The game of economic expectations is an important one, because consumer spending is as much about psychology as household finances. In that light, it’s interesting to hear what Jonathan Browning, president and CEO of the Volkswagen of America Group, has been saying lately. …read more
Source: FULL ARTICLE at Forbes Latest
By Zach Bowman
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Jonathan Browning, Volkswagen North America CEO, has said that workers at the company’s Chattanooga, Tennessee manufacturing facility will decide if they want union representation. Browning made the comment while speaking to reporters at the New York Auto Show, according to Reuters. Browning also made it clear that the United Auto Workers isn’t the only option open to employees at the plant.
“If employees vote in favor of formal representation, then it’s important to understand that there are a number of alternatives that may or may not include the UAW,” Browning said.
Technically, the company hasn’t scheduled a vote on unionization at the Chattanooga factory, but Browning says the company is in the early stages of discussions on the matter. The automaker’s board has not discussed the topic in an official capacity.
If the workforce does decide to join the UAW, it would be the first foreign-owned plant to do so. The union has been courting plants owned by foreign automakers for years, but has never managed to sway workers.
VW’s Browning says TN workers to decide whether they want union originally appeared on Autoblog on Thu, 04 Apr 2013 10:56:00 EST. Please see our terms for use of feeds.
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Source: FULL ARTICLE at Autoblog
By John Lamm
It probably seemed like a good idea at the time, but so too did Ford’s Edsel, Mercury’s LN7, and importation of the Yugo. When Volkswagen presented its Routan-badged, Chrysler-built minivan at the 2008 Chicago auto show, there was talk of as many as 45,000 being happily driven off VW dealer lots each year. In theory, that would have put Routan sales to this point at some 200,000, but the total through February 2013 runs to just 57,650. Now comes word via Automotive News that VW will drop the Routan from the brand’s lineup as of this year.
Any Routans built for the 2013 model year will be designated for fleet use, mainly by VW. In fact, Chrysler hasn’t assembled any Routans in its Windsor, Ontario factory since July 2012. We understand that the agreement between VW and Chrysler’s Windsor facility expires at the end of 2013, and VW tells us that a decision regarding the future of that agreement hasn’t been determined yet. According to AN, that contract will be allowed to expire, as we speculated late last year.
At the New York auto show, Jonathan Browning, CEO of Volkswagen Group of America, told Automotive News, “The segment is contracting in favor of crossovers and SUVs,” adding, “If you look at the history of the [minivan] segment, I don’t think anybody can deny there’s been erosion.” AN points out that U.S. minivan sales rose 14 percent last year to 597,118, with Chrysler and Dodge selling 253,212 of those and Honda adding 125,980. VW sold 10,483 Routans during the same period.
Volkswagen has suffered from van envy for years after doing much to establish the segment in the 1950s before falling victim to the infamous 1963 Chicken Tax. VW has teased us mercilessly with very cool Microbus concepts, including the Bulli—an ad featuring Sam The Sham & The Pharaohs doing “Wooly Bully” would have been a natural—but apparently couldn’t make the numbers work for U.S. or Mexico production. Now VW is on a new track echoing Browning’s comment about crossovers and SUVs, as evidenced by the debut of the CrossBlue concept, the made-for-America three-row crossover.
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America’s minivan wolfpack has just gotten smaller by one. According to Automotive News, Volkswagen officials have confirmed what we’ve suspected for some time – the Routan is dead. Essentially a lightly reworked version of the Dodge Grand Caravan, the Routan actually hasn’t been rolling off of Chrysler’s Windsor, Ontario production line at all this year, but VW had yet to confirm its discontinuation. However, Jonathan Browning, CEO of VW America, has reportedly admitted that the Routan is being axed, with remaining units expected to be funneled into corporate functions for “internal purposes.”
The move isn’t unexpected – the Routan has never been a big seller, with just 57,650 examples moved since sales began in 2008 – peak yearly sales totaled under 16,000 units, and that was back in 2010. And while many have talked of the minivan segment shrinking, Automotive News points out that the segment actually grew 14 percent last year to 597,118 units, though it should be noted that most segments have been on sales upticks as the US economy chugs out of its recession.
So, is volume-crazy Volkswagen prepared to pass on large family vehicle sales? Probably not – the German automaker has signaled that it plans to build a three-row crossover in North America soon, and we wouldn’t be surprised if it looks an awful lot like the Crossblue Concept from January’s Detroit Auto Show – minus the fancy plug-in diesel powertrain.
Volkswagen Routan dead, pour out a sippy cup for your little homies originally appeared on Autoblog on Thu, 28 Mar 2013 07:58:00 EST. Please see our terms for use of feeds.
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Source: FULL ARTICLE at Autoblog
