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Volkswagen Group of America

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Volkswagen Group of America, Inc.
Company typeSubsidiary
IndustryAutomotive
FoundedEnglewood Cliffs, New Jersey, U.S. (1955; 69 years ago (1955))
HeadquartersReston, Virginia, U.S.
Area served
North America
Key people
Pablo Di Si (CEO)
ProductsAutomobiles, auto part
Brands
ServicesAutomotive financial services
ParentVolkswagen Group
SubsidiariesElectrify America
Websitevolkswagengroupofamerica.com

Volkswagen Group of America, Inc. (sometimes referred to as Volkswagen of America, abbreviated to VWoA),[1] is the North American operational headquarters, and subsidiary of the Volkswagen Group of automobile companies of Germany. VWoA is responsible for six marques: Audi, Bentley, Lamborghini, and Volkswagen, and in addition is the exclusive importer and distributor of Bugatti and Rimac cars in the U.S.[2] It also controls VW Credit, Inc. (operating as Volkswagen Financial Services),[3] Volkswagen's financial services and credit operations.[4] The company is headquartered in Reston, Virginia.[5][6]

In Germany, the parent company Volkswagen AG is responsible for eight marques of the group, from six European countries: Volkswagen, Audi, Bentley, Bugatti, Lamborghini, Porsche, SEAT, Škoda and Volkswagen Commercial Vehicles.

As of March 2008, VWoA has 20 operational facilities, spanning coast to coast, and its primary objective is "to offer attractive, safe and environmentally sound vehicles which are competitive on an increasingly tough market and which set world standards in their respective classes".[7]

On July 16, 2008, Volkswagen AG announced plans to build its first production facility in the United States[8] since the closure of its Westmoreland Assembly Plant in 1988. The Volkswagen Chattanooga Assembly Plant was inaugurated on May 24, 2011, and initially built the US-spec Volkswagen Passat and in 2017 started production of the Volkswagen Atlas.[9]

History

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Foundation

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Formed in October 1955 in Englewood Cliffs, New Jersey, to standardize dealership service in the United States, it grew to 909 Volkswagen dealers in the US by 1965 under the leadership of Dr. Carl Hahn. Under him and his successor as president of Volkswagen of America, J. Stuart Perkins, VW's U.S. sales grew to 569,696 cars in 1970, an all-time peak, when Volkswagen captured 7 percent of the U.S. car market and had over a thousand American dealerships. The Volkswagen Beetle was the company's best seller in the United States by a wide margin.

From then on, however, intense competition from American and Japanese automakers caused VW sales in America to fall as much as 87 percent between 1970 and 1992, despite the introduction of new front-drive models in 1975 to replace the Beetle and its rear-engined, air-cooled stablemates. As a result, the number of dealerships in the U.S. was also reduced to 630 by the mid-1990s. As of 2007, there were 596 operating Volkswagen dealerships in the country.

Westmoreland and Auburn Hills

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VWoA inaugurated the Volkswagen Westmoreland Assembly Plant near New Stanton, Pennsylvania, in 1978. This was the first modern venture by a foreign automaker at making cars in the United States. In 1988, the plant was closed. In the early 1980s, the manufacturing division and the sales division were merged, and Volkswagen of America moved to Troy, Michigan, as a result, settling in Auburn Hills, Michigan, in 1991 (42°38′43.2″N 83°12′55.4″W / 42.645333°N 83.215389°W / 42.645333; -83.215389 (VWoA former HQ at Auburn Hills)).

1990s uncertainties

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Volkswagen of America's sales hit rock bottom in 1993, with fewer than 50,000 cars sold that year. Sales began to recover the following year with the introduction of the third generation of the Golf and Jetta. By the end of the decade, thanks to effective advertising and the launch of more competitive new products, including the New Beetle in 1998, the VW brand was back on firmer ground. Volkswagen of America went on to sell 355,648 cars in 2001, its best year since 1973.

2000s

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In the 2000s sales tapered off somewhat due to competition, quality issues and delays in product introductions, and VW's U.S. sales for 2005 totaled 224,195 – a reduction of about 37 percent from four years earlier. New models for the 2006 and 2007 model years, such as the Passat, Rabbit, and GTI resulted in a sales growth of 4.9% for 2006 with sales of 235,140 vehicles. Profitability still remained an issue, though; Volkswagen of America had not turned a profit for its parent company since 2002. In January 2007, Volkswagen of America president Adrian Hallmark publicly stated[citation needed] that he planned to get the subsidiary back to profitability in two to three years. He hoped to introduce new models for North America, and develop new marketing to encompass the whole brand as well as individual cars.[citation needed] Stefan Jacoby soon replaced him, and Volkswagen of America continued to look at new products to add to its lineup.[citation needed]

In the meantime, a new advertising agency, Crispin Porter + Bogusky, helped rejuvenate VW's presence in the U.S. as well. Its ads for the fifth-generation GTI have sparked interest in the brand, not seen since the launch of the New Beetle, and ads for the fifth-generation Golf/Rabbit hatchback translated into initial strong sales for that model. Due to new air pollution rules promulgated by the United States Environmental Protection Agency (USEPA), the diesel powered VWs with TDI-PD technology could no longer be produced after December 31, 2006. For the 2009 model year, VW introduced a new generation of diesels, based on common rail technology. These would meet air pollution standards in all 50 states. The first of these units was made available for sale in August 2008. VW sold 2050 Jetta Sedan TDIs and 361 Jetta Sportwagen TDIs that first month.[citation needed] Volkswagen was later charged with three felonies and fined $25 billion for defrauding the American government when it was discovered that their vehicles were only passing laboratory emissions testing due to company tampering of their system's internal software.

In October 2009, Interpublic Group's Deutsch, Los Angeles, the ad agency of renowned ad man Donny Deutsch, won Volkswagen's American advertising account - fourteen years after Deutsch had tried for VW's advertising business against Arnold Advertising.[10]

New headquarters in Virginia

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On September 6, 2007, Volkswagen of America announced it would relocate its North American headquarters to Herndon, Virginia.[11][12] Volkswagen sales are particularly strong in the Mid-Atlantic region, as well as both coasts. The company indicated that it is important for them to locate in a region where their customer base is strongest. Presently, the Big Three domestic brands dominate the Midwest US, especially Metro Detroit where the company was formerly located.

Volkswagen of America began its move from Auburn Hills to Herndon in April 2008. The company anticipated that 600 of the 1,400 staff would remain at Auburn Hills in the call center and technical services positions, while 400 jobs would transferred to Virginia. About 150 employees in Michigan were expected to move to Herndon, Volkswagen of America President and CEO Stefan Jacoby said. The four hundred remaining jobs were to be cut.

The state of Virginia, among 14 locations that Volkswagen of America considered for the move, offered Volkswagen $6 million in incentives that will be awarded pending Volkswagen's fulfillment of employment and other various quotas.[citation needed]

New manufacturing plant

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On July 15, 2008, after an intense, months-long battle between Huntsville, Alabama, a site in Michigan and Chattanooga, Tennessee, the company's supervisory board chose Chattanooga as the location for the new plant.[13] This $1 billion investment was expected to result in production of about 150,000 cars a year by its slated opening in 2011, playing a major role in the company's strategy to gain more than 6% of the car market, or about 800,000 cars on top of the 230,000 it produced in America in 2007, by 2018.[8][14] This plant also became Volkswagen Group of America's manufacturing headquarters in the U.S.[14] The plant was inaugurated on May 24, 2011.[15][16]

Current US facilities

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As of March 2018, Volkswagen Group of America has the following 20 "Operational Facilities" across the US:[7]

Regional offices

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Brands

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Volkswagen

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Current models

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The following is a list of the models currently available in the American market:

Sedan
Arteon · Jetta · ID.7
SUV
Tiguan · Atlas · Atlas Cross Sport ·Taos · ID.4
Performance
Golf GTI · Golf R
Minivans
ID. Buzz

Sales

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The total number of new vehicle sales year-by-year in the U.S. market is as follows:

Calendar Year Total American sales
1970 569,696[17]
1997 137,885[18]
1998 219,679[19]
1999 315,563[20]
2000[21] 355,479
2001 355,648
2002[22] 338,125
2003 302,686
2004[23] 256,111
2005[24] 224,195
2006 235,140
2007[25] 230,572
2008[26] 223,128
2009[27] 213,454
2010[28] 256,830
2011[29] 324,402
2012[30] 438,133
2013[31] 407,704
2014[32] 366,970
2015 349,440
2016 322,948
2017[33] 339,676
2018[34] 354,064
2019 363,322[35]
2020 325,784[36]
2021 375,030 [37]
2022 301,069[38]
2023 329,029[38]

Audi

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Current Audi models

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The following is a list of the Audi models currently available in the American market:

Audi Sport models

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The following is a list of Audi Sport currently available in the American market:

Sales

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Calendar Year Total American sales
1995[39] 18,124
1996[39] 27,379
1997[40] 34,160
1998[41] 47,517
1999[42] 65,959
2000[43] 80,372
2001[44] 83,283
2002 85,726
2003[45] 86,421
2004 77,917
2005[46] 83,066
2006[47] 90,116
2007[48] 93,506
2008[49] 87,760
2009[49] 82,716
2010 101,629
2011[50] 117,570
2012[51] 139,310
2013[52] 158,061
2014[31] 182,011
2015 202,202
2016 210,213
2017[53] 226,511
2018[54] 223,323

Bentley

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Current models

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The following is a list of the models currently available in the American market:

Lamborghini

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Current models

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The following is a list of the models currently available in the American market:

Bugatti

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The only vehicle sold new under the Bugatti label is the Chiron.

See also

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References

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  1. ^ "Trademark Usage Guide". VWtrademarks.com. Volkswagen AG. Archived from the original on October 19, 2009. Retrieved November 4, 2009.
  2. ^ About the Company Volkswagen Group of America
  3. ^ "Volkswagen Financial Services | U.S. | LinkedIn".
  4. ^ VW Credit, Inc. Volkswagen Group of America
  5. ^ "Contact Us." Volkswagen Group of America. Retrieved August 18, 2009.
  6. ^ "Herndon town, Virginia[permanent dead link]." U.S. Census Bureau. Retrieved August 18, 2009.
  7. ^ a b Group Overview Volkswagen Group of America
  8. ^ a b Volkswagen wants slice of American pie AUSmotive.com
  9. ^ [1] Chattanooga Times Free Press
  10. ^ [2] www.forbes.com
  11. ^ "Volkswagen of America, Inc. Announces new strategic direction, move to Virginia and restructure of U.S. operations" (Press release). Volkswagen Group of America, Inc. September 6, 2007. Archived from the original on November 12, 2007. Retrieved November 21, 2007.
  12. ^ Goldfarb, Zachary (September 6, 2007). "Volkswagen Moving to Herndon". Washington Post. Retrieved September 11, 2007.
  13. ^ [3] Archived July 16, 2011, at the Wayback Machine Chattanooga Times and Free Press.com
  14. ^ a b [4] Archived August 3, 2008, at the Wayback Machine Chattanooga Times and Free Press.com
  15. ^ "Volkswagen Inaugurates New Plant in Chattanooga, Tennessee" (Press release). Volkswagen. May 24, 2011. Archived from the original on July 29, 2011. Retrieved July 16, 2011.
  16. ^ Woodyard, Chris (May 24, 2011). "Pint-sized Darth Vader blesses Volkswagen's U.S. factory". USA Today. Retrieved May 24, 2011.
  17. ^ Kemezis, Paul (May 13, 1975). "Volkswagen. Puts '74 Loss at $336-Million". The New York Times. Retrieved March 2, 2020.
  18. ^ "INTERNATIONAL BUSINESS; Volkswagen Says Sales Rose 11% in 1998". The New York Times. Reuters. January 5, 1999. Retrieved March 2, 2020.
  19. ^ "Volkswagen Also Way up in '99". theautochannel.com. January 3, 2000. Retrieved March 2, 2020.
  20. ^ "Automakers report record sales". UPI. Retrieved March 3, 2020.
  21. ^ "Volkswagen Reports December Sales". theautochannel.com. November 17, 2004. Retrieved June 6, 2009.
  22. ^ "Volkswagen Reports December 2003 Sales". theautochannel.com. Retrieved June 6, 2009.
  23. ^ "Volkswagen Reports 19.1% Increase for December 2004 Sales". theautochannel.com. Retrieved June 6, 2009.
  24. ^ "Volkswagen brand posts year-to-date increase of 4.9 percent". theautochannel.com. November 17, 2004. Retrieved June 6, 2009.
  25. ^ "Volkswagen USA Reports December 2008 Sales Down 14% From 2007". theautochannel.com. November 17, 2004. Retrieved June 6, 2009.
  26. ^ "Volkswagen Reports December 2008 Sales". Press Release. January 5, 2009. Archived from the original on February 16, 2012. Retrieved June 6, 2009.
  27. ^ "Volkswagen Reports December 2009 Sales". Press Release. January 5, 2010. Archived from the original on January 21, 2010. Retrieved January 7, 2010.
  28. ^ "Volkswagen of America Closes 2010 with Best Overall Year Sales Since 2003 | Press_releases | Volkswagen Newsroom". Archived from the original on January 8, 2011. Retrieved January 6, 2011.
  29. ^ "Volkswagen Reports 26.3 Percent Increase in 2011 U.S. Sales". Archived from the original on May 27, 2012. Retrieved May 10, 2012.
  30. ^ "Volkswagen Reports 35.1 Percent Increase in 2012 U.S. Sales". media.vw.com. Archived from the original on April 12, 2013. Retrieved February 3, 2022.
  31. ^ a b "Facts & Figures : Volkswagen US Media Newsroom". Archived from the original on March 5, 2014. Retrieved April 16, 2014.
  32. ^ "VW plans U.S. push with Jetta leases as cheap as iPhone contracts". Automotive News Europe. June 1, 2015.
  33. ^ "VOLKSWAGEN OF AMERICA REPORTS DECEMBER AND 2017 YEAR-END SALES RESULTS". media.vw.com. Retrieved February 14, 2019.
  34. ^ "VOLKSWAGEN OF AMERICA REPORTS DECEMBER AND 2018 YEAR-END SALES RESULTS". media.vw.com. Retrieved February 14, 2019.
  35. ^ "VOLKSWAGEN OF AMERICA REPORTS DECEMBER AND 2019 YEAR-END SALES RESULTS". media.vw.com (Press release). January 3, 2020. Retrieved March 2, 2020.
  36. ^ "Volkswagen of America reports Q4 and 2020 year-end sales results". media.vw.com (Press release). January 5, 2021. Retrieved January 12, 2021.
  37. ^ "Volkswagen of America reports Q4 and 2021 year-end sales results". media.vw.com (Press release). January 7, 2022. Retrieved January 12, 2022.
  38. ^ a b "Volkswagen of America (VWoA) reports total year 2023 sales". media.vw.com (Press release). January 4, 2023. Retrieved February 9, 2023.
  39. ^ a b "Audi's December Sales Best in a Decade – 1996 Best Year Since 1987". prnewswire.com (Press release). Retrieved June 6, 2009.
  40. ^ "Audi Achieves Best Sales Year in Twelve Years – Best December Since 1985 With 55.9 Percent Increase". prnewswire.com (Press release). Retrieved June 6, 2009.
  41. ^ "Audi Finishes 1999 With Best Sales Results in 14 Years And Best December Ever". prnewswire.com (Press release). Retrieved June 6, 2009.
  42. ^ "Audi Breaks All-Time U.S. Sales Record". prnewswire.com (Press release). Retrieved June 6, 2009.
  43. ^ "Audi Breaks All-Time U.S. Sales Record – 2nd Consecutive Year; Best A4 Month Ever". prnewswire.com (Press release). Retrieved June 6, 2009.
  44. ^ "Audi Breaks All-Time U.S. Sales Record For Third Consecutive Year". prnewswire.com (Press release). Retrieved June 6, 2009.
  45. ^ "Audi of America, Inc. Reports 2004 Sales". prnewswire.com (Press release). Retrieved June 6, 2009.
  46. ^ "Audi of America Reports 2005 Sales of 83,066 – Up By 6.6%". prnewswire.com (Press release). Retrieved June 6, 2009.
  47. ^ "U.S. car and light-truck sales by make – December 2006 (Ranked by total sales)" (PDF). autonews.com.
  48. ^ "Audi Increases Market Share for December and 2008". news.prnewswire.com. Archived from the original on May 22, 2009. Retrieved June 6, 2009.
  49. ^ a b "U.S. car and light-truck sales by make – December 2009 (Ranked by total sales)" (PDF). autonews.com.
  50. ^ "Audi Sets All-time U.S. Sales Record in 2011; Brand Expects Momentum to Continue Into 2012". www.prnewswire.com (Press release).
  51. ^ "Audi Newsroom". media.audiusa.com.
  52. ^ "Audi Newsroom". Audiusanews.com. Retrieved August 28, 2019.
  53. ^ "Audi Newsroom". media.audiusa.com. Retrieved February 14, 2019.
  54. ^ "Audi Newsroom". media.audiusa.com. Retrieved February 14, 2019.
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