Volkswagen maps out plan for U.S. resurgence
Will focus on electric vehicles, large SUVs and limousines
Battered by an emissions scandal that undermined its reputation and sales, German automaker Volkswagen Group on Tuesday mapped out a plan to reemerge as a major player in the lucrative U.S. automotive market.
After a bruising year of investigations, negative publicity and poor sales, Volkswagen outlined a plan to “evolve from a niche supplier into a relevant and profitable volume producer” in North America.
The plan is part of Volkswagen’s global bid to capture a leadership position in electric vehicles, sport-utility vehicles and ride-sharing.
“We will be significantly stepping up our activities in the USA,” VW brand CEO Herbert Diess said in a statement. “The main focus will be on the key segments in the country, large SUVs and limousines. In those segments, we will be strongly expanding our range.”
The second stage of the growth plan will involve bringing electric cars to North America, including “considerable investments in electric infrastructure” and “local production” of electric vehicles starting in 2021, the automaker said.
Growth would mark a reversal for Volkswagen, which has suffered since U.S. regulators in September 2015 exposed the company’s cheating on emissions tests.
VW has since admitted to rigging 11 million vehicles worldwide with software to dodge emissions standards and has agreed to a settlement potentially worth nearly $15 billion for consumers and regulators.
In the wake of the scandal, sales have dropped sharply, in part because dealers are not allowed to sell diesel vehicles fitted with the bogus software.
Another factor: The company has sorely lacked the SUVs and crossovers that American consumers are demanding.
U.S. sales of VW brand vehicles through the first 10 months of 2016 were down 13.1% from a year earlier to 256,047 units, according to Autodata.