Volkswagen Car dealership.

Table of Contents

Introduction1

Industry Analysis2

Corporate Business Strategy3

Environmental Strategy4

Drive Strategies6

Fuel Systems and alternatives7

Alternative Fuel Strategy8

Local Projects and Initiatives8

Recommendations9

Introduction

Volkswagen AG (VW) is the largest motor vehicle manufacturer in Europe, and the fourth largest in the world. Volkswagen manufacturers economy and luxury automobiles, sports cars, light trucks and commercial vehicles through nine independent brands that include Audi, Bentley, Bugatti, Lamborghini, Seat, Skoda and Rolls-Royce (until 2003's finalization of sale to BMW). These brands originate in six different European countries, and span customer base, cost and function. Each brand has a 'distinct personality', yet is unified under the parent Volkswagen Group that consists of all of Volkswagen's individual brands and subsidiary divisions. The Volkswagen Group's activities primarily focus on the automotive market in which they offer products and services along the entire automotive value chain such as sales, service, financing, leasing, car rental and insurance through a separate financial services division and Europcar. However the Volkswagen Group also includes subsidiaries that are involved in real estate, transportation planning and logistics, knowledge implementation and information technology consultancy.

As a global player, Volkswagen is represented in all the major world markets with product offerings in more than 150 countries, and employs over 300,000 people throughout its global manufacturing base of 43 production facilities. In addition to their global manufacturing presence, Volkswagen's strong international sales and marketing component provides them with an added foothold in the global marketplace. In Western Europe almost every fifth car originates from the Volkswagen Group where at year-end 2001, they held a 18.9% share of the passenger car market even though there were inconsistent developments in various markets. Worldwide, Volkswagen held a 12.4% market share in the same market (see Figure 1). These figures represent a -0.6% decrease in Western Europe, but...