The new beetle

FACTS:
-Volkswagen changes the Bug for a New Beetle.
-Volkswagen had seen sales decline in the United States from over half a million cars in 1970 to lessthan 50,000cars by 1993.
- Volkswagen of America had steadily rebounded with an annual sales growth of 29% over the 1993 to 1997 period.
- Volkswagen ofAmerica had targeted sales of 200,000 units, a 45% increase over the 1997 sales of 137,885 cars.
-In 1995 the company was incorporated and officially became VWof America.
-in 1962 a new organization was created and dealerships were expanded into a national network.
-in 1975 VW was losing money on nearly every carsold in the U.S.
-in 1982 because of the recession VW stopped selling the Beetle in U.S.

KEY ISSUES:
-The icon of 70´s (the bug) had been transformedinto a car for the new millennium.(because of the memories, and the extremely change could be an issue)
-Consumers perceived the New Beetle as a toy car.-Americans were cautious about buying imported cars.
-With a shortage of parts and costly repairs, foreign cars were a luxury few could afford.
-U.S.distribution network as dealers began defecting, particularly to the new Japanese brands.
-The VW product line was tired and old
-In 1990 VW sales had fallen to 20%of their 1970 peak (569,696 sales)

POSSIBLE SOLUTIONS:
-Give them a “sample drive” in a street career, and show them that the new beetle is not a toy car.-Open a concessionary in each state, to avoid buying foreign cars
-Improve a new image for all the line products of VW something that made them unique!