Volkswagen Group : Manufacturing And Development Location

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Volkswagen Group is a German multinational automotive manufacturing company with the headquarter based in Germany. In 2013, Volkswagen was ranked 8 on Fortune’s list of top 100 world’s largest corporations, jumping one spot up from number 9 in 2012. The company specialises in designing, manufacturing and distributing passenger and commercial vehicles, motorcycles, engines as well as offering associated services including financing and leasing. Volkswagen currently operates in approximately 150 countries with 100 production facilities around 27 countries. They have two major joint ventures in China; FAW- Volkswagen and Shanghai Volkswagen (Volkswagen Group, 2014). Volkswagen is committed to Germany as a manufacturing and development location. At the same time, they want to step up their investments in the markets outside Europe to further increase their global presence and capability. The company’s operations in China have grown rapidly in the past decade, becoming its largest market. Volkswagen aimed to be the first successful Western automobile manufacturer to enter China, to build a leading position within the Chinese car market (Volkswagen, n.d). As early as the 1980’s, stirrings of economic reform in China encouraged Volkswagen’s senior managers to identify the country as a future growth market for passenger cars. They decided to establish sales and production in the country as soon as possible in order to reap the benefits of being first (Financial Times, 2014).Towards
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