Mark Barnes

Volkswagen gained market share globally in the first half of 2009 and brand loyalty is up, which should help the automaker as it readies production at the Chattanooga plant in early 2011, an official says.

"They're sticking around with us for that second model," said Mark Barnes, Volkswagen of America's chief operating officer.

VW reported Friday that Europe's largest automaker cranked up its share of the world car market to 12 percent in the first half of 2009. That's up from 9.9 percent in the same period a year ago.

VW gained market share globally even as deliveries fell 5 percent to 3.1 million amid the recession. According to the automaker, the overall passenger market contracted by 17.7 percent.

Still, in June, VW sales grew 6.5 percent over the same month a year ago, the carmaker reported.

"Everything is running to plan," said Detlef Wittig, VW's executive vice president of group sales and marketing, in a statement. "Nevertheless, a major effort is needed in the second half of the year if we are to remain on course."

Mr. Barnes said forecasts are for vehicle sales industrywide in the United States this year coming in around 9.5 million. That's compared to 13.2 million in 2008.

"It could be 9.75 million if Cash for Clunkers picks it up," he said.

Next year, Mr. Barnes said, projections call for industry sales at between 10 million and 10.5 million in the U.S.

In terms of market share, VW of America has seen an increase over the first six months of 2009. VW was at 1.5 percent at the beginning of the year while climbing to 2.2 percent market share in June, Mr. Barnes said.

"It's encouraging to have that," he said. "That's our game plan."

The VW of America COO said brand loyalty is up "dramatically." Having buyers return to VW for a second car should help the Chattanooga plant, he said.

Industry analyst Erich Merkle, president of autoconomy.com, said the Chattanooga assembly plant continues to make sense for VW's strategy to become a major player in the U.S.

"The South is looking like a great place to build vehicles relative to Canada and Mexico right now," he said.