Volkswagen to have profitable sales in the USA this year?
Volkswagen CEO: Expect profitable U.S. sales
Since the recession of 2007, and difficulties with production in the years before, Volkswagen has not had a profitable year in the USA since 2003. Volkswagen’s U.S CEO said that there Audi Brand made money last year, and he expects the rest of the company to follow suit this year.
During the recession “vehicle density” decrease through the U.S and the world. Vehicle density can be classified as the number of cars owned per person, or in a family. With difficult economics times and high gas prices many families gave up cars, or were not willing to purchase more vehicles, especially European based automobiles, such as Volkswagen’s.
Volkswagen has added a new production facility in Tennessee which will focus on producing vehicles for the “light vehicle market”. This factory is expected to be profitable by 2013, which would be a first in the company’s history. Many car owners are downgrading to smaller, more efficient vehicles due to ever increasing pump prices, and environmental concerns. This factory will focus on producing Volkswagen’s smaller automobiles in hopes of appealing to the new market.
zelijufu.cwahi.net, September 30 2011