Volkswagen gains on Toyota

Volkswagen closed the gap on No. 1 automaker Toyota in 2009 as the German company's worldwide deliveries rose while its Japanese rival's sales fell in the period, figures show.

VW, building a plant in Chattanooga to bolster sales in the United States, is holding to its strategy of passing leader Toyota this decade, said VW spokesman Michael Brendel at the company's Wolfsburg, Germany, headquarters.

"We're sticking to our goal to be the biggest (global) carmaker by 2018," Mr. Brendel said.

Volkswagen delivered 6.29 million vehicles worldwide last year, up 1.1 percent from 2008. Toyota sold 7.81 vehicles globally in 2009, down 13 percent amid the recession.

Toyota is still the world's top seller as both General Motors and VW trail the Japanese giant. GM hasn't posted global 2009 sales yet.

Stefan Jacoby, Volkswagen Group of America's chief executive, said the German automaker has a product strategy that includes making high-quality vehicles as it enlarges is carmaking capacity in North America with the Tennessee plant. VW is aiming at tripling U.S. sales by 2018 to 1 million units annually.

"We believe our strategy is justified and confirmed," he told journalists at the company's American headquarters in Herndon, Va., earlier this week.

While the Chattanooga plant won't open until 2011, VW is building on its strong footprints in China, Brazil and Germany, Mr. Brendel said.

He cited VW's "innovative and environmentally friendly cars."

"We have significantly strengthened our competitive position," Mr. Brendel said.

Toyota said Tuesday it aims to increase global sales by 6 percent this year. Toyota is looking to boost world sales to 8.27 million vehicles this year.

Toyota still hasn't committed to a date to finish its planned Tupelo, Miss., assembly plant where it reportedly will build a Prius when the facility is complete.

toyota halts sales of 8 lines

WASHINGTON -- Toyota is suspending U.S. sales of eight recalled vehicle models to fix accelerator pedals that stick.

GLOBAL VEHICLE SALES* Toyota:2009 - 7.81 million2008 - 8.97 million2007 - 9.37 million* Volkswagen:2009 - 6.29 million2008 - 6.23 million2007 - 6.18 millionSource: Companies

As part of the plan, Toyota is halting production at five manufacturing facilities for the week of Feb. 1 "to assess and coordinate activities."

There are 2.3 million vehicles involved in the recall, which was announced last week.

The Japanese automaker says the sales suspension includes the 2009-2010 RAV4, the 2009-2010 Corolla, the 2009-2010 Matrix, the 2005-2010 Avalon, the 2007-2010 Camry, the 2010 Highlander, the 2007-2010 Tundra and the 2008-2010 Sequoia.

The recall came months after Toyota recalled 4.2 million vehicles due to gas pedals that could become trapped under floor mats, causing the vehicle to accelerate.

The Associated Press contributed to this report.

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