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VW Continues Expanding While American Competitors Contract

Bloomberg, Thursday, September 30, 2010 7:26 AM

Even as Ford and General Motors shrink their portfolios, Volkswagen is expanding the models it produces under different nameplates, a move that's creating competition between VWs and cheaper brands such as Skoda that share engines and components, Andreas Cremer reports.

"VW is becoming quite complex," says Anil Valsan, director of automotive research at London-based Frost & Sullivan. "It remains to be seen to what extent VW can afford some of its brands cannibalizing each other."

It's not done yet. CEO Martin Winterkorn intends to integrate Porsche into VW's modular strategy, plans to forge a truck alliance between Scania AB and Man SE, and will develop small cars with Suzuki. It's also still interested in buying the Alfa-Romeo brand from Fiat.

Read the whole story at Bloomberg »

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