Ze Germans always think BIG. Small is a work of evil for them. Volkswagen, being a German, also has plans on a similar scale. We have discussed so many times VW’s plans to dominate the world automotive market 2018. Not only do they want to dominate the market, they want to sell 10 million cars annually by 2018.
Now this would require a significant ramp up in the production facilities. In order to achieve that manufacturing scale, the VW group plans to open 100 manufacturing facilities across the globe.
The initial estimation was 70 plants by 2018. However, with the merger of MAN, which has 31 production plants, pushed the projection to 100. They are looking at three massive-scale plants in China. They are also eying a plant (or the two plants controlled by DRB) in Malaysia to expand its Southeast Asia operations. A plant for Audi in Mexico to strengthen its North American presence is also on cards.
Volkswagen’s Michael Macht was quick to point out that this is purely expansion and not outsourcing. The carmaker has no plans to shut its existing 39 plants in Europe. He insisted that Europe – and in particular Germany – would continue to the center for all major developments and the group will continue to invest in new technology and capacity in the region.
In terms of total sales, VW currently stands #2 in the world only below General Motors and followed by Toyota