Is VW's Global Surge in Trouble?

The rapid growth of German auto giant Volkswagen  (NASDAQOTH: VLKAY  ) has been one of the biggest stories in the global auto business over the past few years. VW's profits led the industry -- and its total worldwide sales trailed only those of established megagiants Toyota  (NYSE: TM  ) and General Motors  (NYSE: GM  ) . 

VW has said it plans to push past Toyota and GM and lead the world in new-vehicle sales by 2018. A massive worldwide expansion push has led many observers to take VW's audacious plans seriously -- but despite huge new investments in places like China, there are some signs that VW's plans for world domination might be in trouble.

Those signs begin at home, where European recessions have driven auto sales to 20-year lows. VW's global sales in August were up 0.1%, its weakest showing in three years, thanks in large part to slumping sales in Europe -- and that slump shows no sign of turning around soon.

VW says everything is still on track. But there are more and more signs that executives at the German giant are getting worried. In this video, Fool contributor John Rosevear looks at the latest reports on VW from Germany -- and at the small but growing signs that VW's leaders may be quietly preparing for a setback.

VW isn't the only auto giant making big gains in China
Volkswagen is just one of two automakers that are poised to profit big as China's emerging middle class continues to grow, says a top Motley Fool analyst. Both of these auto giants are expected to see profits surge in coming years as the Chinese auto boom continues, this analyst says in a new report. Want to learn more? The report is free for Fool readers -- just  click here now to download your copy.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2661797, ~/Articles/ArticleHandler.aspx, 9/30/2016 4:46:30 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,308.15 164.70 0.91%
S&P 500 2,168.27 17.14 0.80%
NASD 5,312.00 42.85 0.81%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/30/2016 4:01 PM
GM $31.77 Up +0.29 +0.92%
General Motors CAPS Rating: ***
TM $116.06 Up +0.07 +0.06%
Toyota Motor CAPS Rating: ***
VLKAY $28.91 Up +0.86 +3.07%
Volkswagen AG (ADR… CAPS Rating: **