New York Auto Show: VW's Jacoby Sees Little Recovery Until 2010

By Michelle Krebs April 8, 2009

NEW YORK -- U.S. car and truck sales may come in at under 10 million units this year and may not rebound until next year, said the head of Volkswagen's North American operations.

"We may not see a recovery until the end of this year, or even into next year," Stefan Jacoby, president of Volkswagen of America, said in a speech Wednesday at the New York auto show.

Still, Volkswagen is sticking with its goal to sell 800,000 vehicles a year beginning 2018, three times its 2008 sales.

Much of its boost will come from vehicles equipped with diesel engines, said Jacoby. Volkswagen already sells more diesel-powered cars in the U.S. than anyone, with the diesel Jetta being its most recent entry and an increasingly popular one. 

To that end, Jacoby said reducing taxes on diesel fuel, which are higher than those on gasoline, would help boost interest in diesels, which are 30 percent more fuel-efficient than gasoline engines.

Construction is moving forward on Volkswagen $1 billion assembly plant in Chattanooga, Tennessee. Volkswagen has said it will build a sedan there, though it hasn't named which one. The plant will be done in 2011.

 

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johnrees says: 10:55 AM, 04.08.09

Reviewing customer service might speed recovery. View my VW experience at: http://www.reesphotos.com/VW/
JOhn Rees

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