The German automaker wanted to reassure its dealers in the United States that the company was still aiming to improve its market position.
As the cheating scandal is still affecting sales at Volkswagen, its dealers in the United States are not happy at all with the current low demand levels, which evidently are hampering their profit. At a recent meeting between the automaker and dealers, Herbert Diess, global head of the Volkswagen brand, said the Group did not give up on its growth strategy for the US market and the situation would improve in the near future. “We are working to redefine the Volkswagen brand in the United States by strengthening our management team, our partnerships with dealers, and our product portfolio,” Diess told reporters after the meeting, quoted by Bloomberg. “We want to grow the volume consistently beyond past levels, and we will do this with our partners, the dealers. More than ever, we will include their ideas and their requirements into our decision-making.”
However, Volkswagen is still far away from pleasing its dealers in term of volume sales. The automaker’s core brand delivered 349,440 cars and light trucks in the US last year, well below profitability targets. Alan Brown, chairman of VW’s National Dealer Advisory Council and co-owner of two Volkswagen stores in suburban Dallas, said the company needed to sell as many as 500,000 cars a year for Volkswagen and its dealers to make an acceptable profit. Volkswagen of America reported sales of 26,914 units in March, a 10 percent drop compared with a year earlier, following a 13 percent decrease in February.