Volkswagen
Teddie Stirling
Wen Yao – Sally
Yueyuan Zhu - June
History
• Founded in 1938 Germany’s Wolfsburg
• Porsche Hitler
• first "Beetle" car
According to Wikipedia this is
the very first T1(Beetle) Ever
Produced
•Original Design Concept
•21,529,464 Produced
•Last Produced in 2003 in Mexico
•Oil/Air Filtration
•System Horsepower Taxation
•America and the 2nd Car Philosophy
•1985 enter the Chinese market
VW Beetles Engine.
Global Expansion Analysis
• Vehicles Manufactured in 7 Countries
• Sold in 40 Different Countries
• 1949 Came to America in the Form of two T1’s or
Beetles
• Recent Decline in Sales lost to Asian Car Makers
Global Expansion Analysis
• One of the First to introduce Alternative Fuel to
Mexico
• “Volkswagenism” and the “hippie” cult status
• Volkswagen Motorsports
<VW Bible
VW MotorSports>
Global Expansion Analysis
•
In China Volkswagen Cars Hold the Top Two in Sales
–
–
•
Jetta
Santana
Problems in China
–
To much attention to research and development
not enough on cost control.
Global Expansion Analysis
• Volkswagen in Mexico
• Pueblo Factory
• Problems in Mexico
– Union Strikes
– 2007 Natural Gas Pipeline Bombings
VW Pueblo Factory
Volkswagen’s
“Green” Taxi
S.W.O.T
• Strength
– R&D, engineering capacity
– sales and service network
– hide financial results through German accounting
principles
– high brand value
– Appear in Movies
S.W.O.T
• Weakness
– Overall quality still trails other dominant auto-mobile
companies.
– Bad publicity due to the sue from GM
– Bad image of its management department
– Bribery Scandals
S.W.O.T
• Opportunities
– New models
– Increasing demand for hybrid electric vehicles
– Booming car sales in China
– Good financial markets
S.W.O.T
• Threats
– Raw material prices
– Economic slowdown in Europe
– the US End of life vehicle directive
– Intense competition
– the risk of brand dilution
Industrial analysis
• The key to compete--- achieve economic scales
• Political---law and government regulation
• Economic
• Technology----internet
• Social and cultural
• Intensify of rivalry----closely balanced
Competitor Analysis
• The Top Three Competitors to Volkswagen
– Ford, GM, and Toyota
• Ford
– Ford Focus SEL vs. Volkswagen Jetta S
• GM
– Pontiac G6 vs. Volkswagen Jetta S
• Toyota
– Toyota Corolla Sedan vs. Volkswagen Jetta S
GM and Ford Video
Competitor Analysis - Ford
• Entertained the Idea of Buying out Volkswagen
• Attempts at Globalization Were Not Well Received
• Ford Motor Company Brand Names
– Ford, Lincoln, Mercury, Mazda, and Volvo
• Ford Escape Hybrid
• Ford Focus- Big Home and Global Hit
Focus vs. Jetta
• 35 MPG Highway
Rating
•29 MPG Highway
Rating
• Satellite Radio for
the first 6 months
• $ 17,340
• $ 17,970
Competitor Analysis- GM
• Largest Global Automaker
• GM Brand Names
– Buick, Cadillac, Chevrolet, GMC, Daewoo, Pontiac, Saturn,
Hummer, and Saab
– Vauxhall, Opel, and Holden are not available in the US
• General Motors Lawsuit Against Volkswagen
– $100 Million Settlement, $1 Billion in Parts
• “Live Green, Go Yellow”
• Saturn Vue Hybrid
Pontiac G6 vs. Jetta
•Only Available as
and Automatic
•Standard 5 Speed
Manual Transmission
•Wider Wheel Base
•$ 17,340
•$20,290
Competitor Analysis- Toyota
• First Available in the US in 1957
• Corona and the Corolla were the First big Hits in
America
• Owns Lexus
• 2008 Toyota Prius named the Most Fuel Efficient Car by
the US E.P.A
Corolla vs. Jetta
• 26 MPG Highway
Rating
• Standard Corolla
doesn’t have power
windows and locks
• $15,970
• Larger Engine
• Standard
Navigational System
• $17,340
Recommendations
• Short Term
– “Go Green”
– Explore China
– Treat Loyal Customers
• Long Term
– Research New Materials
– Expand the Line of Hybrids
Conclusion
• Volkswagen Has Made Many Changes and
Upgrades
• Numerous $$$ Has been Spent on Research and
Development of Hybrids
• Volkswagen Has Many Loyal Fans