Volkswagen one of the leading auto manufacturers in Europe had set their aim on becoming the largest auto manufacturer in the world last year, displacing Toyota. Now, with Toyota performing dismally after it was forced to cut its production output by half, Volkswagen can finally realize their goals. Volkswagen is reportedly close to achieving this dream, at least where sales figures are concerned.
As we had announced just recently, Toyota has already been displaced by GM as the largest producer of automobiles in the world. Whether GM will be able to hold on to this position, only the future can tell. As of now, it looks like VW is all set to capture this position as they planned to do last year.
The company is doing quite well in emerging markets because of rising sales figures. According to recent reports, VW whose brands include Seat, Skoda and Audi sold 14% more vehicles in the Q1 of the year. The rise in vehicle sales was because of huge demand from overseas markets as well as the company’s low exposure to problems of the supply-chain markets affected by the Japanese crisis.
The company is also performing well in emerging markets like Russia, Brazil and China, which is now the largest auto market. The company stated that they continue to see the highest growth prospects in the Latin American and Asian emerging markets, while the developed nations are only experiencing moderate growth. Volkswagen’s opening profit increased to €2.91bn which excludes the gains from their Chinese business. Other European car manufacturers like PSA Peugeot Citroën were affected by the Japanese crisis, which made it hard for them to source parts from the country.
However, most German auto companies have remained comparatively unhurt by these problems, with the crisis even creating an opening for VW to finally beat top rivals to claim the No.1 spot.