For years, Volkswagen catered to a niche market in the U.S. with its unique, quirky cars that embodied the “people’s car” ethos. However, around the mid-2000s, the company shifted its focus, aiming for a substantial presence in the American automotive market as part of a global strategy for expansion. To win over U.S. consumers, VW leaned heavily on its expertise in diesel technology, launching a “clean diesel” campaign to promote its vehicles as efficient alternatives to gas guzzlers. The pitch was that these cars were ideal for highway driving, more straightforward than hybrids, and didn’t carry the eco-friendly stereotypes. It seemed tailored for American buyers.
However, this approach faced almost universal rejection in the U.S.
Volkswagen poured billions into marketing, violated regulations, misled authorities, and attempted to sell a product that was unmatched in performance, yet it still struggled to attract American consumers. This illustrated a profound misunderstanding of the U.S. market.
Now, with the introduction of the new three-row Atlas crossover, Volkswagen may be finding the right approach.
Contrastingly, the Touareg, priced starting at $49,495, exceeds the competition’s highest price points but struggles with storage capacity and a somewhat unreliable reputation, heavily relying on its suspension system for marketing. American customers prioritize size, reliability, and brand prestige. If a vehicle can’t offer one or more of those attributes at a competitive price, it’s unlikely to succeed.
The Atlas, however, stands out. It’s notably spacious, surpassing almost all rivals in wheelbase, and is priced lower than main competitors like the Toyota Highlander and Honda Pilot when similarly outfitted. Did VW skimp on quality by using lower-grade materials in less visible areas? Certainly. But, as statistics suggest, American buyers often prioritize lower cost over top-notch quality, as evidenced by Jeep’s 91,532 Compass sales last year.
Furthermore, the new Atlas offers features tailored to American preferences, such as remote start and a spacious third row that can comfortably accommodate adults. While it includes an economical 2.0-liter turbo four-cylinder engine that meets the demands of day-to-day commutes, Volkswagen recognizes that many Americans prefer larger engines, so a robust VR6 option is available. Most notably, there are no diesel engines in sight.
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