Jonathan Browning Q+A

North America has a large market for sports cars, surely the Bluesport roadster is a logical next step?

Firstly, our aim is to hit 800,000 sales by 2018 for the VW Group in America, but we won't do that by simply adding more models. We need to build the business up from the core with models like the Jetta and Passat. Jetta set a record last year, selling 150,000 units, and our aim is to get the new Passat up to around 100,000. There is a big opportunity with the Tiguan, Bettle and Golf, too. That doesn't mean we can't build more premium cars, like a mid-engined sports car, but the truth is that segment was decimated when the recession hit, so it's not high on our list of priorities at the moment.

Is there space for a sub-Tiguan SUV, based on the Cross Coupe Concept shown in Tokyo recently?

We call that segment the A0 category, and yes I do believe at some point in the future we will have an entry into that segment - but that's as part of a longer term plan. A couple of things need to happen before we take the plunge though - we need to see more definite growth in that segment, and there's need to be a major shift in US customer's attitude towards smaller cars. Something like a spike in fuel prices could create the perfect market conditions for a model like that.

Can you see other VW Group brands like Skoda being introduced in America?

Skoda is not a known brand over here, so it would be tough going. I think we've got plenty to work on with the five brands we currently have [VW, Bentley, Audi, Lamborghini, Bugatti]. The current market structure in America doesn't leave much room for small cars either, and it's much harder to make money from them.

How do you see the US economy affecting you over the next few years?

Next few years? Let's deal with the next few weeks first! We see consumer confidence beginning to come back. November and December last year were particularly good and there were strong sales over the Thanksgiving holiday. The national debt is still a concern, but we don't expect a double-dip recession here in the US, although it's slow progress for now.

Are the Korean brands, such as Hyundai a threat?

Hyundai is definitely a strong competitor, but you have to take into account that it has had a two year headstart on us to build momentum in the marketplace. We're on a similar journey.

Are US customers responding well to the fact that you now build the Passat and Jetta in the US, at your new Chatanooga plant?

It's interesting, all our research shows that have cars built here is pleasing to the customers, but isn't a differentiator to make them buy a car. Because it's such a modern and impressive factory, what it has achieved though is to convince the American public that our products are top quality and well-engineered.

How are sales of the Jetta and Passat TDI going?

Traditionally those buyers who buy petrol cars would never buy a diesel and vice-versa. However, we've been surprised by how well the diesel models have gone down, in fact sales of the diesel are around twice what we expected.