Can VW Sell 1,500 Cars a Day?

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By Douglas A. McIntyre Updated Published
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Volkswagen has struggled mightily in the United States, with a share of barely 2% of the cars and light trucks sold through the first seven months of the year. As the world’s largest car manufacturer, that number has to weigh on management, and its ability to crack the second largest car market in the world.

Volkswagen of America sold 205,742 cars through July and is on track to reach 350,000 this year. If it can get that figure closer to 500,000 over the next two years, it can consider its efforts a modest success. That is 1,500 cars a day, which does not seem like much.

VW has won enough awards, particularly for its Golf line of models, that one would think this would translate into sales. The 2015 Golf was the Motor Trend 2015 Car of the Year. It was rated a “Top Safety Pick” based on a recent evaluation from the Insurance Institute for Highway Safety (IIHS), although a great many cars tested get this level of accolade. One model of the Golf — the SE (1.8 T) — did particularly well in a Consumer Reports test. On a less positive note, the VW brand barely rated above average in the new American Customer Satisfaction Index (ACSI) evaluation of major car brands.

While the reason remains hard to figure, VW cannot catch rivals like Subaru and Kia. One reason most car industry experts believe VW cannot make progress in the United States is its limited line of models. The only model that sells well is the Golf, which posted a sales increase of 169% through July to 37,441. Without the base Golf’s sales and its GTI version, the Golf “family” would not have an improvement at all. The Jetta Sedan has at least held its own with sales flat at 76,045 through the first seven months. Sales of Passat, one of VW’s best-selling models, have collapsed 16% to 49,099. Sales of the iconic Beetle have fallen 17% to 15,400. One lesson from these numbers is that the introduction of new models into the U.S. market would help. It is a wonder the world’s largest car company has not been able to do that, even if the effort might be expensive.

ALSO READ: America’s Best and Worst Car Brands

The math is simple. Volkswagen of America needs to sell 1,500 cars a day, as soon as possible. It would mean a great deal, at the very least symbolically, if VW could break the half a million a year sales barrier. Enough to say, VW would no longer be spiraling down in the United States.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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