VW's Magotan to compete with Toyota's Camry

Volkswagen AG, Europe's largest automaker and the biggest overseas carmaker in China has started selling Magotan sedans in the country and in the process challenging Toyota Motor Corp.'s Camry which is equipped with high quality Toyota thermostat.

The Magotan sedans are equipped with 1.8-liter or 2-liter engine and have a base price starting 192,800 yuan or $25,000 basing in an email coming from Volkswagen. On the other hand Toyota's China-made Camry has a price that starts at 197,800 yuan more expensive than the Magotan by 5,000 yuan.

The Wolfsburg-based automaker plans to add as many as 14 new models in China by the end of 2009 in an effort to maintain its market lead. Likewise, the automaker's Santana and Jetta sedans has claimed the top two spots in the first-half sales rankings in the country and comparing that with Camry which went on sale last year and was only able to obtain the fourth rank.

According to Tiecheng, President of FAW-Volkswagen Automotive Co. one of Volkswagen's China ventures, "The Magotan helps to diversify FAW-Volkswagen's product structure, allowing us to be more competitive in the market."

Europe's largest automaker, Volkswagen has about 19 percent of China's car market accomplished in the first half of the year after boosting sales by a quarter to 431,369. The FAW-Volkswagen which is a venture with China FAW Group Corp. will make the Magotan which is offered as the Passat in Europe. Volkswagen also has a venture with Shanghai Automotive Co. the listed unit of SAIC Motor Corp.

In other news, Jim Press, the President of Toyota North America has made a rather bold statement saying that "eventually, everything will be a hybrid." And aside from that he has shown his confidence in Toyota's ability and so proud of their product line that he goes as far as saying that the ground-breaking Toyota Prius hybrid is just like Ford's Model T.

It should be noted that the Ford Model T has often been considered as the first of its kind and a car which was made accessible to the masses. It was somewhat advance for its time and has helped in shaping the automotive industry into what it is today. Mr. Press is also saying that the Prius just like the Model T is equally revolutionary.

The everything-will-become-hybrid speech of Mr. Jim Press has aroused various reactions and of course there are those that contradict Mr. Press' statement saying that not everything will be hybrid. But with the present trend in the auto industry maybe who knows we might all end up driving hybrids.