Vw will need more U.S. dealers to be able to achieve its sales targets

Article by Christian A., on November 21, 2011

For Volkswagen to be able to hit its sales targets, it may have to expand its dealer network in the U.S. in the long term, according to Jonathan Browning, CEO of Volkswagen Group of America. VW has set a goal that by 2018, it will increase its VW brand’s U.S. annual sales to 800,000 units. In 2010, the brand recorded sales of 256,830 units. Browning claims that VW is on track to sell over 300,000 vehicles in the U.S. for 2011.

He expects a "double digit" sales growth of its VW brand next year but he won’t give a specific target. VW hopes that its dealer network will be stable over the next two to three years.

At the LA Motor Show, Browning told Automotive News Europe that by 2014/15, it would need to add dealers throughout the U.S. to achieve its long-term objectives.

The VW brand presently has around 600 dealers in the U.S. Browning added that the dealers' return on sales has risen from 2.5% to 2.6%. He predicts that total industry sales in the U.S. of 12.8 million will increase to 12.85 million units this year and from 13.5 million to 14 million in 2012.

Browning confirmed previous reports that VW's U.S. national sales company is on track to become profitable in 2011 for the first time since 2003. VW has yet to decide if it will produce a seven-seat crossover that’s slotted between the Tiguan and Touareg in the U.S. [source: Autonews]

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