Tags Posts tagged with "gm"

gm

464

Buick and China flags fly at dealership

Automotive News. Last year, China’s central and western regions attracted $19.2 billion in foreign investment across the board.

With China serving as the world’s largest automotive market, manufacturers are keen to make inroads in the region. The local government incentivised foreign-owned manufacturing plants for some seven years before the National Development and Reform Commission removed the industry from its approved list in an attempt to stave off overcapacity. Automotive News reports GM and VW have both invested heavily in the region, with the latter set to begin construction on an all-new facility. The new plant is part of a $13 billion investment in China and will join Volkswagen’s 12 other car and component facilities in the region.

Comments

374

Toyota badge

retook the title in 2012 and has so far been able to keep it by selling 2.43 million vehicles in the first quarter of 2013.

The race is still tight – General Motors reports sales of 2.36 million vehicles, earning it the second spot globally with Volkswagen’s 2.27 million sales nabbing the German automaker third place. It’s not all smooth sailing for Toyota, either, as the brand’s first-quarter figures were down 2.2 percent when compared to last year. GM posted a 3.6-percent gain and VW managed a 5.1-percent gain over the same period.

Sales in China may be a deciding factor as to which automaker performs best in 2013. Toyota’s figures were down 13 percent in China. Meanwhile, GM and VW are continuing their upward trajectories in the crucial Chinese market.

As ever, each of the automakers says publicly it doesn’t care much about the title. Shino Yamada, a spokesperson for Toyota, told The Washington Post, “Rather than pursuing numbers, we try to sell one car at a time, producing good cars. We aren’t focused on being number one.” GM spokesperson Jim Cain echoed a similar note, saying, “A day doesn’t go by that we don’t try to increase our sales all over the world.”

Comments

358

Chevrolet posting a one percent increase over last year (this marked Chevy’s tenth straight year of record global sales).

Volkswagen came in just behind GM, as the German automaker reported global sales from January through March at 2.27 million vehicles, an increase of five percent when compared to last year. While that number was strong, VW is cautioning that markets outside China and the US, such as those in Europe, are becoming a challenge as economies falter.

Yet to report sales is Comments

484

Chevrolet posting a one percent increase over last year (this marked Chevy’s tenth straight year of record global sales).

Volkswagen came in just behind GM, as the German automaker reported global sales from January through March at 2.27 million vehicles, an increase of five percent when compared to last year. While that number was strong, VW is cautioning that markets outside China and the US, such as those in Europe, are becoming a challenge as economies falter.

Yet to report sales is Comments

453

Volkswagen China

Automotive News reports Audi Q3.

Meanwhile, analysts project GM will move some 2.7 million units in China next year. The automaker plans to roll out the all-new Opel models. Overall, China may see passenger vehicle sales jump by as much as 10 percent in 2013, pushed by a rebounding economy and better consumer confidence.

And what about Comments

450

Volkswagen

General Motors did from 1920 to 1970. In other words, VW now looks like the GM that was once the largest and most profitable corporation in the world.

VW is not in any danger of having other automakers copying its corporate structure. Most are unaware of VW’s modus operandi, and besides, by traditional business school metrics, VW looks like a productivity basket case.

Any efficiency expert would tell you that VW is too vertically integrated, has too much overlap and duplication, and has way too many brands. VW, meanwhile, keeps growing bigger, stronger and more profitable.

The give-away that Volkswagen Group is run differently from every other car company lies with the fact that it employs a staggering 549,300 people globally. Fortune magazine lists it as the eighth largest employer in the world, behind giants such as Walmart and the Chinese post office. VW has almost as many full-time employees as General Motors (213,000), -Chrysler (197,000) put together. While those three behemoths collectively built 19 million vehicles last year, VW “only” built 8.5 million.


John McElroyJohn McElroy is host of the TV program “Autoline Daily”. Every month he brings his unique insights as a Detroit insider to Volkswagen Top News readers.

Comments

317

When it comes to spending money, Volkswagen, as the No Fear shirts used to say, “Ain’t skeered.” Europe is reportedly headed for a 17-year low in annual car sales, VW share is down 0.6 percent on The Continent and manufacturing overcapacity is estimated to be around 30 percent industry-wide. That is making the ability to accurately predict Europe’s future less easy by the day, so VW’s solution is to shorten the timeline and spend more money. Last year the German company said it would invest $83.2 billion in the five years from 2012 to 2016; both Reuters and Bloomberg now report that the group will invest $64.7 billion in the three years from 2013 to 2015.

Last year’s plan was to spend $16.7 billion per year, this year’s plan means spending $21.7 billion per year. Barring a new announcement, that amount would equal the three-year investment that analysts expect from General Motors, combined. Those other two companies also happen to be the ones above Volkswagen on the global sales chart, which the company’s Strategy 2018 wants to change. The amounts don’t include VW’s intention to spend $12.7 billion on its joint ventures in China.

Reuters says that $13.7 billion will be put toward new models and “the design of alternative drives,” and that two-thirds of the total will go toward making more efficient, green cars. Bloomberg puts that new-model development number at $32 billion, which includes a new line of trucks for MAN, and says there will be “40 models based on the same framework” as the MkVII Golf alone spread throughout the empire. No matter which way you slice it, it’s a lot of money, and all of a sudden items like the Comments

418

In case you didn’t know, China last quarter for the first time in eight years.

Volkswagen’s sales in China, its largest marker, increased by 21 percent last quarter to 704,991 units. Those numbers almost tripled GM’s third-quarter growth, and were enough to beat out the American automaker’s 664,765 sales. GM, however, still leads in year-to-date sales in China by a slim margin of around 77,000 units. The Asian nation also happens to be GM’s largest market, and according to the report in Automotive News, China’s car market may grow to be larger than the US, Germany combined in three years’ time.

About the news his company was bested in China by VW last quarter, GM CEO Dan Akerson is quoted saying, “It’s not whether you’re the biggest car manufacturer. It’s whether you want to be the most profitable.” It should be noted of these figures that GM includes truck figures, yet excludes Hong Kong and Macau from its Chinese sales numbers, while VW does just the opposite. Through September of this year, Volkswagen had 5 of the 10 best selling vehicles in China. GM boasted three of the cars on that list.

One car not on China’s Top 10 list is the Skoda competitor.

The Automotive News report cites anti-Japanese sentiments and older GM product as reasons for Volkswagen’s third quarter rally. Other brands with increased sales included Comments

Popular

3460
Cars need fuel. Everyone knows that, but how many people know the damage that is caused when a car is filled up with the...