For Volkswagen, An Opportunity To Move Upward

Currently the third largest automaker in the world, theBugatti, demonstrating just how far-reaching the
Volkswagen Group should surpass General Motorscompany is.
later this year, thanks to GM's rapid decline. VW hasContributing to GM's decline is a sharp downturn in US
been losing business itself, but only at half the rate ofsales, its primary market. VW has a small slice of the
GM. The global automotive industry has been goingUS market, but relies on its European base to drive
through one of its worse downturns over the past halfsales. The company is also making inroads in the
century, one where perennial leader General MotorsAmericas, Asia and Africa, among the fastest growing
has lost its 77 year old lead as the top selling producermarkets in the world. In addition, the automaker is
of cars in the world. In early 2008 it was confirmedplanning to build a new plant in Tennessee, its first
that the Toyota Motor Company had moved past GMAmerican manufacturing plant in twenty years.
as the world's largest automaker in terms of sales, anGM will likely see its share of the market decrease
effort that came several years earlier than expected.when its expected sale of Saab is finalized later this
General Motors' position as the number twoyear. The automaker is also attempting to sell or shut
automaker may be short-lived as German automaker,down Hummer and is cutting back on Saturn and
Volkswagen, is poised to leapfrog GM. Though VW isPontiac. Going forward, GM's US brands will probably
seeing its own sales decline, its rate of loss is aboutinclude Cadillac, GMC, Buick and Chevrolet while Opel,
half that of GM, meaning Volkswagen could pushVauxhall, GM Daewoo and Holden will comprise some
ahead by the end of 2009.of its European, Asian and Australian brands.
The Volkswagen Group consists of several brandsVW's ascendancy to the second spot isn't assured,
including mass producers Volkswagen and Skoda,but with the way that GM is contracting and with its
premium brand Audi and Bentley, a line of ultra-luxuryown growth plans in place, its move up the charts will
cars. The automotive also owns Scania, SEAT andhappen sooner or later.