VW sets 10 year goal to catch up to Toyota

Posted Mon Sep 3 2007 7:23 AM by Ralph Hanson

Volkswagen Group has given itself ten 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 carmakers. The timeframe is backed by Porsche CEO Wendelin Wiedeking, who sees Toyota’s success as a benchmark that VW must reach. Wiedeking is also a member of the VW board and is the mastermind behind Porsche’s acquisition of a 31% stake in VW. There are rumors this may even increase to 51% but either way Wiedeking will be playing an increasing role at VW.

The new ten-year plan is still being drafted but it’s likely to be similar to Winterkorn’s original ‘Route 15’ plan, which he instilled at Audi during his stint as CEO of the premium brand. One official revealed to Automotive News that the new plan has set 2018 as a target and it will include both “sales and financial goals.”

One advantage Toyota has over VW is its strong presence in the US, where VW’s major brands are still regarded as small players. According to analysts, VW needs to increase volume while also improve productivity. The key will be to take advantage of parts sharing and extending the life-cycle of components.

VW is not alone in setting a new strategic plan. Rivals BMW, Daimler are currently reviewing their strategic plans as is PSA Peugeot-Citroen, which is expected to announce a new strategy within months.

Reader Comments

Mon Sep 3 2007 8:16 AM
Chris says

Wow!
That does sound ambitious to me. I do hope VW will succeed. Somehow I like them better than Toyota.
I do wonder how they will try to gain marketshare in the US.
Mon Sep 3 2007 10:31 AM
Jaspa says

VW is probably the only carmaker on the planet with the resources and ability to truly take on Toyota. They are building capacity in the low-mid market with the help of Skoda and Seat and I feel they can really make their mark in the next 10 years.
Mon Sep 3 2007 3:02 PM
Craig S says

It is one thing to plan it and quite another to deliver. I am a long time VW owner (golf, jetta and passat in the past - currently a 2006 jetta GLI) and love vw but their quality leaves much to be desired. I bought my GLI one year ago this month and it's had a leaking sunroof, pressure plate in clutch had to be replaced and replacement of my seat frame due to creaks. My car only has 10400 miles on it.

Perhaps instead of matching Toyota in capcity and profit they should look to emulate their quality first to help their customers. Unless VW turns around their known horrible quality they will always remain a secondary player in North America.
Mon Sep 3 2007 4:26 PM
bruce m lloyd says

I had to laugh when I read this. Volkswagen, like all German cars, are way over-engineered, and in VWs case, their quality is horrendous as much as they have no understanding of electrical systems.

I suggest little steps first: 1 - deliver a car that isn't garbage and over-priced; 2 - what's with spare parts being so ridiculously expensive?; 3 - simplify, there's no need for the junk options that come standard, and; 4 - stop making them in Mexico!
Mon Sep 3 2007 7:07 PM
HECTOR says

Agree. Agree. And agree. I would love to own a Passat. I think they look good. But I'm scared of the reliability and they are certainly overpriced. And since I'm kind of tight with my money I'll probably end up buying Japanese.

The people's car is certainly getting too expensive for the people.

MotorAuthority