Even with a depressed euro and sales falling 2.7 percent in April, Volkswagen is staying the course.
According to Automotive News, Volkswagen has no plans to change its current pricing strategy to chase market share. The brand has seen steady declines in the U.S. even as the market overall has been growing.
“We believe it’s the right strategy over the long term,” Christian Klingler told AN.
He stated Volkswagen has a long-term approach to protecting profits and won’t try to chase volume at its expense. Similar problems are being experienced in other markets like Brazil. Also, even with the euro down versus the American dollar, most U.S. sales volume comes from North American-built vehicles, negating any possible positive currency impact.
Much of Volkswagen’s sales slump can be attributed to their current model mix. The brand does not offer a competitive crossover between the long-in-the-tooth Tiguan and much more expensive Touareg, a segment currently experiencing significant growth.
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