Vw will need more U.S. dealerships, says CEO Jonathan Browning

Article by Christian Andrei, on November 19, 2010

Jonathan Browning, the CEO of Volkswagen Group of America, asserted that Volkswagen of America will have to expand its dealer network after 2014 in order to reach its goal to sell 800,000 units annually in the US by 2018.

VW, which is on course to sell about 250,000 units in 2010, anticipates sales of 450,000 to 500,000 in the next five years.

Next year, VW will introduce a new mid-sized sedan and a redesigned Beetle. Browning revealed that the current 582 dealers are capable of dealing with the extra volume but to hit the 800,000 target, VW has to “expand the footprint.”

Browning said that VW has yet to set its long-term goal for how many dealers it wants to add but he thinks that many of the dealers are “invested and are committed to growing.”

The new mid-sized sedan, which will be produced at VW's new plant in Chattanooga, Tenn., will be introduced at the Detroit auto show in January. It will start selling in the third-quarter of 2011. Currently, VW’s sales are being boosted by the new-generation Jetta sedan that went on sale last September.

VW had cut the entry-price of the Jetta by $1,700 to $15,999, excluding shipping charges. Browning said that VW extended the price band so that it can attract new customers.

He said that the new price point indicates that VW is in reach and, with free maintenance, owning one shows to be cost-efficient. Browning said that according to early data, 60% of Jetta buyers are conquests, meeting the company’s goals. [via autonews - sub. required]

Topics: vw, united states, dealer, ceo

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Now that Lamborghini is set to bring a “more aggressive” Aventador, it only makes sense that it will be given a name. Seeing how it goes, perhaps we won’t be...
by - December 6, 2016
The recently concluded 2016 Los Angeles Auto Show has just showcased the new generation Mazda CX-5. And with it comes a rendered version for an MPS variant. Let us see...
by - December 6, 2016
Nikola Motor’s hydrogen-powered semi-trailer truck is highly appealing with its many advancements but don’t expect it to arrive in the near future. In November 2016, Toyota announced the possibility of...
by - December 5, 2016
Usually, it is up to resourceful spy photographers to take clear pictures of vehicle prototypes, especially those that have aroused a lot of interest. The same is true for Project...
by - December 5, 2016
The much-anticipated debut of the new Wrangler will surely happen. As it approaches, we’ve gathered all the latest information released so far. Of course, most are expecting that the next...
by - December 5, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries