Volkswagen Teases New SUV and Pickup Expansion for North America
Volkswagen's Strategic Moves in the North American Market
By Nora Eckert
Automaker's Regional Approach
DETROIT, Sept 3 (Reuters) - Volkswagen announced on Thursday it was exploring new SUV and pickup offerings for North America, the latest example of how automakers are increasingly relying on region-specific strategies to confront trade tensions and varying consumer appetites.
Global Overhaul and Market Share
- The German automaker is in the middle of a massive global overhaul, in which it is targeting a leaner lineup and production footprint to better compete with Chinese rivals.
- The automaker's current U.S. market share is about 3%, according to data from Motor Intelligence.
Future Product Portfolio
- "The brand will explore opportunities in the highly popular body-on-frame B-segment, including robust SUVs and pickup trucks, as a potential component of Volkswagen's future product portfolio," the company said in a release. The B-segment traditionally describes smaller vehicles. Volkswagen declined to provide additional details on the size of its potential SUVs or trucks.
Hybrid Expansion Plans
- VW will look to expand hybrid offerings for U.S. customers, too, with the company stating it "will focus on those segments that show the strongest market demand and best meet the needs of customers and dealers in the region." Hybrid sales have soared in recent months, even as demand for electric vehicles has sputtered.
Leadership and Stakeholder Discussions
Executive Changes
- The automaker earlier this week announced a slate of executive changes, including that Marco Schubert will lead North American strategy. Schubert has more than 25 years of experience at the company.
Turnaround Proposals
- Volkswagen stakeholders are discussing turnaround proposals ahead of a supervisory board meeting on Friday, but a breakthrough is not likely, Reuters has reported.
(Reporting by Nora Eckert in Detroit; Editing by Paul Simao)
