Is It Time To Reel In Volkswagen Before It Decimates The European Automotive Industry?

Volkswagen Group has become so dominant in Europe that rivals are being left behind.

One industry observer believes the German automaker's success threatens the future of some of its struggling competitors. "The debate now turns to which non-German OEM will fail first ... and when," said Max Warburton, a London-based analyst at Bernstein Research.

VW Group, including brands such as Audi, Seat and Skoda, now commands a market share of 24 percent in the EU and EFTA countries, up from 18.6 percent in 2004.

Yonder7 - 8/22/2012 11:44:25 AM

+1 Boost

Monopoly is the game....

quizz - 8/22/2012 12:37:03 PM

+3 Boost

If VW makes a better product without artificially lowering prices, then that's fair:

The reasons why it's not a monopoly:
1. Prices are competitive, but not cheapest
2. Same union obligations as everybody else
3. Cars are actually well made
4. There are equivalently priced choices, but they are not as well made (Peugeot?)

PUGPROUD - 8/22/2012 2:07:54 PM

+4 Boost

While global excess capacity will doom some makes as in the past, let the free market system work. At some point VW will become unmanageable and will implode because of its size just as GM and Toyota have recently. Buyers also will become restless and bored with similar
and conservative styles (look at VW and Audi)and look elsewhere just
to stand out and be different.

HughJass - 8/22/2012 4:11:40 PM

+1 Boost

Strange how the free market conversation is never referred to Asian carmakers. I guess the West are the only one stupids enough not to adopt "gov't protected and supported" nation champions.

VW can get as large as it wants but it won't be able to compete against Asian rivals who are told to sell at losses by their governments until the competition is bankrupt.

wins555 - 8/22/2012 11:29:40 PM

+1 Boost

Cant help but think about another famous German who tried and failed at world domination in the early to mid 1940s.

If VW succeeds at achieving AND maintaining their status, good for them.

We all know what happened to GM and FORD with their multi-brand cars.

nguyenvuminh - 8/23/2012 2:24:54 AM

+1 Boost

009 What's your (or the article's) point? I don't recall seeing claims of anti-competitive practices by VW. Seems like their growth have came from sound acquisitions and product-driven organic growth. Or are you sounding the alarm as VW may derail your beloved Hyundai's momentum and BMW's market position :-)