Monday, June 2, 2014

Volkswagen Will Bring US Product Faster To Market Beginning 2017

2015 VW Golf Main

In an effort to keep its U.S. customer base satisfied — and to potentially boost sales — Volkswagen is planning on delivering the goods to the market at a faster clip than current.

Bloomberg reports VW U.S. CEO Michael Horn expects new models to arrive every five years with major refreshes after three years; currently, new models arrive in showrooms every seven years, while major refreshes come in the fourth year:

Customers want quicker change. We're working to shorten the life cycle of the products to bring more new features and design elements, in terms of face-lifts, to the market quicker. We believe we have a positive business case. It commercially makes sense that we move.

The new product cycle won't begin until 2017 at the earliest, and must still meet management approval before implementation can commence, further diminishing hopes of moving 800,000 units out of U.S. showrooms annually by 2018; Horn recently stated VW's U.S. operations would focus more on "realistic targets in the short-term.

The CEO also said he and a number of execs within the parent company had been meeting every other month since January to discuss how best to get a handle on the U.S. market, while 50 individuals from the automaker's various departments attended a two-day summit to throw in their two cents on the matter. The summit focused on fleet fuel efficiency, product lineup and speed of product cycle.



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