Volkswagen says that by 2010 it can produce 10 million vehicles and pass Toyota (NYSE: TM) and General Motors (NYSE: GM) as the world's largest car company. According to the Sunday Times, "To those who suggest that closing a 3m vehicle gap (Toyota produced 9.4m last year) is a very tall order, company management explains that, in 2006, the number of conventional passenger cars made by Volkswagen and Toyota was fairly similar -- 5.2m for Volkswagen and 5.5m for Toyota -- and that the difference is made up by 4x4s, 'people carriers' and light trucks."
Volkswagen only recently introduced a full range of these multi-purpose vehicles, which will play an important part in its future growth
VW may find that things don't go as planned. As a new entrant to the pick-up and SUV markets, the company will find global competition for not just Toyota and GM, but also Ford (NYSE: F), Nissan, and Honda (NYSE: HMC). Most large countries also have local car manufacturers who may not be anxious to give up a large piece of their business.
While VW may have a chance to get a reasonable piece of the auto sales in huge countries like China, it has almost no market share in the world's largest car-buying nation, the U.S. Taking away business from a desperate company like Ford and a successful company like Toyota may be nearly impossible.
Douglas A. McIntyre is an editor at 247wallst.com.
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Reader Comments (Page 1 of 1)
3-09-2008 @ 3:36PM
pllc15! said...
No Way. Japanese make better cars bar none.
3-10-2008 @ 12:48PM
jpdr1100 said...
What if instead of taking away sales from companies like Ford, VW was to buy companies like Ford?
3-10-2008 @ 10:53AM
Simon Lesser said...
My VW sucked ! My sister's is a lemon !! Good Luck !!!
3-12-2008 @ 11:36AM
B Hiser said...
My son had a VW, lots of oil and coolant leaks. He has 2 Toyotas now and they aren't any better than the GM cars he has owned in the past. His next will be another GM. Buy American or move to Japan!!
5-30-2008 @ 10:04AM
goldensnowman said...
Me own a VW when a replacement key is $750?
No way!