Comprehensive redevelopment and reorganisation reduce the effects of downward trends on the North American market. As a result of the worldwide recession, increased competition on the American and Mexican market along with a costly sales organisation, losses reach a critical level after sales in the United States drop to an historical low during the previous year. In accordance with the principle "quality before volume," Volkswagen AG turns the Puebla plant into an efficient factory with lean production and a high domestic content. This enables Volkswagen to provide the North American market with enough high quality vehicles and to increase deliveries to South American export market. Volkswagen of America and Volkswagen Canada are consolidated but legally remain independent companies. Cost reductions, rationalisation of the dealer network and a greater focus on service and customer care, ensures the North American sales system is made to run more efficiently and economically.