Volkswagen Passes Toyota As World's Largest Automaker Despite Scandal

TOKYO (AP) — Volkswagen can in all likelihood claim the title of world's biggest automaker for the first time.Toyota reported Monday that it sold 10.175 million vehicles worldwide in 2016, fewer than Volkswagen's 10.31 million.The only contender left is General Motors Co., which is unlikely to come near VW's number because sales fell last year in the U.S., its second-biggest market. The company will release results next week, but spokesman Jim Cain said he doesn't think GM will hit 10.3 million.

Volkswagen Group soared past Toyota Motor as the world's largest automaker in 2016, capturing the crown for the first time in a bittersweet accomplishment attributable almost entirely to sales in China. Though VW coveted the crown for years, having set its sights on the title by 2018, don't expect to see a festive celebration after the company was engulfed in a global emissions scandal.

The company recently agreed to pay some $22 billion in settlements and plead guilty to criminal charges in the U.S. over its admission that it rigged diesel vehicles with software to cheat emissions regulations. 

What's more, VW CEO Matthias Mueller recently said the company would no longer make volume leadership one of its primary goals. VW pleads guilty to conspiracy, obstruction of justice; 6 execs charged Still, it's a notable achievement for VW, which sold 10.31 million vehicles worldwide in 2016, up 3.8% from a year earlier.

Toyota said late Sunday that it had sold 10.18 million vehicles, up 0.2%, confirming suspicions that it slipped out of the top spot. The Japanese automaker had held the crown for seven of the last eight years, having passed General Motors in 2008 for the top spot.

GM, which had held the crown for decades, lost it in 2008 to Toyota as the U.S. automaker neared collapse into bankruptcy and a federal bailout. During its resurgence, the company briefly recaptured the crown in 2011 when Toyota's sales dipped amid concerns, later deemed unfounded, over unintended acceleration.

For Volkswagen, last year's gains came primarily from China, where it is the largest seller of new vehicles. The company sold 3.98 million vehicles in China in 2016, up 12.2% for the year. U.S. sales fell 2.6% for the year to 591,100 units.In 2017, China could surpass Europe as VW's largest market. The company's Europe sales rose 4% to 4.21 million units in 2016.

Volkswagen's global brands include the flagship VW, luxury line Audi and sports car brand Porsche.Despite losing the crown to VW, Toyota remains the envy of the global auto industry for its tremendously efficient production and strong profit margins.