Battle of the Blue Badges: Volkswagen overtakes Ford as world's 3rd largest automaker
While Toyota and General Motors continue to duke it out for first place among the world's largest automakers, the lower rungs have been equally hotly contested. It came as a shock to many that Hyundai-Kia had surpassed Honda to take the Number 5 spot, but if you think the battle is being waged purely between the Far East and North America, don't discount Europe for long. The continent's largest auto group, Volkswagen, has claimed its place on the podium as the world's third largest automaker, beating out Ford in the first half of this fiscal year.
The numbers, of course, are based on sales worldwide, and they could very well change by the end of the year. Although Ford's own namesake brand surely accounts for the bulk of its sales, the FoMoCo multi-brand conglomerate that once included the Premier Auto Group has dissipated of late, while VW's numerous subsidiaries – including Volkswagen, Audi, Skoda, Seat, Lamborghini, Bentley and Bugatti – continue to thrive. All the more impressive, then, that a tiny company like Porsche is on the verge of seizing it all.
[Source: Volkswagen]
PRESS RELEASE
VOLKSWAGEN OVERTAKES FORD
Volkswagen Group in the fast lane: Wolfsburg automaker now holds third place in global vehicle sales ranking
WOLFSBURG, Germany - The Volkswagen Group has taken its place among the world's top three automakers thanks to the Wolfsburg-based company's outstanding delivery figures in the first half of 2008. Rival Ford had to settle for fourth position.
"We are delighted that the Volkswagen Group has made it to the global automobile industry's top three for the first time. This shows that we are on the right track with our ever-stronger international presence and, above all, our product program. We will systematically push ahead with our growth course even in the present difficult market environment," Prof. Dr. Martin Winterkorn, Chairman of the Board of Management of Volkswagen Aktiengesellschaft, commented.
With 3.31 million vehicles delivered in the first half of 2008, the Volkswagen Group increased deliveries in the first six months of this year by 7.2 percent, moving up to third place in the global vehicle sales ranking and overtaking its rival Ford, which announced vehicle sales of 3.22 million for this period.
Reader Comments (Page 1 of 2)
Red 2:46PM (8/28/2008)
Who was shocked about Hyundai-Kia overtaking Honda except media people wanting to make a bigger deal than it really was? Honda's not exactly an industry giant, regardless of what their name might imply. They're still the smallest independent automaker (including Acura), and they still consider themselves "human mobilists and engine builders" before an automaker. Hyundai acquiring Kia gives them an even larger slice of the already gigantic piece of home market pie and poises them better to compete against larger companies like General Motors, Ford and even Toyota. Acura still operates as one company practically under Honda. Despite Kia sharing platforms, they're still fairly independent from Hyundai, or at least that's my understanding of it. With Honda continuing to operate as it does, everyone was really making a mountain out of a mole hill. That, however, in no way is a dig at Hyundai-Kia. Congrats to them, but there's no "shock" there. *roll eyes*
The same thing with Volkswagen. With the entire VAG, is anybody really that surprised that this happened? They've got a pretty extensive portfolio and the Golf platform is the most widespread platform in the entire industry. On the back of the Golf platform alone, Volkswagen sells pretty much more cars than anyone. Volvo's sales have been doing well overseas, but down in the states, and it's the same with Ford, over several years. With sales of Bentley, Lamborghini and Audi at record highs for the last couple of years in each company's respective history, plus with Porsche taking over, the writing's been on the wall for awhile. You don't have to be an industry analyst to see that...
Reply
WhyNotTheC63? 3:20PM (8/28/2008)
Here's Calling you out: BMW AG is the smallest big independent automaker in the world. When you banter about on the subject of expensive portfolios, you must realize that the more expensive the auto, the less likely it is to be sold, ultimately negatively affecting possible sales numbers. So what are you on about?
I just think you're a Honda fanboy bellend.
BigMcLargeHuge 3:42PM (8/28/2008)
@C63,
You seem angry for no discernable reason.
XLR8 3:51PM (8/28/2008)
To be honest, I'm Korean and it is a big deal for me that Hyundai-Kia has become the fifth largest automaker. Korea was a poor country with poor manufacturing skills back then. in the 50s, Korean GDP? was less that hundred bucks and my dad never had a car until he was in his 30s. Korean roads weren't even fully paved until the 80s. Hyundai started to develop their independent models only 30 years ago, independent engine less than 20 years ago. It is true that Hyundai-Kia was able to achieve No.5 rank because of their profit from home market, but hey! think of few years ago. I have no doubt that Hyundai was a POS car. I think it is just the matter of the one who gets chased and the one who chases.
judyz 4:17PM (8/28/2008)
Hyundai/Kia: They have done a good job of getting quality up however they had the money to throw at it due to an unfair playing field. They get to milk all the profits of having their home market almost to themselves. Can you imagine if Ford, GM and Chrysler were protected by huge tariffs how profitable they would be in North America. Now that they have joined the club they should be forced to play fair at home.
The VW/Ford thing is more of a sign of the current economy in the states. The economy is bad in the US but doing better elsewhere. Ford lives off it's US sales while VW group is tied to the European market. If the US economy recovers or the European economy dips things may swing the other way.
Either way Ford and GM are going to be taking their lumps until 2010. What will be interesting to see is how things shake out after that.
Red 4:23PM (8/28/2008)
@BigMcLargeHuge,
He's upset both the RS4 and M3 are the obvious (better) answers to his username and because I'm just finishing up a project for GM, have owned a one Honda, one Acura, two Toyotas, two Lexus', a BMW, a Ford, a Mercedes Benz and a Nissan. He ought not try to read too much into this one. He might assume I just like cars in general.
Oh wait...
I'm well aware of BMW's status in the market. However, last I checked BMW, still owns Mini and has been considering developing another brand (or two) for city and/or electric vehicles. By independent, I was speaking strictly in regards to a companies acquisitions. VAG has scooped up several ventures over the years, Land Rover and AM have switched teams, Mercedes and Mitsubishi left Chrysler...I could go on. Honda, meanwhile, is still a very small company (Mazda and Mitsubishi, for example, are still smaller) and operates like a very small company compared to say, Toyota and to a degree, even BMW. Had C63 actually read what I wrote, he would've seen that's what I was talking about, instead of skimming through jumping to conclusions. And I have no qualms against the Koreans. I think they're doing a fine job of breaking stereotypes and truth-be-told, I find the upcoming Kia products quite attractive (still derivative, but I digress). My point was, should we really look at their shift or VAGs shift over other, possibly more popular automakers as THAT big of a surprise? Anybody with even the slightest bias AGAINST Hyundai-Kia would now ADMIT the two companies have made great strides in the last several years and seem to be on a continuous warpath of putting out fresh, competitive products. Hence, based on the strides being made, should we TRULY be surprised that they're now being rewarded for their efforts? As good as those rewards are, I still say no, we shouldn't. They've worked their asses off and they deserve every last bit of positive feedback, press, rewards and marketshare, they're getting and will likely continue to get. Call me surprised when they overtake Chrysler in two years or something outrageously faster than I expect. It'll happen. I dunno about two years, but the way things are going, it could happen.
Lou 4:53PM (8/28/2008)
I would like to point out Honda is the largest manufacturer of internal combustion engines in the world. Don't forget they are numero uno in motor cycles. And do not forget ATV,watercraft, lawn/garden, generators...you get the idea. Motorcycles would not be a bad thing to have in the corporate portfolio going forward.
Tourian 7:22PM (8/28/2008)
I see both sides of it.
On the one hand Hyundai/Kia weren't considered to be a very serious player in the market as little as 10 maybe 15 years ago and they've come a long way and it is a bit of a shock to see them grow and go so far so fast. On the other hand, Honda never was about total world domination. They didn't sell their souls for the most part to big SUVs and pickups and cross overs, they kept their focus on mostly N/A and FWD and Acura isn't a major player in the luxury game. Honda doesn't want or try to be number one. They seem content with their place in the market.
Brent Wilson 2:51PM (8/28/2008)
Love the image.
Reply
jgp 3:08PM (8/28/2008)
Indeed.
Pac-Wagen!
tankd0g 3:10PM (8/28/2008)
Obligatory OM NOM NOM NOM
Reply
tankd0g 3:13PM (8/28/2008)
Obligatory OM NOM NOM NOM
Reply
Hamud 3:48PM (8/28/2008)
This is old news.
Reply
CDN Crockett 4:06PM (8/28/2008)
This is excellent news,
I can't wait for one of the three American manufactures to FALL!!!
Reply
Wally 4:53PM (8/28/2008)
Yeah, that should really do wonders for the world economy. A major US mfg going under would surely spur positive economic activity around the US and consequently the world...
You jackass.
Cellien 4:57PM (8/28/2008)
Wow, what an idiot. People have so much unfounded hate these days. Why do you want to see a US automaker fall?
Yaroukh 5:02PM (8/28/2008)
i guess even ur parents hate you
Yaroukh 4:27PM (8/28/2008)
again?
Reply
Red 4:33PM (8/28/2008)
judyz,
I don't know that Ford's doing better here than they are in Europe. Their products are very competitive there, mainly because Ford Europe understands they have to be. And the US is the most profitable market for almost all manufacturers. There are emerging markets with tens of millions of eager buyers, but automakers here are losing sales because of the weak dollar versus the Euro. They still want to sell here and some "industry experts" believe our economy here won't get back into an upswing for at least another year, but that hasn't stopped European makers from feeling like they could potentially selling more here.
I believe what may happen will be a large shift of SUV sales toward Russia, as they seem to be enamored by large cars and SUVs. The exporting for the domestic makers will chew up some profit margin because of the weak dollar, but I think they'd gain a lot of at least temporary sustainablity back (I can't say how many years) by selling their current products in Russia.
I'm no industry expert, and never claimed to be, but these are just my thoughts. Feel free to disagree.
Reply
Chase 5:37PM (8/28/2008)
Ironically, VW's expansion has nothing to do with the US or Europe. They are the top dog in the BRIC (Brazil, Russia, India, China, and other developing nations).
My forecast is that the next ten years see the US's undervalued economy rebound, but in the next fifty years, a steady decline. The Middle East might as well already be the financial center of the world now-a-days, and India's education system already produces a larger number of highly skilled workers than the US. -- They just need twenty to fifty years for the global economy to convect in their favor.