VW / Audi / VW Group Tidbits

[sirAQUAMAN64]

Just thought I'd start a thread with general VW info as I tend to come across what I think is interesting stuff but don't want to start an assortment of different threads.

VW wants twice as many owners to stick with brand

Laura Clark Geist  |   |  Automotive News / October 2, 2006 - 1:00 am
 
DETROIT -- Volkswagen wants to double the percentage of its owners who stay with the brand for their next vehicle purchase.

The Volkswagen brand's 29.3 percent loyalty rate for 2005 was well below the 49.6 percent rate for all automotive brands, according to J.D. Power and Associates.

Kerri Martin, VW's director of brand innovation, said she is determined to elevate VW's loyalty rate to 60 percent. She didn't offer a time frame but said she plans to rely largely on customer marketing events and an improved Web site.

"For a brand that has an enthusiast base that is as loving of the brand as they are, our loyalty is not where it should be," Martin told Automotive News. "We can't afford to conquest nearly 71 percent of our annual volume anymore. Current customers are a brand's best currency."

In 2001, the VW brand had its best U.S. sales year since 1973, with 355,648 retail vehicle sales. A year later, the brand recorded a 41.6 percent loyalty rate, says Neal Oddes, director of product research at J.D. Power and Associates.

After that, though, VW sales went into a tailspin. Quality problems compounded the company's failure to refresh its lineup and match competitors' incentives.
 


--------------------------------------------------------------------------------
Ones that got away
A survey of more than 100,000 former U.S. Volkswagen owners who switched brands last year found that these were the new vehicles they bought most often.
1. Toyota Corolla
2. Toyota Prius
3. Subaru Forester
4. Toyota Highlander
5. Nissan Altima
6. Honda Element
7. Honda Odyssey
8. Toyota Sienna
9. Scion xB
10. Honda Pilot
Source J.D. Power and Associates
 
Note many of the VWs were traded in on vehicles roomier than any of VW's current North American offerings. If VW sold the Touran, or maybe even the Golf Plus, I bet they could retain a whole lot more buyers. Still maintain it'd do much better than the upcoming badge engineered DCX VW maxi-minivan too, as it's an alternative vehicle much like the Forester/Prius/Element/xB on the list. I can't for the life of me understand why they won't try it.
--------------------------------------------------------------------------------

Sales rise after slump

Last year, Volkswagen sold 224,195 cars and trucks in the United States, a 37.0 percent decline from 2001. From January through August of this year, VW recorded U.S. sales of 162,092 vehicles, a 14.7 percent increase over the year-ago period.

Martin conceded that VW's failed effort to penetrate the luxury market with the Phaeton sedan also confused some buyers.

"The key is, how do you take those difficult experiences and turn them into positives?" Martin said. "That's what we're on a mission to fix."

To keep more VW buyers in the fold, the company is holding customer events across the country.

An event called Water Fest drew 20,000 owners of VW vehicles and classic cars to Englishtown, N.J., last July. Enthusiasts played hubcap Frisbee, raced slot cars, saw new vehicles on display and learned German from recordings piped into restrooms. "Helga" - the blond, leather-clad German actress who appears in GTI TV commercials - greeted fans and posed for pictures.

Martin has created the post of director of experiential marketing to maintain a consistent brand message across what she calls VW's "consumer touch points." Filling that role is former VW Marketing Director Karen Marderosian.

Virtual garage

VW also is revamping its consumer Web site, www.vw.com, to make it more interactive, Martin said. VW owners are second only to Mini customers in using the Internet to research vehicle purchases, she added.

Among the features Martin plans for the site is an upgraded Volkswagen Garage, where buyers can configure a new VW with options.

Gordon Wangers, an auto analyst in Oceanside, Calif., says Martin's goal of doubling customer loyalty is "admirable but possibly unrealistic." He notes that VW aims its edgy advertising and marketing strategies at younger buyers, who tend to show less brand loyalty than older customers.

"That buyer is going after the 'What's the cool?' 'What's the hip?' 'What's the now?' " Wangers says. "Usually tomorrow, that's something else."

But Martin said she wants to regain the loyalty of customers who bought New Beetles, Passats and Jettas in large numbers in the late 1990s. Those cars helped make Volkswagen one of the hottest auto brands - with one of the youngest customer bases - in the industry.

"Clearly, with loyalty at 29 percent, they've gone somewhere," Martin said. "We need to find a balance of whom we can engage in another conversation with and bring them back to the brand, and where are we going to have to conquest from."

Price concerns

Larry Holbert, a VW dealer in Warrington, Pa., says many former VW owners have migrated to Korean brands.

"They are going to Kias and Hyundais because of the prices," Holbert says. "Some people who are getting out of Volkswagens can't afford to buy a new one because of the price jump in the last 10 years."

J.D. Power's Oddes says the 10 vehicle models that VW owners are most likely to defect to are all Japanese. Some, he says, are in segments in which VW doesn't have a model, such as minivans.

In the absence of a full product lineup, Martin is emphasizing marketing - and fun. Owners of new GTIs, for example, get a doll-sized version of VW's "Fast" advertising character. The doll has become so popular that it commands prices of $1,000 or more on eBay.

Volkswagen is selling a smaller version of the doll, called Fast Jr., for $35 at owner events and on its Web site. A Fast key chain sells online for $15.

Martin said the next step in the loyalty campaign is applying to all VW models what the company has learned from its experiential marketing of the GTI and Jetta. In the longer term, Martin said, she seeks a low-priced SUV and a microbus.

"When (buyers) come back in the market," Martin says, "we want Volks- wagen to be number one on their shopping list."

I thought VW's spot at the Detroit show was priceless. Too bad they're giving it up.

VW decides to go low-key

Edward Lapham  |   |  Automotive News / October 3, 2006 - 11:35 am
 
One of the more intriguing aspects of the Paris auto show was that neither Volkswagen nor Audi held formal press conferences, despite having some swell hardware on their stands.

Audi showed the R8 supercar, a midengined V-8 two-seater that looks every part a Ferrari-beater, and VW showed the Iroc concept that's expected to be the new Scirocco.

Instead of big to-dos on their stands, Audi and VW earlier unveiled the cars to smaller groups of reporters off-site then parked the cars at the show for everybody else to see.

For the Volkswagen brand, at least, it's part of a new communications strategy to avoid getting lost in the hoopla generated by larger automakers and the big international shows.

At the Los Angeles show in November, VW likely will do an off-site intro for an SUV concept and a couple of special-edition models.

But in January, at the North American International Auto Show in Detroit, VW doesn't plan to do much at all. VW even has given up its unique corner position that amounted to a two-level stand because it included floor space on the main floor and in the lower-level Michigan Hall, which was connected by an escalator

The buzz in Paris was that the new, low-key approach comes from VW brand honcho Wolfgang Bernhard, who once rode a V-10-powered Dodge motorcycle onto the Chrysler group's stand in Detroit.

It's not that he has lost his moxie. According to someone who was there, Bernhard introduced the Iroc by racing it around a makeshift wooden track set up in an airplane hangar in Berlin -- and he did it in the dark.

He just has a different plan.

So who gets the two-level stand? Nobody this year, says Rod Alberts, of the Detroit Auto Dealers Association, which sponsors the show.

But the floor space on the lower level won't go begging because Chinese automakers want it.

[Snowman]

1. Toyota Corolla
2. Toyota Prius
3. Subaru Forester
4. Toyota Highlander
I guess VW should address the reliability issues and get an SUV in NA.

[UmroAyyar]

8. Toyota Sienna

And a minivan.

[Scaerio]

Kerri Martin, VW's director of brand innovation, said she is determined to elevate VW's loyalty rate to 60 percent. She didn't offer a time frame but said she plans to rely largely on customer marketing events and an improved Web site.

As Snowy said, she really needs to try to kick VW's butt on the reliability issues if VWoA really wants to hold on to consumers.

[No H2O]

Quality problems compounded the company's failure to refresh its lineup and match competitors' incentives.

Having worked for a couple of VW dealerships in the past, quality/reliability have always been concerns of mine...and why I drive a Honda or Toyota.

I have under $600 (total expenditures not including lubes, filters and tires) in my Honda CR-V in 7 full years and that even includes brake pads, a wear item, and other really non-necessary repairs.

I wish VW would tackle some of their issues. I'd like to buy one.

[Accordingly]

I agree...I like the styling, handling, and overall interior quality of VW, but have been leery of their reliability scores. Friends own a Passatt, and albeit anecdotal, their constant repair woes steer me well clear of the brand.

Now, if they offered an AWD diesel wagon...perhaps I would be willing to take a chance on a lease.

[Giant Dwarf]

Quality problems compounded the company's failure to refresh its lineup and match competitors' incentives.

Having worked for a couple of VW dealerships in the past, quality/reliability have always been concerns of mine...and why I drive a Honda or Toyota.

I have under $600 (total expenditures not including lubes, filters and tires) in my Honda CR-V in 7 full years and that even includes brake pads, a wear item, and other really non-necessary repairs.

I wish VW would tackle some of their issues. I'd like to buy one.

Wow!  That really is remarkably little money for repairs over a 7 year span... though not surprising for a Honda or Toyota I guess. 

***

SirAqua, I'd also like to echo the sentiments above that the cars to which past VW drivers have switched seem to be choices noted for their reliability than anything else.  Although, with the case with the Corolla there at the top of the list, maybe the owners actually just throught they were buying another Jetta but couldn't tell the difference from the styling.   

[MKII]

Reading what the marketing guru's are planning for VW in North America, tells me the marketing people do not really know why customers are not returning to the brand. Yes VW has received some bad press on reliability, but as a 90's VW owner, my reason for not staying with VW had anything to do with reliability, it was about the indifferent service advisor attitudes, and not so pleasant dealing's with VW Credit at end of lease. VW and many of the mfg's have to find a way to communicate more with the end users of their product, the "CUSTOMER"and show support. Staging events, etc, are very nice, but I do not think VW has a presence problem. Most people, even children know VW cars.

[PJungnitsch]

Agree with the reliability angle, VW drivers are switching to the most reliable brands they can. My sister loved her old Rabbit, but after her and her husband fought long enough with that old VW (and their old Ford Ranger) trying to keep them running, they went Toyota. They've been extremely pleased with the switch.

[onearmed]

Agree with the reliability angle, VW drivers are switching to the most reliable brands they can. My sister loved her old Rabbit, but after her and her husband fought long enough with that old VW (and their old Ford Ranger) trying to keep them running, they went Toyota. They've been extremely pleased with the switch.

All VW has to do is

1-Fix reliability issues (Main issue)
2-Bring 3 new models
           1- mini-van
           2-sport-ute(RAV4)
           3- hatcback/sedan under the golf/rabbit.
3-Constant steady improvements in dealership service

Plain and simple, lets get a move on VW. 

[dr_spock]

I'm quite happy with my VW.  It has been reliable and service at the dealer has been good.  For my next car, I went with Honda.  Just to try something different. 

[AVToller]

I guess I fit the pattern - I traded in the Golf for a Forester. 

[tpl]

I had 2 GTIs and then went up to an A4 'cos I wanted proper AWD  Would have stayed with VW if I could have got a PAssat wagon 4 motion with a manual trnas and the V6.   Left Audi as they could/would not sell an A6 with a manual.

BUT I(we) may go to a GTI  dsg for me and a Passat( or jetta wagon if the reintroduce it soon)  for my better half next time around....which would count as back to VW

[No H2O]

Having worked for a couple of VW dealerships in the past, quality/reliability have always been concerns of mine...and why I drive a Honda or Toyota.

I have under $600 (total expenditures not including lubes, filters and tires) in my Honda CR-V in 7 full years and that even includes brake pads, a wear item, and other really non-necessary repairs.

I wish VW would tackle some of their issues. I'd like to buy one.

Wow!  That really is remarkably little money for repairs over a 7 year span... though not surprising for a Honda or Toyota I guess.

And that included a rear door handle (about $50) that seized up, which I could just as easily freed up and greased as well as an upper and lower catalytic converter shields (about $110) and how many people replace those. 

I guess all I've spent money on are two front stabilizer links and brake pads in 128,000 kms, so the total must also include the accessories I've bought (block heater, 2 sets of mats, etc.). I do my own work, not to save money but to make sure the job is done right. Life is too short to do things twice. 

[sirAQUAMAN64]

I honestly believe a real big issue besides reliability (reality and/or perception) and dealer service is that VW simply does not have a full line-up in North America. People have to leave the brand for larger vehicle, at least ones most people can afford, and many here do not want a wagon.

[Mr. Meow]

sirAQUAMAN64 If VW golf was good as the last 2  I had in Europe I would not hesitate. on my MK4 I never open the bonnet in 3 years. Dovercourt did open the bonnet for the servicing.  But that was about it. nothing went wrong with that car. Same as the MK1 and it had a puny 1.2 engine and was very well used when I got it.

So yes I would buy VW in England.....but not here.....Although now I would get the Seat or Skoda version cost 1000's less.
.

[sirAQUAMAN64]

Strategy 2007: Kerri Martin
VW: Turn 'loving' fans into loyal buyers

Laura Clark Geist  |  Mary Connelly  |  Automotive News / October 16, 2006 - 1:00 am
 
Other automotive brands have marketing chiefs, but Volkswagen of America Inc. has a "director of brand innovation," Kerri Martin. Other brands have customers, Martin says, but VW has "brand ambassadors."

Martin, 36, joined VW last year after overseeing marketing for Mini. She discussed her efforts to revive VW in the United States with Special Correspondent Laura Clark Geist and Staff Reporter Mary Connelly.

Aren't you really the marketing director?

It's a little bit more than that. The role of the marketing director has changed over time. I really look at our group as the starting point from which all the consumer touch points sort of resonate. If you want to say "the gatekeeper of the brand," that's a little bit more accurate.

If you look at marketing as just advertising, you're not looking at the whole 360-degree view of how you touch the consumer pre-purchase, post-purchase and during the purchase cycle.

You've been associated with strong brands. What is your formula for innovation?

I've always worked on brands that I personally identify with. That's really important, because it enables you to have a much closer relationship with the brand and its customers. It's customers that you would actually have as friends. So it starts with that.

I've worked at companies that have always respected the creative process and supported it from the top. One of the strengths that I bring to the table is to cultivate creativity within an organization. Also, working on brands where the creativity is at the core of what that brand is all about: creative products, creative marketing, creative sales experiences. It starts from within.

How do you do that with your personnel at Volkswagen?

One of the big things that we're doing here at Volkswagen is the whole idea of "invertising." It's a play on the word "advertising." If it doesn't start from the inside and go out, you're never going to be successful. You can't start from the outside and go in.

We've started to really celebrate our successes here. We celebrated the launches of vehicles more than we have before. That's been really key to generating momentum inside the organization, so that momentum can transfer to outside the organization.

How do you get your advertising agency, Crispin Porter + Bogusky, to push the edge?

That pretty much comes naturally to them. They really see themselves more as an idea factory than an ad agency. I buy into that, because it gives them access to all sorts of different touch points within the organization.

I see them as more idea-centric than ad-centric, and so do they. The momentum they've generated has started to build on itself. There is a lot of excitement. And we're thrilled with the results.

When you moved from Mini to Volkswagen, did you know you wanted Crispin Porter as your ad agency?

I came here with no preconceived notions whatsoever. I obviously knew them well. They had a great track record in building and reviving iconic brands.

Change is inevitable. We had to do a quick analysis of our business needs and what we needed to move the business forward. Arnold (Worldwide) did amazing work for the business over the years. You can never take that away from them.

We've always done work in brand communications that is suitable to the brand personality -- which is confident, fearless, honest, different and proud of it, friendly and approachable.

There was no advertising review. Why?

There wasn't time. We had three launches this year. We had the GTI launch in February. We had the Rabbit launch in June. And we have the Eos launch, which is taking place right now. Oftentimes, (reviews) are extremely lengthy processes. In the best interest of the company, in the best interest of keeping momentum going in the marketplace for the brand, we decided not to do a review.

We have an aggressive turnaround plan, for sure. When Volkswagen is at its best, we're affordable, fun to drive -- German engineering with distinctive European styling. If Beetle is the heart of the brand, GTI is the soul. So that was a great kick-start to 2006, to have the opportunity to launch a real automotive icon in the GTI.

Volkswagen strayed from its brand character of affordability with the Phaeton. Is there a need to establish trust with consumers again?

There was confusion in the marketplace, and the marketplace told us that. We are going to get back to our roots. That's what the American consumer expects from us. There is definitely room for a Touareg to exist within the brand portfolio. The flagship cars of the line -- the GTI, the Rabbit, the Jetta, the Beetle -- are the cars that carry that message.

Do you need an affordable SUV in that lineup?

Sure, we'd love an affordable SUV. We're working on that. The crossover segment is growing exponentially. The proof is in the numbers. Trucks are declining and crossovers are going crazy.

At one point, VW had the youngest buyer demographics in the industry. Is that still true?

We have one of the lower averages in the industry. I don't think it's the lowest. But we have never concentrated on demographics. It's always been more about the Volkswagen mind-set. When you get a group of Volkswagen owners in a room, and they didn't know that all of them were Volkswagen owners, they'd have a great time together.

We have some of the most enthusiastic owners in the industry. (Volkswagen of America) attended more than 18 owner events this summer. That's a real testament to us getting back to understanding and celebrating the Volkswagen ownership experience with our most loyal, faithful and enthusiastic buyers.

Is bringing that enthusiasm to your new products going to be key to growing the brand?

For a brand that has an enthusiast base as loving of the brand as they are, our loyalty is not where it should be. According to J.D. Power, our loyalty rate is 29 percent. That should easily be at 60 percent. That is our ultimate goal, to get it up there. It's going to take a lot of work.

One of the key focuses within my team is mapping out all consumer touch-point processes and understanding how we can make that ownership experience as wonderful as it possibly can be. So when they come back into the market, there's no doubt that a Volkswagen is No. 1 on their shopping list.

What are you doing to reach that goal?

We've started with the notion of making owning fun -- taking our existing owners and making that ownership experience as fun as it can be. We had a lot of fun with owner gifts. You've heard about Fast (a character in VW ads). Every GTI owner receives a Fast (doll) in the mail as part of the delivery process, so they can make friends with their Fast.

We have a position within the marketing team, the director of experiential marketing. That (person) will have the responsibility of coordinating communications with owners and maximizing every touch point the best we can.

This whole notion of experiential marketing is crucial to us. We can't afford to conquest nearly 71 percent of our annual volume anymore. We've got enthusiastic owners to build off of. Why not take advantage of that and really solidify and cement that relationship?

VW was a hot brand in the late 1990s. A lot of young consumers bought your cars. What happened to those owners?

Clearly, with loyalty at 29 percent, they've gone somewhere. We need to find the balance of whom we can engage in another conversation and bring them back to the brand. And where are we going to have to conquest from?

It's pretty exciting to see that there are folks still out there who have a passion for their vehicle and passion for the brand. It's all about treating our brand ambassadors the best way we possibly can. Current customers are a brand's best currency.

And you cannot underestimate the power that the Web has had on brands. When brands don't treat their customers just right, that word spreads fast -- faster than it did in the early 1990s or the mid-1990s.

You have had some quality issues, too.

We're on a mission from a quality perspective. We have quality circles in the U.S. marketplace, and it's something that Wolfsburg (Germany) is taking incredibly seriously as well.

I have no doubt that (quality problems) have had an effect. But the key is, how do you take those difficult experiences and turn them into positives? That's what we're on a mission to fix.

What's going to happen with Helga and Wolfgang, the characters in your TV commercials? Are they coming back?

Wolfgang and Helga aren't going away. (The actress who plays Helga) came to some of our owner events this summer. She signed head shots and took pictures with our owners. She judged a tuning contest. She's been a real hit. And Wolfgang, I'm sure, will resurface somewhere down the road, too.

The notion of "unpimp mein auto" is powerful because it really puts a stake in the ground on what Volkswagen tuning is all about -- the more subtle, more German design, not showy and not flashy. That is a key core message -- what is the Volkswagen way to go about tuning?

When we were doing research for the GTI launch, we found a certain level of backlash. There are tuners who think it's gone too far, with coffee-can exhausts and neon lights everywhere. Who better than Volkswagen to show another way to look at tuning?

Have you been watching the tuner market on the West Coast? Are you getting traction?

We're getting traction across the country. The GTI launch has been a terrific success. We're thrilled with the results. The cultural epicenters of tuning tend to be bicoastal, East and West Coast.

When the (GTI) ads launched, they were the most downloaded ads on YouTube for a couple of weeks. We've taken the campaign and expanded it. I'm sure you've seen on the Web that you can customize your car and go on a joy ride with Helga.

The Fast character, which is also part of the GTI launch, has been incredibly well received. People are customizing their Fast (dolls) and posting them online. They are taking their Fast on road trips. It's got quite a following and become part of the special ownership experience.

How do consumers get one?

The (Fast doll) that you get with purchase is the only way you can get that. It comes in a wonderfully customized box, with plaid lining.

And then there's Fast Jr. We made this smaller version, and he sells for about $25. We bring him to owner events, and dealers can sell them as well. It's amazing how many of those things we've sold.

We didn't want to be completely exclusionary to all the other Volkswagen owners who had a little bit of Fast in them. But we felt it was important to keep the larger size (Fast doll) for just the GTI owners.

How did the Fast campaign resonate with women? Some of the ads poke fun at women.

You have to be very clear who your target is. The target (audience) for the GTI is 75 percent male and 25 percent female. I would argue that women who are interested in the GTI have a sense of humor and have Fast in them. So they understand it.

I can't remember that we got any letters from anyone who was offended. There are always going to be critics. You can't talk to everybody, because if you talk to everybody, you talk to nobody.

Are you trying to make the VW brand more male?

The Beetle is the inverse of the GTI. It is 75 percent female and 25 percent male. And the Beetle is a powerful force on the overall brand essence.

I think it's more about getting back to who your targets are for your specific vehicle, instead of saying we're trying to go male. It's being true to that target and the insights that the audience gives you about the segment in which they're buying.

How important is it for your ads to create buzz and press clippings?

We will continue to do distinctive communications. It's the history of the brand, and it's proven successful for us this year. We don't go into it with the aim that we're going to generate press clippings. That's a bad strategy.

You have to be true to what the consumer insight is and deliver and transfer the insight in a creative, distinctive way. We've been storytelling all year long. That has helped generate the conversation with U.S. consumers again.

How about media strategy?

We have become more media-agnostic. We start with the idea. Once we have the idea, we decide which media are best to deliver that idea. A lot of marketers do it the opposite way. They buy a lot of television, negotiate a lot of print contracts, negotiate online media buys and then backfill it with creative. But at the end of the day, you're stuck with all this (ad) inventory.

We reverse-engineered that process. It's not easy to do, because sometimes we find ourselves three months from a launch, and we're negotiating the media buy instead of having everything in the bag. But it's a much smarter way to go, because consumers are moving so quickly today that you have to be nimble and agile to respond. If you have your year locked and loaded and your media dollars committed, it allows for absolutely no flexibility.

We do participate in the TV upfront, but not as much as we used to. We found that we can be as effective and efficient if we keep a few of the dollars off to the side and then decide whether TV, print or online is the best medium, or is product placement something we want to explore.

Are you doing more or less TV this model year?

We're staying flexible. With the mission of improving our loyalty, TV is not a medium to improve loyalty with. We are going to be rejiggering the marketing spend. But I can't give any more details than that.

The notion that TV is dead makes me laugh. It's not. Consumers can legitimately ignore you through (digital video recording) and TiVo technologies. But one of the things that we have found is that TV is incredibly powerful in generating conversation and getting us back onto consumers' radar screens. Anecdotally, we've heard about customers who have recorded our ads and played them back over and over again.



What kind of digital deals are you working on?

VW.com is the most visited Web site in the purchase-decision cycle among Volkswagen owners. It is a real powerful medium for us. It's amazing how far (research) has come in measuring and honing in on different audiences from a geographic perspective, from a mind-set perspective and a purchase-cycle perspective.

Next year we are overhauling the site and launching VW.com on a completely different platform. It will be sometime by the end of the first quarter or early second quarter.

You can look for what we did for the GTI, where you configure a car (online) and go on a joy ride. Or you configure the Jetta and then crash it. We're going to take that platform and roll it out to all the models. We want to have the most engaging customer experience possible on the Web.

We are also going to have an interesting owner section. You can configure a vehicle and put it in your Volkswagen garage, and then pass that garage on to a dealer to see what kind of inventory they have. It's an exciting initiative.

How about print?

Magazines are an incredibly powerful medium for us. You can oftentimes hone in on specific mind-sets; magazines have become so targeted. Our dealers like newspaper (ads). We've done some national newspaper, but it is not the majority of our spending in print.

It depends on the model and message. What's really important in print is that the editorial content matches the tone of the Volkswagen brand.

What about diversity marketing?

We are actively pursuing plans, depending on the model. We launched the GTI with a concerted Hispanic effort. (To reach black consumers), we were the key presenting sponsor of premieres in three markets for the movie Idlewild, with OutKast. We were very involved with the NBA All-Star Weekend.

Will your spending on marketing for the 2007 model year be up significantly?

We don't discuss budgets.

What is the hottest trend in automotive marketing?

Most automotive marketers are embracing the Web like never before and really starting to understand it. It is no longer something that you just add to the plan after you've done everything else. It's not icing on the cake anymore. It is part of the cake. If you don't understand that, you're going to be passed by real quickly.

Some automakers are using (the Web) exclusively to launch vehicles, which is really interesting. We talk to a lot of Volkswagen customers who want to communicate with us only on the Web. They say, "I just want to buy a car on the Web." The only thing they want to do is come in and sign the paperwork. Time is precious to them.

[sirAQUAMAN64]

Porsche, Piech families shift holdings in Porsche

Reuters / November 3, 2006 - 10:00 am
 
FRANKFURT -- The Porsche and Piech families that control all the voting rights in Porsche have reshuffled their holdings in the German sports car maker, which is itself the largest shareholder in Volkswagen.

The foundation Ferdinand Porsche Privatstiftung as well as the Ferdinand Porsche Holding GmbH, both headquartered in Salzburg, now hold 100 percent of the common shares in Porsche since Oct. 20, after previously controlling less than 5 percent, the company said today in a financial advertisement.

Previously, Porsche and Piech family members also owned common shares directly. All shares traded on the stock exchange are preferred shares that carry no voting rights.

Volkswagen had already said the roughly 21 percent stake Porsche owns in the world's fourth-largest carmaker was parked at the foundation and the holding company.

A Porsche spokesman said the change in the carmaker's shareholding was an internal family matter that had no further influence on the capital structure of Porsche.

Since no information on the shareholder structure of either the foundation or the holding was immediately available, it was unclear exactly what role Ferdinand Piech, Volkswagen's chairman and former CEO, had played in the decision.

The grandson of legendary Beetle designer Ferdinand Porsche and a larger-than-life figure in the auto industry in his own right, Salzburg resident Piech is often a lightning rod for speculation surrounding Volkswagen.

When Porsche surprised markets by dipping into its cash pile to buy an 18.5 percent stake in Volkswagen for around $3.8 billion (3 billion euros), investors first singled out Piech as having engineered the deal behind the scenes.

The German media have also reported that Piech has been influential in Volkswagen's plans to form Europe's truck market leader by merging Germany's MAN and Scania of Sweden, both of which count Volkswagen as their largest shareholder.

When Piech was CEO of VW in March 2000, the company bought an 18.7 percent stake in Scania at a premium to the share price, aiming to secure its strategic interest in the truck industry.

[Brigitte]

Porsche, Piech families shift holdings in Porsche

Reuters / November 3, 2006 - 10:00 am
 
FRANKFURT -- The Porsche and Piech families that control all the voting rights in Porsche have reshuffled their holdings in the German sports car maker, which is itself the largest shareholder in Volkswagen.

The foundation Ferdinand Porsche Privatstiftung as well as the Ferdinand Porsche Holding GmbH, both headquartered in Salzburg, now hold 100 percent of the common shares in Porsche since Oct. 20, after previously controlling less than 5 percent, the company said today in a financial advertisement.

Previously, Porsche and Piech family members also owned common shares directly. All shares traded on the stock exchange are preferred shares that carry no voting rights.

Volkswagen had already said the roughly 21 percent stake Porsche owns in the world's fourth-largest carmaker was parked at the foundation and the holding company.

A Porsche spokesman said the change in the carmaker's shareholding was an internal family matter that had no further influence on the capital structure of Porsche.

Since no information on the shareholder structure of either the foundation or the holding was immediately available, it was unclear exactly what role Ferdinand Piech, Volkswagen's chairman and former CEO, had played in the decision.

The grandson of legendary Beetle designer Ferdinand Porsche and a larger-than-life figure in the auto industry in his own right, Salzburg resident Piech is often a lightning rod for speculation surrounding Volkswagen.

When Porsche surprised markets by dipping into its cash pile to buy an 18.5 percent stake in Volkswagen for around $3.8 billion (3 billion euros), investors first singled out Piech as having engineered the deal behind the scenes.

The German media have also reported that Piech has been influential in Volkswagen's plans to form Europe's truck market leader by merging Germany's MAN and Scania of Sweden, both of which count Volkswagen as their largest shareholder.

When Piech was CEO of VW in March 2000, the company bought an 18.7 percent stake in Scania at a premium to the share price, aiming to secure its strategic interest in the truck industry.

Shouldn't this have been posted in the section that you now moderate, SirDoofusMan?   

[sirAQUAMAN64]

Volkswagen CEO to leave, Audi chief to replace him

Reuters / November 7, 2006 - 1:00 pm UPDATED: 11/7/2006 1:36 P.M.
 
FRANKFURT -- Volkswagen CEO Bernd Pischetsrieder will leave Europe's biggest carmaker at the end of the year, the company said today. He will be replaced by Audi CEO Martin Winterkorn.

"The presidium of the supervisory board of Volkswagen AG and the chairman of the board of management, Dr. Bernd Pischetsrieder, have agreed upon his resignation effective from December 31, 2006," it said in a surprise announcement.

It gave no reason for the move.

Volkswagen said the six-man steering committee of the supervisory board has unanimously proposed appointing Winterkorn to replace him starting next year. The full board will address the issue on Nov. 17.

Only six months ago the supervisory board unanimously voted to extend Pischetsrieder's contract until April 2012.

Pischetsrieder, the former CEO of BMW, had to survive a battle to stay on as head of Volkswagen after his own predecessor and current supervisory board chairman, Ferdinand Piech, had said in a rare newspaper interview that extending the contract remained an "open issue".

Piech, often considered by industry experts to be the true boss of Volkswagen, had cited the united opposition on the part of the 10 labor representatives sitting on VW's 20-person supervisory board who were riled by rigorous cost cutting.

Winterkorn, 59, has been considered by industry analysts to be the favorite protege of Piech and a leading candidate to replace Pischetsrieder.

But analysts have also said any change at the top could also have consequences for young VW brand chief Wolfgang Bernhard, who was seen as the logical choice to replace Pischetsrieder as CEO in 2012.