Monday, September 24, 2007

Volkswagen wants to be world's largest by 2015

Wow. Talk about lofty ambitions. Volkswagen has just announced that they plan on toppling Toyota as the world's largest car manufacturer by 2015. The news was confirmed by Michael Kern, head of sales and marketing for the Volkswagen brand. Kern added that they plan to beat Toyota in both sales and profitability by 2015. Earlier this year, Toyota overtook General Motors as the world's top auto seller.

So how exactly will Volkswagen go about it's goal? Kern says that Volkswagen will begin by launching 12 new vehicles in the next three years. The Up! is sure to be one (or two or three) of the 12. Kern has also saying that Volkswagen will be expanding its presence in key markets such as the US, Russia, and India. Of course, Porsche's experience wouldn't hurt either.

If Volkswagen hopes to take the lead, they will need to do more than just come out with 12 new models. They will need to focus on reliability, pricing, and finding their place in the industry. No more of this upmarket business. Pricing is a major issue, especially here in North America where Volkswagen's prices are usually higher than the competition's. If they can tackle all these things in the next 8 years (that's how long they have until their goal), then it wouldn't be too far fetched for Volkswagen to overtake Toyota.

In other news, Volkswagen has just posted it's largest month-on-month increase in its entire history. Volkswagen and it's other brands posted a 12% increase in August of 2007 as compared to August 2006. Slowly but surely, it seems, Volkswagen will reach its goal.

Source: Autoblog


Anonymous Anonymous said...

Two words: Yeah right

VW will never achieve this goal because they don't value making cars that are reliable. More than anything, that's what consumers want. VW is all about the b.s. notion of "perceived quality". Well I got news for you VW, it doesn't matter how nice the interior is when I'm stranded in the wilderness with a broken fuel pump.

And BTW, I'm a VW enthusiast, and as much as I love the cars, let's be realistic here, seriously. You're not Toyota, don't try to be them because you will fail. Be yourself, whatever that means.

Tue. Sep. 25, 05:30:00 a.m.  
Blogger Lorenzo said...

I half agree with you. Here's why.

I agree that Volkswagen makes expensive cars that aren't reliable. They need to focus on this (more than anything; more than putting out 12 models in 3 years) if they really are serious about going after Toyota.

What I don't agree with is for Volkswagen to be themselves because Volkswagen being themselves means an ongoing chase for upmarket which it can't enter. You said it yourself (perhaps unintentionally) by saying "Be yourself, whatever that means." The problem is Volkswagen doesn't know what it is. Volkswagen needs to find a brand identity, find it's place in the market (ideally more in line with the Hondas and Toyotas of the world), and stay there.

Of course this is just my opinion.

Tue. Sep. 25, 06:15:00 p.m.  

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