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Can VW Overtake Toyota and GM To Become #1?

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  • berriberri Posts: 4,004
    Personally, I think Hyundai is a tough one to analyze unless someone is inside Korea. Their inside company vendor dealings and government assistance can cloud things and possibly make them more vulnerable to government turn downs. On a more Macro level, I think Hyundai may be affected by how they compare to Japan before China comes onboard. If they can be considered similar globally to Toyota and Honda in industry position, then I don't think China will be a huge factor (at least initially). If not, they will be very vulnerable. Time is going to tell. I don't know which way to play that one.
  • texasestexases Posts: 5,424
    edited December 2013
    VW domestic sales last month were down 16.3% last month, when most makers were up big. Not a good sign.

    Well, better than Mitsubishi - they sold all of 12 i-MiEVs....
  • "Heinz-Jakob Neusser, Volkswagen's new head of research and development, has confirmed the automaker is still looking into launching a low-cost lineup of cars, vans and crossovers that will compete against Renault's Dacia division and Nissan's reborn Datsun."

    VW is definitely looking to make their products more affordable locally. I don't think these cheaper cars are coming to America though. VW will probably partner with a European or Asian automaker.
  • gagricegagrice San DiegoPosts: 28,679
    Audi is picking up the slack. I imagine with a much better profit margin than selling Passats and Jettas with 0% financing. Here is what I see for the whole VW group. A big increase in their diesel sales.

    Audi A6 TDI finished the month at 12.5%
    Audi A7 TDI at 11.3%
    A8 TDI to 17.9%
    Audi Q5 TDI at 14.6%
    Audi Q7 TDI at 24.5%.

    High-mileage, TDI® Clean Diesel models accounted for 21 percent of sales in November and 24 percent of sales year-to-date, the best year-to-date results on record. Passat TDI sales reach 32,754 year-to-date, the best year-to-date TDI results on record.

    Looks to me like they are pushing their popular TDI engines to Audi and leaving a shortage for VW. They may have underestimated the demand for the best engines they offer. I can only find two VW Touareg TDIs in all of San Diego county. My dealership has not gotten one since the 2014 models have arrived. Who would want a gas Touareg???? I sure would not cry for VW. Better to have a shortage than nearly a million unsold vehicles on the lots like GM. 96 days supply seems like a lot to me.
  • Stever@EdmundsStever@Edmunds YooperlandPosts: 38,968
    Browning out, Horn in.

    "Browning, a former manager at General Motors Co. and Ford Motor Co., “did a terrific job and he knew the next chapter was going to be daunting,” said Michelle Krebs, an analyst for auto researcher Edmunds.com. “To eke out even a fraction of a point of market share in the U.S. is significant, and what Volkswagen was looking to do was double sales by 2018. It just seemed unrealistic from the beginning.”

    While VW has risen to become the world’s third-largest carmaker thanks to growth in China and Brazil, the U.S. has remained something of a riddle for the company. Finding a solution to make VW more than just a niche player is key to achieving its goal of becoming the world’s biggest automaker."

    VW Names New U.S. Chief as Sales Slump Threatens Goals (Bloomberg)
  • gagricegagrice San DiegoPosts: 28,679
    I must remind you VW has a ranking far more important than how many widgets they sell. I am sure they would like to have the numbers also. But they are more profitable than GM, Toyota, Fiat and Ford combined. Sixth most profitable company in the World.

    VW $27,909,000,000
    GM $7,585,000,000
    Toyota $9,349,800,000
    Fiat (Chrysler) $5,226,800,000
    Ford lost $5,664,000,000 are they due for a bailout now?

    Thankfully VW feels they can compete in the Luxury SUV market. I love what they have done with the Tourareg. Best one out there regardless of price. If they could just keep up with the demand for diesels they may even win the numbers game.
  • gagricegagrice San DiegoPosts: 28,679
    Maybe GM would like to have VW's bottom line instead of selling lots of cars at low profit. Will her global outlook mean more products built off shore?

    Who is Mary Barra, the next CEO of GM?

    For years, Mary Barra has been a growing force within General Motors. While she wasn't a sure bet to be named to be first woman CEO of a major automaker, she certainly was well-positioned to make a run for it.

    As senior vice president for global product development for the past two years, Barra, 51, has had her fingers on the pulse of the giant automaker's entire car and truck portfolio worldwide. The position brought her into direct contact with the cutting edge of the company — which vehicles are needed around the globe, and how different markets can share them.

    As if the job weren't big enough, last August she was given the added responsibility of GM's entire purchasing and supply chain worldwide and became executive vice president. That put her in direct control of overseeing the thousands of suppliers and parts subsidiaries that account for everything that's needed to create a modern vehicle. It's an area where automakers are constantly tweaking in search of greater efficiencies and savings. It also can be a major headache, since mistakes made at the supplier level reflect on the automaker, not just the supplier.

    Yet, through it all, she has stayed true to her blue-collar Michigan roots as the daughter of a GM tool-and-die maker. "She's the real deal, very down to earth," says Dave Cole, chairman of Auto Harvest, a non-profit devoted to innovation. "She was not raised in an aristocracy."

    Barra's career at GM started in 1980, when she went to the Pontiac division as a "co-op student" through General Motors Institute, now Kettering University. She earned a bachelor's degree in electrical engineering and in 1990, earned her MBA from Stanford.

    "She was identified fairly early as someone who had a lot of potential," Cole says.

    http://www.usatoday.com/story/money/cars/2013/12/10/mary-barra-bio-gm/3951015/
  • Stever@EdmundsStever@Edmunds YooperlandPosts: 38,968
    Yeah, VW kind of set themselves up for these kinds of headlines by setting sales goals in the press instead of bragging on their profits.
  • berriberri Posts: 4,004
    edited December 2013
    I think I'm a little more optimistic than you about the Barra promotion. She and Ruess, who were neck and neck for the CEO job, both have a simple mantra "no more crappy cars". I think that says something. They are admitting the need for improvement. I've always felt for example that American companies make better put together trucks and vans. I don't think they rattle as much as the Asians with age and they don't seem to allow as much road noise inside. But, the D3 problem is mechanical longevity vice Toyhonda. If they clean up engineering and purchasing I can actually see a GM vehicle down the road becoming more desirable. Of course, Japan has a habit of clutch hitting, so I guess time will tell.
  • gagricegagrice San DiegoPosts: 28,679
    I have no opinion on Barra as CEO. I see the direction GM is taking and I don't think it has anything to do with good cars or bad. It has to do with shifting more of the content out of the USA. The 2007 GM PU trucks were 90% US/Canada Content. The 2014 are 40%. That is their biggest selling vehicles. And presumably most profitable. By contrast Toyota has increased US content in their top selling models.

    If I was in the market for a 2014 PU truck and wanted to put as many US workers as possible back to work, I would have to buy a Tundra at 75% US content.
  • VW certainly is ambitious. I don't think they'll meet their U.S goals though, because they still don't fully understand the market here, or American tastes, and their reputation for quality is at best mediocre. But their plan for "modular engineering", using perhaps 4 basic platforms for all their vehicles, is interesting.

  • jayriderjayrider Posts: 3,196

    @MrShift@Edmunds said: VW certainly is ambitious. I don't think they'll meet their U.S goals though, because they still don't fully understand the market here, or American tastes, and their reputation for quality is at best mediocre. But their plan for "modular engineering", using perhaps 4 basic platforms for all their vehicles, is interesting.

  • jayriderjayrider Posts: 3,196

    VW has just raised the bar again to attract more people to their cars by dropping a year from the maintenance plan. It's now 2 years / 24K miles. Their leases are touted for 42 months which leaves you with 18 months of paying for VW service. If they were in the same league as Honda and Toyota -- not a big deal. My Buick costs me $59 for an oil change and tire rotation. Anyone know what VW charges ?

  • @jayrider said: My Buick costs me $59 for an oil change and tire rotation. Anyone know what VW charges ?

    Depnds on what they do, doesn't it? I remember when I used to bring my MINI in for an oil change service and tire rotation, the $130 bucks I got nicked included synthetic oil, the correct factory filter (VERY important on this car), check all fluid levels and top off if necessary, scan the car for codes, fill up the washer tank and a car wash (exterior). Not sure all that is worth $70 bucks extra over what you pay, but I can't easily check transaxle fluids, and I'd have to run to the store and the car wash for the other stuff.

    What ALL automakers have to learn is that SERVICE is going to be the key to future success. There are many dealerships that really need to be whipped into shape. We all know that everyone else knows that Lexus service is generally admired and VW service is not---naturally, many exceptions abound to this blanket statement.

  • jayriderjayrider Posts: 3,196

    The service includes a multipoint inspection with a printout. Now, if I take my car in and say "give me the 5000 mile service" that will come in around $200 -- for essentially the same thing.

  • berriberri Posts: 4,004

    Where I live there are two Toyota and Honda dealers nearby. One of each now provides pastries like Panera in the morning. The oil changes aren't any more expensive or different, nor are the mechanics, so I've switched my service dealers. The two dealers with the more customer focus are going to make more money off of me than the other two where I bought the cars originally. So I totally agree with what you are saying and have acted accordingly in my business decisions. When it's time to buy again, I'll buy from these dealers if the price is similar as well. Also, the dealers I originally bought these vehicles from have been bought out by some regional chain that seems more interested in trying to gyp you with unneeded service suggestions than becoming a business partner you can trust. Guess what, despite their regional chain cost advantages, the better customer oriented local dealers are actually taking market share from them. I love it!!!

  • hpmctorquehpmctorque Posts: 4,119
    edited December 2013

    Unless something dramatic happens before year end, VW will sell more cars in China than GM, for the first time in nine years.

    Audi is the leading luxury brand in China.

  • VW seems to struggle more in the USA than anywhere else.

    @hpmctorque said: Unless something dramatic happens before year end, VW will sell more cars in China than GM, for the first time in nine years.

    Audi is the leading luxury brand in China.

  • Stever@EdmundsStever@Edmunds YooperlandPosts: 38,968
    edited January 13

    Can't wait to see what name VW picks for this one. It'll be slotted between the Tiguan and the Touareg. Maybe the Tijuana.

    Production Version of Volkswagen CrossBlue Headed to Showrooms

  • MrShift@EdmundsMrShift@Edmunds Posts: 43,648

    Hopefully something that doesn't make my mouth hurt--they need more vowels at the end of their products, you're right----Tiguanni, Touraregino.....

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