German legacy automaker sees electric vehicles as a huge opportunity to revitalize its presence in the United States amid the intensifying competition dominated by Tesla, The New York Times reports.
VW to revive its popularity among US customers
Volkswagen seeks to relive its past successes with its once-top-selling products in the US market. For instance, the Volkswagen Beetle was the most popular imported car in the country, along with the popularity of the Volkswagen Microbus in the 1960s.
As of now, VW trails behind Toyota in the global automotive market. However, it is a niche partaker in America. Therefore, it aims to reach a twofold share growth in the US market by the end of the decade from its current 4% share. In order to do that, VW relies on electric vehicles to keep pace with the progressive adoption of the new powertrain technology.
“This market is turning electric, and everybody’s starting from scratch. This is our unique opportunity to grow.”
Arno Antlitz, Volkswagen’s Chief Financial Officer, said in an interview
Strategy
Volkswagen plans to rely on a new electric counterpart of the Microbus, the ID.Buzz, to boost its sales in the US market.
The German legacy brand also aims to rejuvenate the iconic Scout brand to offer a wide range of electric pickups and sport utility vehicles (SUVs). Last week, VW executives and government officials met near Columbia, SC, to lay the foundations of the upcoming Scout factory’s site. By 2026, its North American portfolio will start to include US-made SUVs under Scout.
In addition, Reuters reported that Volkswagen remains committed to its plans to roll out 25 EV models in the North American market under its group brands by 2030, including Porsche, Audi, Bentley, and Lamborghini.
The German brand will introduce more products in the US, including the ID.Buzz electric minibus and the ID.7 sedan later this year. Considering that SUVs remain popular in the US, VW has started developing midsize and larger electric SUVs to ride on this market trend.
Market leaders
Electric vehicles have undoubtedly disrupted the automotive industry. For instance, all-electric SUVs and sedans aided South Korean Hyundai Motor and Kia to snatch Stellantis’ fourth spot in terms of sales in the US market in 2023.
“Electric vehicles are helping our brand to be seen as a technology leader.”
José Muñoz, Hyundai Chief Operating Officer
As of now, the top five automakers, regardless of engine types, include General Motors, Toyota, Ford, Hyundai, and Stellantis. Meanwhile, pioneer Tesla remained the dominant player in the all-electric vehicle segment, followed by Hyundai. GM, Ford, and Volkswagen legacy brands completed the top five, while Toyota remained a laggard in all-electric vehicles.
Now, VW seeks to boost its market share in the US by employing the same strategy that Volkswagen Group America President Pablo Di Si employed in Brazil, resulting in a surge of over 16% from just 9%.
“You look at the segments that you think are going to be successful 10 years from now. What are your gaps in the product portfolio? And then you start adding products for those particular markets.”
Mr. Di Si said in an interview
All that said, electric vehicles indeed have the potential to enable Volkswagen to grow in the US. However, it would depend on the automaker’s ability to determine the gaps it needs to fill in its product lineup. Beyond the US, Volkswagen is a dominant player, with 26% in Europe and 15% in China.
