In January, VW sales were flat with January a year ago at 23,504. VW’s market share dropped to 2.0% from 2.3% in the same month a year ago. Even all-luxury manufacturer Mercedes did better with unit sales of 26,124 and a market share of 2.3%.
One reason VW had to be optimistic about 2015 results is that its Golf family of cars was named the 2015 Motor Trend Car of the Year. The Golf comes in four versions, with a starting price of $17,995. The line includes electric engine and sports versions. And Golf sales were good in January, up 145% to 4,199. However, sales of VW’s best-selling Jetta dropped 8.2% to 8,969. Sales of it next best-selling vehicle, the Passat, were up only 1.1% to 6,305.
There is reason for VW management to believe that its sales fortunes in the United States might improve, even if the process takes years. The Golf is new, in its current incarnation. If VW can make and market new models as successfully, the company actually may begin to grow.
The challenge VW faces is that its larger competitors will not stand still. As a matter of fact, manufacturers that sell a lot of cars in America probably look at the United States as their best market. It is the second largest car market in the world after China. However, the climate for sales in the People’s Republic is uncertain because of potential competition from China-based companies and sales that could be throttled by air population concerns.
The Big Three and Japan’s largest manufacturers will continue to claw for U.S. market share. VW may be unable to elbow its way into that competition.
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