The registered office of Volkswagen is located in Wolfsburg, Germany. This country is a federal state and Volkswagen receives strong support from the Land of Lower Saxony (the group is 20.1% owned by the state) and the State. Since May 1935, the German government hosts a majority on the center-right (CDU) in the Bundestag. Despite the coalition with the center-left (SPD), the State provides substantial assistance to these major car manufacturers and has supported them on three separate occasions since the 2008 financial crisis.
The Volkswagen Group has a positive environment conducive to growth, which helps it develop and maintain a high level of competitiveness. Because of this environment, the company has been exceeding production targets in recent years, despite a difficult period between summer 2004 and 2006.
Volkswagen has today emerged as a group that includes nine brands in addition to Volkswagen.
Among these firms, the latter boasts a jewel among the luxury car brands: Porsche, which was acquired from the brink of bankruptcy in July 2009 to become the tenth brand of the German group. Yet in the summer of 2006, Porsche was the largest shareholder in Volkswagen and obtained with the permission of the German state, 31% of the shares of the company. It then registered good recovery (recording a net profit of 2.75 billion euros in 2006) and reached the rank as the leading European car manufacturer in 2007. The company then multiplied investment, aiming at world leadership;
Volkswagen undertook in March 2008 the takeover of the Swedish company Scania. In the midst of recession, the company posted very good results on the DAX (Frankfurt Stock Exchange) on October 25, 2008 through the meteoric rise of its shares. Meanwhile, the company Porsche went on to acquire the greatest possible share of Volkswagen (74% announced in late 2008) but this strategy pushed the company to the edge of bankruptcy and in order to repay its debts, Porsche had to agree to merge with the Volkswagen group in July 2009.
Tags: Evolution of Volkswagen, Volkswagen's Acquisition Strategy, Porsche's merger with VW
[...] The year 2004 was marked by an internal crisis for the company as it saw a loss of 250 million euros and a 30% drop in net income. As a result, the company was restructured and 20,000 jobs were eliminated. The production of the Golf in Brussels and Belgium was suspended. II. The political and economic environment The group Today, Volkswagen is a group that encompasses nine brands in addition to Volkswagen. Volkswagen is a highly regarded luxury brand. In July 2009, it acquired Porsche which was on the brink of bankruptcy. This became the tenth brand under the Volkswagen Group. [...]
[...] In 1967 and 1969 Volkswagen launched two new models, the ‘Type 3' and ‘Type 4'. But these models lacked innovation and proved to be commercial failures. But it was hard to follow the historic success of the Beetle. But the Audi Brand would go on to influence a new generation of automobiles. Three new models were produced between 1973 and 1975, the Passat, the Golf and Polo. The Golf, was manufactured at the Wolfsburg factory and became the new flagship model of the brand. [...]
[...] The headquarters of the Volkswagen group has a healthy environment to develop and maintain high competitiveness. Thanks to this environment, the company has seen more than satisfactory figures in recent years despite a difficult period between the summers of 2004 and 2006. Economic environment The company has grown worldwide because of globalization. The group is now on the stock exchange and is one of the most influential titles of the Frankfurt Stock Exchange. As we saw in the previous section, there is a strong link with the Porsche family and the brand. [...]
[...] The Golf has also been the best-selling new car since the beginning of the year. Prospects Volkswagen proposes to acquire the bankrupt German automotive supplier Karmann for a sum anywhere between 50 and 75 million €. This project is currently waiting for the approval of the supervisory board of the group. The group does not deny that it had a difficult 2010, with the cessation of key markets across Western Europe. The projects and the position of the group in Russia that are mentioned above are part of a long-term plan for the future. [...]
[...] The model produced was called the KdF-Wagen (it was also referred to as Type 1). Gradually the production and distribution of this model began and the price of the car was fixed at 990 Reichsmarks. A stamp savings system was also set up to enable people to buy this car. World War II began in September 1939 and would go on to change the industrial system of the country. The evolution of the company (1939 - 2004) During the Second World War majority of the vehicles manufactured by Volkswagen were used by the army who commandeered the factory in Wolfsburg. [...]
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