Volkswagen will (finally) take the North American market seriously, as part of its efforts to dethrone Toyota from the car manufacturing crown by 2020. To do so, VW of North America plans to make two broad shifts in strategy:
1) Cost/price reduction. Today, all Volkswagen vehicles are manufactured in Europe and imported to America. Soon, many of these same vehicles would be built in North America instead. This tactic will significantly reduce labor, shipping, and foreign-exchange-related costs. These cost reductions will, in turn, allow VW to lower its prices to better compete with cheaper offerings from almost every other manufacturer on the market.
2) Vehicle design. Almost all VW models on sale in North America today are designed in Europe for European consumers. To address this problem, VW will introduce a new Jetta and a new Passat designed exclusively for the North American market. They will be bigger and cheaper while maintaining the sportiness and quality VW is known for.
There is, of course, a counter argument. Many believe that VW should instead introduce more models from Europe, such as the popular Scirocco hatchback and minivans similar to the original microbus – cars that define VW’s quirky, sporty, counter-cultural personality. By appealing to the masses instead of bringing masses to VW, they contend, VW would lose the essence that makes it what it is.
