By Peter M. DeLorenzo

Detroit. Every time this organization looks to be lulling itself into a laborous holding sample of waiting for “The Grand Transition” (or is it Waiting for Godot?) to EVs – with the thoughts-numbing cadence, predictability and years this will entail – blundering controversy often appears to be to be hardly ever much away. This week, it’s people rumbling, bumbling and stumbling executives from Volkswagen AG who have occur to the entrance of the line, broadcasting their believed balloons out loud a great deal to the consternation of everybody, in particular their extended-struggling U.S. dealers.

What have all those preening – “we’re geniuses, just question us” – VW executives unleashed on their unsuspecting U.S. dealers this time? VW dropped the information – absolutely out of the blue, of study course – that the organization would develop a pickup and off-highway-oriented SUV for the U.S. current market below the Scout title, not VW, starting in the year 2026. 

There was very little material to the announcement over and above that, which manufactured VW dealers ridiculous and highly suspicious as to what VW’s CEO, Herbert Diess, was really up to. Was Diess aiming to cut U.S. VW sellers out of the equation and promote straight to shoppers? That is a distinct likelihood, as it is normally identified that Diess is a substantial, unabashed fan of St. Elon. And the simple fact that there were being generally no other facts – as in zero – about the approach forthcoming pretty much verified individuals suspicions. No plant facts, no original advertising and marketing system, no nothin’. Just, “Ya, we’re gonna have them in-industry by 2026.”

Do the U.S. VW sellers have good rationale to be suspicious? Unquestionably. The German-centered VW executives have a prolonged record of abusing U.S. sellers. The abuses consist of: 1. Failing to acquire even a modicum of comprehending of the U.S. market place, allow alone care. 2. Dim-bulb marketing and advertising and strategic selections dependent on these same executives’ “gut feel” for what the U.S. market desired, rather than listening to immediate feedback from the individuals who truly realized the marketplace, aka the VW dealers. I could incorporate many much more details, like shoving unpronounceable (and nonsensical) names on VW autos certain for the U.S., based mostly on the elementary assumption manufactured by those exact same German VW executives that they knew what was very best, and aside from, the sellers would make it perform in some way. And the Germans’ steadfast refusal to pay attention to their U.S. dealers about the have to have for a more substantial, competitive SUV for this market to the place that it was just about also late by the time the Atlas arrived on the scene. (The Atlas has proved to be a successful lifesaver for the manufacturer in this article.) 

You are damn appropriate VW sellers listed here in the U.S. have each reason to be cautious of Herbert Diess and his longing to be regarded as a futurist and an EV visionary when it comes to cementing VW’s future position in the “Grand Changeover.” Diess’ delusional imagining is no true surprise, possibly, thinking about it has been a trademark of just about every German vehicle executive in excess of the final 40 yrs, at the very least (see Dieter Zetsche’s “Smart car” folly, for just a single obvious example). 

The educate of believed for these German automobile executives goes something like this: 

“I am a genius, and it will be improved for all of us if you just accept that point.” (To be good, this applies to specific infamous U.S. auto executives too.)

“My gut thoughts are much far better and more correct than any analysis, in-current market seller input or other reasoned guidance, in particular from the denizens of our U.S. marketplace outposts.” (Ditto, see above.)

“Anyone who questions my directives or orders will be exiled to an inconsequential placement, never to be listened to from all over again.” 

But then yet again, none of this is shocking to any German brand name dealer listed here in the U.S. It’s all the exact chorus no matter if it’s Audi, BMW, Mercedes-Benz or Porsche. The horror stories from these sellers are eerily identical, and they all revolve all-around the reality that there has under no circumstances been a additional miserable great deal of so-identified as “executives” who have completed much less with extra than your normal German vehicle executive. Paraphrasing what Joe Pesci famously explained in Casino“These men could fuck-up a cup of espresso.”

I’ll give you a couple of illustrations. Recall when BMW’s German executives adopted the easy phrase “Joy” for a worldwide redirect of its promoting? And then they proceeded to try to shove it down the throats of its U.S. sellers? The similar dealers who had been residing, breathing and nurturing “The Final Driving Machine” – a person of the most iconic automobile marketing themes of all time – for over 30 several years? Indeed, BMW executives in Germany really tried out to get the U.S. dealers to adopt “Joy.” And pointless to say, it did not go very well. BMW’s German overlords backed down, and “Joy” was never listened to from or found all over again here in the U.S., and “The Top Driving Machine” life on.

And then there’s Mercedes-Benz. M-B executives are the acknowledged Kings and Queens of doing less with extra. They have botched design launches, tried using to pawn-off fake Mercedes as actual Mercedes, experimented with to convince the American client that the Sensible car was truly value considering, squandered many years of a after-superb brand background by unleashing innumerable marketing and advertising screwups, unloaded far too several versions in this marketplace by making niches upon niches that only served to confuse customers, when conveniently ignoring the reality that their sellers weren’t inquiring for them. I could go on, but you get the idea.

That is why this latest Diess-led VW initiative has all the signals of however a different German vehicle executive directive based on “We know what is finest for you, even although you’re far too silly to figure it out for yourselves” variety of a perform. Except this initiative stinks to substantial heaven, and if I ended up a VW dealer, I would not allow Diess and his minions get absent with it. 

And which is the High-Octane Truth of the matter for this 7 days.


The Scout renderings produced by VW final week.


Editor’s Notice: You can accessibility prior issues of AE by clicking on “Up coming 1 Entries” down below. – WG

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