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VW Said to Advance 10 Million Auto-Sales Goal to 2015

VW to Bring Forward 10 Million Deliveries Target to2015
VW, whose sales in China are booming, will add two more factories in the country as part of a 6 billion-euro ($8.4 billion) plan to double production in its biggest market to 3 million cars within four years. Photographer: Adam Dean/Bloomberg

Oct. 21 (Bloomberg) -- Volkswagen AG aims to reach its sales goal of 10 million vehicles three years earlier than planned as VW tries to pass Toyota Motor Corp. as the largest automaker, a person with direct knowledge of the matter said.

Europe’s largest carmaker targets more than 8 million deliveries by 2012 and 10 million as early as 2015, said the person, who declined to be identified because the matter isn’t public, citing internal company documents. VW’s official goal is to increase annual deliveries to 10 million by 2018.

“Volkswagen is well positioned in the relevant markets,” said Hans-Peter Wodniok, an analyst at Fairesearch GmbH & Co. who recommends selling VW stock. “It seems possible for VW to meet its goals early, provided the global economy won’t stall.”

VW, whose nine-month sales in China surged 39 percent, will add two factories in the country as part of a 6 billion-euro ($8.4 billion) plan to double production in its biggest market to 3 million cars within four years. VW will also open a plant in Chattanooga, Tennessee, next year to supply the U.S. market and is expanding capacity in Russia.

The carmaker is targeting a second consecutive year of record global sales as it adds about 70 models, including upgraded versions of existing vehicles, across its nine brands. Wolfsburg, Germany-based VW sold 6.29 million cars, sport-utility vehicles and light commercial vans in 2009, a gain of 1.1 percent.

Shares Rise

Volkswagen preferred shares rose 3.24 euros, or 3.6 percent to 93.78 euros at the 5:30 p.m. close of trading in Frankfurt in the biggest gain since Aug. 2. The stock has risen 44 percent this year and is at the highest price since Sept. 23, 2008.

The carmaker’s internal plans to bring forward the 10 million-delivery goal to 2015 were reported today by Manager Magazin.

“We’re keeping to our 2018 target but do not rule out that the goal can be achieved earlier,” Michael Brendel, a VW spokesman, said today by phone, reiterating comments made last month by sales chief Christian Klingler. Brendel declined to elaborate.

Toyota will recall 1.53 million vehicles globally to fix a brake-related fault that may cause fluid leaks, the Japanese company said today. About 1.34 million cars in the U.S. and Japan will be affected by the recall. The announcement comes as the Toyota City-based carmaker seeks to regain customer trust and market share after recalling more than 8 million vehicles globally for defects linked to unintended acceleration.

To contact the reporter on this story: Andreas Cremer in Berlin at acremer@bloomberg.net.

To contact the editor responsible for this story: Kenneth Wong at kwong11@bloomberg.net.

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