Volkswagen Wants the World to Buy Like Americans

Steph Willems
by Steph Willems

The world needs to adopt North America’s penchant for high-riding SUVs if Volkswagen has any hope of building a clean, green, safe future for your kids. That’s basically the message coming from the automaker, which wants 50 percent of its global product mix to be made up of crossovers and SUVs by 2025.

High-margin SUVs will bolster the brand’s business, the company says, helping bring in the cash needed to eventually take your internal combustion engine and steering wheel away.

It’s a similar product/planning strategy underway at BMW, which recently launched the massive X7 to help expand its line of electric cars. Judging by a flurry of model trademarks (X8, X9), Bimmer’s got other large, multi-cylinder vehicles on the way.

VW made its cargo-happy declaration at the overseas launch of the tiny T-Cross crossover, a Polo-based vehicle slotting below the T-Roc on the utility ladder.

“SUVs are becoming increasingly popular with our customers throughout the world,” said Jürgen Stackmann, the Volkswagen board member responsible for sales. “This is why we are consistently pursuing our current SUV offensive. It will be a key contribution to strengthening our core business so that we can invest the necessary billions of euros in mobility and autonomous driving. The T-Cross rounds off our SUV family in the rapidly growing small SUV market.”

The recent global launch of the larger, redesigned Tiguan led to boffo sales, while North American and Chinese customers now enjoy the identical three-row Atlas and Teramont, respectively. Europeans just received a new, range-topping Touareg. A new, smaller crossover is due in our market before too long, as is a sportier, two-row Atlas variant.

As it continues its SUV offensive on the global stage, the brand holds equally lofty expectations for its looming I.D. electric car line. VW hopes to sell 1 million EVs by 2025. The two product plans make for strange bedfellows, though they’re married by money. EVs aren’t known for their generous margins, and development costs are sky-high. Throwing a number of different-sized bodies onto the MQB platform will deliver the cash needed to get the I.D.s, later EVs, and futuristic self-driving vehicles off the ground, VW hopes.

In the U.S., utility vehicles made up 40.2 percent of Volkswagen’s September sales volume. Even the American market isn’t American enough for VW at this point.

[Image: Volkswagen of America]

Steph Willems
Steph Willems

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  • Big Al from Oz Big Al from Oz on Oct 26, 2018

    I would think that CUVs will eventually become more popular in the EU than in the US. My logic behind this is with the smaller footprinted EU vehicles a taller vehicle offering better interior space usage will become dominant.

  • Riggodeezil Riggodeezil on Oct 26, 2018

    “It will be a key contribution to strengthening our core business so that we can invest the necessary billions of euros in mobility and autonomous driving.” This is sorta like McDonald’s saying that they need fat goober-pantloads to swallow heaps of their heart-clogging slime-burgers in order to develop healthy, nutritious alternatives for later on.

  • Forward Observer The last time I had a door off my truck I hung it from my Little Giant ladder. But I was only replacing the hinge pins.I'm sorry if this sounds smarmy or smug, I am working on my people skills. (My therapist says I have a long way to go to catch up with some of you.) Would smarmy and smug come in handy if I worked for an automotive dealership? (I wonder.)
  • Arthur Dailey Auto 'journalists' should stop referencing the average new car purchase price and instead report on the mean price. We all understand that the glue of luxury vehicles and full size pickups inflate the average price.For me, 'affordable' hovers around the $35k mark.Under current N.A. standards, hatchbacks, stations wagons and non-luxury coupes are basically a lost cause.Personally I would like to see Canada convert to accepting vehicles that have passed the European standards, rather than adhering only to N.A. standards. That would allow for the importation of vehicles such as Dacias, Skodas, and yes more Fiats. Also some models for Japanese and Korean manufacturers that currently are not sold in North America. It may even help Mitsubishi in the Canadian market and allow for the return of Suzuki. Having more small, affordable vehicles available is not a bad thing.
  • The original ToolGuy™ Doubt we will see any new vehicle in the low 20s unless it is an EV and Chinese but wouldn't count on that happening. Not against more affordable vehicles but don't foresee that happening in the immediate future.Jeffs do you do any research before making ignorant comments? We have brand new vehicles sold today in the low 20s including the Hyundai Venue that starts at $20,550.
  • KwikShiftPro4X That ship has sailed. The new overvalued cheap/base car will be $30G.
  • The original ToolGuy™ We have inexpensive cars already
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