CHICAGO -

Volkswagen of America chief executive officer Jonathan Browning said that VW  “lost our bearings” in the U.S. market after grabbing significant share here decades ago, but stressed that VW has made regaining its traction in the U.S. a “top global priority." 

He also also shared the progress VW has made in the U.S. and outlined how the company plans to achieve its goals here.

Speaking before the Chicago Economic Club, Browning shared a bit of VW’s early history in the U.S., where it stands today and the progress it is making.

“Volkswagen took off and dominated the U.S. market for imported cars. The Beetle and the Volkswagen Transporter — better known as the VW Bus — became enduring cultural icons for a generation of Americans. Volkswagen advertising set new standards for the creative use of humor,” Browning noted, per his prepared marks as posted to the VW website.

“By 1970, we had 7 percent of the U.S. market,” Browning noted. “Then we slipped and lost our bearings. We became a niche brand in a market where we were once pioneers.

“My job is to turn that around,” he stressed, emphasizing that the U.S. is a key cog in VW’s goals to be the world’s No.1 automaker within seven years.

He noted that VW is “on the move” and marked its first time ever notching more than 7 million vehicle deliveries worldwide last year.

Browning pointed out that has become a top automaker in Europe as well as China and Brazil. However, the automaker’s global goals require more robust U.S. performances.

“China may now be the largest automobile market in terms of sheer volume, but the United States is still the world’s most transparent and competitive market,” he noted. “If you can make it here, you can make anywhere. And we are determined to make it here.”

Browning would go on to share how VW has invested in the U.S. and also stress six key drivers for the automaker’s success in the U.S.

He cited those as being products, brand development, the dealer network, used cars and fleet sales, quality and the customer experience.

Browning further delved into each of these areas, beginning with products and brand development.

“Here is what’s new,” the CEO said, listing four elements. “We are producing cars specifically tailored to the U.S. market. We are making German engineering far more accessible with prices that hit the sweet spot in key vehicle segments.

“We’re building a broad and balanced vehicle portfolio that qualifies as Volkswagen’s best ever,” he added. “We’re developing our brand with integrated on and off-line marketing efforts to ensure that potential customers think of our cars first.”

Continuing along, Browning talked about the new Beetle that will be released later in 2011 and made quite a splash with its Super Bowl commercial earlier this month, along with the “Mini-Darth” Super Sunday spot for the Passat model.

“We had a lot of fun with both the Beetle and the Passat spots, but they are another indication of how serious we are about improving our position in this market,” he shared. “If you watched the game — and I am sorry your Bears weren’t there — you probably noticed that there were quite a few car commercials.

“We knew going in that we had to find a way to stand out from pack. We did that with ads that captured the essence of Volkswagen in a humorous and effective way,” Browning continued. “You might say we went back to our roots, but it’s not that simple.

“Those ads are part of a brand development strategy that is reaching out to potential customers — wherever they might be — in carefully targeted ways. We used the power of social media and online assets to expand the reach of America’s most popular sporting event,” he added.

As many know, VW put its Super Bowl spots online before the game and enjoyed strong success from doing so.

“Our ‘Mini Darth’ Passat ad received more than 12 million views during the countdown to kickoff. It helped make Volkswagen the most frequently mentioned car brand on Twitter in the week before the game,” Browning pointed out. “I think it is safe to say that conventional wisdom regarding the timing of online ads changed the minute our Passat commercial went viral.”

Browning went on to discuss VW’s robust social-media presence and tie importance of doing so in today’s market.

“Today’s reality is that 60 percent of consumers discuss vehicles within their social networks, almost 50 percent follow automotive brands or retailers on Twitter and nearly 40 percent use social media to obtain advice on vehicle purchases. We are increasingly part of that conversation,” he noted.

While the Web is certainly vital to and extremely helpful for automakers, Browning stressed another key cog in the equation: dealerships.

He emphasized VW’s cooperation with its dealer body.

“Of course, as much as the Internet has become a key tool in helping inform vehicle purchase decisions, our dealerships are still an absolutely critical point of contact in the purchase process,” Browning noted.

“And we are working closely with our 580 Volkswagen dealers to ensure that as we draw new customers to the brand, they have the best possible experience when they walk into one of our showrooms,” he added.

Browning referred to the 20-percent VW sales hike from 2010 — which was almost two times as strong as the average uptick in the industry — and said it is anticipated that 2011 will see similar results. He stressed that dealers are striving hard to make sure they are ready for such volume increases.

“Volkswagen dealers are extremely loyal to the brand. Many of them have been urging us for years to make a total commitment to this market. Now that we have done so, they are dealing with the challenge of a significant increase in customers and sales,” Browning pointed out.

“It’s a good challenge, but it is still a challenge,” he added. “In fact, even through the recession we saw 61 dealers investing over $155 million in new or upgraded facilities.”

Moving along, Browning then delved into quality and customer experience. He acknowledged that he believed VW was not up to par in these areas, but noted that this gap will not last.

“Here we recognize that our global engineering and manufacturing processes have not always heard the voice of the U.S. customer loudly enough,” Browning noted. “We are changing that.”

He added: “We are using the uniquely open and transparent nature of the U. S. market to provide faster, direct customer input more forcefully into the global product development and problem resolution process.”

The company has brought in new leaders to specialize in quality and customer experience. These leaders will be able to directly access top VW leaders.

Browning said that early data for the new Jetta points to strides being made.

“Let me be clear,” he said. “We have a lot of work to do to achieve our overall business goals, but the signs are that we are on the right track.

“The word is out that Volkswagen is on the move in America,” noting recent media and third-party accolades for VW models.

Continuing on to the concluding portion of his speech, Browning touched on what he called the “essence” of VW earlier in his presentation: the automaker’s penchant to “embrace innovation and technology that contribute to engineering excellence.”

“We are at home in America like never before, and it’s a good fit. Volkswagen has built its reputation on innovative engineering. This country is known as the world’s innovation leader,” he noted.

“I shouldn’t have been surprised to learn recently that the American commitment to innovation is even enshrined in the Constitution. It’s right there in Article 1, Section 8, which grants Congress the power to ‘promote the progress of science and useful arts’ by giving inventors exclusive rights to their discoveries,” Browning continued.

“At Volkswagen, we use science and the useful art of engineering to build some of the best cars in the world. That is our foundation. And that will be our guiding principle as we seek to reclaim our place in this great American market,” he added.