cars news 10: 6 Tidbits From our Chat With Volkswagen North America’s Top Brass

As the Volkswagen brand prepares to put Dieselgate in its rearview mirror, it featured three launches at the L.A. auto show: the three-row SUV at long last named “Atlas,” a longer-range E-Golf, and a Passat GT “concept” (which just means the Chattanooga-conceived variant hasn’t been fully green-lit yet). The brand also made the bosses of its North American operations — Hinrich J. Woebcken, CEO, and Matthias Erb, chief engineering officer — available for a Q&A session. Here are some highlights of that chat.

Teramont?

The North American operation is taking a bigger role in determining its own destiny, from product planning (Passat GT) to purchasing, and as such is expected to achieve better results generating profitable business plans. The North American operation also pushed back on Germany’s original name for its three-row “B-SUV,” which was originally named Teramont. We think Atlas has a better ring to it. The Teramont moniker will be used in export markets like Russia and the Middle East (all models will be produced in Chattanooga, Tenn.).

Atlas Strengths

When asked about the Atlas’ unique selling propositions, Erb listed some unconventional attributes like easiest third-row entry and slimmest A-pillars (obscuring a mere 7 degrees of outward visibility thanks to their clever shape and high-strength steel construction). He added that VW intends to price the SUV aggressively and to bestow best-in-class levels of comfort/convenience equipment and driver-assist functions on the new Atlas.

No Hybrid Atlas, but Plenty of Electrics

The various CrossBlue concepts hinted at a plug-in hybrid variant of the Atlas, but Woebcken more or less dashed hopes of such a vehicle coming to market. He feels that electrifying existing gas-powered architectures necessarily leads to too many compromises, so he favors the idea of introducing multiple vehicles in many categories based off of the VW Group’s forthcoming MEB dedicated electric architecture, on which the Group has declared 30 new vehicles will arrive by 2025. Leveraging platform architectures to support a range of vehicles is a VW Group strength, and technology partners (unnamed) are at work on next-generation battery chemistry technology. Not all 30 VW Group EVs will come to North America, but many will. Woebcken sees a knee in the EV acceptance curve coming in the 2019-2020 timeframe as charging infrastructure plans now in the works begin to come online. Oh, and when asked if VW envisioned dialing any of its green initiatives back in light of the impending Trump administration, he noted that, while the U.S. is an important player, our administration is only one of myriad governments worldwide that the group must deal with, and if policies changed every time one of them voted, the product plans would be utter chaos. And anyway, CARB isn’t throttling back its green policies, so cars will continue getting cleaner and greener here.

What about a Pickup?

VW had been participating in segments that only accounted for 40 percent of the market. Atlas, a subcompact CUV that is being contemplated, and other new products will expand the brand’s market coverage to 60 or 70 percent. A pickup would be required to go farther, but what kind? The Amarok will be due for a redesign soon, and that version could easily be designed to meet U.S. regulations. That one is a midsize pickup, and that segment is both expanding and apparently open to off-shore brands. Of course the real money is in full-size trucks, but that segment is “extremely patriotic” and the Asian brands have struggled to make serious inroads. So the team is still considering its options here. Mattthias Erb confirmed that among the business plans VWNA is considering, commercial trucks and vans are not on the near horizon. Woebcken also hinted that to be fully competitive in all of these segments the group would have to consider fielding electric cars in many if not all of them.

Future Diesels?

There will certainly be no diesels sold in the U.S. in 2017, but Woebckin and Erb refused to rule out bringing diesels back to the U.S. in 2018 or later. Both acknowledged that TDI would never regain the up to 25 percent of VW sales the technology had enjoyed.

Improved Favorability Ratings

The North American team is strategizing ways to improve the Volkswagen brand’s perceived favorability. Woebcken cited the recent gains in JD Power reliability, and mentioned that plans are afoot to dramatically lower the total cost of ownership of its products, but declined to give specific details (expect free maintenance plans, service loaners, and perhaps strategies to bolster resale value). You can also expect to see more frequent product life-cycle updates, bringing new technologies onboard in between the traditional mid-cycle redesigns. He also expects the diesel “disappointment” to be resolved favorably in the eyes of consumers. Apparently there are 1,000 people working to resolve the issue on all levels. And he finds reason for optimism that all will work out favorably in the end because, as he noted “America is all about second chances.”