Wednesday, October 16, 2019

Great Scott!

Here is a production version of the eighth-generation Volkswagen Golf, the world premiere of which is due next Thursday in Wolfsburg.  (The picture was nabbed by a resourceful chap in Slovakia.)  And whether or not the United States gets it in its VW lineup is still up in the air.  That was the message from Volkswagen of America as recently as this past Friday (October 12). 
The decision on that question, as always, rests with one man and one man only - Scott Keogh, Volkswagen of America's president and chief executive officer.  Other VW managers can persuade him one way or the other, but the final call is his alone to make.
Keogh (above) has been CEO of Volkswagen of America for a year now, and it remains to be seen how successful he will ultimately be in his job.  He has tough shoes to fill, given some of the legends among his predecessors, such as Carl Hahn, who built up the Volkswagen brand in North America in the early sixties (and later became chairman of Volkswagen AG, the only former Volkswagen of America president to achieve that position), J. Stuart Perkins, who succeeded Hahn and led Volkswagen to its best years during the era of the Beetle and later oversaw the transition to watercooled VW models, and Bill Young, who saved Volkswagen from oblivion in America with his insistence of better quality control from the factory in Mexico that began supplying cars to the U.S. and Canada in the early nineties.  Keogh has a tall order; he's faced with the task of keeping Volkswagen commercially successful in an era of sport-utility vehicles while having to balance that with the desires of America VW die-hards who prefer the traditional small hatchbacks and sedans that Volkswagen has long offered.
Right now, Keogh is pushing for more SUV models and even a pickup truck in Volkswagen's U.S. lineup, in order to appeal to those buyers (who make up seven out of ten new-vehicle customers), even as he has to decide on the base Golf's future in a market where hatchbacks are spectacularly unpopular but where loyal Volkswagen customers demand such a car because of their own tastes, which are outside the mainstream.  Keogh has talked up SUVs in the motoring press like a disc jockey talks up the latest Ariana Grande record on pop radio, but he's made it clear that hatchbacks won't be cut from the U.S. lineup entirely.  But which hatchbacks will stay?  He has sent signals that only the Golf GTI and Golf R, the Golf's performance variants, will stay in the U.S. market because he still wants to cater to VW "enthusiasts" - suggesting that no one could get enthusiastic or excited over a base Golf hatchback.  (I happen to be a VW  enthusiast who does.)  On the other hand, Keogh has also hinted that the base Mark 8 Golf is assured, despite the fact that it hasn't been confirmed.   
"We will be launching the Golf VIII," Keogh told Automobile magazine in May 2019, "which will be the next-gen and it will have a GTI, so we're 100 percent on board [with that model]. But right now the GTI is going to stay GTI. And the [eighth-generation version of that] will come, and it's going to be as cool as hell."
Koegh has already disappointed many VW enthusiasts in America by canceling the Golf wagon and giving a thumbs-down to the idea of the Golf-sized ID.3 electric hatchback for sale in North America.  (We're getting an electric crossover instead.) While I understand Keogh's desire to sell the more popular car styles to keep Volkswagen in business in America, I hope he remembers the loyalists - those of us who still bought VWs when consumer magazines told us not to, bought them during the depths of VW's misfortune in the early nineties, and stood by the brand even after the diesel scandal broke.  I hope he recognizes, as I told him in three separate letters (full disclosure), that the Golf embodies Volkswagen in the watercooled age and that the base car should remain in the U.S. lineup, with only enough cars for those who want it.  So maybe I should be happy that Keogh is trying to add a pickup truck to Volkswagen s North American lineup; a vehicle like that would certainly offset losses on every base Golf VW sells to loyal American customers who want the same car their German (and Canadian) counterparts get to buy.
My gut instinct is that Koegh would rather not take the base Golf out of the U.S. market, but he is aware of how poorly they sell not just against SUVs and sedans, but maybe even other hatchbacks, and his decision will ultimately be made based on the numbers.  If he can't justify keeping the base Golf in America, he'll drop it.  If he can find a way to include it in the U.S. lineup going forward, he'll keep it. 
That said, I leave you with this.  Scott Keogh says he wants to make Volkswagen matter in the U.S. again, though it's always mattered to the VW loyalists here.  So, a lot of us will be watching every move he makes with baited breath.  Especially his next one.    

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