Celicamaro

DIANA T. KURYLKO | Automotive News
Posted Date: 8/11/05

A band of Volkswagen specialists - named Moonraker, after a 1955 Ian Fleming James Bond spy novel - is traveling the United States in search of marketing insights.

The group's task over 13 months is to determine VW's vehicle needs in the United States as well as to understand this market. Moonraker consists of 22 Germans and an American.

The group arrived here in April.

VW says the group's goal is "to draw up a vehicle and business concept for the American market that would boost volume, earnings and brand reputation."

The longer term results could change the way VW develops vehicles.

VW says it's too early to have Moonraker members talk to the press. But the company says team members must "detect forthcoming trends, experience the customer's demands directly and draw conclusions from them as to the direction project development must take."

The team is based near Malibu, Calif., and is traveling through the country making extended stays in various locations.

Moonraker is the pet project of VW Chairman Bernd Pischetsrieder, who lamented that VW's $1.29 billion loss in North America last year was unacceptable.

The group is headed by Stefan Liske, director of group product strategy and former head of BMW's X3 SUV project.

Hunt is mentor

One of the group's mentors is Len Hunt, who heads Volkswagen of America and assigned one of his sales and marketing specialists to the group.

According to VW, team members' initial comments show Moonraker is quickly discovering the VW brand doesn't have the appeal in America that it has in Germany or Europe.

That is just what Hunt wants to hear.

"They are really trying to understand what makes America tick and how the market is evolving," Hunt says. "There are a lot of shifts going on, and we are trying to get in front of the curve."

Moonraker's main goal, Hunt says, is to build a cadre of key employees in Germany who understand the U.S. market. That will complement VW brand boss Wolfgang Bernhard's experience as COO of the Chrysler group.

"They'll go back really, really understanding the market," Hunt says.

The trick, he adds, is to preserve VW's European character, which customers like, while addressing U.S.-specific needs.

Listen and learn

In VW's internal corporate German publication "Autogramm," one team member says he didn't realize how badly VW is doing in the United States until he arrived here.

"I didn't discover the real urgency of the situation until we experienced the market firsthand once we got here and talked to Volkswagen dealers," says Arne Harms of VW's quality assurance department.

"We are trying to sell products developed for the European market on the American market."

Other carmakers are meeting U.S. customer demands better than VW - especially since they are developing unique vehicles, Harms says.

Mathias Grosser, who works in VW's individualization department, says he was amazed that "we still don't really cater to the customer's wishes in America - just as the Japanese didn't really cater to our tastes 30 years ago."

Understanding VW's image

Moonraker still is addressing the basics, especially finding out what customer groups VW must target and what vehicle concept "suits the North American market so that we can maximize our market effect."

To understand the VW image, Moonraker already has talked with people in 24 cities.

The Moonraker team isn't just talking to dealers and customers.

It also is looking at successful companies such as Apple, Nike, Starbucks and 3M.

Here's my take on it:
ANy of us here could've told them what US customer wanted. Hiring a bunch of hardcore VW fans to do the job ain't gonna cut it as they're so biased in their own ways they won't see the whole picture or except what the public wants(German superiority attitude). They'll probably end up hating mainstream america for expecting VW to be more Toyota/Honda like(quality, reliability, fun to drive, cheap to fix, more power less money, great efficientcy, 4yr model change, etc). VW is currently doing fine, they've already got a hit on their hand by making new Jetta look like a corolla. If they can cut back their prices and put 300% effort on quality control, there's no need for this Moonraker group.

Only thing I see this James bond group being good for is predicting what current VW customer wants, not what mainstream america where VW wants a piece of in order to grow and expend. Why not just hire a bunch of ex or current Toyota research teams like GM hired Toyota'smain quality dude out of retirement?

mmarshall

One we start getting clean, European-stype diesel fuel here in the U.S. next year that will help address the diesel emissions problem, and the public starts to see how diesels get roughly the same mileage as hybrids but with a LOT less complexity, I think the American public will want a lot more more VW diesels. Crude oil traded today at an all-time record of $66 a barrel, and fuel prices are only going to go UP.

I tend to be a little leery of VW electronics myself but a co-worker of mine has had two Jetta diesels....he just bought a new one about a month ago......and loves them. Gets 50-60 MPG on the highway.

Iceman

I actually think this is a REALLY good idea, if VW's higher-ups actually pay attention to what the Moonraker team tells them. This reflects a refreshing focus on (gasp!) the customer, which has clearly been lost at VW with the introduction of such products as the Phaeton and Touareg. It's not that VW's products are BAD, but they just don't connect here for some reason. This team really could help them make that connection.

The reason they need a team of German company loyalists (and not just us, for example) is that these guys on the Moonraker team will eventually go back to their regular jobs at VW, educated and enlightened about the American market. They will percolate what they've learned through the ranks by sharing their stories and lessons learned.

doug_999

Ya know that silly Toyota did the same thing back in the 80's. Sent a bunch of Japanese engineers over here to figure out what we wanted.

Crazy idea I tell you.

Lexusfreak

If VW wants to know what 'makes America tick' all they have to do is ask Toyota!

mmarshall

I don't agree that VW has nesessarily " lost sight " here. The Phaeton is a very impressive car, especially the W12 version......VW badge or not. If American luxury-car shoppers are not buying it, IMO that's not VW's fault....the public only has itself to blame. The old saying goes........." You can lead a horse to water but you can't make him drink ". VW has done an excellent luxury car here at a price that undercuts its M-B and BMW rivals.....even its brother the Audi A8.......and doesn't have the quirks of the new 7-series. If the public wants to ignore the Phaeton it's their loss.

Yes, you have the questionable VW electronics, but that is the case with ANY German make.

RobSoVIP

I love the jetta TDI for one huge reason. I drove with my girlfriend in her car from Houston to Panama City, Florida once, and never fueled up the entire drive. When we got to Panama City... we still had fuel!

mmarshall

Yeah...see my first post above. It's hard to beat the TDI's mileage and lack of complexity. Small hybrids like the Civics and the Prius can give you the mileage but with a far more complex vehicle...and the heavy battery packs that will wear out and have to be disposed of or recycled.
This brings up another important issue with hybrids....to my knowledge no company has yet come up with a plan for recycling these battery packs in large numbers.

Lil4X

I totally agree that the availbility of low-sulfur diesel will make advanced (European) engine technology available here. From all reports these Euro-diesels are outstanding powerplants, producing considerable amounts of power without the thrashing and smoke of a conventional diesel. Combined with their excellent fuel economy, these engines may just make hybrids obsolete. They might even make some of us forget the abortive GM LF7 and the LF9 diesels of the late '70's -early '80's.

In the case of the Phaeton and other upscale cars, VW has been a victim of its own success here in the US. Here in the '50's and '60's Volkswagen was known as an "economy" car - even to the end of the Beetle's importation in the '70's. The bug was always promoted as a "cheap" and uncomplicated car - and very successfully too. When the "Rabbit" ("Golf" in Europe and later in the US) was introduced to replace the bug, VW made no real attempt to sell it as a contemporary car - which it certainly was - the corporation-saving Chrysler "K" cars were based on it.

VW stayed with the proven "economy" image, when it was really producing mainstream automobiles - just in a contemporary "European" size. We in the US equated "small" with "cheap" - and Volkswagen cried all the way to the bank. Now they are producing beautifully-crafted vehicles that compete with very sophisticated luxury cars, and can't understand why the proud application of that saucer-sized "VW" badge to a luxury market car simply won't sell in the US. There are too many of us - children of the '50's, '60's, and '70's who are all grown up now and looking for a new luxury car . . . and are still programmed with the "economy" (cheap) image of VW in our early years.

Iceman

I think you're making my point for me. It doesn't matter how awesome the car is or how well it is priced. If it doesn't connect with the consumer, then it is ultimately the COMPANY'S loss in terms of sales, profits, future service revenues, etc.

And if the car is awesome and well-priced, then why isn't it selling? Could it be VW's marketing? Maybe their dealerships are somehow a turn-off? I honestly don't know, but I do know that dedicating a team to figuring it out is a smart move by VW. Hopefully they're not just looking at the cars themselves, but the whole customer experience from start (getting someone interested in the product) to finish (post-sale customer service and hopefully continued business).

mmarshall

I don't know the answer 100% either, but there are some strong hints and clues about that age-old piece of automotive nonsense called IMAGE rearing its head again. This is why I have said so many times that it is nonsense....not that image doesn't exist ( it certainly DOES, and I admit that ) but the REASON for it existing is a bunch of nonsense. VW's image in this country is that of a company with quirky, poorly-built cars ( they DO have poor electronics ) , arrogant company reps, a "feminine" or "chick" component, (especially with the Beetle and Cabrios), playing second-fiddle to other German makes, and a general disconnect with the American consumer. So....what then is the likely reaction of the American luxury-car buyer to the Phaeton...especially the W-12? Most likely..."Well, why should I give my hard-earned money ( lots of it, I might add ) to this arrogant company for a car that is just an oversized and overpriced Passat? I'll just get a Mercedes S-Class or BMW 7-series instead and get REAL German engineering." So, instead of seeing and recognizing the inherent value of the Phaeton and the fact that it is a genuine and true luxury car at a fairly good price.....the lowest-priced 12-cylinder car sold in America, they once again let "image" dictate their buying decision and go out and spend even MORE money for a POS Chris Bangle 7-series or a Mercedes S-Class. ( However, in fairness to Mercedes, the S-Class, in spite of its poor repair history, DOES rule the road when safety features are taken into consideration )

TheRupp

I know for a fact that VW's lack of build quality leads to less customer loyalty. They don't have the best record for customer service, either. You have to at least balance. If you're going to have crap customer service, then build better cars. If you're going to build good cars, then have crap customer service. Not both.

Their marketing really isn't the best, either. They don't really ever give any statistics in their advertising, nor do they give ANYTHING to sell people on. They make no mention of Bluetooth in the Jetta (which would sell a good amount of people, btw), they don't really mention fuel economy (because VW actually FINALLY made a fuel-efficient vehicle), I JUST found out by looking on the internet that it has rain-sensing windshield wipers, they don't mention the memory seats, or anything. All they've done so far is shown the exterior of the vehicle and the radio from what I've seen on TV.

Maybe they're waiting for the 2.0T or the 3.2 to make its way into the engine compartment of the Jetta. I don't know. They don't really seem to have a target audience, either. There isn't really a general population that migrates to VW whenever a new vehicle comes out (except for the VWVortex community ).

People KNOW that VW's aren't the greatest cars out there, so VW needs to turn their negative image around for themselves. Oh oh here's an idea!

Stop building a German vehicle in Mexico! That's a GREAT idea.

mmarshall

Never mind the Phaeton........perhaps VW's best marketing point, if they would just stress it more...... is that they are currently the ONLY manufacturer in the American market that offers a significant line of passenger-car diesels. Though they are not available in all 50 states, where they ARE available, they offer hybrid-style mileage WITHOUT hybrid-style complexity or heavy battery packs. Diesels are low-polluting in CO and NOX, but have significant solid-particule emisions.....in other words, " soot " . However, as has been noted here on CL so many times, that could change with next year's EPA-mandated clean, low-sulfur diesel fuel here in the U.S. and with the new urea-injection systems diesel enginers are working on.

Incendiary

VW did have a commercial touting the new Jetta's creature comforts. The girl was driving, salesman in back, guy in passenger seat playing with everything.

Mike, image is everywhere, not just in the car world.

nthach

I think Toyota needs to buy out the Volkswagen Group.

I personally have a soft spot for VWs, I would consider getting a MKIV Golf if something happened to my LS400...