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Volkswagen Group of America

From Alfawiki
Volkswagen Group of America, Inc.
Company typeSubsidiary
IndustryAutomotive
FoundedOctober 1955
Headquarters
Reston, Virginia
,
United States
Area served
United States
Key people
Kjell Gruner (CEO)
ProductsAutomobiles (Audi, Bentley, Lamborghini, Volkswagen, Bugatti, Rimac)
ParentVolkswagen AG

Volkswagen Group of America, Inc. (VWoA) serves as the North American headquarters and subsidiary of Germany’s Volkswagen Group. It manages six brands within the U.S. market: Audi, Bentley, Lamborghini, Volkswagen, and holds exclusive import and distribution rights for Bugatti and Rimac. Additionally, VWoA supervises VW Credit, Inc., operating under Volkswagen Financial Services, which provides automotive financing and credit solutions. The corporate headquarters is located in Reston, Virginia.

At a global level, Volkswagen AG, the parent company, oversees eight automotive marques from six European nations, including Volkswagen, Audi, Bentley, Bugatti, Lamborghini, Porsche, SEAT, Škoda, and Volkswagen Commercial Vehicles.

By 2008, VWoA maintained 20 operational sites throughout the United States with a mission to produce vehicles that are competitive, safe, and environmentally responsible while meeting international benchmarks. That year also saw Volkswagen AG announce the establishment of its first manufacturing facility on U.S. soil since 1988. The Volkswagen Chattanooga Assembly Plant commenced operations in 2011, initially assembling the U.S.-specific Volkswagen Passat NMS and later adding production of the Volkswagen Atlas in 2017.

As of December 12, 2024, Kjell Gruner assumed the role of CEO at VWoA, following the voluntary departure of Pablo Di Si.

Establishment

Founded in October 1955 in Englewood Cliffs, New Jersey, Volkswagen of America (VWoA) was created to unify dealership service standards across the United States. Under the leadership of Dr. Carl Hahn and later president J. Stuart Perkins, U.S. sales peaked at 569,696 units in 1970 with a market share exceeding 7%, supported by a network of over one thousand dealerships. The Volkswagen Beetle stood as the brand’s best-selling model during this period.

Nonetheless, intensifying rivalry from American and Japanese manufacturers led to an 87% drop in sales from 1970 through 1992 despite the introduction of front-wheel-drive models in 1975. Dealership numbers declined to approximately 630 by the mid-1990s and further to 596 by 2007.

Westmoreland and Auburn Hills

In 1978, VWoA inaugurated the Volkswagen Westmoreland Assembly Plant near New Stanton, Pennsylvania, marking a milestone as the first modern-era foreign automaker manufacturing plant in the U.S. This facility ceased operations in 1988. During the early 1980s, Volkswagen combined its manufacturing and sales divisions and relocated first to Troy, Michigan, before establishing its base in Auburn Hills, Michigan by 1991.

Challenges in the 1990s

Sales reached a nadir in 1993 with fewer than 50,000 vehicles sold. Recovery efforts were bolstered by the launch of third-generation Golf and Jetta models. By the decade’s close, effective marketing campaigns alongside new offerings such as the New Beetle (introduced in 1998) revitalized brand appeal. In 2001, VWoA recorded sales totaling 355,648 units—the highest since 1973.

Developments in the 2000s

The early 2000s saw a downturn caused by intensified competition, quality concerns, and delayed product rollouts; U.S. sales fell to 224,195 units in 2005—a decline of roughly 37% from figures reported in 2001. However, new introductions including the Passat, Rabbit, and GTI contributed to a sales increase of nearly 4.9% in 2006 with total sales reaching 235,140 units. Despite this growth, VWoA struggled to return to profitability and had not posted a profit since 2002.

In January 2007, then-president Adrian Hallmark set a goal to achieve profitability within two to three years through launching fresh models and updating marketing initiatives. His successor Stefan Jacoby continued emphasizing product line expansion.

The advertising firm Crispin Porter + Bogusky reinvigorated Volkswagen’s image in the U.S., spearheading campaigns for the fifth-generation GTI as well as Golf/Rabbit hatchbacks that generated strong initial consumer interest. Due to evolving USEPA regulations, VW phased out TDI-PD diesel engines after model year 2006 and transitioned to common rail diesel technology compliant with all state emissions standards starting in 2008.

Subsequently, Volkswagen faced felony charges along with a $25 billion penalty linked to software manipulation designed to cheat emissions testing.

In October 2009, Interpublic Group’s Deutsch agency won Volkswagen’s U.S. advertising account—signifying a strategic marketing shift fourteen years after Donny Deutsch’s previous campaign efforts against Arnold Advertising.

Relocation of North American Headquarters to Virginia

On September 6, 2007, Volkswagen of America revealed plans to move its North American headquarters to Herndon, Virginia. This decision was driven by Volkswagen's strongest sales performance in the Mid-Atlantic area and along both coastal regions, prompting a departure from the Midwest, where domestic automakers, particularly in Metro Detroit, have a dominant presence.

The transition from Auburn Hills to Herndon commenced in April 2008. Out of the total workforce of 1,400 employees, 600 stayed in Auburn Hills handling call center and technical duties, 400 relocated to Virginia, while 400 jobs were eliminated. Approximately 150 personnel from Michigan were among those who transferred to Herndon, as stated by Volkswagen of America President and CEO Stefan Jacoby.

Virginia was chosen from a pool of 14 candidates after offering incentives totaling $6 million linked to employment targets and other conditions. In 2023, Volkswagen shifted its North American headquarters once again from Herndon to Reston, Virginia.

Establishment of New Manufacturing Facility

On July 15, 2008, following a competitive selection process involving sites in Michigan and Huntsville, Alabama, Volkswagen’s supervisory board selected Chattanooga, Tennessee as the location for its new $1 billion manufacturing plant. Scheduled for launch in 2011, this facility was designed to produce approximately 150,000 vehicles annually and support Volkswagen’s ambition to boost its U.S. market share beyond 6%, aiming to add nearly 800,000 cars by 2018 on top of the 230,000 units produced in 2007.

This plant also serves as the manufacturing headquarters for Volkswagen Group of America in the United States. Officially opened on May 24, 2011, it marked a major expansion in production capabilities and underscored the company’s dedication to its U.S. operations.

Volkswagen Group of America Facilities

As of March 2018, Volkswagen Group of America maintains operations at 20 principal locations throughout the United States:

Additional regional offices include:

Regional offices

Current models

The Volkswagen lineup offered in the U.S. market consists of:

Sedan
Jetta
SUV
Tiguan, Atlas, Atlas Cross Sport, Taos, ID.4
Performance
Golf GTI, Golf R
Minivans
ID. Buzz

Sales

Volkswagen's sales figures in the United States have varied significantly over the years, reflecting shifts in strategic focus and consumer preferences:

Year Total U.S. Sales
1970 569,696
1997 137,885
1998 219,679
1999 315,563
2000 355,479
2001 355,648
2002 338,125
2003 302,686
2004 256,111
2005 224,195
2006 235,140
2007 230,572
2008 223,128
2009 213,454
2010 256,830
2011 324,402
2012 438,133
2013 407,704
2014 366,970
2015 349,440
2016 322,948
2017 339,676
2018 354,064
2019 363,322
2020 325,784
2021 375,030
2022 301,069
2023 329,029

This dataset illustrates Volkswagen's evolving market presence and growth trends within the competitive landscape of the U.S. automotive sector.

Current Audi models

The selection of Audi vehicles available in the United States includes:

Audi Sport models

The Audi Sport range available in the U.S. encompasses:

Sales

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Year Total U.S. Sales


Current models

In the United States, Bentley's lineup includes the following vehicles:

Current models

For the U.S. market, Lamborghini offers:

Bugatti

Bugatti's exclusive new model available is the Bugatti Chiron, highlighting the brand's dedication to producing ultra-luxurious, high-performance cars.

See also

External links

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