Volkswagen AG is preparing a push into the segment of the U.S. market it has long avoided, with Chief Executive Officer Oliver Blume turning to light trucks and off-road sport utility vehicles as growth elsewhere stalls.
vw lines up trucks and off road suvs to chase wrangler and bronco
The move comes as the company’s China business deteriorates and its German plants cut tens of thousands of positions, leaving the U.S. as the market Blume can no longer afford to neglect. Volkswagen has spent decades trying to build an American business to match its position as the world’s second-largest automaker, without lasting success.
Now Blume is lining up what the automaker describes as a new incursion aimed at the heart of the U.S. marketplace: the light trucks and off-road SUVs that have long captured American wallets, according to Bloomberg, which first reported the plans. That puts Volkswagen on a collision course with the Jeep Wrangler and Ford Bronco, two of the segment’s defining nameplates.
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The strategic shift is driven by pressure on multiple fronts. With China profits sliding and domestic manufacturing under strain, the U.S. has become central to Volkswagen’s growth plans rather than a market it can leave to languish. Blume has only a narrow window to get the effort right, according to Bloomberg.
Volkswagen’s repeated struggles to crack the U.S. market are well documented. The segment it is targeting carries higher margins and sustained demand, qualities that make it attractive to an automaker seeking to offset losses abroad.
Further details on specific products, timing, and manufacturing plans were not disclosed.
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