CEO will stay until VW topples Toyota

Yes, crush Toyota like an ant!

— EL34 (View Profile)

Posted on 12/9/2007 8:37:26 PM | reply to this comment | Votes: -9   

I don't think VW should focus on sales. That's too narrow and it takes too much cost-cutting to get there.

I DO think they should focus on product. If they make the best product, at a competitive price, the sales will come later.

— S4cabriofoxone (View Profile)

Posted on 12/9/2007 8:52:17 PM | reply to this comment | Votes: 11   

I won't rule anything out, but I think it is unlikely VW will come close to Toyota's numbers. These are my reasons.

1. Toyota practially owns Japan's market.
2. Toyota continues to take an ever increasing share of the N.American market (by giving us what we want, not telling us what we want). Even with Audi's gains, overall sales are still small.
3. Toyota is making inroads in Europe.
4. VW is banking too much on the Chinese market. Within the next decade, all foreign car companies will be fighting for leftover scraps as domestic makers enjoy government protection. It's also hard to compete when Chinese cars will be priced at $1.99 each.
5. Toyoat is also beginning to gain in China (not that it will matter in the longrun).

Toyota currenlty produces the same volume of cars as Germany, and makes just as much profit (if not more). VW is basically saying they will, by themselves, double Germany's auto output. VW has enough quality issues producing their current volume.

Again, I won't say it's impossible, but I think it's highly unlikely.

— huu76 (View Profile)

Posted on 12/9/2007 8:53:39 PM | reply to this comment | Votes: 4   

Another point I forgot is Toyota is more global, it sells well in every market while VW seems to focus too much on Europe.

VW sales are approx 230,000/yr in N.America, rising about 4% while Toyota sells 1.2 million units in VW's backyard.
http://www.detnews.com/apps/pbcs.dll/article?AID=/20071203/UPDATE/712030442/1361

Regarding my earlier comment, Toyota now has 50% of the JDM.
http://www.japaneconomynews.com/2007/11/02/finally-japans-domestic-auto-sales-up-20-in-october-first-increase-in-28-months/

— huu76 (View Profile)

Posted on 12/9/2007 9:12:20 PM | reply to this comment | Votes: -1   

Foxy,
VW sells in China (that's all), Toyota destroys VW in every other market in Asia. Toyota isn't as far behind as you'd like to believe. VW is only 30% ahead (230K vs 180K). Buick outsells VW by the same margin. Even in lost markets, VW has problems holding its ground.
http://www.china.org.cn/english/BAT/150177.htm
If you think VW has product, think again. "Compared with its rivals, Toyota has many more products that are suitable for the Chinese market, such as the Reiz and the new Camry," said Jia Xinguang with the China Automotive Industry Consulting and Development Corp."

N.Americans like big vehicles, even if they have small engines (why do you think VW had to enlarge the Jetta?). The Up! is going down. Just remember the STUPID fr MB. We don't like riding around in lawnmowers.

— huu76 (View Profile)

Posted on 12/9/2007 9:23:43 PM | reply to this comment | Votes: 0   

Sorry, my link was a bit out of date. Here's a 2007-2008 one.

"The Japanese automkaer increased its forecast to 480,000 units — up from 430,000 — thanks to solid sales of the company's Vios small car and the newly introduced Camry."

http://www.leftlanenews.com/toyota-increases-2007-chinese-sales-forecast.html

Toyota expects to sell 700,000/yr by the end of 2008 and 1 million by 2010.

They are gradually catching VW's sales, which are prorated to 700K units this year.
http://www.theautochannel.com/news/2007/09/27/064427.html

VW will only gain the #1 spot if Toyota slows down, which we can see they are not.

— huu76 (View Profile)

Posted on 12/9/2007 9:31:39 PM | reply to this comment | Votes: 0   

Here's proof that VW only sells in China.
http://www.wheels.ca/article/29688
Their growth came mainly from China.

Foxy,
I'm not trying to pick a scrap, just pointing out facts. If VW wants the crown, they have to outdo Toyota and so far it doesn't seem like they will.

You can't be the highest volume if you don't outsell the competition in the 4 major markets.

— huu76 (View Profile)

Posted on 12/9/2007 9:36:58 PM | reply to this comment | Votes: -1   

I don't think Martin Winterkorn has a 180 year life expectancy unless he is kept frozen in carbonite like Han Solo in Empire Strikes Back while maintain his position as CEO of VW, it will never happen.

— Larry (View Profile)

Posted on 12/9/2007 9:50:47 PM | reply to this comment | Votes: 0   

Yes, this will not be happening for a while, even though 2018 is a very far off anyway. Who really knows what could happen in 10 years or so? My guess is that Toyota and GM will still be fighting each other.

— Anthony (View Profile)

Posted on 12/9/2007 9:57:10 PM | reply to this comment | Votes: 2   

One would hope VW would first strive to match the quality of Toyota vehicles and then chase the volume. VW's are nice cars but to this day are still rattle-traps (read the recent Car & Driver LT test of the GTI which they loved but which is basically falling apart).

I'd love to know what VW spends on warranty costs WW. Recently - bunch of oil sludge 1.8/2.0 I4 turbo engine replacements (what can a new engine cost..$7,000?), Toureg's falling apart, etc. At least they didn't sell that many Phaetons but those had some costly electronic issues as well.

— nybimmer (View Profile)

Posted on 12/9/2007 10:01:43 PM | reply to this comment | Votes: 2   

even though VW may not gain as Toyota, their other hand, Skoda is in big rise. Skoda=any Chinese cars, they are too cheap too and looks btter than VW and Toyota

— pchera01 (View Profile)

Posted on 12/9/2007 10:13:53 PM | reply to this comment | Votes: 0   

This is not a good ideology by the CEO. Try to beat Toyota by producing better products and fairer prices. Why get into a war that they don't need, and possibly won't benefit from. They should try to make the most profit, not sell the most cars.

— kart1 (View Profile)

Posted on 12/9/2007 11:22:08 PM | reply to this comment | Votes: 3   

Look at how late Volkswagen is to the SUV party, their first suv was 2004, and i guess the Tiguan will be on sale in 2008 in the US. Toyota has several SUV's plus the Land Cruiser has been around for decades.

— Larry (View Profile)

Posted on 12/9/2007 11:55:53 PM | reply to this comment | Votes: 2   

VW should focus on quality issues before they make more crap! They are definatly sporty! Unfortunatly quality issues overshadows anything positive, Toyota is headind this way too! Honda may take the lead in another few years?

— truckmen (View Profile)

Posted on 12/10/2007 4:51:16 AM | reply to this comment | Votes: 0   

Toyota is everywhere. What is VW? consist of 4-5 cars and is close to nowhere outside Europe.

Toyota covers Everything. Every category of Sedans, SUVS, Commercial vehicles like trucks, pickups, buses,(trailors, under Hino name) and upcoming new range of Sports cars like Supra and celica...everything. U name it and and Toyota have it.

btw VW enough of this and focus more on the product. VW is one of the most unreliable brand.

"The CEO with the vision, Martin Winterkorn, has now claimed he wants to stay at VW until the goal is reached."

so he meant he'll stay until forever.

JUGNU

— JUGNU (View Profile)

Posted on 12/10/2007 4:53:51 AM | reply to this comment | Votes: 0   

I think too many people are brainwashed here. Let me only mention Audi, Porsche, Bugatti, Lambo, Bentley. These brands are very connected to VW and are very respected in their segments. VW also makes very good cars except in NA where VW-s are made in Mexican plants and therefore are unreliable. VW can succed in everything and I mean it literally.

— AUTO_UNION (View Profile)

Posted on 12/10/2007 9:04:44 AM | reply to this comment | Votes: -1   

What I find interesting is that he has a similar identity to Bobby boy "No Clue" Lutz, not just physically, but both having that same big hoarse ass mouth...all talk is all he can say at the moment. Problem here is that Japan (Toyota & Honda) rather be more conservative and patience in their role of the automotive world. And say tight lipped about the whole deal. Where I noticed the desperate tend to opne their mouth. Other than givin' themselves 10 years?!?!? To surpass Toyota??? Right Toyota is content at this point that they will stay where they are at, no not really it just gets better adn bigger from here. All of a sudden VW's Ceo is Nostradamus...great to have a positve role in the game but let the actions speak for themselves, b/c after all VW is not the only company in the world that can make a car with 4 wheels and a steering wheel...

— BigShow50 (View Profile)

Posted on 12/10/2007 9:10:05 AM | reply to this comment | Votes: 2   

2018 is very long ways away! I wouldn't hold my breath on what ANY CEO says. Just look at Jim Press! Before he was kissing Toyota's butt and now Chrysler. It's funny to watch his comments and goals for Chrysler and compare it to Toyota. His comments are TOTALLY flipped like night and day!

I would say 2018 is way too short to take on Toyota but, having that goal is good.

— RealitySmack (View Profile)

Posted on 12/10/2007 9:11:40 AM | reply to this comment | Votes: 0   

Its his ambitions. Will they outsell toyota by 2018, thats anyone's guess, though it seems unlikely. Does it drive himself/VW AG to make positive strides, YES...

— ThierryHenry14 (View Profile)

Posted on 12/10/2007 11:34:39 AM | reply to this comment | Votes: 4   

Some quotes from a recent interview of Toyota boss Katsuaki Watanabe.

"We are working very hard building cars and selling them with the best service.
Becoming number one was just the outcome of our efforts, not an end in itself."

"In the past 20 years, car ownership has increased by 100 million vehicles every five years.
By 2010, ownership is projected to exceed one billion. Led by Brazil, Russia, India and China, emerging markets have fueled that growth."

So guess where Toyota is concentrating it's clout.

Seventy years old this year, Toyota is on course to sell 9.8 million cars - it and shows no signs of slowing down.

JUGNU

— JUGNU (View Profile)

Posted on 12/10/2007 12:56:51 PM | reply to this comment | Votes: 1   

VW will never even get close,their out of their league.

— autopro (View Profile)

Posted on 12/11/2007 6:31:23 PM | reply to this comment | Votes: -1   

Do you really think a Camry is an exciting car to look at or to drive. The've always been well made but certainly it's never a car that you would give yourself an excuse to go out and do an errand just so you could drive it. I would be more prone to do that in an A4 or the new A5. Also Toyota may be the largest car maker now but times change. In addition Toyota is starting to have quality and reliability issues with some of their models. For example the Tundra has had engine issues as has the Avalon.I read recently that the plant in California that produces the Vibe and the Matrix fired a quality control person recently who blew the wistle on overlooked sub quality part. This smacks of the kind of mentality the US auto makers used to have. But it also reflects Toyota's desire to be #1 at all costs. I'm just saying that there a some chinks in the armor here.Also some top Toyota executives from Toyota have left. VW does have some quality issues in the US as well.But there is nothing wrong with setting a goal to improve quality and productivity. With their new 4 platform plan it will be interesting to see what happens. 7 yrs into the can mean a lot of changes. Just remember when you're at the top of the heap,the competition is gunning for you and the only potential direction is down. It happened to GM,it could happen to Toyota.

— mini22 (View Profile)

Posted on 12/12/2007 1:29:22 PM | reply to this comment | Votes: 1   

Woops-I meant to say 7 yrs into the "future" can mean a lot of changes.

— mini22 (View Profile)

Posted on 12/12/2007 1:31:35 PM | reply to this comment | Votes: 2   

It is a HoooRah!!! speech. Kind of a ego driven as well, basically stating Germany is better at engineering than Toyota (Japan). Competition is very good for the consumer and if anything I hope this makes both brands that much better.

— Porschinator (View Profile)

Posted on 12/12/2007 2:47:52 PM | reply to this comment | Votes: 2   

Winterkorn's social security will expire twice before VW (should I call it Porsche Holding?) even has a glimpse of seeing the back of mighty Toyota...

Focus on quality-cost-design-marketing instead of the chase. Lots to do.

— JWalkerLegrande (View Profile)

Posted on 12/12/2007 3:49:50 PM | reply to this comment | Votes: 1   

This is going to be one of the best things that has ever happened in the history of mass produced cars. The reason I say this is because you have the 2 of the best ,everyday driver, companies. One Euro one Eastern, that are going to do battle and FORCE the rest of the industry to keep up. It will make almost every car company have to step up or step out. This will be a great thing for all car buyers, whether or not you would even buy a VW or Toyota, and I feel the companies that are really going to feel the effects of this are the luxury car companies. Maybe not in their higher end vehicles, but definitely in their lesser lines example: C-class, 3 series, A's, and IS. Prepare to get more and more and more for your money from every car company. And you'll have the "Clashing of the Titans" to thank for it.

— KillBot (View Profile)

Posted on 12/12/2007 4:21:49 PM | reply to this comment | Votes: 3   

Wow, great, this has turned into a VW hate fest.

I have to know: why do you guys despise the brand so much?

Put the "THEY BREAK DOWN EVERY DAY!" crap to rest for a moment. VWs are very stylish cars from any normal buyer's perspective. They offer a far more upscale appearance than the competition.

And best of all, they back up that appearance with true substance. The cars feel and drive like a proper German car should. Their interiors continue to impress. Their handling is second to none in their classes. They have turned four companies into four of the most successful luxury makers on Earth, of varying degrees--Audi, Bentley, Bugatti and Lamborghini. The injection of Porsche cash and performance will do wonders for profitability and production. They will soon open a North American plant, which will (finally!) improve American reliability.

So what's missing? Nothing that I can see. I'm not saying they'll be #1, but I'm just saying... Volkswagen AG is a great company, one that the deserves the admiration of many.

— S4cabriofoxone (View Profile)

Posted on 12/12/2007 10:49:35 PM | reply to this comment | Votes: 1   

zorbreeze,
I agree with you on that one. Rugby makes a lot more sense, you need to be strong and smart, not just dumb, overweight and juiced up.
Nothing beats hockey though!!!

— huu76 (View Profile)

Posted on 12/15/2007 3:00:20 PM | reply to this comment | Votes: 1