Volkswagen globalization

Volkswagen strategy analysis

The Volkswagen Group suffers severe losses on domestic and Western European volume markets. The 7 millionth Transporter, a fourth-generation Multivan, leaves the assembly line at the Hanover plant on October Volkswagen lands a European PR coup by sponsoring the Genesis tour. Together with Shanghai-Volkswagen, the second pillar in China, Volkswagen AG is very well positioned on this important future market in the Asia-Pacific region. Short-time working at the Emden and Kassel plants combined with a negotiated redundancy scheme mark the end of a flourishing decade for the automotive industry and a period of expansion for the Volkswagen Group. The 30, square meter plant belonging to Volkswagen Sachsen GmbH now manufactures crankcases, cylinder heads, camshafts, crankshafts and connecting rods. VW had hoped to develop cheap cars for emerging markets with Suzuki, which is big in India. However, VW's quality ratings in America remain well below average, according to surveys by J. As other European volume carmakers seek to close factories and cut jobs, VW is seizing market share in Europe, booming in China and staging a comeback in America. As the Japanese market opens and plans to expand export volumes progress, the sales strategy of Volkswagen AG targets higher unit sales. Now it must do so alone, at considerable cost. And VW has a closer challenger in its rear-view mirror: Hyundai-Kia, which is pushing upmarket while continuing to churn out small, good-value motors.

The 7 millionth Transporter, a fourth-generation Multivan, leaves the assembly line at the Hanover plant on October VW bet on China nearly 30 years ago.

Now, with a big new plant in Chattanooga, Tennessee, a revamped dealer network and the successful launch of the new Jetta, a family saloon, VW is back on a roll in America.

volkswagen operations

Volkswagen importers are also increasingly using motorsport as an effective marketing instrument: importers in Portugal, the UK and Switzerland organize their own national competitions based on the Polo Cup which was launched in Germany inand attract considerable public attention.

Perhaps this is just as well. Volkswagen successfully continues this innovative marketing strategy over the coming years with music legends Pink Floyd, the Rolling Stones and Bon Jovi. This allows it to offer a fabulous variety of brands and styles while slashing manufacturing costs.

Bernstein, an investment bank.

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