Volkswagen, world's largest carmaker?With the Porsche business settled, Volkswagen goes for the grand prize: To unseat Toyota and to become the world's largest carmaker. They are closer than many may think.

Published: 17 Aug 2009 19:01:06 PST

With the Porsche business settled, Volkswagen goes for the grand prize: To unseat Toyota and to become the world's largest carmaker. They are closer than many may think.

Last Friday, the final papers were signed: Porsche becomes Volkswagen's 10th brand, the Sheik of Qatar becomes a big shareholder of the combined Volkswagen/Porsche imperium. Control of the company sits with the Porsche/Piech families which will own 35 to 40 percent of the company.

With months of wranglings behind them, Volkswagen can look ahead. Their target: Troubled Toyota.

The new Volkswagen/Porsche conglomerate has the right stuff to become the world's largest automaker, said Volkswagen CEO Martin Winterkorn after announcing the successful consummation of the three-way marriage. Lower Saxony's premier Christian Wulff, who sits on the VW supervisory board and had a deft hand in Piech's victory over upstart Wiedeking, sets the same goal. "It is our clear target to become the number one in the worldwide auto business," Wulff declared to Germany's Handelsblatt.

A case of hyperbola? At first glance, it sure looks that way: According to OICA, the world's official scorekeeper of auto production, Toyota had made 9.2 million units in 2008, VW had made only 6.4 million.

This was 2008, this is now. In June 2009, Toyota's year-to-date worldwide production was down by 40.6 percent, whereas Volkswagen's deliveries were down by only 5 percent. Volkswagen had little to lose in the USA, but is strong in the surging Chinese, German, and Brazilian car markets.

"Surpassing Toyota in terms of net profit and global production in 2009 suddenly looks like a strong possibility," wrote Automotine News after looking at the astonishing numbers.

Volkswagen would be 9 years ahead of plan. In 2008, Volkswagen announced its "Strategy 2018." Within 10 years, they wanted to topple Toyota from its number one position.

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