Volkswagen Group : Manufacturing And Development Location

USA, UK and Europe. However, the demand has been rising steadily in India and China – both the world’s fastest growing economies. Thanks to Shanghai GM, a successful joint venture with the Chinese company SAIC, GM’s sales in China increased by 68 percent to 230,048 vehicles in

After a one-year long and difficult negotiation, on March28 2010, the China Geely Group went where no Chinese auto firm has gone before, buying a luxury car brand, Volvo, for $1.8billion from Ford, including the 100% shareholder and the relevant assets. It was China's largest overseas automotive industry acquisition, which was also the first wholly-owned merger. Besides, it was the first time for a Chinese own brand to merge a luxury brand. This deal proved to be a most ambitious action for the Chinese automaker’s desire to transform itself into an international auto player and wrote a new chapter for the Chinese automotive industry.

In 2013, an American auto industry report dubbed, ‘‘Redefining the American Auto Industry” was compiled by the Association of Global Auto makers and the American International Auto dealers ` Association. The aim of the report was to establish and indicate how international or global auto makers were impacting the US economy in general. In 2013, international automakers in American produced more than 5 million vehicles across America which were sold in the US market with 800 000 of that number being exported to over 60 countries outside the United States. Global competition in the US auto industry and the presence of International Auto Makers in the US has also had positive spin-off effects with respect to great employment opportunities elsewhere within America. Every stage of car making represents an

Global COMPETITION in the industry: Global competition has expended in the auto industry because of an increase in global trade. This has resulted in the decline of sales in the American auto industry whilst sales in the Asian industry especially China has increased. In 2009 sales in the U.S. hit their lowest point meanwhile, it doubled in Asia generally, especially in China. (loc.gov. 2014). One of the reason for this decline in the American Auto sales is because the Japanese automakers have altered the U.S. manufacturing models and are selling it in the global market at a less expensive rate. The price and innovation is attracting a lot of customers’ to this part of the world leaving the American industry to suffer.

At the beginning of twenty centuries until now the American auto industry has been growing and in demand. Henry Ford innovated mass-production techniques that became standard, with Ford, General Motors and Chrysler emerges as the “Big Three” auto companies by the 1920s. Manufacturers funneled their resources to the military during World War II, and afterward automobile production in Europe and Japan soared to meet demand. Once vital to the expansion of American urban centers, the industry had become a shared global enterprise with the rise of Japan as the leading automaker by 1980. And Americans dominated the industry in the first half of the twentieth century. Hence, from the

Volkswagen One of the largest automobile company in the world. Volkswagen is a company from Germany that deals with automobile manufacturing. In the list of top ten best selling cars Volkswagen’s has three cars, those us Volkswagen Golf, Volkswagen Passat and Volkswagen Beetle. The meaning of Volkswagen is ‘People’s car’, which is a German word. Slogan of Volkswagen is “Das Auto”. Ferdinand was funded Volkswagen was founded in 1937 its Headquarter is in Wolfsburg, in country Germany. Martin Winterkorn is the Current chairman of the company. Volkswagen’s revenue 94.7 billion euro in 2011 and also has more than 3658500 employees. Volkswagen is among world’s largest car manufacturer. Others are Toyota, General Motors,

Since it’s inception in the 1900’s, the auto industry has become a global economic powerhouse and juggernaut of cultural influence. In recent decades, the industry has faced various crises and yet has remained one of the most powerful drivers of global economic activity. In the U.S. alone, 1 in every 22 jobs derives from the auto industry (Cutcher-Gershenfeld, J., 2015, para 1). Generally speaking, industry analysts are optimistic about the U.S. market and less so in other markets (Strategy&, 2015, para. 3).

China is at present the biggest auto market on the planet. It is likewise one of the biggest car parts makers and exporters on the planet, with fares, essentially to the United States, constituting around 33% of its production. The Chinese government has given subsidies to automobile parts producing in China, and vital choices by Chinese policymakers and outside organizations have implications for the U.S. also, worldwide global economies. China has seen a general decrease in destitution and a drop in imbalance. China has been under the administration of the Communist Party of China (CPC) for over 60 years, and the initiative has possessed the capacity to force its choices on the nation without experiencing consultations and transactions (Valey, 2012) .

This report will look at the feasibility, the riskiness and the profitability of an expansion into the German car market. First, we will analyze the host country, Germany, with respect to its economics, political, legal and cultural aspect. Second, a SWOT analyses will be conducted to determine if Great Motor Wall is in a good

Especially in China, there’s only 25 vehicles per a thousand residence while there’s over 800 vehicles per a thousand residence in United States. It won’t surprise us if the vehicle market of China grows double digits, or more, every year in the coming decade.

Due to a strong domestic demand for cars in China, car manufacturers are expected to sell 13 million cars this year. China is expected to overtake United States as the world’s No.1 car market next year. As the car export market is still being affected by the global economic downturn, China carmakers have been focusing on the Mainland China market which is more attractive. The expected growth is more than 50% and this trend will continue next year as per some forecast.

Volkswagen a parent company of Skoda is Europe’s largest carmaker producing cars, trucks and vans. It

#### This is incomplete ### China has emerged as the center of focus in the automobile industry. From its mere production of trucks in the earlier years of development and the further production of saloon cars for specific members of the political class, the country has evolved to be leading producer and consumer of cars. This has been through various pitfalls in the process of growth with success and failure of certain policies. One of the significant events that were followed by a spur in the growth of local production was its accession in the WTO. Nevertheless, with the mix of other macro economic variables, the future trend of the industry may take a different direction due to possible factors for instance domestic foreign investment (DFI) and possible market saturation or even economic downfall.

The Chinese automobile market has grown by 1/3. This means that there is a lot more room for automobile companies like Honda to expand and grow. Honda will be able to increase its production and sales as the market will be bigger.

Based on the fact that in 2009, Volkswagen sold just 213,454 cars in the US, The Board felt the North American goal was unrealistic and unachievable. Instead of over-targeting a shrinking market, The Board felt in addition to targeting the Latino market within the United States, more focus should be shifted towards emerging markets in Asia.