How VW Plans to Rule the Industry: Brands
By Michelle Krebs September 29, 2010To prove it has the goods to be No. 1 in the world, Volkswagen AG took over a former Paris rail station often used for fashion shows for an over-the-top display of the latest wares from each of its many brands.
Volkswagen's board chairman Martin Winterkorn told the crowd of nearly 1,500 journalists attending the extravaganza on the night before the Paris motor show opening that strong brands will drive the German company to its much-scrutinized goal to become the world's largest automaker in 2018, selling 10 million vehicles annually around the globe.
"Our multi-brand strategy is a clear asset," declared Winterkorn, noting Volkswagen has sold 5 million vehicles globally so far this year and plans to introduce 70 new models globally in the upcoming year.
Not Just Big About Big
Longtime No. 1 automaker General Motors Co. just got done shedding brands, but VW's path to the top won't include GM's former attribute of just being big.
"Size is not an end in and of itself," Winterkorn told the audience that also included VW dignitaries Ferdinand Piech and Wolfgang Porsche as well as Giorgetto Giugiaro, whose ItalDesign styling studio he recently sold to Volkswagen.
Rather, Winterkorn said, No. 1 status will be the result of strong brands, "top-notch" management, a stable company infrastructure, the right vehicles in the right parts of the world and the best customer experience.
But above all: strong brands.
To that end, Volkswagen introduced with dramatic flair a new model from each brand that suggested its future direction.
> The highly anticipated Lamborghini Sesto Elemento concept stole the show and likely will be the buzz of the Paris motor show, which opens for its first press day tomorrow.
Lamborghini tapped the expertise of University of Washington researchers as well as Boeing aircraft experts to come up with the ultra-lightweight sports car made of carbon fiber; it weighs just 2,200 pounds. 
The light weight, combined with a 570-horsepower V12, puts the Elemento's zero to 60 mph time at an incredulous 2.5 seconds. Brand chief Stephan Winkelman said every future Lamborghini will carry "the spirit" of the Sesto Elemento concept.
> The Volkswagen brand showed the seventh-generation Passat sedan and a station wagon variant. The intent of the new Passat is to bring comfortable long-distance driving capability to the masses. In volume terms, the Passat is one of Volkswagen's most important models, having sold 15 million of them in the past 37 years in more than 100 countries. Volkswagen demonstrated a clever feature that allows the trunk to be opened by waving a foot beneath the rear bumper.
Volkswagen's U.S. execs said the new Passat is not the model that will be produced beginning next year at its newly built Chattanooga, Tenn., plant. Currently referred to as the NMS (new midsize sedan), the U.S. -built Volkswagen will be unveiled in the coming months and its name announced.
> Audi celebrated 30 years of its seminal quattro all-wheel drive technology with the unveiling of the Audi Quattro concept, a lightweight, high-tech coupe with a 2.5-liter, 5-cylinder engine rated at 408 horsepower and big-shouldered styling recalling Audi's original Quattro road car. Audi executives also announced the new A1 subcompact will come equipped with quattro next year.
> Bentley held the word debut of its freshened Continental GT, which will add a second high-performance engine at the end of next year. Bentley execs noted that the Continental GT has sold 2,200 editions of the coupe, the highest volume for any Bentley model ever.
> Porsche - VW's most recently acquired brand - displayed a limited-edition 911 Speedster and GTS; Porsche will make only 356 copies of the Speedster, with a new-generation 911 coming next year.
> Bugatti highlighted the accomplishments of its special edition Veyron Super Sport that recently set new records of 268 mph and a zero to 300 kilometer-per-hour time of 14.6 seconds.
> At the opposite end of the spectrum, Skoda introduced an environmentally friendly Octavia concept it calls the Green Line, Seat unveiled the electric-powered IBE concept and even Volkswagen's commercial division got a plug for its new urban delivery van.
Photos by Volkswagen
1. Audi Quattro Concept
2. Lamborghini Sesto Elemento concept
3. Bentley Continental GT
4 Porsche 911 Speedster
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