Economics of Volkswagen

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INTRODUCTION: Volkswagen Group(Volkswagen Aktiengesellschaft)consists of two divisions:automotive and finance.In this essay we will be focusing on the Automotive division.Volkswagen AG is the largest automaker in Europe.The company headquarters are located in Wolfsburg, Lower Saxony, Germany and was founded in Berlin in 1937.One out of five cars sold in Europe are of the Volkswagen brand and by 2018 it aims to become the largest car manufacturer in the world.At present it is behind Toyota and GM,but it has been in first position in the production of passenger cars for the past two years but lags behind in the production of commercial vehicles .The brand includes companies from seven different European countries namely:Volkswagen Passenger Cars(Germany), Audi(Germany), SEAT(Spain), ŠKODA(Czech Republic), Bentley(England), Bugatti(France), Lamborghini(Italy), Porsche(Germany), Ducati(Italy), Volkswagen Commercial Vehicles(Germany), Scania(Sweden) and MAN(Germany).Volkswagen passenger cars has three models in the top ten selling passenger vehicles of all times which include the VW Golf(3),the VW Beetle(4) and the VW Passat(9).Also another interesting aspect is that Volkswagen has the maximum number of cars in this list and all of them are still in production.The Forbes magazine lists Volkswagen at number 62 in terms of brand value and number 7 in terms of the profits generated.The CEO of the group is Dr.Martin Winterkorn and the chairman is Mr. Ferdinand K. Piëch.As the brands suggest the Volkswagen Group caters to different market segments ranging from low to medium range passenger vehicles like the VW Golf to highly luxurious and high end automobiles like the Lamborghini Aventador and the Bugatti Veyron.The largest market for Volkswagen is China and it will play a major role in deciding whether Volkswagen will be able to succeed in their 2018 mission.For this essay

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