It’s a good news kind of day in Wolfsburg, despite fears of further indictments from U.S. authorities and an ongoing investigation by pesky German investigators.
After spending years jockeying with rival Toyota for the sales crown, Volkswagen finally pulled ahead in 2016 to become the world’s top automaker, fulfilling a goal set in 2009. The architect of that global dominance strategy — ex-CEO Martin Winterkorn — might not share the elation of his former colleagues, as he is currently under investigation for fraud.
In total, Volkswagen Group divisions delivered 10.3 million vehicles last year, topping Toyota’s tally by a thin margin. The previously best-selling automaker sold 10.2 million, making this race something of a photo finish.
Still, despite the closeness of the results, a podium is a podium. The scandal-plagued automaker saw its global sales fall significantly in 2015, hitting 9.9 million for the year, but controversy wasn’t enough to stop growing demand for the brand in China, as well as the surging popularity of the premium Audi and Porsche brands.
Meanwhile, Toyota saw its sales rise modestly from just under 10.1 million units sold in 2015. The latest full-year tally is less than the 10.3 billion the automaker recorded in 2014.
Both automakers are counting on new or refreshed utility vehicles to stimulate U.S. sales. Toyota will launch the C-HR crossover this year, while Volkswagen recently released the midsize Atlas and a larger Tiguan. It’s difficult to predict how an increased emphasis on style at the traditionally staid Toyota will play out with buyers.
The folks in Wolfsburg has best enjoy this victory, as there are growing signs that next year could see the automaker cede the crown to its rival. Headwinds are growing in key markets, Bloomberg reports. In China, a small-engine tax looms, threatening to snuff out the brand’s growth. Meanwhile, VW plans to scale back the leasing fleet it makes available to its vast German workforce.
There’s also the unanswered question of how President Trump’s proposed trade policies will impact European automakers — making for a year of uncertainty, and not just for Volkswagen.
[Image: Volkswagen]
Wait, this is the same VW that fudged on diesel emissions? And we’re supposed to believe them?
@Higheriq
Yes same one . They and the other divisions of VW are doing well
Well, I did my part this year by getting another GTI, and honestly if they keep building a car this good I would help the CEO personally melt ice caps and club baby seals… could not care less about the scandal. Loved my wife’s Golf TDI when she had one.
On a serious note… are the buyback cars subtracted from this sales number? Technically, would put Toyota back in first.
“On a serious note… are the buyback cars subtracted from this sales number? Technically, would put Toyota back in first.”
Considering that the stop-sale for the buy-back-eligible TDI vehicles went into effect in 2015 and that none of them was eligible for sale in the year 2016, I’d say probably not. But if they’d won that sales status for a year in which a good number of their vehicles were subject to a buy-back, then I’d say it wouldn’t count.
Kyree,
Dieselgate was felt in many countries.
I would of of thought VW faired worse outside the US market.
Isn’t the gti just lovely? It’s a great car and cheap too.
I’m about 10,000 miles in on mine and still enjoy getting into it every day.
Today, ze vorld, tomorrow…uh…
I’ve never understood how this matters one bit, except to impress the media.
96.6% of US car sales went to other mfrs.
Most buyers aren’t looking to purchase from “the world’s largest automaker”; they just need one vehicle that meets their needs. Even the 10th or 20th largest automaker can achieve volume pricing from suppliers on its parts.
SCE to AUX,
I believe VW’s position of the brand in the US too high.
To me VW does not represent prestige. It sits with lesser vehicles.
VW USA did try to cash in on the “German Engineering” hype of the 80s and 90s for perhaps too long. Selling their cars as upmarket in the USA, despite being forced to engineer them to be cost competitive with the mass market brands they are stuck competing with in other markets.
I’m a bit concerned Mazda USA may attempt the same strategy, which won’t go over any better for them.
Quirky, “differently prioritized”, “with a more specialized/niche set of strengths and weaknesses” as Subaru has shown, can work well. But if you want to pretend you’re somehow, across the board, worth more than comparable Toyotas and Hondas, you better bring some seriously flawless product to market.
Here VW starts off with Skoda as a bargain, competing in the “Korean” bracket. VW which is competitive with the mainline Japanese offerings, Audi which is competing with the Lexus, MBs, BMWs, etc.
Oddly enough I think Skoda has a good future in Australia. It seems to offer a very affordable “German” type vehicle. Its been around for a while now.
It matters for the credibility of a management strategy that promised to do just that. Remember, perhaps outside of Japan, what matters the most to share prices is generating demand for shares. Not cars. In the “infinite money for nothing for the investing class, and no money for anything for the rest,” that means selling hype and promises are more important than selling cars. Even Germany is no longer immune to this post ECB printomania, despite having managed to shy clear of the most egregious involvement with financial rackets for longer than most.
The sales numbers aren’t really a surprise. It’s only North America and some other markets where VW has ceased to sell its diesels.
Good point. My oldest son has the Golf Diesel wagon and I know he’s currently shopping for a replacement. What he shared on the buyback offer seemed pretty generous.
I have the same car, a Golf SportWagen TDI SEL. They’ve offered me $23,700 for the car and $7,600 for the restitution. That adds up to about what it MSRP’d for when I bought it almost two years ago.
I’m frankly amazed that VW can essentially become the world’s largest volume automaker with massively reduced North American sales.
I’m not sure WHY you want to be the volume leader, though, especially if you got there through decontenting.
Oren,
There is so much to the world.
Go back 50 or 60 years and such an issue arose it would of (have;) been a far more serious problem for VW.
As we can see, irrespective if VW’s are out 100k the US is not the only market to make a living from. It’s significantly less representative. This I hope Trump understands.
I looked at VW’s global sales. This is how it breaks down:
Western Europe……..: 23%
Central/Eastern Europe: 21%
South America………:20%
South Africa……….:20%
Asia/Pacific……….:10%
NorthAmerica(USA/Mex/Can:4%
Lou,
Going back 5 decades there was nothing comparable to the US market. Now there is.
With Global harmonisation this makes it easier for VW to be in a market with common or similar engineering regulations.
The US is still important as a market, but its importance is diminishing.
Ha, nice Portlandia reference.
FYI, the dream of the 90’s is definitely alive in Portland.
I imagine they were NOT number one in profits.
Not first, but not doing so badly there either.
Latest pre-tax profit for 9 months (based on 1 EUR = 1.1 USD, 120 JPY = 1 USD):
Toyota: $9.8B (6 months, 9-month equivalent $14.5B)
Daimler: $10.1B
GM: $9.8B
Volkswagen: $8.9B
BMW: $8.5B
Ford: $7.9B
FCA: $1.4B
Does the VW numbers include all their brands? Still I’m surprised.
Yes, all of the above include all brands (and finance operations as well). Daimler probably has the biggest contribution from non-automotive operations.
Although so many believed VW to be Number Two, Volkswagen has prevailed, and is actually Number One.
It just may prove be Number Two next year.
What? Where are all the TTAC armchair experts who kept telling us that VW is finished and we should expect to see them in bankruptcy? The inability of many Americans to comprehend there is a world outside their borders never ceases to surprise.