Volkswagen displaced Ford as the world’s third-largest automaker in the first half of this year, data released this week shows. Ford ceded its number-two spot to Toyota in 2003, and it looks like the American automaker will probably be relegated to fourth by the end of 2008. VW Group sales roles 7.2 percent to 3.31 million vehicles so far this year. Meanwhile, Ford sales dropped 11 percent to 3.09 million units.

With gas prices soaring and consumers continuing to shun the Detroit Three, it’s no surprise Ford’s sales continue to fall. Also impacting the overall figure is the recent sale of Jaguar and Land Rover to Tata Motors. Accordingly, the two brands no longer count toward Ford’s overall sales tally. But with overall sales of the British luxury brands under 300,000 units per year, they would not have contributed enough to enable Ford to keep its position.

Flush with a number of successful brands, Volkswagen seems on track for continued success. In addition to its namesake brand, VW Group marques include Audi, Bentley, Lamborghini, Bugatti, Seat, and Skoda.

VW Group marques include Audi, Bentley, Lamborghini, Bugatti, Seat, and Skoda

In the first half of 2008, Germany’s Volkswagen over took Ford as the world’s third largest carmaker in terms of vehicle sales. VW’s sales to dealers rose 7.2 percent to 3.31 million vehicles, whereas Ford’s sales were at 3.22 million.

Ford’s figures also include about 125,000 Land Rover and Jaguar sales up until those two automakers were sold to Tata Motors in early June.

It’s worth noting that the automakers reported sales to dealers - wholesale sales - which can sometimes be a little tough to read as automakers will occasionally push more vehicles on dealers than they can realistically sell to customers. Ford only uses wholesale figures, whereas Volkswagen also reported actual retail sales for the same period of 3.27 million vehicles, according to Reuters.

Regardless, the figures indicate both Ford’s difficulties and Volkswagen’s recent successes.

Despite hardships encountered throughout the auto industry this season, Volkswagen has remained a relative bright spot, according to company CEO Martin Winterkorn. Speaking to Tennessee civic and business leaders gatheredin Germany to discuss Volkswagen’s upcoming Chattanooga, Tennessee, assembly plant, Winterkorn stated that his company expects to sell more cars in 2008 than it did in 2007.

Volkswagen moved 6.2 million units in 2007, a 4 percent increase from the year before, and the automaker expects to improve upon that figure by the end of 2008. Volkswagen’s sales figures include VW, Audi, Lamborghini, Bentley, Bugatti, Seat and Skoda.

“The world economy is going through tough times,” Martin Winterkorn told the Associated Press earlier today. “We don’t know the full impact on our business yet, but VW is doing better than the competition so far.”

However, echoing sentiments shared across the industry, Winterkorn added, “2009 will be difficult for the entire industry.”

VW shares up 80 percent over plans for increased investment from Porsche

Volkswagen’s stock is up nearly 80 percent today thanks to Porsche’s announcement that it plans to increase investment in the automaker from 42.6 percent to 75 percent by the end of 2009. Porsche Automobil Holding SE announced yesterday that it had increased its share in Volkswagen to 42.6 percent.

“The goal remains, as long as the financial conditions are right, to increase [the stake] to 75 percent in 2009 and clear the way for a controlling stake,” Porsche said yesterday in a press release.
The deal is certain to raise objections from the German state of Lower Saxony, which owns just greater than 20 percent of Volkswagen. The European Union is pushing to overturn the law that allows the state to have a blocking right.

Volkswagen’s stock is up nearly 80 percent today thanks to Porsche’s announcement that it plans to increase investment in the automaker from 42.6 percent to 75 percent by the end of 2009. Porsche Automobil Holding SE announced yesterday that it had increased its share in Volkswagen to 42.6 percent.

“The goal remains, as long as the financial conditions are right, to increase [the stake] to 75 percent in 2009 and clear the way for a controlling stake,” Porsche said yesterday in a press release.

The deal is certain to raise objections from the German state of Lower Saxony, which owns just greater than 20 percent of Volkswagen. The European Union is pushing to overturn the law that allows the state to have a blocking right.