VW promises five-year model cycle, three-year refreshes

Volkswagen has vowed to shorten its product lifecycle, launching redesigned versions of core models every five years and facelifts on a three-year basis.
“We will reduce the lifecycle of our products to better align with customers’ buying habits,” VW of America’s vice president of marketing and strategy, Joerg Sommer, told Auto Express.

The executive admits that VW currently works around a seven-year lifecycle, which may have a restraining effect on sales potential.

The company also plans to invest $7 billion into US operations through 2018, helping fund product development and facility upgrades. A new midsize SUV built at the Chattanooga, Tennessee, plant is at the top of the list, aiming to take a bigger bite out of the booming SUV market, though several new models are expected to be added to the smaller end of the spectrum.

VW is on track to ship more than 10 million units for 2014, but at a lower profit margin than competitors. The company is expected to eliminate some struggling or low-volume models to help bolster net income.

It is unclear if Sommer’s comments are representative of a larger shift in Volkswagen Group’s strategy across all brands.