Volkswagen of America to add 100 new dealers in the US

Article by Christian A., on January 14, 2015

Volkswagen of America is planning to boost its 650-dealer strong retail network in the United States by around 100 new dealerships through 2018 as part of a larger plan to revive its growth in the country. Volkswagen of America chief executive Michael Horn remarked at the Detroit auto show that the carmaker wants to add dealerships in open points where the brand currently lacks a presence.

VW is trying to expand its network at a time it is preparing for product offensive aimed at reversing its two-year sales decline in the US. VW will be introducing a new midsize crossover in the first quarter of 2017 and a redesigned, long-wheelbase Tiguan compact crossover in the second quarter of the same year.

According to Horn, VW will also roll out a redesigned Jetta compact car in late-2017 and a redesigned Passat in 2018. Horn noted that BMW’s growth strategy starts with the product and continues with the dealer network. He remarked that since BMW’s volume is lower, its dealerships are also fewer. He noted that now the SUVs are confirmed, the carmaker could start expanding its dealer network.

Horn outlined a number US initiatives aimed at reviving the VW brand like creating a new high-level board committee that would make more strategic decisions locally as well as a new engineering and development center at its Chattanooga site in Tennessee that will house around 200 engineers working on vehicles for the US.

Other initiatives include shortening the life cycle of VW’s passenger cars -- starting with the redesigned Jetta in 2017 – to allow redesign every five years instead of every seven. Horn quipped that right now, the US is a key focus of the Volkswagen Group, adding that it is the most important market for the carmaker to grow further.

If you liked the article, share on:

Topics: vw, dealer, united states

Comments

Recommended

German premium carmaker Mercedes-Benz has created a new plug-in hybrid vehicle that combines the power of two technologies –electricity (battery) and fuel cell (hydrogen). In short distances, it relies on...
by - October 15, 2018
German carmaker Volkswagen has just revealed the next generation of the VW Passat family sedan, but there is a twist. The all-new Passat that was just unveiled was created for...
by - October 15, 2018
More and more vehicles are using automatic transmissions to send power from the engine to the wheels. Even supposed sporty cars have been ditching manual transmissions in favor of automatic...
by - October 12, 2018
BMW regards the latest generation – the seventh – of the 3 Series as its pride. After all, the 3 Series represents one of the cores of its sales, being...
by - October 12, 2018
BMW is just fresh from unveiling the all-new seventh generation of the BMW 3 Series Sedan (G20) at the 2018 Paris Motor Show. Bringing the promise of being much better...
by - October 12, 2018