|VW Group's Global #1 aspirations revolve around China|
In the mad scramble to the top of the car making tree, the VW Group pins it's hopes on China. With nearly 38% of production for the VW brand in that nation, it is clear how important it is. Three years ago, China accounted for just 23.3% so the dependence grows. However, the car market in China is levelling off, so how much more VW can rely on that one country to get the Group to #1 is not certain. Of course VW is aware of that and is trying hard to grow in nations where it lacks presence. It currently sits 3rd on the global car making list.
Germany accounted for about 30% of production in 2010, so virtually all increase in units outside it's homeland factories. Brazil is another important market, but sales have been poor there lately. The Russian car market is imploding with the Ruble in a mess and some car makers are suspending car sales in Russia at the moment. Another market not to be relied upon.
The uncertainties of this world make any predictions difficult, but VW Group is determined to be the biggest car maker. It may get there very soon, but at what price I wonder? Concentrate on doing the job well and things will happen.
Data source: OICA.