VW working on a 10-year plan to catch up to Toyota

Volkswagen Group is working on a 10-year strategy that aims to decrease the productivity and profit gap with rival Toyota. CEO Martin Winterkorn is focused on sales goals and financial targets as he plans to catch up to Toyota, who has been a head of Volkswagen for the past seven years.

Insiders say that Winterkorn has been after Toyota ever since he took over Volkswagen and has made it his goal to increase productivity and profits.

Volkswagen has no plans to take over Toyota according to Winterkorn. “In the last five, six years, Toyota has pulled ahead of us and what we plan to do is to reduce the lead that they”ve got,” Winterkorn recently said in a news conference.

Winterkorn, who was also ex-CEO of Volkswagen’s Audi brand, plans to follow the same game plan he set at Audi to boost productivity and introduce new models. Now Volkswagen is working towards setting goals for 2018. According to a Volkswagen spokesman, the German auto maker is working on “a kind of 10-year plan that asks where do we want to stand 10 years from now?”  While he declined to discuss details with Automotive News, he did say that it will include sales and financial goals.

Volkswagen vehicle sales increased 8 percent to 3.6 million units in the first seven months of 2007. The auto maker is well on its way of meeting its target of 6 million for the whole year.

 

Source: Automotive News (Subscription Required)

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