Latest Car News in India

Tuesday, September 20, 2011

By Pranjal Gera

Volkswagen plans to be World's number one automobile company

The German automobile company Volkswagen, which is also Europe's largest car maker, is building strategies to realise its dream of becoming the world number one car company. At present, Volkswagen is the third largest car maker of the world. Now, it is looking forward to stealing away the wolrd leadership of Toyota and General Motors. Volkswagen plans to achieve the top spot within this decade, and in order to do that it has set aims of selling 10 million vehicles by the year 2018. This will in turn get 8% more pre-tax profits for the company.

Volkswagen is also planning on investing more than ever. A company official said that the company plans to invest a record amount in near future and that its upcoming projects will help the company in realising its dream of becoming the global leader. According to reports have suggested that the investment in property, equipments and plant will total for 49.8 billion euros from the time period of 2012-16. Out of this total, 57 percent will be invested in Germany, which is Volkswagen's home country.

Volkswagen saw a glitch in its plans when Suzuki Motors announced its decision of ending the alliance with Volkswagen. This decision was taken when Volkswagen accused Suzuki of wrongly entering in a contract with Fiat, for providing Diesel engines for its cars.

The automobile company has also ended its financial holding withh Porsche SE. The company is examining and thinking of integrating the 51 percent stake in Porsche. Volkswagen has increased its investments significantly from 51.6 Billion euros to 62.4 euros this year.

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