Volkswagen US Operations a ‘Disaster’

Volkswagen US Operations a ‘Disaster’

Volkswagen’s top labor representative has called the German automaker’s U.S. operations a “disaster.”

Last month, Volkswagen ousted U.S. divisional chief Jonathan Browning and replaced him with Michael Horn. The company has been losing money in the U.S. for years and believes it needs more models, including a pickup truck, in order to improve.

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VW’s works council chief, Bernd Osterloh, believes there won’t be any improvement to Volkswagen’s U.S. profitability until 2016 and echoes criticism from Horn that VW headquarters had paid little heed to the dynamics of the U.S. market.

Osterloh also commented that he believes both Ferdinand Piech and Martin Winterkorn will serve at least until 2018, which is the year that the German automaker hopes to overtake Toyota and General Motors as the world’s largest automaker by volume.

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[Source: Reuters]

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