Benefits Of A New Electric Model For The Chinese Car Buyers

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To increase sales, and help realize Winterkorn’s vision, VW invested 18.2 billion euros in building larger manufacturing facilities to satisfy the demand (Appendix D). Additionally, VW decided to manufacture new electric models to cater for the Chinese car buyers. Both initiatives worked fine, until the Chinese economic downturn hit, and VW sales started slowly dwindling in China. C. For the US Market: Along with China, the US market is considered among the largest auto markets in the world. Just in 2015, around 7.7 million cars were sold, and 4.35 were locally produced. VW board enlisted the company on a mission to increase its US units sold to 1 million by 2018 from very modest sales (324,000 vehicles sold) in 2007. The numbers improved in 2012 reaching 438,145 Vehicles, slipped back down to 366,970 by 2014, and recovered well up until September 2015. To cater for the US auto market trends, VW invested 1 Billion dollars in an assembling plant in Tennessee to design new sedans. The company also decided to bring its successful and European designed, ‘BlueTDI Clean Diesel" car to the US market. III. International Growth Strategy Implications The above international strategic moves, required VW to serve different market segments which have different regulatory compliances, entry barriers and market trends. It also meant that VW needs to compete strongly against GM in China, ensure that the European market downturn doesn’t slow its growth, and heavily increase its

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