Volkswagen Overtakes Toyota with Highest Car Production

Volkswagen Group has displaced Toyota for the first time as the world's largest car manufacturer in terms of production. The German carmaker produced 4.4 million vehicles in the first nine months of the year, overtaking its Japanese rival by 400,000 units, consulting firm IHS Global Insight said on Wednesday.

Volkswagen Group owns a variety of models such as Skoda and Seat and high-end lines Audi, Bentley, Bugatti and Lamborghini. In July it expanded its stable by acquiring Porsche.

HIS Global Insight said Volkswagen was able to beat Toyota thanks to increased sales in China, Germany and the U.K. even amid the global recession. Toyota performed poorly at the start of the year, with its output plummeting to 1.1 million units in the first quarter from 2.1 million units in the same period last year.

Toyota emerged as the world's largest automaker last year with a total annual output of 9.24 million units, overtaking GM, which had maintained the lead for over 80 years.

Only a year after the Japanese automaker wrested the title from General Motors for the first time in 80 years, Toyota has been overtaken by the Germans.

Volkswagen-Porsche now is the the world's largest car manufacturer, reports the Guardian of London. VW may not hold the title very long, though. It ascent was due to benefits from government stimulus packages around the globe. When those deals run out, Toyota may assert itself again. VW-Porsche had made 4.4 million vehicles so far this year, 400,000 more than Toyota, which cut back production as the global auto meltdown hit. And VW did it by breaking out of its traditional markets:

Not only is VW making Jettas, Passats and Boxsters for America and Europe, it is aggressively selling in China as well. China, in fact, made up a quarter of its global demand. Though Toyota has the capacity to make 10 million vehicles a year, it will only turn out about 7 million in 2009. Last year, it built 9.2 million vehicles, underscoring the depth of the sales slump. Toyota has long said that having the title as the world's largest carmaker is not a goal. It says it is focused, instead, on staying profitable and keeping customers happy.

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