How VW Can Get Hot Again

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The good news for VW shareholders is that the man now in charge may have a good grasp of the U.S. market. Wolfgang Bernhard became chairman of the VW brand in May 2005 after spending several years in Michigan as Chrysler's chief operating officer. A young and energetic executive who once rode a 500-h.p. Tomahawk motorcycle onto a stage at an auto show, Bernhard helped lead a turnaround at Chrysler, streamlining production and advocating boldly styled models like the 300 sedan. "He has a balanced mind-set of American expediency and German precision," says David Cole, head of the Center for Automotive Research.

Bernhard's influence is already being felt. He has abandoned some technologies that he regards as unnecessary, like a radio antenna integrated in the rear window. And he's reining in designers who have been "acting out their creativity too much," says Hans-Gerhard Seeba, a former VW executive. Bernhard also pushed the Chrysler project, opting to have his old company build VW's new U.S. minivan rather than re-engineer a European version. The deal marks VW's first major foray into contract manufacturing in North America, a risky but necessary move. It's part of his plan to populate the U.S. fleet with a wider variety of models, including more that are produced locally.

In marketing, VW is taking a similarly wide approach to recapture buzz. Commercials for the GTI feature hyperactive Germans "unpimping" the cars of hip-hop kids with new models. Jetta's ads focus on safety, depicting jarring accident scenes, while spots for the New Beetle enlist the musician John Mayer playing guitar. "We look at ourself as more idea-centric than ad-centric," says Kerri Martin, director of brand innovation. But it seems fair to ask: If a bold new era is really dawning at VW, will anyone notice?

For a review of the Eos, go to time.com/vw