Can VW Overtake Toyota and GM To Become #1?

larsb · January 2009

Bring the diesel Polo and they will REALLY kill with it.....

Volkswagen plans to sell its Polo small car in the U.S.

VW development chief Ulrich Hackenberg said the automaker plans to sell the car in the U.S. to take advantage of American buyers' increasing enthusiasm for smaller, fuel-efficient cars.

"The small-car segment is the fastest growing segment in the U.S.,"

Hackenberg told Automotive News Europe at the Detroit auto show. "Oil prices will rise again and that will drive small car sales up further."

VW has never competed in the subcompact segment in the United States. The smallest car it sells here is the Golf, also known as the Rabbit. The Polo would be larger than the Toyota Yaris, but smaller than the Honda Fit, says Volkswagen Group of America CEO Stefan Jacoby.

Jacoby says the Polo would be a "further alternative" to help VW meet its goal of more than tripling U.S. sales to 800,000 vehicles annually over the next decade. Once the economy begins to recover, oil prices will be more expensive than before the recession, Jacoby says, and VW has the "right products for that."

"With our European heritage, we are used to compact and subcompact cars. We are working right now to upgrade these cars for the American market," Jacoby said.

Volkswagen of America spokesman Jim Gill says he is not aware of a definite date for the Polo's U.S. launch. VW might test American reaction to the car at upcoming auto shows, he said.

"We are definitely looking at it and what would need to be done for it to be successful," Gill said.

Hackenberg said that U.S.-market Polos could be produced in VW's assembly plant in Puebla, Mexico. He did not say when U.S. sales of the Polo would start.

VW will debut its latest-generation Polo at the Geneva auto show in March.

hpmctorque · March 2009

"The global economic crisis has taken its toll on virtually every major carmaker around the globe but the effects have varied significantly between firms. General Motors financial predicament has been well documented, with the ailing Detroit carmaker teetering on the edge of bankruptcy.

Toyota, too, has been hit hard by the crisis, with the usually unstoppable Japanese carmaker expecting its first loss this year after nearly seven decades of profit. Toyota announced last month that it has forecast a $4.95 billion loss for the past year  down from an $18.9 billion net profit the previous year.

Volkswagen, on the other hand, posted a record net profit of $6 billion for the past year, and is still expecting to be profitable in 2009 despite analysts predicting the year to be one of the worst on record for the auto industry.

CEO Martin Winterkorn revealed at a recent press conference that VW will is aiming to be the biggest carmaker in the world within nine years, and expects to be the most profitable by the end of the current financial crisis. 'We are staying in the fast lane and the fuel tank is well topped up,' he boasted to reporters.

VW is currently ranked third behind GM and Toyota. Last year it sold 6.3 million vehicles, while GM and Toyota both sold more than eight million vehicles, but if it truly wants to overcome its rivals then VW will need to boost its profile and sell more cars in the U.S. market. Despite a significant decline in sales expected for 2009, the U.S. will almost certainly remain the worlds most lucrative market for some years to come and it is one VW is yet to breakthrough in.

Some plans in the pipeline include the opening of a new plant in Tennessee, as well as the development of several U.S. specific models, the first of which will be a midsize sedan to take on the Honda Accord and Toyota Camry.

As for the future of the industry, Winterkorn told Reuters that he expects sales worldwide to continue to fall and that a likely outcome would be the formation of more alliances. He said he expected to see a greater concentration in the global auto industry eventually, with only one survivor in Japan, one in China, two or three in Europe and one in the United States. Bold statements but one that echoes comments made by Fiat CEO Sergio Marchionne last month, who predicted that only six carmakers would survive in the longer term."

kurtamaxxxguy · March 2009

All of VW's expansion overseas sounds promising for the brand.

In the USA , VW still have a small, badly regarded dealer network that some auto publications dismiss as arrogant and rock bottom service-wise.

As they prepare to manufacture cars here in the USA, VW should try their best to rectify that situation. Otherwise their USA presence won't be all that helpful towards their goal to unseat Toyota.

There are good VW dealers within the USA. So far, in S. Calif or Portland, OR, I've not found those.

Claires · March 2009

You won't find one in Illinois either. :mad:

gagrice · March 2009

I was very pleased with my purchase of a 2005 Passat TDI from Armstrong VW just South of Portland Oregon. And I got great service from Drew VW in San Diego. Compared to Poway Toyota and El Cajon Lexus the VW dealers were head and shoulders above.

I bought my Passat via email. Well under invoice. The dealer met me at the Portland Airport. I drove the new Passat back to the dealers. Gave him a check for the amount agreed upon. He filled the tank with diesel across the street and I was headed South. The gas station attendant busted the fuel cover which was plastic trying to stretch his hose too far. When I got home I took it to Drew VW and they replaced the cover under warranty.

I have no doubt that VW will pass GM within the next two years even if GM survives. They have the most fuel efficient vehicles of the two. Toyota may take longer as they are more in tuned to what the market wants and they do offer trucks.

nippononly · March 2009

Do you then foresee VW having to sell a truck before they are able to gain global sales parity with Toyota?

gagrice · March 2009

It looks like VW has the new 2010 Volkswagen Robust PU coming. VW sold the HiLux PU under their name Taro. Now they are going to build their own. It they bring one with a 4 cylinder diesel I will buy it. They have about 5 models of vans they sell World Wide. I think they bought and rebadged Chryslers to save money. The ones they build are far better than the C offerings.

berri · March 2009

I'm skeptical on this one. European unions and politics will likey destroy any effort and VW just doesn't have a consistent track record.

fho2008 · March 2009

Found a great VW dealer in Illinois, they sell other brands also, heard alot of good things about the dealer I bought from.

Where did you buy, what went wrong?

I recently test drove a new TDI where I bought, even though I told my salesperson it would be @ 2 years before I bought, just wanted to see if everything I heard about the TDI was correct.

As for service....thats where I heard great things about em, but it was a different brand that they sell. So far none needed.

Extremely happy with my VW, cant wait for TDI.

bvdj84 · March 2009

I have had great service at my VW and import store. They genuinely care about my service and my needs. I would totally get another VW from my dealer, just for the fact of being treated high class when getting or servicing your car. That alone is reason enough for me. I truly love Honda, and I love VW too! I currently have an 08 G6, Love the features, love the car, hate the engine. My next car I plan to look at the VW or a Honda product. I am planning to wait awhile longer to try to get out of my current lease.

It seems to me VW is really putting out some practical, yet premium cars at a reasonable price. Cool thing about VW, is they are fun, and they seem to offer incentives much more frequently than other companys. Sign and drive is they way to go in a lease! They have that down! There is a VW model/trim for anyone. They all have the same quality work into them. The engine alone is the reason to get one. The 2.0T is just amazing!! Even their 5cyl is quite peppy!

I think dealer service, treatment, then the car all play a role in what car we get.

fho2008 · April 2009

Don't have to sell me on that, the car thinks the highway here is the autobahn!

deltheking · April 2009

Zero,zilch,nada.
Same with VW catching up to Toyota.not in 2010.Not in 2015.
It is a niche brand with horrible reliability not for 1 or 2 years but have been unreliable since I was born ,,I guess,,,,,
Good to dream though!!!!!!!!!!
Take a look at Hyundai ,,learn a lesson or 2 on reliabilty,quality etc.First match atleast Hyundai,then think about Toyota!!!Pleeaaasssssee!!!

gagrice · April 2009

Take a look at Hyundai ,,learn a lesson or 2 on reliabilty,quality etc.First match atleast Hyundai,then think about Toyota!!!Pleeaaasssssee!!!

Hyundai sales are not even close to VW world wide. VW is number 3 soon to be number 2 in the World. VW like Hyundai have improved a lot over the last 5 years. Toyota is the target though not as important as making a profit. VW did not lose money last year as did Toyota. They still are in the black. That is more important than numbers of vehicles sold. GM should have learned that 30 years ago.

fezo · April 2009

Yep. Passing GM certainly isn't the problem. Passing Toyota is.

I sure hope you are right on VW improving - particularly in reliability. If I thought I could count on a a VW being as relaible as a Hyundai (I'm not even making them be Honda or Toyota) I'd buy one in a second!

hpmctorque · April 2009

"General Motors will be overtaken by Volkswagen AG this year and fall to the world's third-largest automaker by production volume, market research company R.L. Polk Germany said today."

stever · April 2009

"We may not see a recovery until the end of this year, or even into next year," Stefan Jacoby, president of Volkswagen of America, said in a speech Wednesday at the New York auto show.

Still, Volkswagen is sticking with its goal to sell 800,000 vehicles a year beginning 2018, three times its 2008 sales."

VW's Jacoby Sees Little Recovery Until 2010 (AutoObserver)

hpmctorque · April 2009

Breaking news...

TOKYO/FRANKFURT (Reuters) - "Volkswagen may have become the world's top-selling automaker in the first quarter as government incentives have fueled demand in its major markets, overtaking industry giant Toyota.

The German automaker, with its nine car and truck brands including Audi, Skoda, Seat and Scania, has set a goal of overtaking Toyota and General Motors Corp to be the world's No.1 seller by 2018 -- a target that was initially met with skepticism.

But a deepening recession and credit crisis have crippled demand in Toyota's top markets, with U.S. sales falling 38 percent and Japan sliding 24 percent in January-March.

Volkswagen, meanwhile, is benefiting from government stimulus plans for the car industry that have boosted sales in Germany, China and Brazil, which together accounted for 44 percent of group sales last year, making it more likely that it beat Toyota or at least came close.

Alone in Germany, new registrations of Volkswagen group brands rose 19 percent to about 282,000. Toyota sales grew 43 percent but its market share is just 4.4 percent whereas about every third new car sold in Germany came from the Wolfsburg-based manufacturer.

'Volkswagen has the luck of being strong in the markets that are currently growing, while Toyota is exposed to those that are collapsing,' said Ferdinand Dudenhoeffer, head of the Center for Automotive Research in Gelsenkirchen, adding the quarter's results would be 'close.'

Toyota, which significantly outsold every other manufacturer in 2008, is not entirely without blame for its volume declines, however. The Japanese carmaker has seen sales fall every month of this year in China, its third-biggest market.

In the first quarter of last year, the German group delivered 1.57 million vehicles, a third less than Toyota's 2.41 million, which included sales at minivehicle and truck units Daihatsu Motor Co and Hino Motors Ltd.

Toyota has given no forecast for retail sales, but its latest estimate for shipments for the 2009 first quarter is 1.23 million vehicles, down 47 percent from a year earlier.

Its first-quarter U.S. sales fell 36 percent, while sales in Japan for the core Toyota brand plummeted 31 percent. The two markets account for just under half of Toyota's global sales.

Volkswagen on Thursday confirmed projections for a 10 percent fall in global sales in 2009, which would translate to around 1.42 million vehicles in the first quarter if the decline was distributed equally across the entire year.

'Volkswagen is a big competitor for Toyota,' said Koji Endo, auto analyst at Credit Suisse in Tokyo. 'Audi is strong, Volkswagen is strong, and they're making good use of their small cars.'

The automakers are expected to disclose their worldwide first-quarter vehicle sales over the next week.

The battle for top spot is also likely to be intense in coming quarters.

Toyota is counting on a third-generation Prius hybrid car due for roll-out next month to jump-start sales as more countries offer consumers incentives to buy energy-efficient cars. It will launch 16 new models in Europe this year following a product drought in 2008.

Volkswagen, for its part, will have a full year of contribution from the remodeled Golf, a perennial best-seller, and the relaunch of its popular Polo compact car.

Volkswagen has also moved up in stock value ranking, grabbing the No.2 spot behind Toyota, whose market capitalization of $133 billion still outstrips the German carmaker's $100 billion.

Market research company R.L. Polk Germany predicted this month that Volkswagen would overtake GM as the world's second-largest automaker as the U.S. giant suffers steep declines at home amid fears of bankruptcy.

(editing by John Stonestreet)

gagrice · April 2009

I had faith in VW. The new Golf TDI will be a Prius killer if I am not mistaken. I look for it to be a HUGE seller in the USA even with our bad market.

larsb · April 2009

There will never be a "Prius Killer."

It will remain a valid vehicle for as long as 'Yota chooses to keep updating it.

rockymtnhi · April 2009

No way Hose^ Hyundai needs to mate the right engine to their product. VW has a better better cabin also and packages.
How ever, Hyundai, has a better warranty and nice looking vehicles ,but dull to drive.Step on the gas on a VW GTI or a TDI Golf and you get that Visceral feeling of power.

stever · April 2009

Ford is trying to give them some competition:

Ford Fiesta Outsold VW Golf in Europe Last Month (Straightline)

deltheking · April 2009

But atleast you can step on the gas pedal in Hyundai.You cant do that in a VW as it is the dealer`s repair center most of

the time!!
VW can`t match Hyundai`s warranty.Somuch for its reliability.Regarding the interiors the newer Hyundais-Sonata,Azera, and especially Genesis have terrific interiors.
And the drive of the Genesis is one of the better ones out there.

gagrice · April 2009

It will be interesting to see how the Fiesta holds up to the New Golf. Do you know if the Fiesta has a diesel engine in the line? Too bad GM has not tried to keep up like Ford has.

hpmctorque · April 2009

"It will be interesting to see how the Fiesta holds up to the New Golf."

The Ford Fiesta will compete with the VW Polo. Since it dropped the Focus hatchback, Ford doesn't have a direct competitor to the Golf. The Focus sedan and coupe are Ford's closest competitors to the Golf and Jetta, I understand that Ford will introduce the next generation Focus some time next year, but I haven't heard whether that will be offered as a hatchback, in addition to the sedan.

rockymtnhi · April 2009

What's the price of the Fiesta HB in Europe. I think it's a bit more than we can afford here. I wonder how they will package it? :confuse:

nippononly · April 2009

The Fiesta DOES have a diesel engine in Europe, a 1.4L unit which I believe is one of the most powerful engines available in the Fiesta. Ford has already said they will NOT offer diesel in the U.S. on the Fiesta.

I can't see Golf TDI killing the Prius, they sell like 5000 Golfs all year long in the U.S. Jetta TDI may be a different story, but there are still an awful lot of people that won't buy diesel, period. At least VW is pretty much cornering the diesel market right from the get-go. What diesels ARE sold will have VW badges on them....

We have to wait for gas prices to go back up, until then VW won't sell a lot of diesels and Toyota won't sell a lot of Priuses.

nippononly · April 2009

if VW can do it, but it looks like the ridiculous Routan won't be helping at all:

VW's Routan isn't moving; future murky

April 20, 2009 - 12:01 am ET

The Volkswagen Routan minivan, which arrived in showrooms in September, is selling so slowly that no units have rolled off the assembly line since December.

"We launched Routan at the worst moment," last fall when U.S. auto sales were plummeting, said Stefan Jacoby, CEO of Volkswagen Group of America.

....VW has sold only 5,582 Routans; the factory has produced 22,037. A VW spokesman said the company has not decided when to resume production

http://www.autonews.com/article/20090420/ANA06/304209960/1078
(registration link)

Gee, they have been on sale for roughly six months, which means they have, oh, two YEARS' worth of stock on hand already. I would say the chances of resuming production are slim to nil. :-P

I love how they say the reason for no sales is they "launched at the worst possible moment". So it couldn't have anything to do with the fact that it is a rebadged Grand Caravan, right?! The company with the goal of tripling sales in less than 10 years ought to be able to sell a van in the States that isn't a rebadged Chrysler.....

fho2008 · April 2009

I agree, but rebadging was supposed to be faster than starting from scratch. Look at it this way...minimal investment, not selling, they can move on. They sure do advertise em though, see ads all the time for em.

gagrice · April 2009

Sadly, VW has a line of great vans in the rest of the world. I am sure that some kind of regulations got in the way. I see their diesel vans all the time with Mexico license plates. The knockoff from Chrysler is WAY over priced.

larsb · April 2009

Gary says, "VW has a line of great vans in the rest of the world. I am sure that some kind of regulations got in the way."

No regs got in the way.

VW just does market research and determines what USA buyers want and don't want.

fezo · April 2009

Amazingly, one of those 5,582 sold is around the corner from me. All the more unusual in that there's not a VW dealer for 30 miles...

gagrice · April 2009

I guess they screwed up. Nobody wants a cheapo Chrysler mini van with a VW emblem on the front. No reason why they could not have brought their Eurovan with the 2 L TDI engine. Unless they are just too expensive for the cheap US buyer. Vehicles in the EU are generally much more expensive than they are here. We want cheap junk and the automakers provide cheap junk.

nippononly · April 2009

provoke me to wonder aloud: can VW overtake the world's biggest automakers in sales volume while it continues to totally fail to take the (currently) world's biggest auto market seriously?

If as gagrice suggests, Americans want cheap cheap cheap above all else, will VW be able to step up to the plate? Cheap cheap cheap isn't exactly their style after all. And a lot of their global products aren't well suited to the American market, hence the utterly failed Routan experiment.

Will Tiguan set the streets afire in the small crossover segment? What will they do about the fact that Passat sales have dropped off to virtually nil?

Or does the U.S. cease to matter in VW's grand scheme? Can it afford to just mostly ignore the Americans?

hpmctorque · April 2009

"provoke me to wonder aloud:..."

China has overtaken the U.S. as the world's biggest market, and VW is strong there.

"does the U.S. cease to matter in VW's grand scheme? Can it afford to just mostly ignore the Americans?"

I see where you're coming from. As you know, however, VW is building a new manufacturing plant in Tennessee, where it will build cars that are designed for the American market. Now, I'm not predicting whether this initiative will succeed, but it demonstrates that, (1) VW is willing to risk investing in the U.S., despite their failure in Pennsylvania in the '80s, and, (2) the company has recognized that to become a top tier player in the U.S., it needs to align it's vehicles with U.S. tastes.

Also, like the domestic brands, VW has recognized the importance of reliability, and is striving to become competitive with the top Japanese brands on this front. Of course, the jury is still out on whether they'll succeed on this front, but in the meantime it seems as though Toyota's ratings on reliability have slipped some recently.

The Japanese have proven themselves to be formidable competitors, but, then, so was GM for many years.

nippononly · April 2009

Reliability is one thing, but VW's midsize sedan has a starting price above $25,000 doesn't it? The only ones my local dealer has in stock are all "Komfort" trim sedans without options. I don't know where Komfort is in the grand scheme of Passat trims, but all those cars had an MSRP of $29,7. That's a hard sell for VW dealers what with 6-8 other great or good family sedans on the market for 1/3 less money.

So back to gagrice's "cheap cheap cheap" point, how will they ever boost sales with such expensive vehicles? Even if they DO start to build them here? I note that VW's crossovers are also very non-competitive on price, including the newest one, the Tiguan.

hpmctorque · April 2009

You're right, Passats are pricey. Insofar as VW SUV prices are concerned, since I've never owned an SUV and have no plans to buy one, I defer to your opinion on these.

gagrice · April 2009

I note that VW's crossovers are also very non-competitive on price, including the newest one, the Tiguan.

Not sure what you compare the Tiguan to. They are compared to the Acura RDX here on Edmund's and are not as expensive. You can get one stripped in the low $20k range. The Jetta starts at $17k. What exact model do you think has them beat price to content? And the Japanese have nothing to compete with the Jetta Sportwagen TDI. Not even close.

nippononly · April 2009

Not sure what you compare the Tiguan to. They are compared to the Acura RDX here on Edmund's and are not as expensive.

OK, so VW wants to be niche like Acura is? Because Acura, tiny to begin with, saw its sales fall 30% last year, and that was WITH a full year of RDX production, which was then a new model.

If VW wants to be niche, then they are doing just fine. In which case, I would assume they ARE going to ignore the U.S. in their quest for world domination. So then the question becomes, can they really afford to do this?

I do agree that not only will the American market decline in the decades to come, but also its prominence will as other 10-million-plus markets emerge, including India and China. So perhaps ignoring the U.S. is not a bad long-term move for VW, but in the 2018 timeframe I think the U.S. will continue to be a very important market for carmakers. It IS 2018 by which time VW hopes to triple sales, correct?

hpmctorque · April 2009

But, nippononly, why do you insist that VW is ignoring the U.S. market, when they're building a plant in Tennessee and introducing new models, such as the Polo? What am I missing?

nippononly · April 2009

Well, for the most part VW models are priced 20% or more above those of competing mainstream brands. Gagrice was saying no, we shouldn't compare them to a mainstream brand, we should compare them to a near-lux brand. So OK, if they are going to be a near-lux brand then they should know that near-lux brands don't have high sales, and they won't be tripling their sales any time soon taking THAT approach.

If they DO want to compete on volume with Toyota, Ford, Honda, etc, then the prices need to come way down. Again, as gagrice said, Americans want cheap cheap cheap in their cars and trucks. That's just the American market for you.

So VW can't have it both ways, they need to pick one course or the other. I'm amenable to the notion that ignoring the American market could be beneficial to their growth in the long term, but not by 2018.

gagrice · April 2009

Gagrice was saying no, we shouldn't compare them to a mainstream brand, we should compare them to a near-lux brand.

I pointed out that Edmund's compared the Tiguan to more luxury brands. The price between the Tiguan, CRV and RAV4 is just a few dollars. With Tiguan being the cheapest. Comparably equipped the Jetta is less than the Corolla. How much more mainstream is that? Even with the Jetta TDI they are going for $22,000 less $1300 tax rebate.

The biggest obstacle is past reliability issues. If you want to compare the Sportwagen TDI to the Camry Hybrid, with the current tax credit you save at least $3000 buying the VW. And drivers reporting mileage are getting over 39 MPG with the Sportwagen and 35 MPG with the Camry. If you care nothing about handling and performance you will probably buy a Toyota. Not because they are competitive. I don't think you can do any better with any Japanese car on resale than you can with the VW TDI. VW does not offer any gas engine I would consider. They sell gas options that appeal to the poorly informed US buyers.

nippononly · April 2009

Tiguan gets closer than Passat: starts at $23,2 (rated 19/26 EPA)

CRV starts at $21,2 (rated at 22/28 EPA)
RAV4 starts at $21,5 (rated at 22/27 EPA)

RAV4 will have more incentives than Tiguan all day long if cheap is the priority, and if not CRV resale WILL top Tiguan's, diesels excepted.

VW's diesel line may be the greatest thing since sliced bread, but it will not get them to triple sales in the U.S. No way, no how.

VW's gas models aren't competitive on price except Golf and Jetta. Those two I will give you, but then why does nobody buy them? Even with the CONSTANT barrage of lease deals VW bombards us with TV ads for. Whatever that magic ingredient is that Jetta and Golf are missing, it is clear that VW needs to get some of that, while keeping the prices where they are, if it hopes to triple sales.

hpmctorque · April 2009

"...why does nobody buy them?"

"... but then why does nobody buy them?"

Excellent question. I don't know, but I think one reason is that fewer Americans than, say, Europeans value the "fun-to-drive" factor. Europeans and others assign different values to various attributes, with Americans assigning more value to reliability, for example. It's my guess that many Americans will trade relatively numb steering and an isolated driving feel for more MPG. Maybe the VWs that are made in Tennessee will resemble Toyotas more than current VW offerings. We'll see.

I've driven old and newer Civics, Accords, Camrys, Rabbits and Jettas, though not the Passat, and I prefer the driving and ride dynamics of VWs more than those Japanese models.

gogogodzilla · April 2009

Well, I can say that VW sells a lot of Jettas and Rabbit/Golf/GTIs here in Maryland. I don't see very many Passats or Tiguans, though.

(I see a LOT of GTIs in Maryland.)

nippononly · April 2009

Touareg is another also-ran, and the medium-to-large crossover segment is one with a lot of total sales each year.

GTI has a lot of competition, and besides I can't see tham basing a huge sales increase on a sport model like that one. Between Honda, Subaru, Mazda, Mitsubishi, Mini, and even Chevy, GTI has its hands full with competing for sales. That's before you even consider that Americans still generally prefer sedans to hatchbacks, although hatchbacks are coming back into their own.

And hey, earlier I forgot to include the other 1000-pound gorilla in the Tiguan's class, the Escape, which starts at $20,400 and also makes 22/28 EPA, again leading Tiguan in both price and fuel economy. My prediction is that Tiguan will never get anywhere near the sales figures of the Big 3 in its class.

gagrice · April 2009

Whatever that magic ingredient is that Jetta and Golf are missing, it is clear that VW needs to get some of that, while keeping the prices where they are, if it hopes to triple sales.

VW is arguably has the best entry level diesels on the planet. How long did it take diesel to overcome gas car sales in the EU? We are talking a goal that is 9 years off. There may not be a D3 in nine years. It may be just a slimmed down Ford left of the domestics. I think VW as a result of the recession made great gains. They are not getting hit near as hard as number one Toyota. They will likely be number two worldwide this year. If Toyota makes anymore Tundra blunders they could be pushed off the throne as well. As far as Passat, I think it is time to cut the line. The Jetta Sportswagen seems bigger than my 2005 Passat. And it gets about 20% better mileage.

Touareg is another also-ran, and the medium-to-large crossover segment is one with a lot of total sales each year.

The Touareg is such a small segment niche vehicle. I don't see it competing with any other vehicle except the Porsche Cayenne which it shares a chassis with. It is a highly refined vehicle. For both on and off road. Probably holds more records than anything but the real Land Cruiser. The Touareg is expensive. I would consider one if VW is able to put a diesel engine without Urea injection. The V10 Diesel which was legal in CA was way overkill. It was sold to be considered production for their off road racing ventures.

Bottom line. When the US consumer realizes that diesel is the best alternative to save fossil fuel and cut CO2, VW will be at the leading edge. It may be long before their goal of 2018. Once you drive one you never want to go back. My biggest regret out of the last 5 new vehicles I have bought is this Toyota Sequoia. It has the lowest resale of all which included two Chevies an RV Sprinter and the Passat TDI Wagon.

nippononly · April 2009

Now you regret the Sequoia more then the GMC hybrid pickup you had? You have posted so much bad stuff about your disappointment with the pickup, my head is spinning if you now regret the Sequoia more. I'm puzzled why you ever sold the Passat if the TDIs are that great.

I know you super-duper love these diesels, gagrice, but there is just no way in the world VW will triple its North American sales on the basis of their diesel lineup alone. Not even close.

And I question how every crossover they have can be "ultra-niche" - crossovers are a third of the market for all the high-volume carmakers! This ultra-niche strategy, if it exists, will have VW shooting itself in the foot.

Or we could just state the obvious - VW priced itself way above all its natural competition with its crossovers, and sales will fall accordingly. Again, the American consumer is cheap cheap cheap.

stever · April 2009

"Just when you thought Porsche might eventually swallow Volkswagen, now comes a report from the Financial Times that it might actually be the other way around. VW might buy up Porsche's sports car business."

Could VW Swallow Up Porsche? (Straightline)

nippononly · April 2009

I can't make any sense of all this. How can Piech, CEO at VW and ALSO part-owner of Porsche SE, decide that VW should buy out Porsche? Isn't it a case of a company buying itself in essence? :confuse:

it's amazing that VW has 9 brands without Porsche. Geez, I can't name more than 5. Can I even name 5? Hmmmm.........

hpmctorque · April 2009

VW brands include Audi, Bentley, Bugatti, Lamborghini, SEAT, Skoda and Volkswagen.

Can VW Overtake Toyota and GM To Become #1?

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