Volkswagen Is one of the
famous automaker of all times .It is a German automaker founded on May 28 ,
1973 by the German Labour Front and headquartered in Wolfsburg. Volkswagen is
shortened to VW as their iconic symbol, which they use in cars as badges. It is
the flagship marque of the Volkswagen group . They are the largest automaker by
worldwide sales in 2016.
This 80 year old German
Multinational automotive manufacturing
company mainly deals in the designing , engineering , manufacturing and
distributing passenger cars, commercial vehicles , turbo machinery and
Under the control of Adolf
Hitler of the National Socialist (NAZI) party formed a state owned automobile
company on May 28 1973 which then were known as Volkswagen or “People’s Car
Under the Nazi Organisation
the company had a ambitious project to produce affordable yet speedy vehicles
that could sell for less than $140. In
order to achieve this project an Australian Automotive Engineer Ferdinand
Porsche was called in . Initially Volkswagen couldn’t perform well in countries
like US but later with the introduction of their legendary car Beetle which
surpassed the longstanding worldwide production record of 15 million vehicles
which was set by Ford they had distinct
advantage to customers over the several years Volkswagen became the top selling
auto import in US. Later in 1960 the German government sold 60 percent of Volkswagen’s
stock to the public.
Today Volkswagen is
the founding and namesake member of the
Volkswagen Group , they
are the large international corporation in charge of multiple car and truck
brands which includes company’s like Audi, SEAT, Lamborghini, Bentley, Bugatti,
Scania, MAN, and Škoda. Volkswagen Group’s global headquarters are located in
Volkswagen’s historic home of Wolfsburg, Germany.
Volkswagen as MNC
Volkswagen Is currently the Europe’s largest automaker.
Volkswagen they either manufactures ,
export else assemble vehicles for every local market in which they have
presence. Apart from the main plant in Germany they also have manufacturing plants
or assembling units in Mexico, US,
Slovakia, China, India, Indonesia, Russia, Malaysia, Brazil, Argentina,
Portugal, South Africa, Czech Republic,Bosnia, Spain and Kenya.
However although the company is well established but
everything was not going well in favour of Volkswagen
was embroiled in a wider auto industry corruption scandal after executives at
some carmakers were accused of taking bribes from suppliers.
2009 Porsche headquarters were raided as part of an investigation into alleged
market manipulation by the company’s executives during a failed takeover of VW
that dated back to 2005.” (Volkswagen: a history of
In September 2015 the car company was found guilty for
using defeat device in some of their models and that had some serious impact to
their fame and ethics . (VOLKSWAGEN : THE SCANDAL
PESTEL ANALYSIS ON
A PESTEL analysis is a tool
or framework used by the organisation to
monitor Political, Economical,Social,Technological,Environmental and Legal
factors that directly or indirectly
affect an organisation
influences on tariffs related to international trade has an huge impact on VW ,
the increased regulations on sub parts
,quality , taxes etc creates chaos to company.
based on safety and environment is different in various countries.
Politics can increase Volkswagens risk factors, because
governments can quickly change business rules that negatively affect their business. Also banking
industry and financial sector of a country plays a big role in the sales of
cars as they provide vehicle loans and the interest rates on those loans are
decided according to the government policies.Therefore Volkswagen is facing
different political situations in different countries.
VOLKSWAGEN IN CHINA
Earlier the Chinese government insisted
on foreign business as a joint venture with the some native companies thereby
Volkswagen establishes a joint venture called Shanghai Volkswagen with Shanghai Automotive Industry
Corporation in 1985.
Rising political pressure on 2015 device defeat scandal
The EU is planning to revamp the testing procedures to take VW out of the lab
and on to the road. Unlike earlier now it wont be possible to boost ratings
based on the changes made to the design. The Commission also wants action from