Volkswagen Will Lower Prices to Better Compete in US Market
Following an agreement with dealers earlier this week, Volkswagen is planning to cut prices in an attempt to increase sales in the US.
Volkswagen “is looking at this with a volume mindset,” Alan Brown, chairman of VW’s US dealer council told Bloomberg. “We are getting the product we’ve been asking for.”
The price cuts are part of an attempt to win a bigger share of the American market, a region where VW typically has struggled. Even before the scandal the car maker was keenly searching for ways to sell more cars in the States.
SEE ALSO: Volkswagen Agrees to Pay US Dealers for Diesel Damages
And that’s part of what caused dealers so much strife. Before the scandal, dealers were asked to grow their dealerships to prepare for a big sales push, but since the scandal deliveries have fallen dramatically.
VW has agreed to a settlement with its dealers reportedly worth $1.2 billion. The agreement is still officially confidential, though, so whether this number is accurate and what the “additional benefits” hinted at are remains to be seen.
This article originally appeared on VWvortex.com
[Source: Bloomberg]
Sebastien is a roving reporter who covers Euros, domestics, and all things enthusiast. He has been writing about the automotive industry for four years and obsessed with it his whole life. He studied English at the Wilfrid Laurier University. Sebastien also edits for AutoGuide's sister sites VW Vortex, Fourtitude, Swedespeed, GM Inside News, All Ford Mustangs, and more.
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Funny how my Mexican Jetta car parts prices are twice the cost of it's competition. Yes, I checked it out on my own personally comparing it to the Toyota Prius & the Ford C-Max. Twice as much for parts! And two of my parts have popped off, needing to be replaced. Where's the high European quality with that?
Zilch, ok, what will do anything?