VW sales target for the US trimmed to 440,000 units this year

Article by Anita Panait, on July 23, 2013

Volkswagen Group of America has trimmed its sales target for VW division in the United States in 2013. The move is viewed as an indication that Volkswagen executives are not expecting the brand to recover from its current slump end of 2013. The move is also viewed as a concession to dealerships that has been struggling to earn bonuses under an incentive program based on sales targets.

VW restructured the incentive program this month. VW ended 2012 with total US sales of 438,133 units, and started 2013 with a target of selling 11-percent more than the previous year figure. In a twist of fate, VW Division posted a percent drop in sales in the US in the first six months of 2012, leading to a decline in market share.

During a meeting with dealers in the US this month, Volkswagen Group of America’s top brass remarked that the VW brand is now expected to sell 440,000 units in 2013, multiple sources told Automotive News.

Jimmy Ellis, a VW dealer in Atlanta and chairman of the brand's national dealer council, remarked that the German carmaker had always expected a slowdown in 2013, as Japanese carmakers make a comeback from inventory problems in 2011 caused by the tsunami in Japan.

He also noted that the competition in the compact and mid-sized sedan segments was stiffer than expected, something that they didn’t expect to happen. Ellis said Volkswagen “didn't wake up to all of that” until spring. According to dealers, VW’s revised sales target will ease pressure on them to trim prices or risk losing VW's tiered bonuses. Some dealers even had resorted to selling tactics that hurt relationships with customers and other dealers just to be able to sell more vehicles.

The new Volkswagen Jetta has been given a completely new design. The look of its fully galvanised form displays this most categorically. There has never been a VW Jetta this big, this athletic, and this liberated. One indication of this is that the Jetta’s body does not share any components anymore with its technological relative, the best-selling Golf. Now, the new Jetta makes an impression as an independent auto like the Passat CC or Tiguan.

And it is as safe as ever; the prior model was named a top safety pick in crash tests by the US IIHS. As well as having maximum crash safety for occupants, the vehicle has even more improved safety features for pedestrians. With the Jetta, Volkswagen has again revealed completely new quality benchmarks to a vehicle range.

Exterior styling and dimensions

The latest model is 182.7” (4.63 m, European version: 4.64 m) long, 57.1” (1.45 m) high, and 70.1” (1.78 m) wide. This makes Volkswagen 3.15” (8 cm) lengthier than the prior model. The interaction of exterior components creates a powerful ratio of dimensions. At the same time, the new Volkswagen design fundamentals hone its styling.

This has produced crisp, accurate lines and sporty, brawny shapes that provide the saloon with an appearance of ageless sophistication and vibrant style. The outcome: the Volkswagen Jetta's looks creates such a prevailing style statement that the car virtually places itself in a higher automotive standing.

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Topics: vw, sales, united states



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