Volkswagen recently briefed its U.S. dealers on how it plans to boost sales and its overall image following the bruising diesel emissions scandal. One strategy, according to a Bloomberg report, is to lower the pricing on its U.S. lineup and embrace a “volume mindset” targeting its main competitors like Toyota and General Motors.
Bloomberg learned of the automaker’s pricing-slashing plans from Alan Brown, chairman of VW’s U.S. dealer counsel. No other details were provided and VW hasn’t returned our request for comment.
That said, Volkswagen’s attempt to broaden its appeal in the U.S. predates the emissions cheating scandal. The Passat, for example, was the first model to roll out of its Tennessee manufacturing plant and was developed for American consumers, and a new three-row crossover is also on the way. More recently, Volkswagen began cutting back trim levels and variants throughout the lineup to cut down on costs. But while the Golf and Jetta are relatively competitive, VW sales in the growing compact and midsize crossover segments are still low.
Volkswagen’s price-cutting strategy coincides with reports that the automaker unveiled plans to compensate dealers for losses stemming from the emissions scandal. Rumors suggest the automaker will pay over $1.2 billion to its network of 652 U.S. dealers, in addition to other incentives and reimbursements for vehicles that were unable to be sold.
Source: Bloomberg
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