By Peter M. DeLorenzo

Detroit. Every time this organization looks to be lulling alone into a cumbersome keeping sample of ready for “The Grand Transition” (or is it Ready for Godot?) to EVs – with the brain-numbing cadence, predictability and many years this will entail – blundering controversy normally would seem to be under no circumstances far away. This 7 days, it’s people rumbling, bumbling and stumbling executives from Volkswagen AG who have come to the entrance of the line, broadcasting their assumed balloons out loud substantially to the consternation of every person, in particular their lengthy-suffering U.S. dealers.

What have people preening – “we’re geniuses, just talk to us” – VW executives unleashed on their unsuspecting U.S. sellers this time? VW dropped the information – absolutely out of the blue, of course – that the firm would generate a pickup and off-street-oriented SUV for the U.S. sector below the Scout title, not VW, beginning in the year 2026. 

There was incredibly minimal substance to the announcement over and above that, which created VW dealers nuts and hugely suspicious as to what VW’s CEO, Herbert Diess, was definitely up to. Was Diess aiming to minimize U.S. VW sellers out of the equation and market specifically to customers? That is a distinct possibility, as it’s usually identified that Diess is a massive, unabashed lover of St. Elon. And the fact that there have been in essence no other aspects – as in zero – about the system forthcoming pretty much confirmed those people suspicions. No plant facts, no original marketing and advertising approach, no nothin’. Just, “Ya, we’re gonna have them in-sector by 2026.”

Do the U.S. VW dealers have good purpose to be suspicious? Unquestionably. The German-dependent VW executives have a long history of abusing U.S. sellers. The abuses contain: 1. Failing to get even a modicum of comprehending of the U.S. market, permit on your own care. 2. Dim-bulb advertising and marketing and strategic selections based mostly on these exact executives’ “gut feel” for what the U.S. current market desired, alternatively than listening to immediate suggestions from the people today who truly realized the industry, aka the VW dealers. I could include numerous a lot more points, like shoving unpronounceable (and nonsensical) names on VW cars sure for the U.S., dependent on the essential assumption made by those people exact same German VW executives that they knew what was most effective, and moreover, the dealers would make it function by some means. And the Germans’ steadfast refusal to listen to their U.S. dealers about the have to have for a much larger, competitive SUV for this market to the point that it was nearly as well late by the time the Atlas arrived on the scene. (The Atlas has proved to be a successful lifesaver for the manufacturer right here.) 

You’re damn right VW sellers below in the U.S. have each and every explanation to be cautious of Herbert Diess and his longing to be regarded as a futurist and an EV visionary when it arrives to cementing VW’s long run standing in the “Grand Transition.” Diess’ delusional wondering is no actual surprise, either, thinking about it has been a trademark of each German auto executive more than the previous 40 a long time, at the very least (see Dieter Zetsche’s “Smart car” folly, for just a person evident illustration). 

The practice of believed for these German vehicle executives goes anything like this: 

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

“My intestine inner thoughts are much better and more precise than any investigation, in-market seller input or other reasoned advice, especially from the denizens of our U.S. market place outposts.” (Ditto, see above.)

“Anyone who thoughts my directives or orders will be exiled to an inconsequential placement, in no way to be heard from yet again.” 

But then again, none of this is astonishing to any German manufacturer supplier listed here in the U.S. It’s all the similar chorus no matter if it’s Audi, BMW, Mercedes-Benz or Porsche. The horror stories from these dealers are eerily identical, and they all revolve all around the simple fact that there has hardly ever been a much more depressing good deal of so-termed “executives” who have accomplished considerably less with a lot more than your usual German vehicle government. Paraphrasing what Joe Pesci famously stated in On line casino“These men could fuck-up a cup of coffee.”

I’ll give you a few of examples. Recall when BMW’s German executives adopted the straightforward phrase “Joy” for a worldwide redirect of its promotion? And then they proceeded to attempt to shove it down the throats of its U.S. sellers? The identical dealers who had been dwelling, breathing and nurturing “The Greatest Driving Machine” – a person of the most legendary vehicle marketing themes of all time – for more than 30 decades? Sure, BMW executives in Germany essentially attempted to get the U.S. dealers to undertake “Joy.” And pointless to say, it did not go well. BMW’s German overlords backed down, and “Joy” was never ever heard from or seen yet again in this article in the U.S., and “The Greatest Driving Machine” life on.

And then there’s Mercedes-Benz. M-B executives are the acknowledged Kings and Queens of executing much less with far more. They have botched model launches, tried to pawn-off faux Mercedes as true Mercedes, tried to convince the American consumer that the Sensible auto was basically worth thinking of, squandered a long time of a the moment-wonderful brand name heritage by unleashing countless advertising and marketing screwups, unloaded as well lots of designs in this industry by developing niches on niches that only served to confuse buyers, whilst conveniently ignoring the truth that their dealers weren’t asking for them. I could go on, but you get the idea.

That is why this most current Diess-led VW initiative has all the signs of but another German automobile executive directive based mostly on “We know what’s finest for you, even although you’re far too stupid to figure it out for yourselves” variety of a participate in. Except this initiative stinks to significant heaven, and if I had been a VW vendor, I would not enable Diess and his minions get absent with it. 

And that is the High-Octane Reality for this week.


The Scout renderings introduced by VW last 7 days.


Editor’s Be aware: You can access previous issues of AE by clicking on “Next 1 Entries” under. – WG


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