VW wants to be the world’s No.1 car company, and may reach that goal through its merger with Porsche. The top spot has changed hands in the last two years moving from troubled GM to troubled Toyota Motor (NYSE: TM). Toyota’s sales may be further undermined by its massive recall problems.
VW sales increased sharply last month, especially in China, now the world’s largest car market. Some forecasts put total Chinese vehicle sales this year as high as 16 million units.In the month of May, the VW sold 604,200 vehicles up 8.6%. VW sold 2.94 million vehicles in the first five months of the year 2010, up 18.1% versus a year ago.
In China, Volkswagen’s largest market, the firm delivered 777,800 vehicles during from January to May up 48.2%. Most months VW and GM vie for the top spot in the People’s Republic.
VW”s Achilles Heel is the US where the company’s presence is tiny. VW sold less than 20,000 cars a month in American between January and May.
VW will rue the day that it did not move to take control of Chrysler and left the prize for Fiat. Most industry experts believed that the No.3. US car firm could not be turned around, but it is now making money. And it has 8% of the American market, a position VW cannot build on its own.
Douglas A. McIntyre
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