Volkswagen is blowing up
The “people’s car” is selling like hot cakes in a communist country, imagine that.
Volkswagen is continuing to expand the company’s reach into international markets and the amount of expansion is so rapid that it leaves us scratching our heads. Volkswagen has continued to buy companies as well as build auto manufacturing facilities all over the world. We have heard talk of Audi building a manufacturing facility near the Volkswagen Chattanooga facility although this is unconfirmed. When asked for comments by the head of Audi of North America, Johan De Nysschen stated that Audi was going to double its sales in the United States for 2012. Though the vehicles are still imported, there is currently room in this VW Chattanooga facility to start producing Audi A3 models if need be. Johan De Nysschen has since resigned with Audi and current COO Mark Del Rosso has filled the spot. So we are not sure what direction Mark Del Rosso plans to take the company but we know that Audi and Volkswagen is looking to become a major driving force in auto industry here.
VW looks to invest $19B in China
It’s not just US that is becoming a focal point for the Volkswagen auto group as the company is investing billions in the Chinese auto industry and its building several manufacturing facilities through its $19 billion investment that will go through 2016. The company looks to try and deliver 4 million vehicles in the Chinese market alone annually. In a country that car ownership wasn’t even allowed just a few decades ago, now has a government that encourages ownership.
To give you an idea of what all Volkswagen Auto Group Owns:
- AUDI AG
- Bentley Motors Limited
- Bugatti Automobiles S.A.S.
- Lamborghini S.p.A.
- MAN SE
- Scania AB
- SEAT, S.A.
- Škoda Auto
- Volkswagen Passenger Cars
- Volkswagen Commercial Vehicles
The Chinese auto market is getting rapidly more competitive
On a final note: What is interesting is that China allows such an importation and expansion of foreign auto makers. I would have figured the potential customers would get BYD vehicles only to choose from. So it looks like these are some liberal commies or they are just smarter than the average commie. With so many vehicles now on the Chinese roadways should be interesting to see how congestion is dealt with or if it’s urban areas are going to end up like New Delhi traffic.