Friday, March 11, 2016
Volkswagen May Be Giving Up On Mass Market In US
The emissions scandal may have caused VW to shift its marketing strategy in the US. It invested $1 billion in a new plant in the US to pursue a mass market strategy but the subsequent drop in VW sales has caused VW to consider other options in the US. The recent resignation of VW's US executive who supported the mass market strategy has caused US VW dealers to threaten suits if VW backs down on its US expansion plans. VW dealers have invested around $1 billion to upgrade their dealerships in order to pursue a mass market strategy. The dealers will lose big time, but so will VW if it scales down its plans for the lucrative US market.