The Right Model Is Decisive For Success

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The Right Model Is Decisive For Success
The Right Model Is Decisive For Success

Video: The Right Model Is Decisive For Success

Video: The Right Model Is Decisive For Success
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VW's success in the US market is largely determined by the right model. That is even more important than the question of location, said works council chief Bernd Osterloh.

VW works council chairman Bernd Osterloh considers the selection of "the right model" to be the most important requirement for success in Volkswagen's new US strategy. In his opinion, this is even more crucial than the location question, said Osterloh on Wednesday in Wolfsburg.

Construction of a US plant

VW wants to stimulate the previously loss-making US market with a new strategy. In order to compete as a domestic car manufacturer and to avoid exchange rate risks, a plant is also to be built in the USA. As recently became known, the three states of Alabama, Tennessee and Michigan are in the final selection. Production is scheduled to start in 2010.

Osterloh assumes that the concept for VW's plans in the USA will be in place by July so that the supervisory board can then decide on it. A quick decision about the location is not necessary because production can initially take place in the Mexican plant in Puebla. “But how do the models for the US market need,” said Osterloh. And as soon as they are built in quantities of 250,000 to 300,000, their own gearbox and engine production is also necessary.

"The US mark is currently a challenge for the entire auto industry," said Osterloh, making the problems clear. He referred to the climate debate and its effects on the auto industry. In addition, nobody knows how badly the middle class has been affected by the recent turbulence in the banking sector. In addition, the question arises of how VW will arrive with its diesel strategy. (dpa)

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