When Martin Winterkorn took over as CEO of Volkswagen, he said that Volkswagen wants to be better than Toyota, not

just in units, but in profitability, innovation, customer satisfaction, everything. Toyota was the declared enemy of VW. Toyota was bigger, made more money, had happier customers. When Winterkorn declared the lofty goal, it was shrugged off. Incoming CEOs routinely make grand announcements which nobody really takes seriously. The year was 2007, Volkswagen had just become #3 in the world. Toyota was #2, leading VW by more than 2m units sold worldwide. Towering above all was GM, with 9.3m units sold, 800,000 more than Toyota. A little after the quote above, first rumors about a Strategy 2018 surfaced. The plan wasnt public. I knew someone at VW who had seen (but wasnt given) the strategy, and he confirmed that it said that Volkswagen wanted to overwhelm Toyota in 10 years. Insiders (this reporter included) rolled their eyes and denounced the plan as the usual hubris of an incoming CEO, a suit whod be busy collecting his pension by the time 2018 rolled around. I was wrong. According to an old in-house rule in Wolfsburg, grand announcements from the top are to be ignored for at least a year, because they are usually followed by new and different ones. When they keep repeating the goal after a year or two, then its time to listen, was the wisdom imparted on me when I did a lot of time in Wolfsburg. In early 2009, even the unions begun to listen. All at Volkswagen agree that the targets of Strategy 2018 havent changed and that we will reach them, said workers council chief Bernd Osterloh. Then, the auto world as we knew it collapsed. GM went under and re-emerged, smaller. Toyota became number 1, followed by Volkswagen. Volkswagen had the luck of, for a change, having not been in the wrong places at the wrong time: Weak in the USA, they were spared heavy losses. Strong in places like Brazil and China, where VW had invested a long, long time ago, VW profited from the growth in these markets. At home, their former nemesis Opel went through bouts of automutilation. And the Strategy 2018 became dogma in Wolfsburg. In early January 2010, Winfried Vahland, President of Volkswagen Group China, reported that based on our excellent performance in 2009, we are confident about achieving our objective of doubling the sales to two million vehicles, laid down in our Strategy 2018, much earlier than planned. He received a pat on his shoulder, was relieved from his post in China and put in charge of Skoda. At Volkswagen, that counts as a promotion.

A few days later, Volkswagens U.S. chief Stefan Jacoby announced that by 2018, Volkswagen wants to more than triple annual car sales in the U.S. to 1 million a year. TTAC illustrated the report with flying pigs. Through a combination of perseverance and dumb luck, VW may actually be closer to their strategic goal than people imagine. Who (Farrago excluded) would have thunk in 2007 that GM would go bankrupt? Who would have believed that Toyota would be in the grips of one quality scandal after the other? Suddenly Volkswagen is getting uncharacteristically gutsy. The general weakness of Toyota, the overall good sales in 2009 (Volkswagen sold 1.1 percent more cars in 2009 than in 2008, while the competition looked at double digit losses,) pedal-gate, good sales at the home front (in January, the VW brand gained 10 percent in Germany while the market dropped 4.3 percent,) 40 percent plus in the U.S. in January, all that may have emboldened Volkswagen to do what CYAtrained managers usually are loath to do: Set bold and measurable targets. According to Automobilwoche [sub,] Volkswagen has put the vague Strategy 2018 in hard numbers. By 2018, Volkswagen wants to sell more than 10m cars. In 2009, they sold 6.29m. By 2018, they want to reach a group pretax margin of more than 8 percent of sales. Paid-in capital is supposed to bring in a profit of 16 percent. The Volkswagen Group is seeking global economic and environmental leadership in the automotive industry by 2018, Volkswagen said in an announcement. A Paris-based analyst interviewed by Reuters is not convinced: Im not sure if theres much point in a carmaker fixing objectives for 2018, he said. Well, at the moment, Toyota is actively, albeit unwillingly assisting VW in reaching its lofty goals. Supposedly, Toyota never wanted to be number one, because as the leader, you are the target of everyone behind you. Volkswagen doesnt share these worries. Yet.
Posted in Editorials, Industry Tagged as Bertel Schmitt, Germany, Strategy 2018, Volkswagen

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29 Comments on Volkswagens Strategy 2018. With Generous Support From GM And Toyota...

Educator(of teachers)Dan
February 3rd, 2010 at 10:21 am

Schlieffens dying words: Remember to keep the right flank strong. His advice was ignored. But the man did look good in his uniform:http://en.wikipedia.org/wiki/File:Alfred_Graf_von_Schliefen.jpg kinda looks like my maternal grandfather. Get your real and perceived quality improved in the publics mind, keep your cars sporty and European, and someday you may rule the world! that would be my words to VW. BTW I love strategy games. Once played old Civilization III as the Germans during WWII, got the Russians to surrender, poured boat loads of tax money into R&D and had nuclear weapons and stealth bombers by 1943. Needless to say, I won. I dont recall if there was a WWI sim as one of the scenarios.
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Mr Carpenter
February 3rd, 2010 at 10:34 am

Everyone laughed at the CEO of Hyundai a few years ago when he said he wanted to have quality improved and get up to #5 from #7 or #8 in worldwide sales.

Nobodys laughing any more. Likewise when the CEO of Hyundai stated that the upcoming Hyundai Sonata Hybrid would be a far better car than the Prius. While that remains to be seen, I suspect he wasnt BSing there, either. I sure like the looks of the new Sonata. But I suspect that in 10 years when I replace my current Sonata and Legacy (both new), Ill be looking at the prior 5 years history in Consumer Reports before I even bother setting foot in a VW dealership to buy my retirement car.
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tedward
February 3rd, 2010 at 10:44 am

I love VWs and yet they simply will not make US headway without a cheaper Jetta (and NO 5 cylinder engines) and a 10 year warranty. It sounds like the cheap Jetta is coming, but the warranty is never going to happen.
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crc
February 3rd, 2010 at 10:52 am

tedward, I agree one of the things VW needs is a longer warranty. However, I would not subject myself to 10 years of returning to the VW service department.
o

hreardon
February 3rd, 2010 at 11:01 am

I tend to agree with the warranty thing if Volkswagen is serious about jumpstarting sales in the United States, offer a significantly better warranty than the 3/36 and scheduled maintenance. It doesnt even need to be a 10/100 warranty, but if Volkswagen were to offer a 4/50 or 5/60 and Audi to offer a 5/60 it may have a significant impact on sales. There are a significant enough number of people who get bored of cars after 3 4 years and want something newerfaster-better that I think the turnover would not take a serious hit.
o

Joe
February 3rd, 2010 at 11:33 am

A cheaper Jetta is a dicey proposition. The appeal of the Jetta is that it offers German engineering and German driving dynamics at an affordable price. And in traditional German fashion the Jetta is over-engineered and unnecessarliy complex. Lowering the Jettas price point will mean simplifying and decontenting which could compromise the cars German character. In recent years I have owned a 2003 Jetta GLS and a 2006 Jetta TDI. In my experience Volkswagens actual quality is much better than its reputation suggests. In terms of quality and reliability these Volkswagens were much better cars than the two Chevrolets I had previously owned. I would buy another VW. I will never buy another Chevrolet. In my opinion VWs greatest weakness is the long-term ownership and maintenance costs. Because of how these cars are designed and made they are difficult and expensive to service. This is one area that could be improved by the aforementioned simplification and decontenting. The trick is to lower costs without sacrificing what makes the Jetta a VW.
o

Geotpf
February 3rd, 2010 at 1:37 pm

Quality and reliability are different things, IMHO. That is, I think VW products are high quality but poor reliability. Or, to put it another way, they are great when they work but frequently dont, um, work. Toyotas recent recalls do nothing to change the data that shows they have high reliability, although they might change public perception of such.
o

Joe
February 3rd, 2010 at 2:14 pm

@ Geotpf Im not sure I follow you here. In my book quality and reliability are synonymous. A quality car is a reliable car and an unreliable car is not a quality car. When I say my Jettas were quality cars I mean they were well made (quality) and they were trouble free (reliable). Of course I never abused my cars and I did all of the scheduled maintenance. VW attracts a lot of young buyers who drive very agressively, and considering the price of VW parts and service I would not be surprised if a lot of Volkswagens suffer from defered maintanance.
o

geozinger
February 3rd, 2010 at 9:29 pm

Im guessing no one remembers the early 90s and the 10 yr/100K mile warranty that VW had back then. Apparently it was their strategy to remain relevant in the US as their sales took a nose dive in the late 80s early 90s. It seemed to have worked, as VW is still here. Two things VW needs: The Polo or the Brazilian Gol or a car like it, something that is the same size as the original Golf/Rabbit from the 1970s (that was featured here on this site before the Toyotathon ate our world). A friend of mine had a VW Fox (not the Audi) back in the day, and for a first car, it was great. Shed like to have another one. I could see my teenage daughters driving something similar too. Also, something like the small pickups sold in Brazil, like the Saviero (sp?). Even my old favorites the Dodge Durango and the Chevy Colorado too, now are both too huge. The Ranger is just ancient, but probably OK. But something like the Saviero would be great for the occasional handyman like myself. The Anorak would be great here, too, but I think it would get eaten alive by the domestics when pricing becomes the issue.

hreardon
February 3rd, 2010 at 10:48 am

While I usually find these 5 and 10 year plans to be somewhat laughable, Im willing to give Volkswagen a bit of a pass on this one and admit that theyve got a good chance of achieving these goals. The past two years has seen the Volkswagen Group really start to get its shit together, especially here in North America with VW and Audi. Audi has matured and is poised for continued organic growth and Volkswagen has begun to bring in sought after product like the 2010 GTI, Tiguan and CC. I have a feeling that if the next generation Jetta previewed at Detroit comes to production similar to what we saw they will be able to add another solid product to the portfolio. They also appear to have gotten a lot of their most vexing quality issues under control perhaps Karesh can provide some more input on that front? Audi in particular seems to have really turned the corner in quality since the 2007 model year. So, while the plan sounds like typical executive hyperbole, Volkswagen at least is presenting the image of a company that can successfully execute this strategy. Perhaps theyve been a bit humbled by serious missteps in North America over the last ten years and more cautious after studying GM and Toyota more recently.
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Chuck Goolsbee
February 3rd, 2010 at 11:38 am

When Germans get their feces amalgamated and keep their focus it should put fear into everyone around them.

Dr Strangelove
February 3rd, 2010 at 10:53 am

Whether or not they will ultimately succeed with this, Winterkorn is the best CEO at VW in a long, long time whereas Schrempp was probably the all-time low for Daimler.
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WaftableTorque
February 3rd, 2010 at 11:11 am

I personally have a hate-on for VW, its easy for me to dislike such a hubris-filled company. Sure its supposed to be product-product-product, but some corporations just rub you the wrong way. It just means that I wont be cross shopping Audi/Bentley/Bugatti/Lamborghini/Porsche/Suzuki/VW and whomever else they try to absorb.
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Joe
February 3rd, 2010 at 11:45 am

Hubris may be VWs undoing because too much pride leads to a sense of infalibility, entitlement and carelesness. GM rode its hubris all the way to bankruptcy and the old GM hubris is still there today. Toyotas hubris has led to its present p.r. and legal nightmare. Porsches hubris led to its absorbtion by VW. Daimlers hubris led to the Daimler-Chrysler fiasco.
o

Robert.Walter
February 3rd, 2010 at 11:53 am

Joe: Couldnt have said it better myself.

th009
February 3rd, 2010 at 1:03 pm

But is Winterkorns (and VWs) goal actually hubris? Or simply ambition? There is nothing wrong with ambition in my books, as long as the person or company in question recognizes the challenges and obstacles in the way of achieving those goals.
o

Robert.Walter
February 3rd, 2010 at 4:09 pm

Thats one fo the key challenges for Winterkorn and his team! Risk is that if there is success in the mid-term, and a sustainable culture is not in place, the progenitors will leave and their hunger and ambition will be replaced by satisfaction and hubris It is an old story, the ones who inherit it dont often know what it took to get it to the point of success and worse, dont know how to maintain or grow it.

jkross22
February 3rd, 2010 at 11:38 am

VWs Carefree Maintenance plan is a bit confusing. Nowhere on their website does it say that oil changes are included and it specifically excludes brakes, tires, wiper blades, bulbs, etc. from the plan. It does say that AdBlue is included, though, on their TDI models. It appears the plan is all about getting the car checked out for no charge. Someone tell me if I missed something.
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jkross22
February 3rd, 2010 at 11:41 am

@ Joe McKinney, Ive heard that VWs are overly complex, but Ive not heard anyone articulate examples of how

this is so. Ive popped the hood on several and I dont see anything overly complex about them. Any examples?
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dswilly
February 3rd, 2010 at 12:55 pm

How about this one. A co-worker has a 2003 Passat. Dealer has to change the battery due to re-coding. If you do it yourself the car wont start. Let alone the dang thing is buried in the fender or something like that. I think its like $300 service.
o

Joe
February 3rd, 2010 at 1:21 pm

Another example is the timing belt on the Jetta, Golf and New Beetle. One of the motor mounts is bolted to the engine through the loop of the belt. To replace the timing belt the engine has to be supported with a hoist so this motor mount can be removed. This job will cost $500+ at an indepedent shop and upwards of $1,000 at a VW dealer. This same proceedure applies to the auxiliary drive belt which is usually replaced at the same time as the timing belt. It would be much easier and cheaper to replace these belts if they were not looped around this motor mount. A third example- If your VW is equipped with the DSG transmission the 40K service will run around $350. Apparantly this job is time and labor intensive because the transmission fluid has to be drained out through a very thin tube. It would be much faster and cheaper to service the DSG if it had an old fashioned drain plug on the bottom of the transmission case.
o

Bertel Schmitt
February 3rd, 2010 at 3:11 pm

There used to be a department at Volkswagen Customer Service that checked new car developments for serviceability to avoid cases such as the above. This also helped lower insurance costs, because easier service less time spent in shop lower repair bills. If I recall right, this department was scrapped during Winterkorns time as head of Technical Development the guys bugged his engineers too much.

Robert.Walter
February 3rd, 2010 at 11:50 am

Grand plans are not all made the same, we look at this from a snap-shot in time. 18 years is a long time in Aug. 1914, v.S.s grand plan, had been thought deliverable in a year, two at most. Almost from the first, external events mounted (highpoint being the 1917 arrival of Pershing and the Marines) then the internal events (social turmoil w/in Germany, Kaiser doing a runner) and by Nov. 1918, it was all over (or not), and the plan had been long dead. Like any good opportunist, VW should make hay while the sun shines on them, because once the other big-boys recoup, regroup and reenergize, as well as the new entries (Koreans, Chinese, Indians, Spyker-SAAB) make their beachhead and start to move inland, the external events will gut and lay WOBs plan to rest by Nov. 1918. Or put simply, its like comparing: Let the last man on the right brush the Channel with his sleeve. with And me, Im flying in my taxi, taking tips, and getting stoned.
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Robert.Walter
February 3rd, 2010 at 4:14 pm

oops! 3rd paragraph should say gut VWs plan by Nov. 2018.

TCragg
February 3rd, 2010 at 11:56 am

I have been a lifetime VW owner, having purchased about 15 of their products over the past two decades. VWs biggest issue (and biggest obstacle to achieving their North American sales targets) is spotty reliabilty and hit and miss dealership experiences. While my local VW dealer has always treated me well, I have had personal horror stories when dealing with other stores. BTW, in Canada, VWs standard warranty is 4 years/80,000 km bumper to bumper. While not as good as say, Kia, its better than that offered in the USA. People ask me why I keep purchasing VWs. My answer is the driving experience, the culture (much like BMW motorcycles, of which Im also an owner), and the relative rarity of the cars

compared to their Honmaztoyundaissan competitors. By dumbing-down the Europeaness and cheapening their North American product in a drive to increase sales, VW may well alienate their core market, but perhaps its a market they think they can sacrifice to appeal to the masses. I owned a Westmoreland Rabbit. Worst VW Ive ever owned. I hope VW has learned their lesson and does not try to make another Malibu in Chattanooga.
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dswilly
February 3rd, 2010 at 12:50 pm

Holy Cow, the VW service centers will clean up. Im going in for tech training ASAP, there is no way they have enough people to handle the service required to keep that many VW rolling
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crc
February 3rd, 2010 at 1:40 pm

You better hope for a lot of dumb people because the smart ones dont go back to the Service department after the warranty is over.
o

dswilly
February 3rd, 2010 at 1:45 pm

CRCYou better hope for a lot of dumb people because the smart ones dont go back to the Service department after the warranty is over -VW better hope for a lot of Dumb people

mpresley
February 3rd, 2010 at 5:41 pm

Ive owned more VW/Audi than any brand. Id say that on average the Japanese cars were usually more trouble free (but not always) and usually relatively cheaper to service. But I never enjoyed owning any Japanese car. Obviously I am in the minority. I think most people want to like VW. But the brand has a reputation for being too expensive and

less than trouble free. It has not been my experience, but many also say the dealer experience is poor. If VW is serious they must address these items. Perception is everything. For instance, I doubt there is much to the Toyota story, but perception will ruin them if they are not careful. That being said, I was driving home yesterday in my Passat while listening to a Toyota news story on the radio. At 50 mph (alone on the road) I kept my foot on the accelerator and hit the brake hard. The wire on the throttle cut while the anti-lock brakes activated, immediately stopping the car. Then, I was not unhappy I bought the Passat.

Application of the TOWS Matrix to Volkswagen Volkswagen (VW) was asuccessful company that experienced great difficulties in the early 1970s, but then developed a strategy that resulted in an excellent market position in the late 1970s. The TOWS Matrix shown in Figure 1 will focus on the crucial period from late 1973 to early 1975. The external threats and opportunities pertain mostly to the situation VW faced in the United States, but a similar situation prevailed in Europe at that time. Weaknesses and Threats (WT) A company with great weaknesses often has to resort to a survival strategy. VW could have seriously considered the option of a joint operation with Chrysler or American Motors. Another alternative would have been to withdraw from the American market altogether. Although in difficulties VW did not have to resort to a survival strategy because the company still had much strength. Consequently, a more appropriate strategy was to attempt to overcome the weaknesses and develop them into strengths. In other words, the direction was toward the strengthopportunity position (SO) in the matrix shown.Specifically, the strategy was to reduce the competitive threat by developing a more flexible new product line that would accommodate the needs and desires of the car-buying public.

Weaknesses and Opportunities (WO) The growing affluence of customers has resulted in 'trading up' to more luxurious cars. Yet, VW had essentially followed a one-model policy which presented a problem when the design of the Beetle became obsolete A new model line had to be introduced to reach a wider spectrum of buyers. In order to minimize the additional costs of a multi product line, the building block principle was employed in the design of the new cars. This allowed using the same parts for different models that ranged from the relatively low-priced Rabbit to the higher priced Audi line.Another weakness at VW was the rising costs in Germany. For example, in 1973 wages and salaries rose 19 per cent over the previous year. Similarly, increased fuel costs made the shipping of cars to the United States more costly. This situation favored setting up an assembly plant in the United States. However, this also created some problems for VW because it had no experience in dealing with American organized labor. To overcome this weakness, VW's tactic was to recruit managers from Detroit who were capable of establishing good union relations. Strengths and Threats (ST) One of the greatest threats to VW was the continuing appreciation of the Deutsche Mark against the dollar. For example, from October 1972 to November 1973 the mark appreciated 35 percent. This meant higher prices for the buyer. The result, of course, was a less competitive posture. Japanese and American automakers obtained an increasingly larger share of the small-car market. To reduce the threats of competition and the effects of the unfavorable exchange rate, VW was forced to build an assembly plant in the United States.Another strategy for meeting competitive pressures was to build on VW's strengths by developing a car based on advanced-design technology. The result of this effort was the Rabbit, a model with features later adopted by many other car manufacturers.The oil crisis in 19731974 not only caused a fuel shortage, but also price rises, a trend that has continued. To meet this threat, VW used its technological capabilities not only to improve its engines (through the use of fuel injection, for examples), but also to develop the very fuel-efficient Diesel engine. This tactic, which was congruent with its general strategy, helped improve the firms market position. Strengths and Opportunities (SO) In general, successful firms build on their strengths to take advantage of opportunities. VW is no exception. Throughout this discussion VW's strengths in research, development, engineering, and its experience m production technology became evident. These strengths, under the leadership of Rudolf Leiding, enabled the company to develop a product line that met market demands for an economical car (the Rabbit, successor to the Beetle), as well as the tastes for more luxurious cars with many available options (Scirocco and the Audi line).Eventually the same company's strengths enabled VW to plan and build the assembly facility in New

Stanton, Pennsylvania. Thus, YW could benefit from substantial concessions granted by the state government to attract VW which, in turn, provided many employment opportunities.In another tactical move, VW manufactured and sold small engines to Chrysler and American Motors. These companies urgently needed small engines for installation in their own cars and revenues from these sales improved the financial position of VW.

30 Jun 10 VW and Suzuki look to be moving towards finalising a new model development co-operation plan that will address weaknesses in VW's product line-up and increase savings.
IHS Global Insight Perspective Significance Volkswagen (VW) and Suzuki will base their future collaborations on the joint development of sport utility vehicles (SUVs) while a decontented version of the VW Up! could also be manufactured in emerging markets, according to a report in CAR magazine. The strategy outlined in the CAR magazine report would appear to be a logical way for the two companies to proceed given Suzuki's experience in small off-road vehicles and significant presence in India and Asia. The report claims that VW is likely to increase its stake in Suzuki over the next few years, although this has not been confirmed. Either way, the product collaboration will enhance VW's potential product offering in Asian markets and help a comparative weakness in the area of small and medium SUVs, while a low-cost A-segment car also offers potential for the SEAT and Skoda brands in emerging markets.

Implications

Outlook

A report by CAR magazine has outlined the future model development collaboration plans of Volkswagen (VW) and Suzuki, which will see an emphasis on the joint development of sport utility vehicles (SUV) and the possibility of the two companies working together on a new A-segment model for emerging markets. CAR magazine was one of the first news outlets to break the story that VW was looking at purchasing a stake in Suzuki, with a deal for VW to acquire a 19.9% holding the Japanese OEM completed in December last year (see Germany - Japan: 15 January 2010: Suzuki Completes Transfer of Shares to VW). The magazine has now published details of how the two companies will work together on model development plans, with the possibility that Suzuki could actually manufacture a decontented version of the Up! for sale in India and other Asian markets. It is possible that

this model could be badged as a Skoda, as the VW Group's value-orientated brand already has a significant presence in India and has been enjoying extensive strong sales growth in China. The VW Group only officially launched the Skoda brand in 2007, but by last year sales volumes had quadrupled to 129,000 units. Alternatively, it is also possible that Suzuki could also manage a modified version of the Alto for the Skoda brand, which would give the company a price-competitive offering in China, India and other Asian markets. The seventh generation Alto, which is known as the A-Star in the Indian market where it is manufactured by Maruti-Suzuki, is a modern Asegment platform that could offer interesting possibilities for the VW Group in developing markets. However, any strategy would have to be implemented so as not to result in significant conquest sales in Suzuki's traditional markets. However, perhaps the biggest component of any future model development programme between VW and Suzuki will come in the field of medium and small SUVs. According toCAR, the future product plan for the VW Group allows for five separate SUV designs. The small and compact SUVs that VW is planning could be based on Suzuki platforms, with the replacement for the current Vitara and SX4 the obvious choice to provide the engineering underpinnings for these vehicles. VW is also looking into the possibility of a compact or small crossover model, which the next generation SX4 would fit in terms of offering a suitable platform. As a result this platform architecture could end up forming the basis for the forthcoming VW CrossPolo, a new small Audi SUV (Q1) and equivalent SEAT (Tribu) and Skoda models (Yeti II). According to the CAR report, VW could also build a larger Passat-sized crossover, which along with other VW Group variants could share a joint VW-Suzuki architecture based on the next generation Grand Vitara underpinnings. It may also be possible for Suzuki to derive a new larger SUV model from either the next generation VW Tiguan SUV, or the Audi Q5, which are based on differing architecture despite their similar size. Outlook and Implications While there is obviously a tone of informed speculation to the CAR report, the product plan outlined appears to make sense and would help VW enhance its economies of scale even further, while improving the company's access and product line-up in emerging markets such as China and India. A move towards VW and Suzuki working together on joint architecture based on either the next generation Suzuki SX4 or Grand Vitara is a move away from VW's basic strategy of creating nearly all its mainstream model offerings off two basic platforms; the MLB platform for longitudinal-engine models and the MQB platform for transversely mounted engine passenger cars. For niche and relatively low-volume models like compact SUVs it may make more sense to come up with a specific common architecture that can be used across VW brands and Suzuki for similar models. The CARreport also makes a bold claim that VW is planning to increase its stake in Suzuki by 10% a annually over the next four to five years, although it also stated that both VW and Suzuki refused to confirm this assertion. This would certainly go against comments made by Osamu Suzuki at the time of the announcement of the initial stake purchase in VW (seeJapan: 21 January 2010: CEO Says Suzuki Will Resist Any Attempts by VW to Take Bigger Stake) but adding Suzuki's sales volumes would go a long way towards achieving the VW Group's stated ambition as part of its strategy 2018 programme of overtaking Toyota to become the world's biggest carmaker by 2018. The strategy outlined by CAR, if indeed implemented, will enhance VW's potential product offering in Asian markets and a comparative weakness in the area of small and medium SUVs, while a low cost A-segment car also offers potential for the SEAT and Skoda brands in emerging markets.