The new Jetta strengthens the brand on the US-market
On the way to be a successful volume brand
Detroit is recovering and slowly becoming popular again.
"Detroit is back!": The once-glamorous automotive city on the banks of Lake Michigan with the legendary nickname "Motown" is slowly becoming cool and attractive to young companies again. An increasing number of companies have been settling here since 2013. The reviving, up-and-coming region is just the right terrain for a successful classic from American automobile history. Right on cue for the 2018 "North American International Auto Show" (NAIAS), Volkswagen will present the revamped US favourite, Jetta, to the world in Detroit. From 13 to 28 January, the most important automotive exhibition in the US will set the stage for the strong comeback of the Volkswagen brand on the US market.
US icons: Volkswagen Beetle, Bus and Jetta
The Volkswagen Jetta has occupied a special place in Volkswagen's product range for many years now. Although there is still a strong trend towards pick-up trucks on the North American market, the sedan remains the German make's best-selling model in the USA. This puts it in the same league as the Beetle and the iconic Bus, both of which still have legendary status in the USA. No wonder then that the Wolfsburg crew promise that the new edition, internally referred to as A7, will play a key role in the further success of the brand on the North American market.
Hinrich Woebcken is in charge of Volkswagen's comeback in the USA.
The modular transverse matrix is an innovation by Volkswagen.
Hinrich J. Woebcken, Head of the North America Region of the Volkswagen brand, knows that "the new Jetta and the new Arteon will generate strong, conventional product momentum in 2018 alone, up to 2020 when our all-electric vehicles will appear". Also in Canada, where he sees a very strong trend towards SUVs, just like in the USA, "traditionally European tastes are evident – for example, the visibly high demand for models of the Golf family," says Woebcken. In Mexico, Volkswagen is in contrast very strongly represented in the small A0 or Polo segment. "Our advantage is that we are well placed to be able to serve the entire North American continent with our modularity and modular spans," says Woebcken, summarising the situation.
First Jetta based on modular transverse matrix
Countless international trade journalists, industry experts and enthusiasts descend on the world's fourth largest auto show in terms of visitor numbers. They will experience the very first presentation of the Jetta, which is based on Volkswagen's modular transverse matrix. The modular design allows Volkswagen to offer a wide range of combinations tailored to the entire North American continent.
In North America, the modular transverse matrix portfolio currently ranges from the Golf, Jetta and Tiguan with a long wheelbase to the powerful seven-seater Atlas. With renewed confidence and popular models like the Jetta, Volkswagen wants to continue on its path to transforming the company. "Coupled with our short and medium-term focus on becoming a more family-oriented, more SUV-oriented brand, we are developing into a full-range supplier on the US market," says Woebcken, explaining the brand strategy.
The Atlas will appeal to customers as a mid-size SUV.
Dr Herbert Diess at the annual press conference in Wolfsburg.
Volkswagen reinvents itself
A strong and, above all, relentless wave of new products will provide additional support to the core business. As a consequence, Volkswagen will be able to grow into a relevant volume provider in the medium term. This effort is focussed on a market, which has been dominated by American and Asian brands. "Investing in future technologies and high-value new models is aimed at accelerating brand transformation as well as achieving steady productivity gains and cost reductions," explained CEO of the brand, Dr Herbert Diess, at the annual press conference at the end of 2017. The success of the sporty compact sedan so popular in America is a crucial element, forming the foundation to invest in the brand's electrification.
And while Volkswagen continues to invest in future-proof business models, the former automotive metropolis of Detroit is also finding new, modern solutions.
Since Detroit's insolvency in 2013, rents and land prices have plummeted in the streets of "Motown". Investors subsequently bought large areas of land for small amounts of money. In the meantime, companies are opening up new businesses on a daily basis, and even the ghost towns in the suburbs are gradually coming to life again, much like how mother nature works. The large numbers of vacancies are attracting new industries and create an attractive environment, especially for start-ups. Volkswagen and Detroit reinvent themselves – car by car, building by building, idea by idea.
