VW's European dominance overpowers rivals

VW likely may be a big winner from Europe's economic crisis. Picture shows a VW Beetle and an Up minicar in a delivery tower at the company's headquarter in Wolfsburg. (Photo: Reuters)

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Volkswagen Group has become so dominant in Europe that rivals are being left behind.

One industry observer believes the German automaker's success threatens the future of some of its struggling competitors. "The debate now turns to which non-German OEM will fail first ... and when," said Max Warburton, a London-based analyst at Bernstein Research.

VW Group, including brands such as Audi, Seat and Skoda, now commands a market share of 24 percent in the EU and EFTA countries, up from 18.6 percent in 2004. VW brand on its own commands a 12.7 percent share.

Since 2004, PSA/Peugeot-Citroen, Europe's second-biggest automaker, has seen its share fall to 12.2 percent from 13.8 percent.

VW's dominance is unlikely to be threatened even as Europe's economic woes lead to plunging car sales in the region. New models such as the recently launched Audi A3 and the upcoming new-generation VW Golf will provide a big tailwind.

You can reach Nick Gibbs at nick.gibbs@btinternet.com.

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