There are indications that Volkswagen are set to overtake Toyota as the world’s largest automotive manufacturer before the end of the year. The writing has been on the wall for quite some time. Volkswagen is already Europe’s biggest auto manufacturer. Earlier this year the company stated that they intend to invest $85 Billion to become reach the pinnacle of the automotive industry by 2018.
The 6.11 million sales represent a 14% increase when comparing January to September in 2010. Christian Kingler stated that their eight million annual sales target for 2011 looks very likely. He was quoted “Delivering six million vehicles in nine months represents a key milestone on the way to reaching our annual target of eight million vehicles sold in 2011”. On the final part of the year, he said “We are also expecting very good delivery figures for the fourth quarter,”
Within China, the German automotive giants saw a 22% increase. This will come as a huge boost to the company as achieving such an improvement in business by selling 1.29 million vehicles in the world’s largest automotive market is no easy feat.
The USA, who hold the world’s second largest automotive industry leaders, saw a 22% increase in relation to Volkswagen vehicles.
Within Central and Eastern Europe, the companies business increased by 46%.
JD Power has anticipated that the car manufactures will overtake Toyota as the world’s leading car producer by the end of 2011. They believe the company will sell around 7.8 million vehicles in total.
The earthquakes in Japan were devastating to Toyota and have affected business severely. Recalls of previous years haven’t helped the company’s reputation too.
Daniel Schwarz who works for Commerzbank AG as an analyst echoed Kingler’s claims that Volkswagen did well in expanding markets but also claimed that the company benefited from Toyota’s recent downfalls in business. He said ‘Growth in China, Europe and the U.S. are major contributors to VW’s expansion but they obviously also benefit from Toyota’s own misfortunes,”
If Volkswagen does overtake Toyota sooner than expected, will it be too soon? Will they be able to stay on top? The Japanese automotive firm have experience at the top and won’t give up without a fight.