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Roger Penske to the Rescue? Volkswagen the $46 Billion Automobile Giant Bets Big on Motorsports Mogul to Conquer the US Market

Virgilio Machado by Virgilio Machado
January 9, 2025
in Motorsports
Reading Time: 3 mins read
0
NASCAR’s Gen-7 Struggles: Is Roger Penske’s IndyCar Revolution Leaving Stock Car Racing Behind?

May 26, 2024; Indianapolis, Indiana, USA; Indycar Series team owner Roger Penske during the 108th running of the Indianapolis 500 at Indianapolis Motor Speedway. Mandatory Credit: Mark J. Rebilas-USA TODAY Sports

Roger Penske, the legendary motorsports figure and business mogul, is set to play a pivotal role in Volkswagen Group’s latest attempt to crack the American automotive market. As Volkswagen pivots to introduce its sporty sub-brand Cupra in the US, the German giant is leaning on Penske’s vast dealership empire and trusted reputation to smooth its path into the highly competitive landscape dominated by domestic giants like General Motors, Ford, and Toyota.

Volkswagen’s Cupra: A Bold Move Stateside

Volkswagen Group, well-established in Europe, has long struggled to replicate that success in North America. To change the narrative, the automaker has earmarked its Cupra brand—a sporty, performance-focused offshoot—for the US market. Central to this push is Cupra’s upcoming line of electric vehicles (EVs), which will include innovative body-on-frame models with extended-range energy systems designed to appeal to American consumers.

Volkswagen Group CEO Oliver Blume expressed confidence in this partnership, highlighting the decades of trust between VW and Penske:
“There’s a big trust [established] over many, many years. He’s very successful in the U.S. And so we think that will fit perfectly.”

This collaboration with Penske Automotive Group is expected to create a powerful distribution network for Cupra, leveraging Penske’s strong connections and customer base across the country.

Scout Motors and Direct Sales: VW’s Double-Edged Strategy

Volkswagen’s push into the EV market isn’t limited to Cupra. Its Scout Motors division, acquired and rebranded to focus on rugged electric SUVs and pickups, announced plans to directly sell vehicles to consumers—a move reminiscent of Tesla, Rivian, and Polestar. Scout’s $2 billion factory in Southern California, projected to churn out 200,000 EVs annually, underscores VW’s ambitious plans.

However, this strategy has sparked resistance from the National Automobile Dealers Association (NADA), which has vowed to challenge direct sales models legally. For Cupra, Volkswagen appears to be hedging its bets by embracing Penske’s dealership model to maintain harmony with traditional sales channels.

Roger Penske: The X-Factor?

Penske’s involvement could be the game-changer VW desperately needs. With his Penske Automotive Group ranking as the third-largest dealership network in the US, his expertise and business acumen are unrivaled. Penske’s deep roots in motorsports and his success in dealership operations make him the ideal partner to launch Cupra successfully.

Volkswagen is banking on Penske’s ability to navigate the complexities of the US market while tapping into his trusted brand to establish credibility for Cupra.

Beyond Dealerships: Penske’s Expanding Influence

While Volkswagen works on its market entry, Penske continues to expand his empire. His recent acquisition of the Long Beach Grand Prix marks another milestone in his storied career. The move solidifies Penske’s position in motorsports and adds yet another prestigious property to his portfolio, which already includes IndyCar and the Indianapolis Motor Speedway.

Penske’s deep connection to motorsports and his business ventures give Volkswagen a unique advantage. The combination of Cupra’s sporty image and Penske’s motorsport pedigree could create a compelling narrative for American consumers.

The Road Ahead

Volkswagen’s dual strategy—Scout’s direct sales and Cupra’s dealership-backed launch—reflects its determination to carve out a significant slice of the US market. Yet challenges loom large, from fierce competition to potential legal battles with dealer associations.

Can Roger Penske’s proven track record and business acumen provide the magic touch Volkswagen needs to finally conquer the American automotive market? Time will tell, but one thing is certain: with Penske at the wheel, Volkswagen’s journey into the US is poised to make waves.

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