Volkswagen AG’s money-losing U.S. unit will be profitable "shortly," Chief Executive Officer Martin Winterkorn told reporters in Palo Alto, California.
The company will appoint a chief for the unit soon, Winterkorn also said at an event to discuss VW’s electric-car strategy.
Winterkorn hasn't selected a permanent successor to U.S. chief Stefan Jacoby almost a month since the VW veteran of 25 years stepped down. Jacoby’s exit coincides with the final phase of introducing a new Jetta compact, VW’s best-selling American model, and as VW prepares to open a factory in Tennessee and present the first car built exclusively for the U.S. market.
The CEO has promised almost to triple VW’s share of the second-biggest auto market to 6 percent by 2018 and boost deliveries to 1 million cars, including the Audi luxury unit.
Winterkorn, 63, is banking on localization of models and giving up the Wolfsburg, Germany-based carmaker’s premium- pricing strategy in the U.S. to compete with small-car leaders Toyota and Honda Motor Co.
In the first six months, VW boosted U.S. deliveries by 30 percent to 126,000. Jetta sales increased 19 percent to 55,258 cars, accounting for 44 percent of the total. Other models that posted gains included the Tiguan, Passat CC and Rabbit.
VW unexpectedly named Barnes and Michael Lohscheller on June 24 to run the U.S. operations on an interim basis, saying the company was holding contract talks with Jacoby. The negotiations focused on Jacoby’s obligations to VW before he takes over as CEO at Volvo Cars, people familiar with the matter said June 25.
Winterkorn also said the company plans to introduce electric cars in 2013 and forecast sales from the vehicles will be 3 percent of total annual sales by 2018.
