VW Overtook Toyota To Be Largest Automaker

Back in 2007, at the Internationalen Automobil-Ausstellung (IAA) or more commonly known as International Frankfurt Motor Show, CEO of Volkswagen AG Dr. Martin Winterkorn publically announced that Volkswagen, the world's 4th largest manufacturer will be challenging Toyota Motor Corp for the world's largest auto maker title.




Little did Dr. Martin Winterkorn expect that his goals will be "reached" so soon. Today, Bloomberg news reported that VW Group has just surpassed Toyota to be the world's largest auto maker by market value. But this has nothing to do with any efforts from VW and is certainly not something the VW will be proud of. VW's sudden fortunes are merely the result of speculative stock trading and as a result on the collapse of investment banking firm Lehman Brothers. VW's stock price performance is purely driven by speculation and has little to do with the company's fundamentals. 

Amidst the current doom and gloom economic outlook, carmakers including VW are not in the mood for celebration. The short term outlook for most industries, especially car makers is very depressing.

Source : UK Society of Motor Manufacturers and Traders, via AutoCar UK.


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