Case Study Of Volkswagen

Cultural diversion

The manager of sales in FAW Volkswagen stated that since Volkswagen built their first factory and produced in China they have brought many engineers with them that are very highly educated and they have brought many new techniques and taught around millions of Chinese engineers and workers. These people were regarded as very highly regarded and valued, as they not only improved the speed of production of cars but also the quality. German car making quality and skills has always been valued as amazing in the whole world so not only in China. Since Volkswagen is a foreign company so it brings things and materials from abroad in this case Germany. One of the most important parts of any car is the engine and Chinese national

Out of top ten car model sold five are from Volkswagen. Number one in china for passenger vehicles with 2099000 cars. The most popular cars bought from Volkswagen are Lavida, Santana, Jetta, Sagitar, Bora and Tiguan. Volkswagen Company also has big influence on the Chinese petroleum company and can mostly increase but also decrease the prices of oil. This shows how big of a car manufacture and their influence is in the Chinese market.

Volkswagen was also the catalyst for other foreign companies like Peugeot, Audi, Toyota, Honda, Lexus and so on as they were at first afraid of the Chinese automobile industry and were not quite sure and all didn’t want to be the first one to have a cooperated company. Since they saw the how well Volkswagen was doing they decided to join the market of co-operated

There is a lot of Domestic consumption that works as growth accelerator. It is one of the first companies in China to Focus on environmental protection and energy efficiency. It has Selective policies for foreign investment as well as globalization of Chinese companies. Volkswagens main regions are Shanghai, Zhejiang Liaoning Beijing Hubei Shandong Guangdong. Overall in china Volkswagen products have increased growth by a lot and is still increasing making competitors fall even further behind. Volkswagen now are going west and south and have plans for Capacity expansion plan to 4 million in 2018. Volkswagen has also Planned 2015 more production with more than 90 new models. Since Volkswagen has been a great influence on the Chinese car market they will bring new engines from German Volkswagen used in Chinese products. They have been and still are Number one overall in the Chinese automobile industry. China still has a developing economy and has a lot of potential. Even less developed cities are purchasing cars as living conditions improve and Volkswagen is most people’s first choice. China is still investing a lot in road infrastructure which means car has become essential in China. Volkswagen is increasing plant capacity and building new plants. Volkswagen in china has special features and designs customized for Chinese peoples needs and wants. New Volkswagen group china