Volkswagen Group

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Memorandum

To:

From:

Date:

Subject: Term Paper
_______________________________________________________________________

Attached please find the term paper on Volkswagen Group’s “Strategy 2018”, which is due on ______, in BUS 388N, Operations Management, Section.

The work and writing presented in this term paper, unless specifically specified in an appropriately cited footnote, endnote, or reference note, is solely mine.

Name

Volkswagen Group, one of the leading automobile manufacturers in the world, has been on an impressive incline in the market with a continuous rapid international expansion. Unlike other reigning companies such as Toyota Motor Corporation
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The key investment in America was its $1 billion dollar investment in the production facility located in Chattanooga, Tennessee. Stefan Jacoby, President and CEO of Volkswagen Group of America, stated, “This plant will build a new Mid-size Sedan designed specifically for the U.S. market and destined to play a key role in meeting our long term goal.”3 This plant alone created 2,000 direct jobs in the region and is expected to produce $12 billion in income growth along with an added 9,500 jobs over the project’s lifetime.3 In addition to those impressive numbers of growth, the Group had expectations of the plant to attain an annual capacity of 150,000 vehicles, mainly including their Volkswagen TDI clean diesel technology. Other steps were taken in the operational sector of the Group to strengthen its brand name. More than half of Volkswagen brand dealers have invested in the exclusive showroom concept that assists in paying its dividends in increased sales. Also, they incorporated their new Carefree Maintenance Program that assists their customers’ costs. It includes that there are no charges for regularly scheduled maintenance for three years or 36,000 miles; whichever is reached first.3 After the implementation of these new methods and ideas, Jacoby confidently stated, “2008 has been a year of transition for our company. We have reset the start button on virtually all of our business units and
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