Volkswagen in trouble in the United States

German Auto Giant Volkswagen already in trouble with their stillborn Indian operations where the allegations of bribery scandals led to them delaying their plans, have more problems with their American operations. The company’s U.S. division has posted losses since the last couple of quarters and faces a crisis. However, the head of its VW unit is optimist and believes that they should be back to profitability in the next three years.

Volkswagen USA plans to introduce five to 10 new models within the next five years as part of its plan to reverse dropping sales and popularity in the world’s largest auto market. Wolfgang Bernhard, chief executive of the VW brand said in a statement at the Frankfurt auto show: “By 2010, we will bring between five and 10 completely new models to market”.

Bernhard added later: “It’s a company in crisis. People need to understand that. They have to change.” He was launching the company’s new car Eos, a cabriolet with a convertible top at the auto show. He is experienced in this field having done similar miracles at the Chrysler Group he left earlier this year to join the VW group.

Volkswagen has suffered losses to the tune of about euro1 billion (US$1.24 billion) in North America, particularly in the United States. And they do not see any miracles to take place before 2007. the market is cluttered with massive competition and the popularity of Japanese companies mean that even the US based giants like General Motors and Ford are having their own share of problems.