he hoped to bring it back into the black in North America within three years.

The Wolfsburg-based automaker also said it would introduce five to 10 new models within the next five years as part of its plan to reverse sagging sales in North America and regain market share.

"By 2010, we will bring between five and 10 completely new models ... to market," Wolfgang Bernhard, chief executive of the VW brand, said at the Frankfurt auto show.

"It's a company in crisis. People need to understand that. They have to change," he told reporters as he launched the automaker's new Eos, a cabriolet with a convertible top.

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Drivers needed!

[paul8488]

Hmmm... what US GM models compete most directly with VW? Saab? The upcoming Saturn lineup? GM has to make efforts to kick them while they're down... we don't want the imports to be the only ones to benefit from VW's troubles. GM's done well against them in China... but I can't really figure out what aligns with them in North America.

[zeobandit]

Volkswagon doesn't need new models, they need reliability. Their cars are complete crap now. My sister's 2002 Jetta is in the shop almost once a month.

[gmsickofan]

The three Passat and Jetta owners I know had had so many problems with their VW's that they traded them out for Toyossanzas within 2 years of buying them, depreciation hit and all. Still, they were unwilling to even consider GM, regardless of high quality rankings.

[jckjds]

VW's are also way overpriced. VW is supposed to be VAG's Chevy or Toyota. That is, high-volume, low price models. As it is, I don't think VW's are all that much cheaper than Audi's and they are substantially more expensive than comparable (size-wise) Toyota's, Honda's, and Chevy's.

[pkd87]

Originally Posted by jckjds

VW's are also way overpriced. VW is supposed to be VAG's Chevy or Toyota. That is, high-volume, low price models. As it is, I don't think VW's are all that much cheaper than Audi's and they are substantially more expensive than comparable (size-wise) Toyota's, Honda's, and Chevy's.

That is so true (or least the perception for being overpriced is) When im at the NAIAS and walking threw the VW section almost everyone says "VW's are way overpriced" or "i remember when VW used to be like Ford and Chevy" IF VW is VAG's bread and butter brand then they need to start pricing their cars like it.

[camaro_freak]

well the new wacky styling won't help either...

the new jetta is just weird looking...

[johnnyangelb]

I just went with my sister the other day to the VW dealer. She has a 2004 Jetta TDI....... IT NEEDED ALL NEW WHEEL BEARINGS!! Within 3 months of having it she had to take it in because the heated seats weren't working... there was a recall on this though. However, she is still perfectly happy with it. Bet a Malibu wouldn't have given her this trouble.

[gacSTclass]

People seem impressed by brands that TRY to incorporate fresh, modern looks and new technology, even if they don't get it right. In other words, they respect Volkswagen more for trying to fit the image of the cutting-edge Euro brand; than Chevy which aims for "value" and reliability with older technology and softer "American" styling.

[hdmax]

Originally Posted by zeobandit

Volkswagon doesn't need new models, they need reliability. Their cars are complete crap now. My sister's 2002 Jetta is in the shop almost once a month.

A lady down the road has a VW and in the last 3 months the serpentine belt has come off 5 times. She has had it in the shop, and they can't figure out why it does it.

[Dizzer]

What crisis? Where are these things being built in America? Answer - They aren't. The crisis, therefore, is in Germany and NOT in the US.

[SobeSVT]

Originally Posted by Dizzer

What crisis? Where are these things being built in America? Answer - They aren't. The crisis, therefore, is in Germany and NOT in the US.

Are you serious? Did you read the article? Most of "these things" are built in Mexico and some in Germany. That however, is totally irrelevant. What is in deep sh¡t is their US operations as per their own admition. Read the article and then talk . . .

[BigAls87Z28]

VW makes a nice looking car, but man they are expensive to repair, and they need repair often. Maybe its the overengineering that Germans do for such little things as even playing a battery into the engine bay. Reminds me of an article I read about WWII wepons. If you took a 105mm German howitzer and an 105mm American howitzer, even though they shot the same size round and same distance, the German gun would have almost twice the moving parts as the American model.
At my shop, we have since stopped doing such things to VW's as changing oil because there is so much undercar shrouding that has to be removed, and in a certain way, as well as the overengineering of the placement of the oil fitler. Its way to complicated for soemthing that happens every 3 months.

[FoMoCo Fan]

VW wanted all of their brands to be in the same market segment - luxury. Big mistake, especially when the quality is in the toilet. My friend bought a Jetta a while back and it's been constant problems.

[markusername]

The only company I can think of that overall had worse quality then VW is probably Yugo.

I have yet to meet a VW/Audi owner who has not had multiple problems (electrical, window, oil, ac, etc...) on very new vehicles. Down to a tee, they all swear they would never get another one again.