VW Heads Off World Cup Kerfuffle

By admin.

In Brazil, Volkswagen AG is the official team sponsor, but the auto leader had to take action to head off a potential issue involving a “competitor’s” ad. According to a report, Brazil’s soccer federation (CBF) promoted the Hyundai Motor Corporation as partly connected to the team’s success at the last World Cup. It’s alleged that a complaint was filed to Hyundai, a South Korea company, that one particular marketing campaign promised an additional year’s warranty for anyone in Brazil who bought a Hyundai—assuming the team won the sixth World Cup.

Alerted by Volkswagen, CBF took quick action, telling Hyundai that the ploy was a “misuse” of the team’s intellectual property. An email statement from Volkswagen noted that “Volkswagen do Brasil is in contact with CBF to clarify and resolve this issue.” Additionally, the statement reminded readers that VW has been the official auto partner of the team since 2009 and was promised exclusive rights for promotional activities. Hyundai simply stepped over the line.

Playing Games

The Hyundai campaign chose to play on the Portuguese word “hexa,” which translates to “sixth,” and made promises to everyone in the country that, should the team win, what’s normally a five-year warranty will become six. This is only for cars sold between January 1 and July 13, 2014. A spokesperson for Hyundai, Meeyoung Song, chose not to comment for the entire auto maker. However, the head legal official of the CBF, Carlos Eugenio, has officially asked Hyundai to stop the campaign.

Officially dubbed the “Hexagarantia,” the ad can still be found on YouTube and has strong volkswagengarnered thousands of hits. The company’s official website is also still offering the promotion—however, Volkswagen isn’t worried. It already manufactures the best-selling car in Brazil, the Gol, which was named after Brazil’s passion for soccer. In fact, it’s been the best selling car in the country for 27 consecutive years.

Private Property 

While VW and the Gol clearly have no real competition, it’s still paramount that Volkswagen steps in when they see something awry—especially when it involves intellectual infringement. Hyundai is indeed an official sponsor of FIFA and can associate itself with the tournament as a whole, but it can’t play favorites and can’t single out Brazil. While it obviously could have worked out well for Hyundai, there’s only room for one top-selling car in Brazil, and that spot is taken.

Every year, the FIFA sponsors pay about $350 million combined for those incredible sponsorships. However, Volkswagen and Brazil have been a team for so long (going on three decades) that it’s impossible to know if VW is the best seller in the country because of the sponsorship or if Brazilians simply have great taste when it comes to both sports and automobiles. Either way, it’s gearing up to be an exciting season, and VW is on top of things to make sure it’s a fair game every step of the way.

VW Winning the Global Market

By admin.

If you think VW fans in America are something to be reckoned with, they have nothing on the global market. The beloved manufacturer has enjoyed a full two percent gain in global growth for February 2014 alone. In fact, over 407,600 vehicles have been sold around the world, with the majority being in Europe—which is no surprise considering Volkswagen has always held strong to its German roots. The most popular models were a smattering of different SUVs and the Golf hatchback.

However, it’s expected that sales of the Golf model in general will shoot through the roof in the US once the 2015 e-Golf hits the showroom floors. “Even though the situation in some markets was at times difficult, the Volkswagen passenger-cars brand continued to develop well. There was high demand in particular for the Up, Golf and Golf wagon as well as the Touran and Tiguan,” reports Christian Klingler, VW Chief of Sales.

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Topping the Charts

The year of the horse is barely out of the starting gates, yet VW is already touting a 3.3 percent increase in sales, totaling 923,100 units, before the first quarter has even closed. In Europe, total growth is at six percent with Western Europe (not including Germany which VW always considers separately) leading the pack. In this slice of Europe, sales were up eight percent while Germany hit a steady stride at five percent.

It wasn’t surprising that China was another big VW consumer, since that’s been the trend for years, but it reached 12 percent in gains or 437,000 vehicles in February. The same can’t be said about the US, which hit a rough patch and VW sales dropped 16 percent, but then again winter is never a popular car buying season for most Americans. Volkswagen expects to see an American spike once the warm weather is here to stick.

Americans Prefer the Finer Things 

On the other hand, maybe it’s just that Americans are leaning more towards luxury as the economy recovers, and VW’s Audi division has been growing steadily in February—it’s even slated to outpace BMW soon. “We will increase deliveries in all regions of the world, including Europe,” said Rupert Stadler, Audi CEO. He’s expecting the revenues in 2014 to expand at a steady pace, especially in China which is Audi’s largest market.

Goals for sales of Audi are impressive as Stadler is expecting 500,000 vehicles to be sold in 2014 in China alone, which is a record breaking figure. As Volkswagen’s “growth engine,” the company has spent over $30 billion to put Audi at number one by the year 2024 and 70 percent of those funds are earmarked for technology and new products. Likewise, Lamborghini (another VW division) is also enjoying record sales mostly due to the Aventador, which boasted a nine percent increase compared to last February.

For those who are holding off for the 2015 e-Golf, or simply better weather for car shopping, there are plenty of options on the table. The only question is which division, and which model, suits your needs best.