Several years ago Volkswagen launched an ambitious new product strategy for the U.S. market. It has failed.
That at least is the conclusion drawn by a report in 24/7 Wall St. outlining decreased sales of three percent in the U.S. compared to the same period last year. Through September, the German automaker has sold 314,833 vehicles compared to 323,090 last year. It’s a disturbing statistic considering the rest of the American automotive market has grown over eight percent in the same period.
The general perception of Volkswagen in America isn’t gleaming either according to the J.D. Power Initial Quality and Dependability Studies. In the Initial Quality Study, Volkswagen is ranked below the industry average with 120 problems per 100 vehicles – the industry average is 113 problems. In J.D. Power’s Dependability Study, Volkswagen was well below the industry average of 126 problems per 100 vehicles with owners reporting an average of 174 problems.
A major issue with Volkswagen’s plan in America is its lack of diversity in its models. The German automaker’s current lineup in America consists of three sedans, two compacts and two SUV models. It’ll be interesting to see how Volkswagen continues to push in the world’s second largest car market as it strives to become the world’s largest automaker.
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[Source: 24/7 Wall St]
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