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