Volkswagen Group of America

From Wikipedia, the free encyclopedia

VWoA former HQ at Auburn Hills 42°38′43.2″N 83°12′55.4″W / 42.645333, -83.215389

Volkswagen Group of America, Inc.
Type Subsidiary of Volkswagen AG
Founded Englewood Cliffs, New Jersey, 1955
Headquarters Flag of the United States: Herndon, Virginia, USA (as of mid 2008)
No. of locations 20 "Operational Facilities" in the US
Area served North America
Key people Stefan Jacoby CEO
Industry Automotive
Products Automobiles, Automotive parts
Services Automotive financial services
Owner Volkswagen Group
Divisions Volkswagen of America,
Audi of America,
Bentley Motors Inc.,
Bugatti of America,
Automobili Lamborghini America LLC,
VW Credit, Inc.
Website VolkswagenGroupAmerica.com

Volkswagen Group of America, Inc. (sometimes referred to as Volkswagen of America, abbreviated to VWoA), is the United States operational headquarters, and subsidiary of the Volkswagen Group of automobile companies of Germany. VWoA is responsible for five marques: Audi, Bentley, Bugatti, Lamborghini, and Volkswagen cars.[1] It also controls "VW Credit, Inc." (or "VCI"), Volkswagens own financial services and credit facility.[2]

In Germany, the parent company "Volkswagen AG" is responsible for eight marques of the group, from six European countries: Volkswagen, Audi, Bentley, Bugatti, Lamborghini, 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".[3]

Contents

[edit] History

[edit] Foundation

Formed in April 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 U.S. 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.

[edit] New Stanton and Auburn Hills

VW decided to open an assembly plant in New Stanton, Pennsylvania in 1978. This was the first modern venture by a foreign automaker at making cars in the USA. Unfortunately, due to unfavorable exchange rates, and the fact that the factory mostly built Golf hatchbacks while Americans wanted Jetta sedans, the plant closed in 1988 (very few Jettas were made there in 1987-1988, but this failed to help the plant). A great upheaval occurred in the early 1980s, as the manufacturing division and the sales division were merged, and Volkswagen of America moved to Troy, Michigan as a result, finally settling at their (then, as of 2007) current home in Auburn Hills, Michigan in 1991.

[edit] 1990s uncertanties

Volkswagen of America's sales hit rock bottom in 1993, with fewer than 50,000 cars sold that year (possibly due to the delayed introduction of the Golf Mk3 and Jetta Mk3), and many observers expected VW to quit the United States (as many other European vehicle manufacturers had done then). 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.

[edit] 2000s

In the 2000s sales have 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 have resulted in a sales growth of 4.9% for 2006 with sales of 235,140 vehicles. Profitability still remains an issue, though; Volkswagen of America has not turned a profit for its parent company since 2002. In January 2007, Volkswagen of America president Adrian Hallmark publicly stated that he planned to get the subsidiary back to profitability in two to three years. He hopes to introduce new models for North America, and develop new marketing to encompass the whole brand as well as individual cars.

In the meantime, a new advertising agency, Crispin Porter + Bogusky, has 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 have translated into initial strong sales for that model. Many observers are expecting VW of America to have a tough year in 2007, as Hallmark works to keep the brand going. Due to new air pollution rules promulgated by the United States Environmental Protection Agency (USEPA), the diesel powered VWs with TDI-PD technology can no longer be produced after December 31, 2006. Although VW rushed to put an extra supply of cars on dealer lots before the deadline, there will likely be a period where diesel Volkswagens are difficult to find. For the 2008 model year, VW will be introducing a new generation of diesels, based on common rail technology. These are expected to meet stringent air pollution standards in all 50 states.

[edit] New Headquarters in Virginia

On 6 September 2007, Volkswagen of America announced it would relocate its North American headquarters to Herndon, Virginia.[4][5] 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 dominate the Midwest, especially Metro Detroit where the company is presently located.

Volkswagen of America’s move from Auburn Hills to Herndon will begin in April 2008 and be completed by the end of next year, the company said. It said that 600 of the current 1,400 staff will remain at Auburn Hills in call center, and technical services positions, while 400 jobs will be transferred to Virginia. About 150 employees in Michigan are expected to move to Herndon, Volkswagen of America President and CEO Stefan Jacoby said. The four-hundred remaining jobs will 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]

Due to the weak US dollar and the extremely high cost of labor in Germany, Volkswagen is also strongly considering plans for a US plant.[6] Volkswagen of America operated one plant in the USA in 1970s and 1980s in New Stanton, Pennsylvania, but closed in 1988.

The move is part of a major restructuring effort with Volkswagens' US operations as the company hopes to increase US market share that is currently a low 2%.

[edit] Current US facilities

As of March 2008, Volkswagen Group of America has the following 20 "Operational Facilities" across the US:[7]


[edit] Brands

 Please help improve this section by expanding it.
Further information might be found on the talk page or at requests for expansion.

[edit] Current VW models

The following is a list of the models currently available (through the end of 2008) in the American market:

[edit] VW sales

Based on the current line of Volkswagen models available in the United States, the best-selling models are as follows:[8]

Rank Model Name
1 Jetta
2 Passat
3 Rabbit
4 New Beetle
5 Touareg
6 GTI
7 New Beetle Convertible
8 Eos
9 Passat Wagon
10 R32

[edit] References

  1. ^ About the Company Volkswagen Group of America
  2. ^ VW Credit, Inc. Volkswagen Group of America
  3. ^ Group Overview Volkswagen Group of America
  4. ^ Volkswagen of America (2007-09-06). "Volkswagen of America, Inc. Announces new strategic direction, move to Virginia and restructure of U.S. operations". Press release. Retrieved on 2007-11-21.
  5. ^ Goldfarb, Zachary. "Volkswagen Moving to Herndon", Washington Post, 2007-09-06. Retrieved on 2007-09-11. 
  6. ^ Chakravorty, Jui (2007-11-19), “Reuters Summit-Volkswagen eyes U.S. plant decision in '08”, Reuters, <http://www.reuters.com/article/tnBasicIndustries-SP/idUSN1947985920071120> 
  7. ^ Group Overview Volkswagen Group of America
  8. ^ “Volkswagen Reports December 2007 Sales Increase”, Press Release, 2008-1-5, <http://www.vwvortex.com/artman/publish/volkswagen_news/article_2174.shtml> 

[edit] See also

[edit] External links

v • d • e
Volkswagen Group (Volkswagen AG) (VWAG) brands, marques, companies, and subsidiaries
Current Volkswagen
Group companies,
brands & subsidiaries
Defunct Volkswagen
Group brands
Auto Union (now known as Audi) • Horch • DKW • Wanderer • NSU
key people
(former and current)
Heinrich Nordhoff (former Managing Director) → Dr Kurt Lotz (former Chief executive officer) → Dr Rudolf Leiding (former Chief executive officer) → Toni Schmücker (former Chief executive officer) → Dr Carl Hahn (chairman emeritus) → Ferdinand Piëch (Chairman of the Supervisory Board) → Dr Bernd Pischetsrieder (former Chief executive officer) → Prof Dr Martin Winterkorn (current Chairman of the Board of Management)
see also:
Founder: German Auto Association • Volkswagen Group corporate website • Autostadt
v • d • e
Volkswagen car timeline, North American market, 1950s–1970s – a marque of the Volkswagen Group (Volkswagen AG) (VWAG) — next »
Type 1950s 1960s 1970s
0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9
Economy Beetle (Type 1)
Compact Fastback / Squareback (Type 3) Rabbit I
Dasher
Mid-size Type 4
K70 (NSU)
Coupé Karmann Ghia Scirocco I
Convertible Beetle Convertible
Karmann Ghia Convertible
Van Microbus (Type 2 - T1) Microbus (Type 2 - T2)
Utility 181 Thing / Safari
Founder: German Auto Association • Volkswagen corporate website • A marque of the VWAG group • Volkswagen Group of America, Inc. • VolkswagenGroupAmerica corporate website • Cal Look
v • d • e
« previous — Volkswagen car timeline, North American market, 1980s–present – a marque of the Volkswagen Group (Volkswagen AG) (VWAG)
Type 1980s 1990s 2000s
0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9
Subcompact Fox / Fox wagon
Compact Rabbit I Golf II Golf III Golf IV Rabbit V
Jetta I Jetta II Jetta III Jetta IV Jetta V
Dasher New Beetle
Mid-size Quantum Passat III Passat IV Passat V Passat VI
Full-size Phaeton Phaeton
Coupé Scirocco I Scirocco II Corrado Scirocco III
Passat CC
Convertible Rabbit Convertible Cabriolet Cabrio Eos
New Beetle Convertible
Van Vanagon (Type 2 - T3) Eurovan (T4) Routan
Pickup Rabbit LX
Compact SUV Tiguan
Luxury SUV Touareg
Founder: German Auto Association • Volkswagen corporate website • A marque of the VWAG group • Das Auto • Volkswagen Group of America, Inc. • VolkswagenGroupAmerica corporate website • Electronics Research Laboratory
v • d • e
Audi timeline, North American market, 1970s–present – a marque of the Volkswagen Group (Volkswagen AG) (VWAG)
Type 1970s 1980s 1990s 2000s
0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9
Compact car A3
Super 90 Fox (B1) 4000 (B2) 80 / 90 (B3) 80 / 90 (B4) A4 (B5-B8)
4000CS quattro S4 (B5-B8)
Mid-size car ... 100 (C1) 5000 (C2) 100 / 200 (C3) 100 / 200 (C4) A6 (C4-C6)
Ur-S4 Ur-S6 S6 (C5) S6 (C6)
Full-size car V8 A8 / S8
Coupé Coupé GT Quattro T89(B3) A5 / S5
Roadster TT
Sports car Quattro (Ur-Quattro) RS6 RS4
R8
Convertible Cabriolet (B4) A4 Cabriolet / S4 Cabriolet
Compact SUV Q5
Crossover SUV allroad quattro A6 allroad quattro
Luxury SUV Q7
Founder: August Horch • Audi corporate website • A marque of the VWAG group • quattro GmbH • Audi Driving Experience • Volkswagen Group of America, Inc. • VolkswagenGroupAmerica corporate website • Electronics Research Laboratory
v • d • e
Lamborghini cars - now a marque of the Volkswagen Group (Volkswagen AG) (VWAG)
Volkswagen Group
brands & companies
See also:
Current models
Latin America models
Coatl • Eros
Historic models
Countach • Diablo • Espada • Islero • Jalpa • Jarama • LM002 • Miura • Silhouette • Urraco • 350GT • 400GT
Concept cars
v • d • e
Bugatti car timeline, 1910–present – a marque of the Volkswagen Group (Volkswagen AG) (VWAG) since 1998
Type 1910s 1920s 1930s 1940s 1950s 1960s 1963–86 1980s 1990s 2000s
0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9
Company
full name		 Bugatti Bugatti Automobili S.p.A Bugatti Automobiles S.A.S.
Owner Flag of Italy Ettore Bugatti / Roland Bugatti Flag of Italy Romano Artioli Flag of Germany Volkswagen AG
Touring
car		 Type 30 / Type 49 Type 57
Type 46
Limousine Type 41 Royale
Roadster Type 13 / Brescia Tourer Type 55
Coupé Type 101
Sports
car		 Type 13 Type 18 Garros Type 252 EB110 Veyron
Founder: Ettore Bugatti • Bugatti corporate website • A marque of the VWAG group
v • d • e
Bentley ownership and road car timeline, 1920s–present – now a marque of the Volkswagen Group (Volkswagen AG) (VWAG)
Type 1920s 1930s 1940s 1950s 1960s 1970s 1980s 1990s 2000s
Flag of England Independent Flag of England Rolls-Royce Flag of Germany Volkswagen Group
Sports car 3 L 4½ L WWII
Saloon 6½/Six 4L/3½ 4¼L/V VI R S1/S2/S3 T1 T2 Mulsanne CFS
Premium 8 L Camargue Arnage
Coupé Corniche Continental & C Turbo Continental R/S/T C GT
Convertible Azure C GTC
Founder: Walter Owen Bentley • Bentley Motors corporate website • A marque of the VWAG group • Bentley Boys