Answer to Question #218695 in Management for tsimbedzo

Question

What was the motivation for VW to expand in the US market? Explain in detail what problem the US experienced that VW could assist with by supplying their diesel vehicles. 

Answer 1

Volkswagen company learnt about the large size of the US car market. Now having one leading technology and the economic crisis experienced in the US, the company saw an opportunity to put up a company in Chattanooga Tennessee to manufacture tailored cars for the US. 

The states have massive amount of bulky goods in the market that require carriage. the advantage of diesel engines is its capacity to power heavy machines used in transport.