Volkswagen Could Become No. 1 Manufacturer

Toyota Motor Corporation may soon have to relinquish its tag of the world's largest car manufacturer to Volkswagen AG. The Japanese car manufacturer had recently gained the tag after overtaking General Motors. However, as the recession set in, and Toyota Motors suffered sharp declines, speculation points towards Volkswagen.

Toyota suffered major losses in its biggest markets -- the U.S. and Japan -- as sales fell by 38 percent and 24 percent respectively, in January to March, 2009. The reasons attributed for these are deepening unemployment and credit crisis. Together, the two markets consume nearly a half of the Toyota's sales.

The German car manufacturer Volkswagen AG, which has nine brands including well known ones like - Audi, Skoda, Seat, Skania had set a target of overtaking General Motors and Toyota to the top position by the year 2018.

Volkswagen had projected the target owing to its sales figures of first quarter of 2008, wherein 1.57 million vehicles were sold, that was a third less than Toyota's 2.41 million unit sales.

Meanwhile, the Volkswagen is set to benefit from stimulus plans by the government that has helped push sales in China, Germany and Brazil. Together, these companies account for 44 percent of group sales last year. These markets have also helped Volkswagen beat world recession blues.

The two companies are likely to declare the results of first quarter of 2009 over the next week, and auto experts believe that this would change rankings easily and affect subsequent quarters. Volkswagen's strong markets could tilt the tag in its favour.

Sources: http://www.carazoo.com/article/2609200801/Toyota-strategy-for-India?; http://www.carazoo.com/article/3010200802/Volkswagen---Accomplishing-Space-in-Indian--Car-Market?