Volkswagen Looks To Double US Market Share After Eking Out First Profit In Decades

Volkswagen Group VWAGY said on Saturday that the German automaker’s next goal is to double its market share in the United States.

What Happened: The company last month said it returned to profitability after several years in North America, including in the United States, Canada and Mexico.

Volkswagen's 63-year old CEO, Herbert Diess, shared a short video clip on Twitter on Saturday, in which he is speaking with Scott Keogh, the head of Volkswagen America. 

“We are profitable, we are stable, we got the right mix, good,” Keogh says in the video, sitting beside Diess who is driving an ID. Buzz through the streets of Austin, Texas.

“Now we really got to slam the play pedal…on electrification. Ramping up now with the ID.4. We’ve got to get the car to deliver 100,000 to 120,000 units. We have to deliver a big number and get out of the 2.5 share brand to 5 or 7 points of share."

America, Volkswagen is finally back! After decades we are profitable again in the US, the team under the leadership of Scott Keogh is doing a great job! It's the goal to double our market share! #electrification @VWGroup pic.twitter.com/Iqjv7UjsNL

— Herbert Diess (@Herbert_Diess) April 2, 2022

See Also: Why Tesla Model Y Rival Volkswagen ID.4 Is The Only Used Electric Vehicle To Cost More Than New Ones In US

Why It Matters: Volkswagen last month said it would spend $7.1 billion over the next five years on EV projects in North America, as it seeks to catch up with industry leader Tesla Inc TSLA on its home turf.

It aims to launch 25 new EV models in North America through 2030. 

The automaker sold over 375,000 vehicles in the U.S. last year, 15% more than in 2020. Diess said last month that Volkswagen had grabbed an 8% share in the U.S. electric vehicle market.  

Price Action: VWAGY stock closed 2.2% higher at $25.2 a share on Friday.

Photo by Ivan Radic on Wikimedia