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Molly Brookshire

VW poised for SUV go-ahead as U.S. slide threatens goals | Reuters - 0 views

  • needs more models designed for U.S. consumers and manufactured competitively in the region, analysts say
  • VW's U.S. deliveries fell 7 percent in 2013 as a push into competitive midsize cars lost traction, with the brand languishing in the bottom third of quality rankings - a mirror image of its European standing that puzzles German bosses.
  • The Passat, Golf and imported Tiguan and Touareg SUVs lost ground to fresher models from U.S. and Japanese rivals, which increased sales in a market that grew 7.6 percent overall.
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  • To price cars competitively, it tried offsetting the cost of its sophisticated mechanics by stripping out features and using entry-level trims in the Passat and Jetta.
  • ranks 23rd out of 33 brands, with 120 problems reported for every 100 new cars within the first 90 days.
  • "The Passat is up against a redesigned Nissan Altima, a redesigned Honda Accord and a redesigned (Ford) Fusion - all undercutting VW on pricing," said Alec Gutierrez, an analyst with Kelley Blue Book, which tracks U.S. car values.
Molly Brookshire

VW to Spend $7 Billion to Revive U.S. Growth With New SUV - Bloomberg - 0 views

  • Demand for its namesake brand fell 6.9 percent to 407,700 autos last year on declining demand for the U.S. version of the Passat
Molly Brookshire

VW's labor boss Osterloh says U.S. operations a 'disaster' - 0 views

  • VW last month ousted U.S. divisional chief Jonathan Browning, who oversaw the 2011 launch of the mid-sized Passat, sales of which declined 6 percent in the United States last year after a surge in 2011-2012
  • Michael Horn, who this month said that VW headquarters had paid little heed to the dynamics of the U.S. market
  • won't improve until 2016 and it needs more models there, including a pick-up truck
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  • At the Detroit auto show in January, VW announced plans to make a mid-sized SUV for North America as part of a $7 billion investment in the region. Osterloh lamented that a year after the CrossBlue SUV concept was unveiled, it's still unclear where the model will be built
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