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Herbert Diess has been CEO of Volkswagen Group only since April, yet the 60-year-old former BMW executive now heading one of the world's largest automakers has a clear vision of where he wants to lead his company.
This month, Diess installed longtime Audi of America President Scott Keogh as the first American to lead VW in North America in 25 years.
On Oct. 31, Diess sat down at Volkswagen's North American headquarters here for an hourlong exclusive interview with Group Publisher KC Crain, Publisher Jason Stein and Staff Reporter Larry P. Vellequette to discuss his company's operations globally and in North America.
Q: Why was Scott Keogh named to lead VW in North America, and why now?
A: What we always said and what we foresee for the Volkswagen brand is a story very much like the Audi story. We aren't coming from nowhere; we have a base, and everyone knows us. But there's a long way to go to really make Volkswagen a volume player here in the United States, and I think Scott has shown that it can be done. From a low-profile position, he led Audi to a top-four premium brand -- well received, continuous growth, profitable. I think there is still potential, and I asked him to do the same for Volkswagen.
Where is VW's greatest opportunity for success in the U.S.?
I think Volkswagen has big potential here in the United States. Everyone knows Volkswagen. Most people think positively about the brand because they have their history with Volkswagen. We have been talking about your family, and so many families, that owned a Beetle, or they had a bus. Volkswagen is still present. I think we come now with quite suitable products for the United States. The Atlas was very emotional, and did a lot of positive motivation for the brand, for the dealers, for the customers. I think it's really a car for the American market. The Atlas shows that we can succeed in America. Also, the new Tiguan is selling nicely.
VW dealers have among the lowest profit margins of any U.S. dealer network. How will VW fix that?
We've spent quite some time with the dealers because we've really been coming out of a desperate situation when...