Volkswagen AG, the world’s fourth largest car maker, is planning to compete with Toyota Motor Corp., the world’s largest automotive manufacturer, through offering more vans, pickup trucks and sport-utility vehicles.
In an interview with Germany’s monthly Manager Magazin, Chief Executive Officer Martin Winterkorn said, “In this area we haven’t done enough, but we’re stepping on the gas.”
At present, Volkswagen is selling about the same amount of traditional passenger cars like sedans and hatchbacks but lags far behind Toyota. The Japanese rival is considered the world’s second automaker in SUVs, vans and trucks. It has been building the Tundra pickup in Texas, making about three million more vehicles annually over Volkswagen, which offers no pickup in the U.S.
Stephen Pope, chief global market strategist at Cantor Fitzgerald in London, said, “To be a true volume player in the auto market, one has to be engaged in all aspects of the business… VW has proven its success in regular passenger cars, however, in other areas the firm has several blind spots.”
Winterkorn mentioned that he desires to introduce 12 new models within the next three years. It is part of a plan in increasing the company’s sales by 8 million vehicles. New offerings would include a Volkswagen brand compact SUV named the Tiguan, a minivan for the U.S. market built with Chrysler LLC and two new compact SUVs from luxury unit Audi.
Taking over as chief executive since January 1, Winterkorn previously ran the carmarker’s Audi brand. One of his initial decisions as Audi chief was building the Q7 SUV, which happens to be one of the unit’s best-selling vehicles these days.
Pope said, “Martin Winterkorn is on the right track with his plans in these areas and it is necessary to get out into the public domain as soon as possible as key rivals are pulling away.” “He is a driven CEO and I fully expect to see new models in these new areas catching the eye as the 2008 auto season gets going,” he added.
Winterkorn said that Volkswagen also has plans to increase cooperation with Porsche SE, Volkswagen’s largest shareholder, in areas such as sales and marketing.
With Winterkorn’s experience, the German company has a greater chance to achieve its goal to be as good as its Japanese rival in the segment. We just have to wait for the proof, which will be evident on the company’s future sales.
In an interview with Germany’s monthly Manager Magazin, Chief Executive Officer Martin Winterkorn said, “In this area we haven’t done enough, but we’re stepping on the gas.”
At present, Volkswagen is selling about the same amount of traditional passenger cars like sedans and hatchbacks but lags far behind Toyota. The Japanese rival is considered the world’s second automaker in SUVs, vans and trucks. It has been building the Tundra pickup in Texas, making about three million more vehicles annually over Volkswagen, which offers no pickup in the U.S.
Stephen Pope, chief global market strategist at Cantor Fitzgerald in London, said, “To be a true volume player in the auto market, one has to be engaged in all aspects of the business… VW has proven its success in regular passenger cars, however, in other areas the firm has several blind spots.”
Winterkorn mentioned that he desires to introduce 12 new models within the next three years. It is part of a plan in increasing the company’s sales by 8 million vehicles. New offerings would include a Volkswagen brand compact SUV named the Tiguan, a minivan for the U.S. market built with Chrysler LLC and two new compact SUVs from luxury unit Audi.
Taking over as chief executive since January 1, Winterkorn previously ran the carmarker’s Audi brand. One of his initial decisions as Audi chief was building the Q7 SUV, which happens to be one of the unit’s best-selling vehicles these days.
Pope said, “Martin Winterkorn is on the right track with his plans in these areas and it is necessary to get out into the public domain as soon as possible as key rivals are pulling away.” “He is a driven CEO and I fully expect to see new models in these new areas catching the eye as the 2008 auto season gets going,” he added.
Winterkorn said that Volkswagen also has plans to increase cooperation with Porsche SE, Volkswagen’s largest shareholder, in areas such as sales and marketing.
With Winterkorn’s experience, the German company has a greater chance to achieve its goal to be as good as its Japanese rival in the segment. We just have to wait for the proof, which will be evident on the company’s future sales.
