VW America has reduced its sales target for 2013 in this region, due to the sales slump in the market.
This move was also a concession to dealers that were trying to reach bonuses under the incentive program which depended on the sales target. This program, which is of utmost importance for the dealerships’ profitability, has been restructured earlier this month. At the beginning of the year VW planned to sell around 11% more vehicles than the 438,133 units sold in 2012 in the US, a step closer to its highest goal of selling 800,000 units annually by 2018.
During the first half of the year VW’s sales in the US dropped 1% and now the automaker has cut its sales goal to 440,000 units. Jimmy Ellis, a VW dealer in Atlanta, said that the automaker has expected a drop this year, but is didn’t foresee such a tough competition in the mid-sized and compact segments.
“We just didn’t see it coming to the extent that it has happened,” Ellis said. “Volkswagen didn’t wake up to all of that until we got to spring of this year and looked around and said: ‘We’re getting kicked around a little bit here.'”