VW opens up about the future
Ever since Volkswagen got caught cheating on U.S. emissions tests five years ago, the company has been trying to regain the confidence of American consumers. Judging by sales figures, the efforts are taking hold.
Scott Keogh, VW of America’s CEO since 2018, says the company has worked to rebuild trust. He spoke to The Associated Press about the German automaker’s U.S. image, and changes coming to the business.
The diesel emissions scandal was disastrous for VW. But sales were rising in the U.S. until the pandemic. Is the scandal behind you?
If I look at a customer’s point of view, we’re seeing near-record loyalty for Volkswagen. If I look at our conquests (pulling buyers from other brands), we’re getting about 70%. What matters is getting the brand back to where it belongs. That is being loved by Americans, not disliked by Americans. When you look at the peak, our brand was actively avoided by nearly 30% of the market. We’ve got that number down to 13, 14%. In life, we all have bumps, bruises and scars. You never forget them. But there also are these things that allow you to move forward. I believe profoundly America has moved on. I almost never want to say it’s completely gone because it’s almost the thing we want to take with us, make us a better company.
But still a lot of people don’t like you?
Any brand has 8% or 9% avoidance. For whatever it is, they don’t like you. We have a few points to go. That’s where we were before the crisis, somewhere around 9%, right with the industry.
Do auto sales recover from the pandemic next year?
The market in the U.S. will probably be down 14% or 15% in 2020. I would anticipate Volkswagen being down around 10%. What do I see in 2021? I see the overall car market being maybe 15.4 million. I think the market is going to land at 14.5 million this year. It’s going to add another million units.
You’ve got the ID.4 electric SUV coming in March, and VW is spending $88 billion globally to develop battery vehicles through 2025. There have to be more EVs for the U.S.?
More are coming. We will be bringing the magical ID Buzz (new Microbus). We have two more products, nothing we are announcing right now.
Why spend that much when electric vehicles are so small now?
We are betting on the future. The marketplace right now is at 2 (percentage) points. But every single survey we look at, we are seeing numbers, particularly in the (small) SUV segment, 30%, 40% of consumers say electric will be my next car. We can sit tight, wait. The market becomes 16% electric, and we think now it’s big enough to go get it. By that stage, the competitors are on their second-generation vehicle. Then we come with ours, late to the game. We don’t want to be late. We want to lead.