VW Vows to Overhaul U.S. Lineup Faster

Volkswagen AG plans to accelerate the new-model cycle for its VW brand in the U.S. to suit consumer demand and boost sagging sales.

Michael Horn, who heads VW's U.S. unit, tells Bloomberg News that models will be redesigned every five years with a mild update at the three-year mark. Currently the company replaces models every seven years with a refresh at four years.

Critics have suggested that VW also must expand its product lineup in the U.S. market with more models.

The faster cycle plan comes after 13 months of consecutive year-on-year sales declines for the VW brand in the American market. VW sales are down 10% this year in a market that has grown 3% overall, according to Autodata Corp.

The VW Group management board will finalize the faster cycle plan in June. But Bloomberg says the move won't affect any models until 2017 at the earliest.

Horn concedes to Bloomberg it will be "a stretch" to meet the brand's sales goal of 800,000 in the U.S. by 2018. Last year VW sales fell 7% to 407,700 units.