New SUVs Key to VW Sales Growth in U.S.

Volkswagen AG says it isn't likely to significantly hike sales of the VW brand in America until it rolls out new SUV/crossover vehicles two years from now.

Michael Horn, who heads Volkswagen of America, tells Reuters the company's goal until then will be to defend VW's current market share. The brand controlled 2.2% of the U.S. market last year, down from 2.6% in 2013, according to Autodata Corp. VW's shares slipped to 2.0% in the first five months of 2015.

VW has vowed since 2008 to boost VW brand sales in the U.S. to 800,000 units by 2018. That target remains a "relevant objective," Horn says. But he tells Reuters establishing a long-term strategy is more important. Last year's deliveries fell 10% to 367,000 units.

VW is struggling with a skimpy U.S. product lineup dominated by small cars at a time when consumers are flocking to the SUV/crossover market. The company will introduce a midsize crossover and revamp its existing Tiguan model in 2017. Horn says the company also is accelerating plans to debut a small SUV. He also says VW may reintroduce a pickup truck, but not until at least 2020.