Look Out for Volkswagen

In an effort to become the world’s biggest automaker, Volkswagen CEO Martin Winterkorn said two years ago that he was determined to zoom past Toyota. This notion certainly seemed laughable. German automaker sold 3 million fewer vehicles than Toyota at that time, had a reputation for iffy quality and was losing ground in the U.S. To pass General Motors as the out-ranking car maker on the planet, Toyota seemed unassailable. Today, Winterkorn’s ambitions are a lot less outlandish and Toyota is vulnerable. VW built more cares than its Japanese rival for the first time in November. VW has closed the gap even though Toyota still sells more each year. After a series of embarrassing recalls, Toyota is the one suffering negative headlines. In an act of extreme self-flagellation, Toyota’s CEO has said that his company’s best days may be behind it. With the backing of his formidable boss and mentor, VW Chairman Ferdinand Piëch, Winterkorn sees an historic opportunity. Winterkorn vows, VW will pass Toyota by 2018. Winterkorn, 62, is punching the accelerator all around the world. To gear up for an assault on the rapidly growing markets of Southeast Asia and India, VW has agreed to buy a 20% stake in Suzuki Motors.