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VolkswagenTeddie Stirling
Wen Yao – Sally
Yueyuan Zhu - June
History
• Founded in 1938 Germany’s Wolfsburg• Porsche Hitler• first "Beetle" car
• 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
According to Wikipedia this is the very first T1(Beetle) Ever Produced
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 Motor-Sports>
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
• Satellite Radio for the first 6 months
• $ 17,970
• 29 MPG Highway Rating
• $ 17,340
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
• Wider Wheel Base
• $20,290
• Standard 5 Speed Manual Transmission
• $ 17,340
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