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Volkswagen to shorten product life cycles in hopes of doubling U.S. sales by 2018

Published by on Jun 4, 2014 in News Leave a comment

Michael Horn Volkswagen U.S.

In a recent interview for Bloomberg, Volkswagen’s Michael Horn revealed the carmaker’s strategy to boost sales in the following years. According to the president of Volkswagen Group of America, the company has decided to shorten life cycles of products, so new models will be introduced every 5 years, with major facelifts scheduled after three years. The carmaker’s current strategy sees new products released every seven years, with refreshes after four years. The Volkswagen executive said: “Customers want quicker change. We’re working to shorten the life cycle of the products to bring more new features and design elements, in terms of face-lifts, to the market quicker. We believe we have a positive business case. It commercially makes sense that we move.”

Despite Volkswagen becoming the second largest carmaker in the world, the U.S. market is on of the markets where they’re not doing great at all. For example, last year Volkswagen sold 400,000 units in the United States and things aren’t going to well this year also, with sales through April being 10% lower than in 2013. The new strategy, which is scheduled to be approved in a board meeting next month, is meant to increase sales in the United States up to 800,000 units by 2018.

Source: Bloomberg

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