Bernhard Says VW North America is "A Company in Crisis" Finally there's someone with good old fashioned common sense running Volkswagen. Not that Herr Dr. Bernd Pischetsrieder,
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| Finally there's someone with good old fashioned common sense running Volkswagen, new CEO Wolfgang Bernhard. (Photo: Volkswagen Canada) |
chairman of the board of management of Volkswagen AG doesn't have his act together, he most obviously does as he managed to lure Wolfgang Bernhard away from DaimlerChrysler and placed him in the top position over the iconic VW brand, but ex-Volkswagen Chairman Ferdinand Piëch truly didn't understand VW's core value proposition at all. Rather than allow Volkswagen to continue its leadership as the premium make among entry-level brands, a position that it has earned by always offering slightly sportier, more solid feeling cars with better interior quality than its Asian and American rivals, Piëch had a "vision" of Volkswagen as a premium brand, right up there with
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| VW has long been considered the premium make among entry-level brands, a position that it has earned by always offering slightly sportier, more solid feeling cars with better interior quality than its Asian and American rivals. (Photo: Volkswagen Canada) |
BMW, Mercedes-Benz and, ironically, Audi. The result of his vision is the Phaeton luxury sedan, one of the most impressive vehicles in the full-size premium four-door market segment, unfortunately saddled with a badge that most consumers associate with thrift and economy. To be fair to Piëch, VW AG's broad European nameplate portfolio, which included Spain's SEAT and the Czech Republic's Skoda brands situated below Volkswagen, was the main reason VW was chosen to move up-market. But the move has proven nearly fatal in North America, with Volkswagen having run up losses of approximately $1.24 billion USD in North America, mostly in the U.S. - the brand does slightly better in Canada due to our penchant for smaller cars and a stronger following of diesel buyers.