Global Dominance Shift: VW may have sold more than Toyota in Q1
Over the last several years, few automotive stories have held as much interest as the global fight between Toyota and General Motors for worldwide sales supremacy. Don't look now, but there's a new combatant hailing from Germany ready to take the reigns: Volkswagen. However, VW's ascendancy has less to do with the German automaker's output -- GM and Toyota are shedding sales at a much faster rate than VW.
Toyota – currently the undisputed leader in automotive sales volume – is expected to post about 1.23 million sales in the first quarter of '09, down an amazing 47% from the previous year. Volkswagen's 1.39 million sales represent a much smaller drop of about 11%. We're not yet sure where General Motors will fall in the rankings, but it seems likely to come in third place. What's caused VW's rapid rise in global prominence?
The two largest markets for Toyota are the United States and Japan, and vehicle sales in both countries have been some of the hardest hit by the global economic downturn. In contrast, VeeDub is very strong in Germany, China and Brazil, and, in attempt to boost new car sales, these three countries have recently implemented vehicle scrapping schemes. It's worked, and VW is reaping the rewards.
Of course, if there's one thing that General Motors and Toyota have proven over these last few years, it's that life's not easy at the top. It should prove interesting to see if VW can manage to maintain the market share that it's so recently inherited. Thanks for the tip, Axel!
[Source: Reuters]
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Reader Comments (Page 1 of 3)
Sektor 6:06PM (4/17/2009)
The thing is, VW has a very strong presence out of the US; being market leaders in China, which is world's largest automarket. They are set to sell more VWs in China than in their home country Germany. As the article mentioned, they are also strong in Brazil, where sales have not slumped like in the rest of the world.
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Sektor 6:13PM (4/17/2009)
Forgot to mention Germany, where the Abwrackprämie (cash for clunkers) has revived the auto market. So, VW has a strong position in China, Germany and Brazil - coincidentally the few countries where sales haven't plummeted. It's not surprising that they beat Toyota and GM.
the_MVP_X 6:19PM (4/17/2009)
They will fall, they will grow until they will fall under their own weight.Like GM.
Why should I have all the fun? 6:29PM (4/17/2009)
To bad they are second to last next to Suzuki on JD Power reliability ratings:
http://www.jdpower.com/autos/ratings/dependability-ratings-by-brand/sortcolumn-1/ascending/page-#page-anchor
montoym 6:39PM (4/17/2009)
I hope you're right MVP.
GM was tops in sales worldwide for nearly 80yrs. If they are following in GM's footsteps, they'll be tops for longer than many of us will be alive. Good for them.
asng15 6:46PM (4/17/2009)
VW has Chinese market to support them, Of course...........that's the NO.1 market in the world.
Sektor 6:46PM (4/17/2009)
@montoym:
I hope you are NOT right. I never really like VW.
Eric D-J 6:56PM (4/17/2009)
Quality is the control of the owners. I have owned many vws and with maintainance they have been trouble free. No big issues. We service ours regularly and i keep an eye out for tsb's for free checkups. I know others who constantly have problems but treat their cars like crap. I don't care how a brand ranks. Youth drivers don't always take care of things.
VW quality should go up now that maintainance is included. Broke students have no reason to not go in for fear of service costs. Will be less problems down the road.
PumaGTO 8:11PM (4/17/2009)
Scrapping programs in Brazil? Strange... Havent´heard of it. Anyway... In fact, Volks sells a lot here, but Toyota does aswell...
The thing is that while Toyota is a "premium" brand over here (the Corolla costs about US$35.000), Volks sells cars for about US$12.000 like Fox and Gol: very poorly made, no airbags, no abs, no crippling zones, no quality interior whatsoever... Most of their sells comes from these two models, especialy Gol.
don 6:07PM (4/17/2009)
Yeah, maybe so, but they don't sell much at all here in the states. Kinda makes me giggle considering their dealers are the biggest scam artists in the industry.
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zamafir 6:16PM (4/17/2009)
Right, they don't sell as much in a foreign market, but they dominate in their domestic market. If our North American automakers could have followed that surprisingly simple model they wouldn't be in the position they're in right now. Keep giggling as two of the big three teeter on total collapse, the jokes on you.
Sektor 6:21PM (4/17/2009)
> Right, they don't sell as much in a foreign market,
This gotta be a joke, right? VW's sales in China alone are set to pass their home market in Germany.
Eric D-J 7:01PM (4/17/2009)
All other brands have trustworthy people. Bad apples in every batch. Every brand has bad dealers.
zamafir 7:04PM (4/17/2009)
"This gotta be a joke, right? VW's sales in China alone are set to pass their home market in Germany. "
Pssst. That was a REPLY to the post above mine, within that context, "they don't sell as much in a foreign market" implies, that's right, North. America.
Please note the implicit difference between "a foreign market" in reply to "here in the states" vs what you're fantasizing "all foreign markets" ;). It might also help to read my other comments which show an obvious understanding of the Chinese market significance. Unless you're a student of the fox news taking quotes so far out of context they no longer make sense school in which case, keep the bs at home.
asng15 2:34AM (4/18/2009)
zamafir
just be cool, we are all here to discuss and Chill out .....
tell the opinion and that's it. don;t make it "personal abuse"
Nick 6:09PM (4/17/2009)
Does it include Audi, Seat, Skoda, Lamborghini, or only VW vehicles?
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Quattroporte 6:16PM (4/17/2009)
Given it's a comparison that includes "GM", which is not really a brand in it of itself, me thinks the term "VW" used in this article includes the other brands it owns.
the_MVP_X 6:17PM (4/17/2009)
I think so, otherwise I can't see how they can do that just with VW brand.
zamafir 6:17PM (4/17/2009)
Quattroporte sounds right, VAG world wide, not just vw. Which would explain the numbers, given how well audi's dominating bmw in germany right now.
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RamblinReck89 6:21PM (4/17/2009)
I wonder how Hyundai/Kia's gonna do worldwide this quarter. It should be interesting to see.
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