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Volkswagen Cancels Toyota Distribution Deal

World’s largest automaker goes it alone in Japan.

by on Dec.24, 2009

The real battle for world dominance will be in China where VW is firmly entrenched.

The fight for world dominance is in China where VW is entrenched.

Volkswagen Group Japan is canceling its agreement with Toyota Motor Corporation on car imports. As a result, Toyota will no longer distribute VW brand cars in Japan after 2010, as the two giant companies fight for the title of world’s largest autmaker.

Existing Volkswagen dealers under a Toyota distributorship, called DUO, will move to a new direct dealer contract with VWGJ.

Toyota said the shift to the new structure would be accomplished without any inconvenience to existing Volkswagen customers.

In 2008, of 45,522 Volkswagen cars sold in Japan, DUO dealers sold 21,774 units, thus contributing to making Volkswagen the largest import brand there, a title VW has held for nine consecutive years.


The Japanese Automobile Manufacturers Association (JAMA) predicts the market will be 4,798,400 vehicles in 2010, compared to about 4,611,500 this year as sales fell 9%, the sixth straight yearly decline.