Max Warburton of Sanford C. Bernstein, a research firm, says that size also comes with risks. Producing vehicles for every region in every segment means manufacturing a vast array of cars that add cost and complexity without necessarily contributing much profit. The mass-market SEAT and Skoda brands bulk up VW’s sales but it makes most of its money from flashy Audis and Porsches.
However, the game that the biggest carmakers are in is to survive for the long term as the stragglers fall by the wayside. Every small SEAT that VW sells at a big discount is a sale denied to a struggling European rival, making it harder for it to stick around to compete.
