VOLKSWAGEN

PREPARED BY: KANCHAN

KHUJU
INTRODUCTION

 The Volkswagen Group, with its headquarter in Wolfsburg,

Germany is multinational automotive manufacturing company.
Following Toyota, VW is the second largest automaker in the
world.
 It was founded by the Nazi Socialist Party under the rule of
Adolf Hitler in 1937.The German term Volk translates to
“people”, thus Volkswagen translates to “people’s car”.
 Parent Company: Volkswagen Group
 The group operates 120 production facilities across 27
countries.
 The Volkswagen Group sells its vehicles in 153 countries.
HOW BIG IS VW?
 MISSION
To offer attractive, safe, and environmentally sound
vehicles which can compete in an increasingly tough
market and set world standards in their respective class.

VISION
To make this world a mobile, sustainable place with
access to all the citizens.”
 VOLKSWAGEN’S PRODUCTS

Automobiles Commercial Vehicles

Internal combustion engine Motorcycles

TURBOMACHINERY
VOLKSWAGEN’S SERVICES
VOLKSWAGEN STRATEGIC ANALYSIS

VOLKSWAGEN
SWOT
 STRENGTHS
1. The widest brand portfolio among
all automotive companies
2. New “TOGETHER – 2025” strategy
3. Diversification strategy
4. Synergy between brands
5. Joint ventures with local Chinese
automakers
OPPORTUNITIES
1.Fuel prices are expected to rise in the
near future
2. Acquire skills and competencies
through acquisitions
3. Demand for autonomous vehicles
4. Weakening euro exchange rate
5. Focus on significantly improving
sustainability policies to remedy
damaged brand reputation
WEAKNESS
1. The impact of the 2015 diesel
scandal on sales and reputation
2. Most cars are not environment
friendly
3. The highest recall rate in the U.S.
market
4. Low market share in the U.S.
automotive
THREATS
1. Intense competition
2. Further fines and damages that will
have to be paid
3. Increasing government regulations
4. Worse reputation after the diesel
scandal and the withdrawal of many
cars
 PEST ANALYSIS
Political and legal environment
• constantly facing numerous political and
legal regulations due to presence in the
markets of over 150 countries (trade policy)
• financial sector is dependent on the state
and its investment in the automotive
industry
• adaptation challenge (example China)
Sociocultural environment
• lost trust and worse reputation among
customers after the diesel scandal
• global increase in sense of social
responsibilities for climate change and
environmental protection
• large number of employees around the
world
• growing interest in electric cars
Economic environment
• automotive industry as a key industry in the
contribution to the state budget of countries
• automotive industry encourages the
development of steel and glass industry
• variability of fuel prices
• different economic situation in different
countries -the advantage of owning many
brands
• recovery of the company after the scandal in
2015
Technological environment
• investment in research and development
• development of technology with increasing
production of hybrid and electric vehicles
and autonomous vehicles
 VOLKSWAGEN’S STRATEGY

Volkswagen Group announced the NEW AUTO strategy through 2030 - a new plan
of transformation into a "a software-driven mobility company."
The main direction of the German automotive group is electrification with a goal to
increase battery-electric vehicle (BEV) share out of the total sales (globally) to
20% in 2025, to 50% in 2030 and nearly 100% by 2040 in all major markets. In
2020 it was 3%, while in 2021 it will be around 6%.
At the same time, the company acknowledges that its ICE business will gradually
fade - probably by more than 20% by 2030. Until the ICE business dries up
completely, the company intends to use the profits from selling conventional cars to
expand its EV business, and to invest in software and autonomous driving.
1.Mechatronics - SSP (Scalable Systems Platform)
In terms of platforms, the Volkswagen Group is moving to a next-generation all-electric
mechatronics platform - the Scalable Systems Platform (SSP), which will replace the existing
ICE/BEV platforms for all types of cars.
2.Software
A similar comprehensive approach concerns an in-house software platform, under development
by Volkswagen Group’s automotive software company CARIAD.
The strategic goal is to develop a single global software platform for all cars in the group.
3.Battery & Charging
The Volkswagen Group intends to offer customers a one-stop solution from charging hardware to
Energy Management Services.
4.Mobility solutions
Mobility as a service and transport as a service, fully autonomous, will be an integral part of
NEW AUTO. The value chain consists of four business areas: the self-driving system, its
integration into vehicles, the fleet management and the mobility platform.