Volkswagens are hip. Volkswagens look great from any angle. Volkswagens offer a German driving experience at a reduced price relative to Audi (owned by VW) or BMW. VW offers an alternative to the Japanese sedan selections at about the same price.
So why is VW losing a billion dollars a year in the US?
Because everybody knows that VW's suck.
Rattles. Squeaks. Poor quality. Poor service experience.
VW's are more fun to drive than the average japanese sedan. But when you are driving them back to the dealership all the time and when you get there they turn up their nose....the honeymoon's over.
What are the witty hipsters at VW going to do about this?
They are going to re-revive the Beetle.