Volkswagen, Europe’s biggest automaker, has made an announcement that it is planning to introduce 20 new models within the next three years. According to VW Chairman Dr. Martin Winterkorn, this new model offensive is part of the company’s wide plan increase its global sales by 29 percent and build 8 million vehicles annually by 2011.
The Volkswagen Group enjoyed a successful 2007, with a 29 percent increase in sales revenue. Models such as the Golf and Audi A4 have played key roles in this success, but the introductions of the Skoda Fabia and Audi A5 have also help to broaden the Group’s appeal in the increasingly diverse consumer market. Even so, the Volkswagen Group is loosing money in North America especially due, in part, to the depreciation of the Dollar to the Euro. Given the fluctuation in the Rand, it will be interesting to see how the company’s South African arm will fare.
In a recent release, Volkswagen stated that “the Group will significantly expand its model portfolio with this product rollout, and will occupy segments such as SUVs, vans and pickups more actively than before.” We’ve already seen evidence of this trend with the imminent release of Audi’s Q5 compact SUV as well as speculation regarding a bakkie model that utilises Touareg underpinnings and presently wears the name “Taro”. While the prospect of 20 new models in the space of three years may sound enticing, such rapid growth is likely to entail a great deal of badge engineering and component sharing within a company with a product portfolio that already owes its existence to a great deal of cross-pollination.
Winterkorn has denied the rumors regarding a complete takeover by Porsche, but confirmed that Volkswagen is looking forward to even closer cooperation with the Stuttgart-based marque and called for greater co-operation between the companies that reside under the Volkswagen umbrella
“We hope very much that the current dispute between the Volkswagen works council and Porsche will soon be resolved amicably. We need clarity. We must deploy our teams and finally start controlling the game together.” said Winterkorn.
