VW labor boss: brand’s U.S. performance is "catastrophic"

In an unusually frank assessment, Volkswagen’s labor boss has characterized the brand’s U.S. performance as “catastrophic.”

“The U.S. is a case of disaster” for Volkswagen, said Bernd Osterloh, the company’s works council chief, at a press conference in Wolfsburg, Germany.

Volkswagen’s U.S. sales tumbled 7 percent in 2013, despite overall industry growth of eight percent. The year was capped by the abrupt departure of Volkswagen of America CEO Jonathon Browning.

Osterloh called for Volkswagen to move quickly in bringing new models to turn around its flagging operations, but noted that he doesn’t expect the situation to improve until 2016, when the production version of the CrossBlue concept arrives.

The CrossBlue, a three-row crossover, will follow in the U.S.-market Jetta and Passat’s tiremarks in its mission as a volume-selling model aimed the heart of the American market, in marked contrast to the premium-priced, niche-oriented Tiguan and Touareg models.

Osterloh voiced concern over Volkswagen’s continued indecision regarding whether it will build the long-delayed CrossBlue at its Pueblo, Mexico, facility or its plant in Chattanooga, Tennessee, which is currently moving towards unionization.

Intriguingly, Osterloh also suggested that Volkswagen’s U.S. lineup would benefit from the addition of a pickup. Volkswagen executives have shown little interest in entering the domestic-dominated full-size pickup arena in the past, but the company could conceivably import the Amarok if it saw an opportunity in the midsize market.