Instead VW thought, let’s throw everything logical in the trash and give American’s cheap shit boxes that are poorly built, unreliable, and cheat emissions too.
Volkswagen is one of the largest car manufacturers in the world. The people’s brand is instantly recognizable thanks to icons such as the Beetle and the Bus. Those cars are still hugely popular in South America and across the world among VW enthusiasts. Additionally, as of 2018, Volkswagen dominated every other brand when it came down to global sales. The revival of the beetle, “New Beetle” was a huge success, and the Golf/GTI are a perennial favorite among enthusiasts. I loved the mk6, and the mk7 GTI’s that I drove. Everything seems awesome right? So why do I say that Volkswagen’s North American operations are in trouble? Well…there’s a lot to unpeel here.
Voltswagen & Dieselgate
It’s late March of 2021, and images and articles start swirling about “Voltswagen”. VW was changing its name to reflect its push into electric vehicles said the PR team. It was an April fools prank that backfired so bad, it did more harm than good to Volkswagen. After revealing it was a prank, many many scathing articles were written and the public felt cheated…again. I mean, at the time of writing this article, we are not that far out from VW’s infamous “Dieselgate”. And unless you’ve been living under a rock, you already know this was one of the biggest scandals to hit the automotive world since who knows when. Slapped with billions and billions of dollars in penalties and lawsuits, VW was so deep in the red the accountants probably ran out of red ink. Then right when break even seemed like a possibility, coronavirus decimated auto sales. But car sales are rebounding exponentially, so there’s hope again for VW.
The ID.4
That glimmer of hope not only comes from rebounding sales, but an opportunity. VW has the opportunity now to redefine itself as we head in to the electric era. So let’s talk about VW’s first dedicated EV here in the United States. The ID4. I remember seeing VW’s ID vehicles at the 2018 Los Angeles Auto Show and really liking them. Handsomely designed, practical, and as a car that could push VW forward from Dieselgate. VW bet everything on the ID4 with aspirations to make it the ultimate people mover and gas alternative. Yet the ID4 came out to lukewarm reviews, many stating it is overpriced and underperforms. Some reviewers also griped about some low end cabin materials. Despite mediocre range, its good driving dynamics, neat tech touches, three years of Electrify America charging, and a handsome design, it is looking pretty promising.
But in the EV world, you absolutely HAVE to make a splash. HAVE TO. Especially if you want people to pay attention to your car. It needs style, it needs funkiness, it needs to have something special. At the very least it needs a halo model that get’s people excited.
Let’s look at some of the hottest EV’s besides Tesla: The Audi e-Tron GT and Taycan have standout designs and incredible performance. Hyundai’s Ioniq5 has the most amazing cyberpunk design and that 350kw fast charging ability, and Kia’s EV6, while lacking in extravagant design, has a GT model that can run with supercars. The Mustang Mach E has those Mustang looks, fun to drive, the upcoming uber fast GT Model… you get the point. Back to the ID4, what’s the special sauce? Without this, I think that as more and more EV entrants enter the field, the ID4 is going to get lost in the mix.
Crossover’s (or lack thereof)
Alright so the future is looking a little bleak, but what about now? As of writing, crossovers are all the rage and have been growing in popularity since the early 2000’s. Crossovers are unibody (not body on frame) vehicles whose chassis can underpin both a car body (think hatchback or sedan) and an SUV body. Most “SUV’s” you see are crossovers. And nowadays thanks to improved technology, crossovers can offer hatchback practicality, three row seating, all weather performance, a high driving position, and now fuel economy differences are minimal.
Many automakers have been boosting their crossover lineups to incredible numbers. Ford has four crossovers and three truck based SUV’s. Hyundai and Kia stuffed their lineup with six crossovers, and Toyota has four crossovers and three truck based SUV’s. What does VW have? Two. They have the Tiguan and the Atlas (plus the Atlas CrossSport but I’m counting that as the same). In a world full of crossovers, VW only has two. To be fair, a third is on the way in the shape of the VW Taos but still. In my counts, I wasn’t even including Hybrid and Plug-In variants to which VW has nada.
An example of crossovers saving a brand is Mitsubishi. Mitsubishi has barely had a presence here in America, yet they have managed to survive. Why? Because of crossovers. Gone is the Lancer/Evo and Eclipse coupe. Instead Mitsubishi came out with the Outlander Sport, brought over Europe’s favorite Outlander and Outlander PHEV, and introduced the Eclipse Cross. And offered a 10 year/100,000 mile warranty to boot. Come on VW!
Brand Image
Ok so there has to be something right? Sure VW may not have the full breadth lineup major competitors offer but that sometimes is ok. You can still be successful in your niche. Just look at Subaru, Mazda or Tesla. Each company has succeeded in its niche because it fulfills what its core audience wants while making fixes to make each product better. Subaru went all in on the outdoor adventure niche while making improvements to interiors and reliability to draw more audience into the brand. Tesla went all in on the affluent, tech savvy car enthusiast niche, and trickled impressive performance and technology into an expanded more affordable lineup. Mazda hit home the driving experience niche, while improving its poor interiors and cheap design.
What has a mostly niche VW brand done here in the States? Nothing. They had opportunity and failed…again. Remember the New Beetle I mentioned earlier? Or the VW Bus? They could’ve capitalized on those products, bringing German style, flair, and quality for less. I mean when we all think of German cars, we think luxury and dynamics. BMW. Audi. Mercedes. We all aspire to have those cars but can’t afford them. VW could’ve capitalized on that niche. And from there, improved aspects Americans desire like reliability. Instead VW thought, let’s throw everything logical in the trash and give American’s cheap shit boxes that are poorly built, unreliable, and cheat emissions too. On top of that, the niche I just mentioned VW could have taken is now dominated by Hyundai and Kia.
Conclusion
VW really needs to get its head in the game if it wants to succeed and grow in the fiercely competitive North American market. I’m sure VW has many talented and very smart people working for them, but they keep failing over and over to the point where nobody is surprised. It’s because of these constant blunders that makes me think VW (not the VW auto group!) is a company that is dying a slow death in the United States, trounced by hungrier and smarter competitors.
