Volkswagen plans major overhaul of US strategy

German auto group Volkswagen plans to overhaul ‌its U.S. strategy with new management and a revised product offering, including a new pickup truck, a company source told Reuters on Friday.

Marco Schubert, previously head of sales at Volkswagen's premium brand Audi, is moving to the U.S. to replace ​Kjell Gruner, who is leaving the company, the source said.

German business daily Handelsblatt first reported on ​the plans. The company declined to comment on the matter.

DRASTIC OVERHAUL ON THE ⁠CARDS

In the face of rising costs and intensifying competition from China, Volkswagen CEO Oliver Blume has pledged to overhaul ​the group. Controlling families ratcheted up pressure on stakeholders on Friday, backing management's push for a dramatic restructuring.

Thomas ​Schaefer, head of the Volkswagen brand, sees growth opportunities in pick-up trucks and large SUVs – both high-margin vehicles in strong demand in the U.S. – which the German carmaker does not currently offer.

The source said the goal is to bring the ​first pick-up truck to market before the end of the decade. The vehicle is to be built ​in the U.S.

Volkswagen operates a plant in Chattanooga, Tennessee, where production of the electric ID.4 was discontinued earlier this year after ‌changes ⁠in U.S. incentives for electric vehicles.

But the U.S. market remains attractive for sellers of combustion engine trucks and SUVs, with Ford (F.N), opens new tab and General Motors both raising their 2026 profit outlooks.

Pickup trucks accounted for nearly 20% of U.S. vehicle sales last year, according to Cox Automotive. That category is dominated by large, rugged pickups, mainly sold ​by Ford, GM and ​Ram-maker Stellantis. Those larger ⁠trucks last year had average sticker prices of nearly $70,000, Cox said.

FORD SEEN AS POSSIBLE CANDIDATE FOR PARTNERSHIP

It remains to be seen whether Volkswagen will develop the ​new pick-up model on its own or in collaboration with another automaker, according ​to the ⁠company source. A decision is expected in the coming weeks and months.

Ford is seen as a possible candidate due to Volkswagen's existing partnership with the U.S. carmaker.

Ford uses Volkswagen's MEB platform for electric vehicles for its Explorer ⁠and ​Capri models, which are manufactured in Cologne, Germany.

Volkswagen's Amarok pick-up, manufactured ​in South Africa, shares a platform with the Ford Ranger.

Volkswagen is not a big player in the U.S. auto market currently, with ​a market share of 4%.

-Reuters