In the U.S., automotive enthusiasts are so used to the “domestics versus imports” argument that we rarely consider imports are eyeing each other to see who’s next into the compactor.
In the U.S., automotive enthusiasts are so used to the “domestics versus imports” argument that we rarely consider imports are eyeing each other to see who’s next into the compactor.
Thus, you can forgive us for being more than surprised when we read that Wendelin Wiedeking, head of Porshe, stated that he foresees Volkswagen to take on Toyota Motor Corp., currently the second largest automaker in the world.
Wiedeking provided little elaboration to his statement. Porsche currently owns over 27 percent of Volkswagen which is currently reorganizing. Speculation has been rampant that the highly profitable sports car company may try to take control of VW. When asked, Wiedeking said that while he has permission to increase Porsche’s stake in VW, there’s currently no interest to do so within the company, preferring to remain an investor and partner.
Our take? While VW is coming along nicely in improving the quality of its vehicles and production methods, it has a long way to go. J.D. Power and Associates shows that, except for mechanical quality in manufacturing, VW fell behind Toyota in every category. Combined with the German automaker’s current union issues, we feel that VW needs to learn to walk first before it can “talk the talk”.
2 comments so far
I’m a big VW fan but you’re on the money. VW has a long way to go to compete with Toyota. They really need a plant in the US to keep costs down. They are scared to release many EU models in the US due to the costs involved with shipping them over and the incumbent products in those other car markets. Yet they release a turd like the Phaeton. They have some great cars but some of their business choices are a bit odd.
December 7th, 2006 at 2:51 pm
Typical German hubris. It’s going to be at least 5 years before this even comes close to being a reality. Heck, they’re behind Hyundai and most of the GM brands in the JD Power ratings!
Porsche has been doing very well in the profitability and customer satisfaction departments, but it’s one thing to make an expensive car good, it’s another to have that same level of quality and satisfaction on cars that cost 1/3 to 1/4 the price.
December 7th, 2006 at 9:53 pm
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