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VW to relax ambitious US sales targets?

The Volkswagen brand sold 407,704 cars last year, a 6.95-percent decline compared to 2012, and it's down a further 8.36 percent through the end of April 2014 compared to this time last year. In order to to put the sales football between its Strategy 2018 goal posts, the brand would need to add 100,000 more sales every year to achieve the lofty 800,000-unit target. Coming to grips with how unreasonable that is, VW US CEO Michael Horn has said, "For now, we have to have realistic targets."
The reasons for the brand's slow-down are imprecise, but lots of folks are throwing lots of reasons around. Last November, VW Group Chairman Ferdinand Piech told Bloomberg, "We understand Europe, we understand China and we understand Brazil, [but] we only understand the US to a certain degree so far." Analysts say the brand hasn't had midsize and compact SUV offerings, especially an overdue retail version of the CrossBlue, and the ones it does have are priced too high for their segments. It "didn't introduce enough new engines, or alternative technologies or model variants" for the Passat and Jetta. It devoted so many resources to China that the US market suffered. It was being outspent two-to-one on advertising by competitors. Its J.D. Power dependability ratings aren't high enough to overcome its past. It "has never really taken the US customer seriously." And so on.
There's still no official admission of defeat concerning the target, but reading between the lines there are some VW execs that appear to accept it won't happen short of some deus ex machina. Still,

Bosch: Diesel demand still strong, despite VW scandal

Like an auto racer's results on the circuit, Volkswagen's recovery from its diesel-emissions scandal may well depend on spin control. That's what Bosch Chairman Volkmar Denner said in recent remarks at an event in Germany, Reuters reports. Bosch is a major VW supplier, of course, so it does have some skin in the game. Denner said he hasn't seen signs that demand for diesel vehicles has fallen yet in the wake of a scandal in which software in VW diesels was programmed to game emissions-testing systems. Denner says the ultimate impact on diesel sales will depend largely on the "campaign" VW will use to assure the general public that its diesels remain a viable way for drivers to boost fuel economy and lessen their impact on the environment. Of course, there have been hints that VW may pivot to more electric vehicles and distance itself away from diesels in the coming years. As a VW supplier, Bosch has been connected to the diesel scandal, it has repeatedly said that the problems were all VW's fault. Europe's biggest automaker lost its CEO in the wake of last month's scandal and has set aside $7.3 billion to address the issue. As many as 11 million VWs may have been programmed with the cheating software. Governments around the world are trying to address the issue. France may eliminate diesel-fuel subsidies, while all VW diesels in Australia have been recalled. And California has given VW until November 20 to detail how it would fix the problem. Related Videos: Image Credit: AP Photo/Michael Sohn Green Volkswagen Emissions Diesel Vehicles vw diesel scandal

Autoblog Minute: VW CEO Winterkorn out, rebuilding begins

Martin Winterkorn steps down as CEO of Volkswagen. Autoblog's Eddie Sabatini reports on this edition of Autoblog Minute, with commentary from Autoblog's Editor-in-Chief, Mike Austin. Show full video transcript text [00:00:00] Dr. Martin Winterkorn steps down as CEO of Volkswagen. I'm Eddie Sabatini and this is your Autoblog Minute. Dr. Winterkorn resigns in the wake of the VW emissions scandal. In a statement released to the press Dr. Winterkorn had this to say: "I am shocked by the events of the past few days. Above all, I am stunned that misconduct on such a scale was possible in the Volkswagen Group... [00:00:30] I am doing this in the interests of the company even though I am not aware of any wrongdoing on my part..." For more on what Winterkorn's resignation means for Volkswagen and the industry at large we go to Autoblog's Editor-in-chief, Mike Austin: [00:01:00] [Mike Austin Interview] The investigation into Volkswagen is ongoing and Autoblog will continue to cover the story as it develops. [00:01:30] For Autoblog, I'm Eddie Sabatini. Autoblog Minute is a short-form video news series reporting on all things automotive. Each segment offers a quick and clear picture of what's happening in the automotive industry from the perspective of Autoblog's expert editorial staff, auto executives, and industry professionals.