Dealers Say VW Needs 500,000-Unit Sales in U.S.

Volkswagen AG’s U.S. dealers says the company needs to achieve annual sales in the American market of at least 500,000 units to keep its retail network profitable, Bloomberg News reports.

VW’s leadership agrees, according to Alan Brown, who chairs the company’s National Dealer Advisory Council. VW brand sales peaked at 438,000 units in 2012 but totaled only 349,400 units last year.

Until VW’s diesel emission cheating scandal erupted last September, the company was targeting VW brand sales of 800,000 units in the U.S. by 2018. That target has been shelved pending a resolution to the company’s diesel emission cheating scandal.

Still, the brand’s U.S. dealers say achieving even 500,000 sales will require more competitive pricing and additional models, including several more SUV/crossovers, according to Brown. He tells Bloomberg the company’s executives he met with last week were “very reserved” about lowering prices.