The VW Group are able to sell the exact same car at widely different price points due to their ability to slap different badges on them.

A Skoda Octavia probably doesn't bring them very much, but calling it a VW Passat or an Audi somethingorother sees it sell for bountiful returns.

Could it be that VW screw down the supplier price (and get some junk) whereas Toyota insist on quality control and are prepared to pay more?

ASDA vs Waitrose?

Edited by brum on 15/08/2013 at 21:50

That's the inference that a lot of people would like to make and there may be an element of truth in it. But the Japanese car industry that wiped the floor with everyone else in the 70's is now facing some pretty stiff competition from Korea and even a resurgent US car industry.

Subaru and Mazda are clinging on by their fingernails.

Honda are looking vulnerable.

Toyota is still a giant but if you look at offerings like the latest Auris 'Sport' Tourer, they need to get their finger out if they want to hold onto market share.

Subaru?

http://www.carscoops.com/2013/08/subaru-ponders-whether-to-go-mainstream.html

http://money.msn.com/now/post--why-subaru-is-worried-about-soaring-sales

Fingernails?

ROFL>

The huge cultural difference between the two may well account for differences in profits.

Toyota is a world marketeer of cars from Japan but hugely influenced by US practices while VAG is a European dominant marketeer and less dependent on world sales - VAG has it's business model structured for Europe which works well but Toyota has a business model structured for the USA which works far less well in other parts of the world.

Outside of the USA, the Lexus business model doesn't work well so the profits generated from premium sales are much lower than VAG's multiplicity of premium and niche brands

"The VW Group are able to sell the exact same car at widely different price points due to their ability to slap different badges on them."

Like Toyota Altezza with leather seats = Lexus IS?

VAG group includes Porsche, Bentley, Ducatti and Lamborghini which may help as I bet they have high margins. I wonder if the figures include non car sales such as vans, trucks and plant?

Edited by Hamsafar on 16/08/2013 at 16:20

Toyota owns 51% of Daihatsu and 16.5% of Fuji Heavy Industries (parent company of Subaru).

Daihatsu owns 35% of Perodua.

Toyota already share some models with Daihatsu for some of the Pacific rim countries

Edited by Auristocrat on 16/08/2013 at 21:00