Volkswagen Is Getting Worried

Bertel Schmitt
by Bertel Schmitt

In an interview with Germany’s Handelsblatt, Volkswagen’s CEO Martin Winterkorn said:

„No question, 2012 will be come much tougher, particularly in Europe, and there especially in highly indebted countries like Italy or Spain.The market will shrink in 2012, and we will suffer from that. We expect the European market to get smaller next year. Also the developments in other areas of the world need to be monitored closely.”

On December 15, Winterkorn will prepare the Volkswagen management for the tough times. At a conference in Dresden, there will be “intensive discussions.” This according to an invitation Automobilwoche [sub] could get its hands on.

In Volkswagen-typical hyperbola, the „Strategie 2018“ has been renamed to „Mach 18“. It’s up to you whether you think this means 18 times the speed of light, or (read in German) „do it in 2018.“

Afterburners may be needed, because for the first time, Winterkorn is worried that he might fail:

Winterkorn warns:

“We will reach our Mach 18 targets only with a broad consensus in society.“

If, by 2018, Volkswagen won’t be he largest, most profitable, most admired automaker with the highest customer satisfaction – then it’s the society’s fault. No consensus. Forget about it. New strategy.

Volkswagen is facing more problems than just a soft Europe. There is the never-ending drama with Suzuki. In China, Volkswagen is growing so fast that it has trouble getting qualified personnel. Some factories even have problem getting enough electrical power. And that in a time when China wants to electrify its cars.

According to Automobilwoche, „Winterkorn is worried that the high speed of expansion could create similar problems for Volkswagen as it did fort he Japanese rival Toyota.“

All of this will be discussed on December 15th. It should become an interesting conference.

Bertel Schmitt
Bertel Schmitt

Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.

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  • Sector 5 Sector 5 on Nov 26, 2011

    Herr Winterkorn what was it Hitler said about Von Ribbentrop? "With Von Ribbentrop it is so easy because he always blows ." "The others, they come to me and say we must be CAREFUL, exercise CAUTION etc." "With Von Ribbentrop its much better because all I need do is to gently apply the brakes.."

  • Advo Advo on Nov 28, 2011

    The Euro hasn't fallen probably because a lot of European banks are selling foreign assets and bringing back funds to replace money being withdrawn due to increasing worries about bank solvency. That means the money has go so somewhere, but where? Is it to German bonds, or is there an equal amount of money going to the safer (!) US as is being repatriated? Anyways, I recommend for those who aren't quite sure what's going on or how serious the economic situation is (could be a lot worse than 2008) that they read this and its related articles. economist.com/node/21540255 This special report is also good for more background/explanation. economist.com/node/21536872 It all depends on whether the European Central Bank or Germany will put aside their principles and back the other European countries financially.

  • Analoggrotto TTAC is full of drug addicts with short memories. Just beside this article is another very beautiful article about how the EV9 was internationally voted by a renowned board of automotive experts who are no doubt highly educated, wealthy and affluent; the best vehicle in entire world. That's planet earth for you numbskulls. Let me repeat: the best vehicle in the world is the Kia EV9. Voted, and sealed, and if you try to deny it Fanny Willis is ready to prosecute you; but she will send her boyfriend instead because she is busy.
  • MaintenanceCosts Our Bolt is not going away for a while but if I had to predict today what would replace it, I'd predict an EX30. It checks every box for my wife.
  • Ajla Both Biden and Trump are on record caring ~0% what the WTO says and the US government isn't bound by WTO rulings.
  • Honda1 The FJB Inflation Reduction Act will end up causing more inflation down the road, fact! Go ahead and flame me libbies, get back to me in a few years!
  • Cprescott Fisker is another brand that Heir Yutz has killed.
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