Volkswagen's Robust offensive

Volkswagen has a long history in commercial vehicles, dating back to the original T1 Kombi. In the main however, that history doesn't extend to pick-ups, unless they're derivatives of the mainstream vans.

For 2010, Volkswagen is expected to introduce to Australia the production version of the 'Robust Ute' -- a pick-up only outed officially as a concept vehicle at the IAA Expo in Hanover (more here ).

Jutta Dierks, MD for Volkswagen Australia was asked by the Carsales Network whether the manufacturer's first attempt at a vehicle to compete with one-tonne pick-ups from Japanese manufacturers would be marketed with the Robust name once its in production.

"The project is still called 'Robust Ute' and it's still going ahead, so that's fine," she responded. "We're looking forward to working with that car in [this] market.

"We [in Australia] are a very big market and -- again, like with Tiguan [where] we've never been in the SUV compact segment -- with the Ute we would actually enter a segment we've never played [in]."

Dierks has high hopes for the Robust Ute and what it can do for Volkswagen -- both here and in global markets.

"You talk about the brand and how it performs; one reason Volkswagen is performing nicely -- or better than a lot of the others -- we still have a chance to get into niches that we haven't been in before.

"Same procedure with Robust Ute. We are a serious player then... [in] the segment for a lot of people who never even thought about us. Then of course, it helps the whole brand."

Mention that the Robust seems like a perfect fit for a company which still benefits from its reputation in Australia for durability and Dierks agrees.

"Long term, you can drive a Volkswagen 30 years -- and people do. I mean, I would rather have them a bit shorter [than 30 years] in [the same] car..."

Dierks is satisfied that the Robust Ute has considerable potential in Australia and there's much support from the factory for this model in the local market.

"The good part is because we are a big market [for Robust Ute], we are very much involved in what they are doing -- and at least we could give [the factory] some input. Whether that has impact on the development, we will see what it leads to...

"We are very far from Europe and have other needs and requirements."

As well as Australia, the Robust Ute will be sold in South American and African markets, but not in Europe. As a consequence, it's unfamiliar territory for the German maker. Sure, there have been uniquely Brazilian and Mexican VWs in the past, but the Robust Ute represents a new paradigm for the company, in being a pick-up also.

"That is totally different for us, because usually we know what we're going to sell on our home turf. All of a sudden, we actually want to launch a car that will be sold somewhere else. So the whole process of project management has changed...

Neither Dierks nor Volkswagen's General Manager for Press and PR, Karl Gehling, would confirm what Robust Ute variants would be sold in Australia and nor would they conjecture sales projections for the LCV.

"As many as I can..." was Dierks' amused response to the question 'How many units of Robust Ute would you like to sell in Australia?'

Volkswagen has a policy of not discussing sales forecasts, but the company appears to have set comfortably conservative targets for the Robust Ute. By comparison with the 3000 or more units per month of the Toyota HiLux, Volkswagen would need to sell fewer than 500 units a month of the Robust Ute to double the current annual sales figure for the company's commercial vehicle range.

"It would change our business totally in Australia. I mean, if you said 3000 a month, that's what?... We sell 5000 a year with our commercial vehicle range, so if we look at volume like this, or even a small part of that, as I say, that would change the total [outlook for the company]..." says Dierks.

Where would the Robust's sales come from? Will it build or will it conquest?

"The aim is to gain volume..." says Dierks. "If the market is growing, probably we take that from there, if the market is not growing, you have to take [share] from somebody else.

"Our aim is not going in and take something away from Toyota, but in a growing market, that is easy. You can actually generate more volume, [but] if the market is not growing, you have to convince people to walk away from another brand.

"[500 a month] would be great. I think it's the same as you would see with Tiguan. There's a... 70,000-car [compact SUV] segment [per annum].

"We have to deliver [as few as] a thousand cars because of supply reasons. What is the potential? Well, we have no idea. Of course, we want to [improve] our share... but nobody can really say how much we can take away from these established players.

"The same thing will happen in the ute segment. There are established players, highly regarded, very respected brands -- but at the end of the day, are the buyers prepared to walk away and try something else?

"That is our chance [and] that is a challenge as well..."

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