The biggest news to hit the automotive industry last week was when VW bought 90% of Ferrari essentially taking control of the company. It is was one of the most amazing news since VW is the largest automotive group in the world and by buying Ferrari it just expands their portfolio further. VW already owns Audi, Porsche, Lamborghini and Bugatti. Adding Ferrari would make VW the largest luxury car brand owner in the world.
This also makes any other rival tiny in perspective. Ferrari has brand value, F1 technology and a loyal following of elite customers. Rivals like Toyota are nowhere near since Toyota's most prestigious brand is only Lexus which many know is a glorified Toyota. General Motors, Ford, PSA and Fiat are now far behind VW.
Porsche and Lamborghini have been enjoying growth for the last 15 years which contributes to VW's group business. Bugatti also recently had a resurgence since the introduction of the new Chiron model.
There is also rumours of VW or Audi entering F1. VW has stayed away from F1 thus far and this news is definitely something interesting. VW has enjoyed success with selling cars without getting involved in F1. In fact the only companies to really benefit from road car sales stemming from involvement in F1 is Ferrari and Mercedes Benz. Renault and Honda have not benefitted much in the last few years despite Renault winning with Redbull few years ago.
Toyota flopped in their F1 campaign before pulling the plug and Honda looks like it is potentially facing the same fate. Several full season in F1 and not a single victory to show for it. F1 is a cruel sport and not every car company is cut out for it. Even BMW only managed several victories with Williams before quitting.
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