Volkswagen Group of America

My response to an article written on Autoblog regarding Volkswagen name change in the US:

The name Volkswagen Group of America better reflects who they are as a whole. They've accumulated some of the best brands in the world and want to be perceived in the US as the bigger company that they really are. This is all happening as the Porsche's family protective stake grows.

Some Americans still only associate VW with a 1955 Beetle but man, have you sat in a VW lately?! The Phaeton is built on a Bentley platform and so much of that models' technology has been passed down to the newly redesigned Jetta, Rabbit, Passat and GTi. These are not plagued with bad coil packs and window regulators that hurt them at the turn of the century. That's old news folks.

Kelley Blue Book just announced their highest award of Best Resale Value Brand to Volkswagen, in fact dethroning Honda and Acura. This is huge in the car business because that actually reflects what the market is thinking. At 1800rpm, not only are they more fun to drive than your boring grandma's Toyota, but the residuals are so high, it's putting $2 to $3k in your pocket 3 years down the road when you go to trade in.

With more Diesels in the US next year, a leading market share in China, exciting new models like the Up! coming on the world scene, I wouldn't be surprised that, as a Group, VW will continue to grow and challenge other carmakers in the US and abroad. Statistics.

Bloomberg writes: "Volkswagen AG (VOW GY): Europe's largest auto maker said it sold a record 3.37 million cars through the first 11 months of the year, boosted by Chinese demand. In November the company sold 324,000 vehicles, up 10.3 percent from a year ago."

"AUBURN HILLS, MICH. (Dec. 12, 2007) — Volkswagen of America, Inc. announced today that it has changed its name to Volkswagen Group of America, Inc. The change will be fully effective January 1.

The new name better reflects the fact that the Volkswagen Group of America includes five distinct brands: Audi, Bentley, Bugatti, Lamborghini, and Volkswagen, as well as the related financial services functions of Audi Financial Services, Bentley Financial Services and Volkswagen Credit.

“Our company, like the entire Volkswagen Group, has grown dramatically since our formation in the United States in 1955. Our new corporate name allows our individual brands to flourish, while recognizing that we have a common support structure that gives us great strength as we face our competitors,” said Stefan Jacoby, President and Chief Executive Officer. “The new name Volkswagen Group of America reflects the much wider array of goods and services we now offer, and prepares us for even more activities in the future.”

Operating under the umbrella of Volkswagen Group of America, the Volkswagen and Audi brands will continue to provide sales and service under their names, Volkswagen of America and Audi of America.

Volkswagen Group of America, Inc. remains a wholly owned subsidiary of Volkswagen AG, which together with its subsidiaries and affiliates worldwide is now the fourth largest automobile company in the world."