Who Is Laughing Now? Volkswagen Poised To Become World's Second Largest Automaker This Year!

As General Motors Corp. and Toyota Motor Corp. battled for the No. 1 sales ranking in recent years, Europe's biggest carmaker Volkswagen AG seemed mired in a set of distinctly European problems.

It was saddled with a large, highly paid work force and a German state as its leading shareholder. Senior executives became tabloid fodder in 2005 during a sex and bribery investigation, and the chairman squandered money developing expensive vehicles far removed from Volkswagen's original mission to be the "People's Car" maker.

But in the global auto industry, winners can turn into losers overnight, while laggards can suddenly exhibit surprising vigor. Volkswagen, long dismissed by investors, looks quite fit in this downturn. While most of its rivals are losing money, the Wolfsburg, Germany-based manufacturer earned $1.7 billion in the first half of the year on its car-making operations and a net profit of $700 million.

Propelled by its leading position in Europe and strong presence in China and other emerging markets, Volkswagen is on track to become the world's second-largest automaker, behind only Toyota, possibly as early as this year, according to forecaster CSM Worldwide in Northville.



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AgentOrange - 8/13/2009 9:37:04 AM

+3 Boost

Until they are #2, they're only poising.

Shredmo - 8/13/2009 9:47:42 AM

+1 Boost

Why are Volkswagen sales in the US NOT combined with the brands they own, but when it comes to world-wide sales, they are combined?

pennfootball - 8/13/2009 10:16:04 AM

0 Boost

They make a Nice GTI and a nicer GTI replacement is coming next year. This is what happens when you make cars people actually want...what a concept! I never drove a nicer gearbox then the DSG either. They have issues, might not be as reliable as a Toyota, but they look a lot better and cost a lot less then an Audi, offer similar interior quality, and seem to have less issues because their cars are not as complicated. There is no perfect car, but the people have spoken!

Shredmo - 8/13/2009 12:45:49 PM

+2 Boost

It's vat da pepil vant. I dig the GTI. Alvays have.

pelucidor - 8/13/2009 11:47:16 AM

+2 Boost

VG look to be doing well this year globally only because the US market tanked so badly (from 16M units to 9M) and VW had so little presence in the US so their minor decreases in this country were more than made up for in other areas of the world. Conversely Toyota, GM, Ford etc sell most of their cars in the US and took a HUGE hit to their numbers this year.

So it's not that VW is doing so well as that other manufacturers that are much more concentrated in the US market are doing so badly. But in 2011+ when the US might crawl back to 12M-15M sales then VW will probably drop back to 3rd place or worse (unless GM goes out of business by then) behind (I'm guessing here) Toyota, Hyundai and GM (or Ford).

VW will really need to push big into the US (like Hyundai is doing) to gear up for the return of the US auto market over the next two years to stay in the top three manufacturers worldwide.

Agent009 - 8/13/2009 12:20:30 PM

+3 Boost

That is called placing your bets wisely.

FanboyOfTheTruth - 8/13/2009 5:11:12 PM

+4 Boost

Or failing to make an impact in a market of people who value their time and can't sit outside a cafe all day while their cars are getting repaired.

mpls - 8/13/2009 1:29:01 PM

+2 Boost

DSG!! plenty of problems

pennfootball - 8/13/2009 2:51:18 PM

+1 Boost

DSG problems? They had a few issues with the diesel ones not warming up enough in sub zero temperatures overseas. What are some of the DSG problems in the USA?

rxh8me9000 - 8/13/2009 1:47:00 PM

0 Boost

Hmm interesting. Soon its going to be VW fighting GM for #1. Toyota is going to slide to 3rd. VW combined with every company they own basically makes a car for everyone and they do it right. Even though iv'e never owned a VW I think I want to check out one of the new Golfs. I had an immediate family member who owned a 2001 A4 and I hated it. The car wasnt stiff enough,I hated the interior controls and quality. The steptronic was slow and slugish not to mention it was a T-bar type shifter and the engine sucked. It was a 1.8 T. Only nice thing was the slight sound of turbo spool,after 5 min of lag lol. I'm sure the new ones are much nicer.

XYZZ - 8/14/2009 4:19:29 AM

+2 Boost

so the audi was crappy, and you think cheaper VWs can actually be better?

you've fantasizing if you think toyota will fall behind not just GM, but vw and overpriced vws with the worst reliability records this side or range rover.

dlin - 8/13/2009 3:25:31 PM

+3 Boost

So VW now surpass BMW as #1 luxury auto maker? It kinda sound funny but eventually they have all the fancy brands that's mid engined.

AgentOrange - 8/13/2009 3:36:19 PM

+4 Boost

I drive bimmers and would not call either BMW or VW "luxury auto makers".
BMW is in the business of designing and building performance and handling vehicles which are fun to drive.
Some of the VW models try to do that as well, but not across the entire model line-up.

VISO - 8/13/2009 6:06:33 PM

+2 Boost

VW just bought 42% of Porsche today and is moving to take the rest. Ex Audi CEO and current VAG CEO Winterkorn will take over Porsche SE and VAG is contemplating changing its name to Auto Union. In the end Audi has won by taking over all of VAG.

pennfootball - 8/14/2009 12:50:12 PM

+2 Boost

AutoUnion

avanti64 - 8/20/2009 5:51:23 PM

+1 Boost

It's easy to improve sales numbers when you buy up a conglomeration of brands that are for sale. In reality though, they are not VWs (Bugatti?, Lamborghini?, Bentley?) Just a bunch of orphans that VW has rounded up.
This is what GM did in the early 1900s. The brand overlap bit GM in the ass eventually and it will bite VW in the ass, too.
I my opinion, VW has emulated GM for many years and is no better than GM either.