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VW working on a 10-year plan to catch up to Toyota

omarrana submitted on 09/03/2007 Official AutoSpies Timestamp: 4:22 PM
from: www.egmcartech.com

[29] user comments | category: Misc News

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VW working on a 10-year plan to catch up to Toyota

Volkswagen Group is working on a 10-year strategy that aims to decrease the productivity and profit gap with rival Toyota. CEO Martin Winterkorn is focused on sales goals and financial targets as he plans to catch up to Toyota, who has been a head of Volkswagen for the past seven years.

Insiders say that Winterkorn has been after Toyota ever since he took over Volkswagen and has made it his goal to increase productivity and profits... Read Article

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1970toyotamarc - 9/3/2007 6:25:24 PM

+2 Boost

good luck

reply to this comment

EnnNorak - 9/3/2007 7:35:12 PM

-1 Boost

Please note that this is a productivity goal and not a product improvement goal. The VW group is already ahead of Toyota in product superiority. Toyota will go thru the same cycle that GM did, resting on its laurels and staying up all night to figure out ways to save even more cost at the detriment of customers. Sales will then slow or decline as customers gravitate to competitors who did not cheapen the product.

adamsaf723 - 9/3/2007 6:42:57 PM

+2 Boost

That's like Target trying to catch up with Wal-Mart this late into the game.

reply to this comment

EnnNorak - 9/3/2007 7:37:41 PM

0 Boost

Traget sells better product than Wal-Mart. I concede however that Wal-Mart is an eminently succesful retailer as it caters to lower classes with cheaper product.

Lexus - 9/3/2007 6:52:21 PM

0 Boost

I guess when you are on top of the food chain everyone is aiming to become like you. I guess VW is playing catch up with Toyota and their Audi brand trying to do the same thing with their hydrid cars.

If Toyota was just to stand still than yeah, I seriously doubt it. 10 years from now Toyota and Lexus will improve their cars even more than it is currently, so good luck.

And a word of advise VW, don't get to focus on Toyota only, because the Hyundai might surpass you sooner than you expected. They are aiming their gun at you, with their up and coming Audi TT killer. And their Audi A8 killer the Genesis V8.

And don't forget Cadillac is making a huge come back with their Cadillac brands, especially the CTS and STS. And the Chinese and Indian is coming over also in 2008 or 2009 to crash the party with their cheaply made cars;)

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S4cabriofoxone - 9/3/2007 11:49:47 PMView My AgentSpace

-1 Boost

"...and their Audi brand trying to do the same thing with their hydrid cars."

Hmm. Seems like you've become a flat-out Audi hater this summer. Anyway, because they're producing ONE hybrid car (Q7), you think they're trying to play "catch-up?" Nope. High-tech, efficient diesels are still their top priority for green involvement.

"And a word of advise VW, don't get to focus on Toyota only, because the Hyundai might surpass you sooner than you expected. They are aiming their gun at you, with their up and coming Audi TT killer. And their Audi A8 killer the Genesis V8. "

Honestly, you didn't know this by now? Hyundai is aimed squarely at TOYOTA. Nobody else. The Genesis is described by Hyundai as an LS competitor!!! And do you really think whatever Kia comes out with will challenge the TT? LOL.

Larry - 9/3/2007 9:40:16 PM

-3 Boost

10 year plan to catch toyota it sounds nice it an cople years after audi plans plans to be the number #1 luxury brand. However it is diffcult for VW to catch up to toyota because VW has invested billions into the next VW phateon, a car very few people will spend 80k for a VW, let alone an Audi. They have to fund future Bugatti and Bentley replacements. I hope VW does not plan on rebadging phateons for Bentley products. VW has too much cost, and I can not imagine toyota making any major mistakes.

reply to this comment

monkeyrun - 9/3/2007 9:43:25 PM

+2 Boost

fyi: the redesigned Phaeton is already in the Bentley line up.

S4cabriofoxone - 9/3/2007 11:52:59 PMView My AgentSpace

-1 Boost

How do you know this, Larry? The Phaeton is not their top priority right now. That would be improving their core line- Golf/Rabbit, Jetta, Passat, strengthening ties with Porsche and escalating Audi's impressive profitability with even more desirable products. There's also the matter of redesigning the Arnage, which will probably not have anything to do with the Audi A8 or VW Phaeton.

Anyway, I wouldn't cry for Volkswagen right now. They are still the largest European automaker, by quite a margin. Audi profits are through the roof, driving the entire corporation, and the injection of Porsche profitability know-how doesn't hurt.

iamdabest1 - 9/3/2007 11:19:20 PMView My AgentSpace

+2 Boost

toyota = mc donalds, everyone else = wendys, white castle and burger king..... no one is gona beat mc donalds. EVER.

reply to this comment

Kinger - 9/4/2007 8:14:34 AM

-1 Boost

Yet still Burger King offers superior food...

2JZSoarer - 9/4/2007 11:18:58 AM

0 Boost

I'd go with Carl's Jr.,mmmmmmmm Six Dollar Burger!!!

S4cabriofoxone - 9/3/2007 11:53:27 PMView My AgentSpace

+4 Boost

I don't think Volkswagen should focus on sales. They should just make better products, do what they do best. The sales will come later.

reply to this comment

M53R - 9/4/2007 12:27:29 PMView My AgentSpace

+2 Boost

I agree because if they only focus on sales their quality may slip, since they will start cutting costs which is bad. They need to improve so that people would buy from them, if they dont that would never happen.

Lexus - 9/4/2007 12:17:31 AM

-2 Boost

S4, you got to be kidding right? "They should just make better products, do what they do best" Better product, high quality, and realiability belong to Toyota and Lexus.

S4, I don't know what you been smoking in the summer but you need to quit it bro! VW make decent cars but as of right now it NO where near Toyota.

I said it before and I said it again, VW need to watch it back. Because the Hyundai is coming and coming fast for them, and they also brough reinforcement with them. The Chinese and India automakers is comining too to crash the party.

reply to this comment

Kinger - 9/4/2007 8:20:05 AM

+1 Boost

Eh, like S4 already said, Hyundai are going after Toyota. If they market their products correctly then they could hurt Toyota sales wise.

The main reason Porsche acquired a larger stake in VW is because they saw VW as the only brand that could go after Toyota sales wise. Now doubt with Porsche's know how quality will be improved and VW's cars will become more fun to drive.

So in response I think its Toyota who needs to watch their back.

I've said it before and i'll say it again, the gap in quality between cars nowadays is nowhere near what you're making it out to be.

Lexus - 9/4/2007 2:05:29 AM

+1 Boost

Anyway as far as ranking goes for the German brands, Audi is #1, #2 BMW and #3 MB. I give VW/Audi alot of respect for inventing the Bugatti Veyron.

So let be fair VW/Audi has been working really hard to come out with alot of new and exciting ride. So mistake is bound to happen, no one is invincible even Toyota is made mistake.

reply to this comment

david989 - 9/4/2007 10:47:17 AM

-1 Boost

The Lexus LF-A as you are aware is better than the Bugatti Veyron. Lexus doesn't need 4 turbos to reach 1000 horsepower.

Kinger - 9/4/2007 12:18:06 PM

0 Boost

LOL, I was going to reply with something constructive but you crack me up david989, you're being intentionaly stupid right?

JUGNU - 9/4/2007 5:58:53 AMView My AgentSpace

+1 Boost

S4

"And do you really think whatever Kia comes out with will challenge the TT? LOL."

but u easily beileved that whatever Huyndai comes with will challenge the New LS.LOL at u.

JUGNU

reply to this comment

Kinger - 9/4/2007 8:23:14 AM

0 Boost

The TT is a design classic, the LS on the other hand...

r_driver04 - 9/4/2007 12:08:24 PM

+1 Boost

As long it starts everytime it can compete.

Hermann - 9/4/2007 7:42:36 AM

0 Boost

What the matter with the Toyota and Lexus user?
Why you`re to behave aggressively?
A VW or Audi owner buys never an Toyota or Lexus.
The same applies in reverse!

reply to this comment

r_driver04 - 9/4/2007 12:06:36 PM

+3 Boost

Toyota would have to stop making cars altogether and go into the basketweaving industry for that to ever happen. Hey, VW...just make your cars more reliable. And stay away from pipe dreams.

reply to this comment

moto - 9/4/2007 11:43:44 PM

+1 Boost

r_driver04, you are the kind of blogger I truly despise, much like david989. Rather than offer facts with references, you just repeat the same bullshit propaganda regardless of what is being discussed. You obviously didn't read the article, nor are you offering any additional information or insight about it.

Let's review, shall we?
"Volkswagen Group is working on a 10-year strategy that aims to decrease the productivity and profit gap with rival Toyota." This means that VW is going to work to improve its FINANCIAL performance, which entails a hell of a lot more than who builds the "best"/highest quality/most durable/your favorite/ car.

By the way, Porsche leads the world in vehicle profitability by a LONG way, and has worked with Toyota in the past to refine its production techniques. Both are top-notch automakers in their own ways, and VW is hoping to refine its manufacturing like Porsche did a decade ago and Toyota did 25 years ago. How can anyone criticise the desire to be more productive? One can't fault ANY auto manufacturer for setting firm, improving sales goals.

Note in the article the VAG CEO Winterkorn explicitly stated that their goals did NOT include outselling Toyota -- they wanted to reach a worldwide sales of 6 million cars per year. I don't see why Toyota fans feel the need to be defensive. It would be unlikely that today's world's largest automaker would suddenly lose all momentum, because unlike GM, Toyota has a much more diverse portfolio of products and a significantly lower cost base thanks to ununionized labor. Moreover, fast-improving automakers like Hyundai (or anyone else thinks that selling the most cars in the world is their most important goal), will probably win more sales by virtue of pricing advantage. More power to them. No objective automotive enthusiast can rightly claim that Toyota or Hyundai isn't a very efficient manufacturer... and that wasn't even close to being the point of this article.

However, most enthusiasts are more impressed with luxury and sports car manufacturers who continue to earn small sales numbers but offer great technological innovation and superior performing products. VW firmly holds the "middle ground" with Buick, Honda, Nissan, Saab, and other brands that offer tremendous value but are written off by economy enthusiasts as being too expensive, by sports enthusists for being too soft, and by luxury manufacturers for not being plush enough. Well, that's apparently all people here do -- bitch about why their brand is "better". News flash: there is no "best".

Oh, and you folks who claim that sales are an idicator of quality: Marketing 101 tells you that the superior product never sells the most, because the cheaper product is more accessible to the greater number of people. This is not a hard rule, of course, since Toyota really ushered in a whole new era of manufacturing whereby product durability and assembly quality were not sacrificed, and cost management w

moto - 9/4/2007 11:45:51 PM

+1 Boost

continued:

... cost management was focused primarily on efficient sourcing and manufacturing. For VW or any auto manufacturer to improve these things is very admirable.

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