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Volkswagen Vying To Be World’s Top Automaker By 2018

 
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2010 Volkswagen New Compact Coupe Concept (2011 Volkswagen Jetta Coupe)

2010 Volkswagen New Compact Coupe Concept (2011 Volkswagen Jetta Coupe)

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The Volkswagen Group has given itself eight years to catch up with Toyota in terms of productivity and profit as part of CEO Martin Winterkorn’s pledge to close the gap in performance between the two automakers, reaffirming plans originally formulated back in 2007.

The promise to move from third position (behind General Motors and Toyota) into the top spot by 2018 was made by the German auto giant’s management board today, which wants to see sales increase by nearly 60 percent and profit margins improve as well.

Last year Volkswagen Group sales grew by 1.1 percent over the previous year to 6.3 million vehicles across its ten brands, which includes Porsche, Audi, Bugatti, Bentley, Lamborghini, Skoda, and Seat, as well as a couple of commercial vehicle divisions and Volkswagen itself. By comparison, world number one automaker Toyota saw its sales fall 13 percent to 7.81 million vehicles and with the latest unintended acceleration fiasco the once unassailable Japanese automaker could be destined for another major hit.

One advantage Toyota has over the Volkswagen Group is its strong presence in the U.S., where most of the Volkswagen Group brands are still regarded as small players. Strategies in place to overcome this issue are to ramp up production in the U.S. at the automaker’s new plant in Tennessee, and to take advantage of parts sharing and extending the life-cycle of components.

Other goals in place are to boost operating margins by at least 5 percent in its core automotive business and a group pretax margin over 8 percent. The Volkswagen Group’s profit margin stood at just 1.6 percent in the first nine months of 2009.

[Automotive News, sub req’d]



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Comments (11)
  1. Hi Guy's,
    Interesting to state that “VW” overtakes Toyota. VW has to pile together HOW many different brands (formerly or still are separate “companies”) under the VW Group to over take Toyota which has, well, Toyota…? Oh, and Lexus, I guess, but that’s still Toyota.
    1gb usb flash drive
     
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  2. VOLKSWAGEN plans to build a fifth plant in China to secure its leadership in the world's largest car market while taking on larger rival Toyota, a Chinese newspaper reported. The 21st Century Business Herald wrote that VW and local partner FAW would construct a manufacturing site in Guangzhou, a southern port city in the industrial heart of China and close to Hong Kong. VW should bring the Polo, and bring it in it's European styling, not dumbed down for the US. And make sure to bring the diesel!! 60mpg easily. If they did this, it would lead its class, and not feel cheap either.I think the main problem is Americans aren't willing to pay for a really nice small car and that is the main reason they all feel/are cheap.
     
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  3. I thought we got news late last year that VW already overtook Toyota?
    I'm really hoping VW decide to build the Jetta coupe, and bring it to the US. It's the least they could do, since they deny us the beautiful Scirocco.
     
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  4. Oh yeah, I've always wondered if Toyota's figures include Subaru, as well as Lexus, since Toyota own Fuji Heavy Metal Industries, Subaru's parent company?
     
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  5. Toyota does have less brands, meaning only that Toyota is not diversifying as much as they should, it is nothing against VW.
    I do agree that it is sad that you guys over in the states don't get the Scirocco, it is easily the best looking car VW offers, they are all over here in Deutschland. VW will pass Toyota unless anything major happens(like VW pulling a Toyota haha)
     
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  6. "it is easily the best looking car VW offers"
    I usually don't comment on a design I have not seen in person, but the pictures do not indicate the Scirocco to be as attractive as any of the other VW models. By comparison, it looks pretty silly next to a Golf, GTI, Golf-R, CC or even a Touareg. Maybe it appeals to the under 30 age group that are not really "into" cars but go for weird.
     
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  7. They should bring Seat to be a junior entry level Audi brand, and Skoda to be the budget brand beneath VW itself in the US. Oh yeah and more diesels dern it.
     
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  8. the problem with vw is north america is that they don't have a range of trucks and they regular models are a bit too expensive for their sizes
     
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  9. "Toyota does have less brands, meaning only that Toyota is not diversifying as much as they should..."
    Yes, Toyota has fewer brands...
    ...but their worldwide model portfolio is just as diverse as VW - many Toyotas such as Avensis, Aurion, Century, Crown, TownAce, Passo, Isis and Mark X are JDM, SE Asian, Middle East and Euro Market only models.
     
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  10. VW in 2018...and then BYD in 2025?
    http://www.thecarconnection.com/marty-blog/1041537_byd-to-bring-e6-ev-maybe-battery-production-and-rd-to-u-s
     
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  11. It will be amother general motors ! To big and to slow to react to new market needs.
     
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