NYCshopper
11-28-2007, 08:30 AM
VW will build minivan for U.S.
http://www.detnews.com/apps/pbcs.dll/article?AID=/20071128/AUTO01/711280386
http://www.cmgestore.com/vw08/elements/VW_logo.gif
Vehicle to be made for sale in America will be made in Canada, share Chrysler underpinnings.
Germany's Volkswagen AG will roll out a VW minivan designed for American customers next year as part of an ambitious plan to triple its U.S. sales over the next decade to 1 million vehicles.
The minivan, whose name has not yet been revealed, will share underpinnings with Chrysler's new minivans as part of an agreement negotiated by the two automakers, but it will have its own front, rear, and interior styling.
Chrysler will produce the VW minivan at the Windsor plant that turns out the Chrysler Town & Country and Dodge Grand Caravan, officials said
"Volkswagen is a good strategic partner for these types of joint venture projects," said Volkswagen of America spokesman Keith Price. In recent years, VW and Porsche jointly developed their first SUVs -- the VW Touareg and Porsche Cayenne.
VW plans to start selling the minivan next October, but is not disclosing sales projections.
The minivan segment has shrunk by about a third in the past two years, prompting General Motors Corp. and Ford Motor Co. to get out of the business. But industry analysts say it offers VW an opportunity to expand its lineup.
"The pie may be shrinking, but pieces of the pie are expanding because Ford and GM have essentially abandoned the segment," said Mike Robinet, vice president at the forecasting firm CSM Worldwide in Northville.
VW has not offered a minivan in the U.S. market previously, but many customers remember the loaf-shaped, family-friendly VW buses of the 1950s and 1960s.
Volkswagen still has a strong following in the United States, where its vehicles hold their value better than most other brands. But its sales have dwindled to just over half their 1970 peak of close to 570,000 units as the automaker fell behind Asian rivals after letting its U.S. lineup grow stale.
Last year, its sales totaled 329,113 VW and Audi vehicles.
Next year, VW plans to sell its Tiguan small SUV in the United States, and it is developing a midsize car for the market targeting Toyota's Camry. Volkswagen may also bring to the U.S. market a version of its tiny Up city car concept shown in Frankfurt in September, company officials have said.
As part of a global effort to catch up with Japan's Toyota Motor Corp., Wolfsburg, Germany-based VW aims to sell 1 million vehicles in the United States by 2018 -- 800,000 VW-brand cars and trucks and 200,000 Audis.
The venture with Chrysler allows VW to add a minivan to its lineup quickly -- and at a lower cost than if it were building the vehicle in Europe. Chrysler, which has just halted production in Windsor of the Pacifica crossover, will benefit from the higher utilization of the plant's production capacity.
http://www.detnews.com/apps/pbcs.dll/article?AID=/20071128/AUTO01/711280386
http://www.cmgestore.com/vw08/elements/VW_logo.gif
Vehicle to be made for sale in America will be made in Canada, share Chrysler underpinnings.
Germany's Volkswagen AG will roll out a VW minivan designed for American customers next year as part of an ambitious plan to triple its U.S. sales over the next decade to 1 million vehicles.
The minivan, whose name has not yet been revealed, will share underpinnings with Chrysler's new minivans as part of an agreement negotiated by the two automakers, but it will have its own front, rear, and interior styling.
Chrysler will produce the VW minivan at the Windsor plant that turns out the Chrysler Town & Country and Dodge Grand Caravan, officials said
"Volkswagen is a good strategic partner for these types of joint venture projects," said Volkswagen of America spokesman Keith Price. In recent years, VW and Porsche jointly developed their first SUVs -- the VW Touareg and Porsche Cayenne.
VW plans to start selling the minivan next October, but is not disclosing sales projections.
The minivan segment has shrunk by about a third in the past two years, prompting General Motors Corp. and Ford Motor Co. to get out of the business. But industry analysts say it offers VW an opportunity to expand its lineup.
"The pie may be shrinking, but pieces of the pie are expanding because Ford and GM have essentially abandoned the segment," said Mike Robinet, vice president at the forecasting firm CSM Worldwide in Northville.
VW has not offered a minivan in the U.S. market previously, but many customers remember the loaf-shaped, family-friendly VW buses of the 1950s and 1960s.
Volkswagen still has a strong following in the United States, where its vehicles hold their value better than most other brands. But its sales have dwindled to just over half their 1970 peak of close to 570,000 units as the automaker fell behind Asian rivals after letting its U.S. lineup grow stale.
Last year, its sales totaled 329,113 VW and Audi vehicles.
Next year, VW plans to sell its Tiguan small SUV in the United States, and it is developing a midsize car for the market targeting Toyota's Camry. Volkswagen may also bring to the U.S. market a version of its tiny Up city car concept shown in Frankfurt in September, company officials have said.
As part of a global effort to catch up with Japan's Toyota Motor Corp., Wolfsburg, Germany-based VW aims to sell 1 million vehicles in the United States by 2018 -- 800,000 VW-brand cars and trucks and 200,000 Audis.
The venture with Chrysler allows VW to add a minivan to its lineup quickly -- and at a lower cost than if it were building the vehicle in Europe. Chrysler, which has just halted production in Windsor of the Pacifica crossover, will benefit from the higher utilization of the plant's production capacity.