Volkswagen Overtakes Toyota as World's Largest Carmaker - Stocks in the News

Volkswagen (VLKAY) has officially overtaken Toyota ( TM) as the world’s largest automaker. The German auto giant sold 5.04 million in the first half of 2015, beating out Toyota’s 5.02 million in the same time frame.

The achievement marks the accomplishment of a goal set by Volkswagen CEO Martin Winterkorn, who wanted the company to reach the number one spot by 2018. Volkswagen’s success has been dependent on its sales in China, as the company recently claimed the top spot in the world’s largest vehicle market.

Interestingly enough, Volkswagen hasn’t relied on the US market. In fact, the 2015 J.D. Power and Associates Initial Quality Study has VW ranked 24 ^th out of 33 brands sold in the US. While international sales have been impressive, the numbers may be coming at the cost of quality, at least in the US.

General Motors (GM), the former longtime holder of the biggest automaker crown, seems to be firmly seated in the number three spot, although the company has not released its first half of the year data yet.

The auto industry is in a solid position according to our Zacks Industry Rank, with domestic companies in the Top 14% and foreign manufacturers in the Top 37%. Currently, VLKAY has a Zacks Rank #4 (Sell), TM holds a Zacks Rank #1 (Strong Buy), and GM has a Zacks Rank #3 (Hold).

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