The new 2012 Passat is nearly upon us and VW AG in Germany waits with great anticipation. It has been since the 1970's that VW has had a solid stake in the American automotive market with yearly sales of over 600,000 units and great market share driven by the old air cooled Beetles. It was not until 1998 that VW came back on the American automotive map with the release of the New Beetle. Sales grew solidly for several years, but quality issues and lack of renewed product stifled the brand once again. Now we sit pacing to sell 325,000 units this year with growth nearly twice the market and we are poised to take off and challenge the Toyotas, Hondas, Hyundai’s, Fords, Chryslers, and GM’s of the world with the release of the new Passat.I can tell you that VW has learned a lot about the American automotive market over the past 15 years and they are finally positioned to compete in the largest and most competitive auto market in the world. Why do I say this now? Well, I just got back from the grand opening of the factory in Chattanooga and experienced the $1 Billion commitment to the American market that the Germans have made and experienced their undaunting will to succeed here. The factory is truly state of the art with a laser focus around quality which has been VW’s Achilles heel in the US market. The Passat has been designed for this market to take on the Camry’s and Accords of the world and in my mind wins handily while being priced similarly. The mid-sized sedan segment is the largest and most competitive in the US market and 6 or 7 of the top 10 models sold come out of this segment. I am eager for the challenges ahead of us in this segment, but know after seeing the car that we will succeed and VW will once again be a major part of the American landscape.
Oh, and don't forget the product behind the Passat. The new 2012 Beetle is a complete 180 from the current car and truly resembles a Porsche throwback. That coupled with the Tiguan redesign and bringing the Golf R to America shows VW is still true to their roots but with mainstream products that will position VW with a little help from "The Force" as the only German volume brand in world.
