Volkswagen Ag Swot Analysis
Volkswagen AG (VW) is a German car manufacturer headquartered in Wolfsburg, Lower Saxony, Germany. Established in 1937, Volkswagen is the top-selling and namesake marque of the Volkswagen Group, the holding company created in 1975 for the growing company, and is now the second-largest automaker in the world.
Volkswagen has three cars in the top 10 list of best-selling cars of all time compiled by the website 24/7 Wall St.: the Volkswagen Golf, the Volkswagen Beetle, and the Volkswagen Passat. With these three cars, Volkswagen has the most cars of any automobile manufacturer in the list that are still being manufactured, which includes model names that span multiple revisions and generations.
Volkswagen translates as "People's Automobile" in
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Strong presence in China. China is the largest automotive market and is an emerging economy that grows steadily. It is also the biggest market for Volkswagen vehicles where the company captures nearly 20% of the market mainly with its Audi and Volkswagen brands.
5. Well performing brands. Without its namesake brand, the company owns a few other very successful brands, including Audi and Porsche. Audi brand is valued at $7 billion, while Porsche is valued at $5 billion. Audi is also the second biggest brand in the firm’s portfolio and is growing impressively.
Weaknesses
1. Weak position in the US passenger car market. In 2012, Volkswagen had only about 5% market share in the US passenger car market. US is the second largest automotive market in the world and weak Volkswagen’s position there results in comparably lower sales.
2. Most cars are not environment friendly. Volkswagen owns three sport car brands Porsche, Lamborghini and Bugatti that emit high amount of CO2 and are fuel inefficient. Besides Volkswagen group is strongly opposing to legislation requiring tighter regulations on CO2 emissions and energy efficiency as their cars are not as fuel-efficient and environment friendly as their competitors.
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