Volkswagen’s Ambitious US Expansion Plans
At the World Economic Forum annual meeting in Davos, Switzerland, Volkswagen’s CFO Arno Antlitz revealed that the company needs to make significant investments in the United States to achieve its goal of doubling its market share.
A Local Focus
To succeed in the US market, Antlitz emphasized the importance of being more local. This means investing in research and development, as well as expanding its plant in Chattanooga, Tennessee. “We are strong in Europe, but we need to do more ‘value-added’ in the U.S.,” he explained.
Doubling Market Share: A Challenging Task
Volkswagen aims to reach 10% market share in the US, a target that investors and analysts are skeptical about. Currently, the company holds around 4% of the market share. To achieve this goal, Volkswagen needs to overcome the challenges of a crowded market.
Tariff Uncertainty
When asked about the potential impact of US President Donald Trump’s tariffs on imports from Europe, Mexico, and Canada, Antlitz declined to comment, citing it was “too early” to speculate. However, it’s clear that Volkswagen’s global production chain makes it vulnerable to these tariffs.
Range Extenders: A Key to Success
To appeal to customers hesitant to switch to electric vehicles (EVs), Volkswagen plans to introduce range extenders – small combustion engines that charge an EV battery to extend its range – into more of its models. This technology has already gained popularity in China and is planned for some Scout models.
Investing in the Future
Volkswagen’s commitment to investing in the US market is crucial to its success. By focusing on local initiatives and innovative technologies, the company hopes to increase its market share and stay competitive in a rapidly changing industry.
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