MINOR PROJECT REPORT

ON

Marketing on Volkswagen

Submitted in Partial fulfillment of the

requirements
for the award of degree of
Bachelor of Business Administrations
(BBA)
to
Guru Gobind Singh Indraprastha
University , Delhi

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UNDERTAKING BY
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Acknowledgement
I have taken efforts in this project. However, it would not have been possible without the kind
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Table of Contents
Chapter 1

Introduction

1.1 Overview of Industry as whole

1.2 Profile of the

Organisation
1.3 Problems of the Organisation
1.4 Competition Information
1.5 S.W.O.T Analysis of the Organisation
Chapter 2

Conceptual Discussion 4

Chapter 3

Research Methodology 4

3.1 Titles

3.2 Title Justification

3.3 Objective of Study

3.4 Research Methodology

3.5 Data Collection 5

3

3.5.1 Primary Data

3.5.2 Secondary Data
3.6 Limitation of Study
Chapter 4

Analysis

Chapter 5 Observations

Chapter 6 Conclusion 4

Introduction
Overview of Introduction as Whole
The automotive industry is a wide range of companies and organizations involved in
the design, development, manufacturing, marketing, and selling of motor vehicles. It is one of the
world's most important economic sectors by revenue. The automotive industry does not include
industries dedicated to the maintenance of automobiles following delivery to the end-user, such
as automobile repair shops and motor fuel filling stations.
Global sales of passenger cars are forecast to hit 73.9 million vehicles in 2015. Along with China,
the United States is counted among the largest automobile markets worldwide, both in terms of
production and sales. About 7.7 million passenger cars were sold to U.S. customers in 2014, and
around 4.25 million cars were produced here in the same year. The United States became a key
automotive market when Ford introduced assembly line car production in the early 1900s to massmanufacture its Model T. Today, the Ford Motor Company still ranks among the leading
manufacturers of passenger cars, its most popular model currently being the Ford Focus, which was
also 2013s best selling car worldwide. In terms of revenue, Toyota, Volkswagen and General
4

Motors top the list of major automobile makers, while the automotive supplier industry is
dominated by Bosch, Continental, Denso and Magna.

Over the next decade, Internet-connected car technologies and autonomous vehicles are set to stir
up yet another revolution in the automotive sector. In 2014, some 23 percent of U.S. respondents
stated that they were very likely to buy a fully autonomous car, mainly because they consider
autonomous vehicles to be safer than conventional cars. The global market for autonomous driving
hardware components is expected to grow from 400 million U.S. dollars in 2015 to 40 billion U.S.
dollars in 2030.

The evolution of the automotive industry has been influenced by various innovations in fuels,
vehicle components, societal infrastructure, and manufacturing practices, as well as changes in
markets, suppliers and business structures. Some historians cite examples as early as the year 1600
of sail-mounted carriages as the first vehicles to be propelled by something other than animals or
humans. However, it is believed by most historians that the key starting point for the automobile
was the development of the engine. The engine was developed as a result of discovering new
energy carrying mediums, such as steam in the 1700s, and new fuels, such as gas and gasoline in
the 1800s. Shortly after the invention of the 4-stroke internal combustion gasoline-fueled engine in
1876, the development of the first motor vehicles and establishment of first automotive firms in
Europe and America occurred. See Figures 1 and 2 in Appendix A for a timeline of the automotive
industry from 1895 to 2000. During the 1890s and early 1900s, developments of other technoogies,
such as the steering wheel and floor-mounted accelerator, sped up the development of the
automotive industry by making vehicles easier to use. Almost simultaneously, in America, the
societal infrastructure that would provide fertile ground for the proliferation of automobiles was
being set. Drivers licenses were issued, service stations were opened, and car sales with time
payments were instituted. Famous vehicle models such as Fords Model T were developed during
these times and, by 1906, car designs began abandoning the carriage look and taking on a more
motorage appearance. During the 1910s, the development of technologies and societal
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infrastructure continued in addition to new manufacturing practices and business strategies. Traffic
lights started appearing in the U.S. and thousands of road signs were posted by B. F.

Number of cars sold worldwide from 1990 to 2016 (in million units)

This statistic represents the number of cars sold worldwide from 1990 through 2015. Additionally,
it presents a forecast for 2016. Some 75.24 million automobiles are expected to be sold by 2016.
Global car sales are expected to exceed 100 million units by 2020.

Profile of Volkswagen
Founded on January 4, 1937 Volkswagen is a German Automobile company headquartered in
Germany. Volkswagen translates as "People's Automobile" in German. The company's current
international slogan is "Volkswagen". Volkswagen Aktiengesellschaft, together with its subsidiaries,
manufactures and sells automobiles primarily in Europe, North America, South America, and the
Asia-Pacific.
The company operates through Two Divisions:
The Volkswagen Group consists of two divisions: the Automotive Division and the Financial
Services Division. The Automotive Division comprises both the Passenger Cars Business Area and
the Commercial Vehicles/Power Engineering Business Area. They report the Passenger Cars
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segment and the reconciliation in the Passenger Cars Business Area. The Commercial
Vehicles/Power Engineering Business Area consists of the Commercial Vehicles and the Power
Engineering segments. Accordingly, the activities of the Automotive Division comprise the
development of vehicles and engines, the production and sale of passenger cars, light commercial
vehicles, trucks, buses and motorcycles, as well as the genuine parts, large-bore diesel engines,
turbomachinery, special gear units, propulsion components and testing systems businesses. The
Ducati brand is allocated to the Audi Brand and is thus presented in the Passenger Cars reporting
segment. The Financial Services Division, which corresponds to the Financial Services segment,
combines dealer and customer financing, leading, banking and insurance activities, fleet
management and the mobility offerings.
1. Passenger Cars: The Passenger Cars segment develops vehicles and engines; and produces
and sells passenger cars and genuine parts.
2. Commercial Vehicles: The Commercial Vehicles segment develops, produces, and sells light
commercial vehicles, and trucks and buses, as well as offers parts and related services.
3. Power Engineering: The Power Engineering segment develops and produces large-bore
diesel engines, turbo compressors, industrial turbines, and chemical reactor systems, as well
as produces gear units, propulsion components, and testing systems.
4. Financial Services: The Financial Services segment offers dealer and customer financing,
leasing, banking and insurance, fleet management, and mobility services.
The company also offers motorcycles. Volkswagen Aktiengesellschaft provides its products under
the Volkswagen Passenger Cars, Audi, KODA, SEAT, Bentley, Porsche, Volkswagen Commercial
Vehicles, Lamborghini, Bugatti, Ducati, Scania, and MAN brand names, as well as financial
services under the Volkswagen Financial Services brand name. The company has a co-operation
with Daimler AG to produce Crafter. Volkswagen Aktiengesellschaft is based in Wolfsburg,
Germany. Volkswagen Aktiengesellschaft operates as a subsidiary of Porsche Automobil Holding
SE.

Problems of Organisation
As of September 30, 2015, it was confirmed that some five million Volkswagen-branded cars, 2.1
million Audi vehicles, 1.2 million Skoda automobiles and 700,000 Seat cars, as well as 1.8 million
VW commercial vehicles were fitted with a defeat device in their engines, and were thus affected
by the Volkswagen diesel deception scandal. Although VW claims that only a fraction of the defeat
device-equipped cars will need a refit, the automotive manufacturer will likely have to recall 8.5
million diesel-engine vehicles in Europe alone. The carmaker issued a statement in November
claiming that it received approval to fix about 90 percent of manipulated vehicles in Europe and
around 70 percent of rigged engines in the U.S., entailing costs in excess of 10 billion euros. That
said, it remains unclear if it is safe for the owners of affected vehicles to ignore the recall, if they
will see a downgrade in their vehicles performance due to software adjustments - or if the vehicles
will be fitted with a different engine version. Volkswagen executives promise to reveal how to
correct their emissions problem during the first quarters of 2016. In April 2016, Mitsubishi admitted
to duping emissions tests.

High Transaction Costs

VW sees itself as competing with Toyota and Ford, but consumers don't see them that way, said
Alec Gutierrez, senior market analyst at Kelley Blue Book. In the Volkswagen Group family, VW's
role is to build mainstream, mass-market transportation while its luxury-oriented siblings like Audi
and Bentley build higher priced, fancier models.

But thanks to its European origins and a close association to its corporate siblings, consumers in the
US. see VW as a near-luxury product. This means buyers shopping for products like the brand's
Passat sedan approach the process differently than they would if they were shopping for a Honda
Accord or a Toyota Camry. A Camry or Accord buyer may be willing to part with his money for a
bare-bones base model, but VW shoppers want a German luxury product at a discounted price,
leading them to load-up on optional goodies.

As a result, the brand is at the highest point in virtually every segment in which it competes,
Gutierrez said. While VW has attempted to make its product more attractive to value shoppers by
offering stripped-down models, the typical VW still costs more than its competitors.
According to KBB, the average transaction cost for a Passat sedan in 2014 was $27,300. The
average midsize sedan on the market costs $25,000, with the Ford Fusion coming in at $26,000 and
an Accord $25,200.
Another reason for VW's higher price point is the brand's inclusion of premium technology even in
lower-level models. The company chose to include complicated turbocharging systems and
advanced DSG automated twin-clutch gearboxes on economy models, while competitors like the
Honda Civic, Ford Focus, and Toyota Corolla employ cheaper and more conventional
10

technology. The availability of such options is a boon for consumers, but it prevents VW from
competing on price with its less sophisticated competitors.
Lack Of A Competitive Compact Crossover
As 13% of market, the compact crossover SUV is one of the most important and competitive
segments in the US. While VW's Tiguan compact crossover is a good car, it is not nearly as
affordable or fuel-efficient as segment leaders, such as the Honda CR-V and Toyota RAV4, said
Gutierrez.
And the difference in sales is staggering. So far in 2015, Honda has sold 73,000 CR-Vs, Nissan's
moved 64,00 Rogues while Ford and Toyota have both shipped more than 67,000 of their Escape
and RAV-4 crossover. Conversely, VW has been able to sell just 5,600 Tiguans this year representing just 1.1% of the segment's sales so for this year.
A History Of Questionable Reliability

For much of the past decade, Volkswagen has been plagued with powertrain reliability issues in the
high-volume four- and five-cylinder engines that power Passat, Jettas, and other VW
products, according to Consumer Reports.
11

In the past few years, the automaker has made significant strides in quality and received high marks
from reviewers at the publication.
Still, there seems to be a negative impression that lingers in the minds of mass-market shoppers
who place a premium on reliability. This stigma is further enforced by publications like JD Power's
2014 initial quality and 2015 vehicle dependability surveys, where VW scored below industry
average in both.
A Crowded Marketplace
The final factor for Volkswagen's slipping sales is a marketplace that is growing more and more
crowded with competitive products. A decade ago, VW's mass-market products only had to contend
with challengers from the major Japanese manufacturers and a couple of domestic products like the
Ford Focus. In the decade since, the market has changed significantly.
Not only are the Japanese brands still riding high; Volkswagen must now also compete with
Hyundai and Kia from Korea, and a major resurgence from Detroit's Big 3. Although auto sales are
expected to top 17 million cars in 2015, in light this increased competition, Volkswagen's product
mix may not allow the brand to take advantage of the hot market.

How Volkswagen Can Come Back

12

The potential fixes are many, but one thing the brand can do is simply embrace the image their
consumers already have of them, says Gutierrez.
Instead of forcing their way into the mass-market segment, VW could change course and become a
near-luxury manufacturer.
This may be difficult and risky for Volkswagen, because moving into a higher price point could
potentially cannibalize sales of Audi's A3 and A4 models, which sell for between $35,000 and
$45,000. And a move up market would risk the brand becoming reduced to a niche luxury
manufacturer, which does not mesh with VW's already successful global presence as a major massmarket brand. It remains to be seen how the company will try to change its image - and sales
figures - in the US.

SWOT analysis of Volkswagen

Strength (Internal Strategic Analysis)
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1.

Strong Brand Image: it owns 13 brands including famous brands Bugatti, Audi,
Lamborghini, Porsche, and Volkswagen. Other brands are Bentley, SEAT, koda, MAN, Scania
and commercial vehicles. With such variety of vehicles it builds a strong brand.

2.

Presence all over the world: it operates its operation in more than 153 countries. It has 100
car manufacturing plants in North and South America, Europe, Africa, Asia, and Oceania.

3.

Strong R&D: it has strong research and development section which thoroughly works on
new public demand, designs, and technological inventions of the cars.

4.

Presence in the largest market in China: China is an emerging economy and the largest
car market in the world. It grabbed more than 20% of the china market with Volkswagen and
Audi. It possesses the strongest market share in China.

5.

Awesome performing Brands: Volkswagen has been thoroughly developing wellperformed cars among all other brands.

6.

The number of employees: It has 592,586 employees working hard make it a stronger
brand.

Weakness (Internal Strategic Analysis)

1.

Weak position in Indian Market: it possesses only 3% market share in a big country like
India.

2.

Weak position in the United States: it has only 4.8% market share in the United States.
(2014)

3.

Most of their cars are not environment-friendly: we know that carbon-di-oxide harms the
ecosystem. Three of their most active brands named Porsche, Lamborghini, and Bugatti emits
excessive carbon-dioxide. And if any government takes any action against it, it may harm the
company drastically.

4.

Not a strong brand like Toyota: it could not build the presence like other known brands,
e.g. Toyota.

Opportunities (External Strategic Analysis)

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1.

Changing technology: it can change its technology to more environment-friendly cars

which give them opportunities to avoid uncertainty.

2.

Emerging Indian Market: it can grow in the emerging market like India.

3.

Market United States: Still there are rooms for increasing market shares in the United
States.

4.

Decreasing Fuel Price: cars which are more fuel dependent, and will be grabbing more
market shares.

5.

Rooms for Social Responsibility: as they manufacture cars which produce more carbon
dioxide, they can change their technology for the betterment of the environment and fulfill
social responsibility.

6.

Getting stronger through acquisition: it has successfully been acquiring other companies
and getting larger.

7.

Increasing demand of buses all over the world: in demand of buses is increasing all over
the world and its now 5% per year. This growth rate is giving opportunities to Volkswagen
buses.

Threats (External Strategic Analysis)

1.

Carbon dioxide emission standards: if any government put any restriction on emitting
carbon-di-oxide, it will harm the company.

2.

Decreasing fuel price: with the decreasing fuel price, the demand of hybrid cars will be
going down.

3.

Raw material price in the increasing: the increasing price of raw materials will be
hampering the economies of scale of the company, and therefore offering a high price.

4.

Other Stronger Brands: Brands like Toyota, Fords are capturing developing countries like
Bangladesh, India where Volkswagen holds a low portion of market share.

Conclusion

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If we draw a brief picture of SWOT analysis of Volkswagen, we will see that if some steps to grab
developing countries market share are taken, and if they make environment-friendly cars, they will
be able to build the strongest brand of all.

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Company History
1932 1938: Peoples Car Project - Volkswagen was originally created in 1936 by the German
Labour Front (Deutsche Arbeitsfront). In 1932, with many of the above projects still in
development or early stages of production, Adolf Hitler got involved, ordering the production of a
basic vehicle capable of transporting two adults and three children at 100 km/h (62 mph). He
wanted his German citizens to have the same access to a car as the Americans. [8] The "People's Car"
would be available to citizens of the Third Reich through a savings plan at 990 Reichsmark ($396
in 1930s U.S. dollars)about the price of a small motorcycle (the average income being around
32RM a week).
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1945 1948: British Army intervention, unclear future - In April 1945, KdF-Stadt and its heavily
bombed factory were captured by the Americans, and subsequently handed over to the British,
within whoseoccupation zone the town and factory fell. The factories were placed under the control
of Oldham-born Hirst, by then a civilian Military Governor with the occupying forces. At first, one
plan was to use it for military vehicle maintenance, and possibly dismantle and ship it to Britain.
Since it had been used for military production, (though not of KdF-Wagens) and had been in Hirst's
words, a "political animal" rather than a commercial enterprise technically making it liable for
destruction under the terms of the Potsdam Agreement the equipment could have been salvaged
as war reparations. (Allied dismantling policy changed in late 1946 to mid-1947, though heavy
industry continued to be dismantled until 1951.)
19481961: Icon of post war West German regeneration - From 1948, Volkswagen became an
important element, symbolically and economically, of West German regeneration. Volkswagens
were first exhibited and sold in the United States in 1949, but sold only two units in America that
first year. Production of the Type 1 Volkswagen Beetle increased dramatically over the years, the
total reaching one million in 1955. Canadian Motors, Limited brought in Canada's first shipment of
Volkswagens on 10 July 1952 (shipping order 143075)
19611973: Beetle to Golf - VW expanded its product line in 1961 with the introduction of
four Type 3 models (Karmann Ghia, Notchback, Fastback, and Squareback) based on the new Type
3 mechanical underpinnings, and again in 1969 with the larger Type 4 (411 and 412) models. In
1964, Volkswagen acquired Auto Union, and in 1969, NSU Motorenwerke AG (NSU). The former
company owned the historic Audi brand, which had disappeared after the Second World War. VW
ultimately merged Auto Union and NSU to create the modern Audi company, and would go on to
develop it as its luxury vehicle marque. The purchase of Auto Union and NSU was a pivotal point
in Volkswagen's history, as both companies yielded the technological expertise that proved
necessary for VW to survive when demand for its air-cooled models went into decline.

19741990: Product line expansion - While Volkswagen's range of cars soon became similar to that
of other large European automakers, the Golf has been the mainstay of the Volkswagen lineup since
its introduction, and the mechanical basis for several other cars of the company. There have been
seven generations of the Volkswagen Golf, the first of which was produced from the summer of
1974 until the autumn of 1983 (sold as the Rabbit in the United States and Canada and as the Caribe
18

in Latin America). In the 1980s, Volkswagen's sales in the United States and Canada fell
dramatically, despite the success of models like the Golf elsewhere. The Japanese and the
Americans were able to compete with similar products at lower prices. Sales in the United States
were 293,595 in 1980, but by 1984 they were down to 177,709.[25] The introduction of the secondgeneration Golf, GTI and Jetta models helped Volkswagen briefly in North America. Motor Trend
named the GTI its Car of the Year for 1985, and Volkswagen rose in the J.D. Power buyer
satisfaction ratings to eighth place in 1985, up from 22nd a year earlier.[26] VW's American sales
broke 200,000 in 1985 and 1986 before resuming the downward trend from earlier in the decade.
Chairman Carl Hahn decided to expand the company elsewhere (mostly in developing countries),
and the New Stanton, Pennsylvania factory closed on 14 July 1988.[27] Meanwhile, four years after
signing a cooperation agreement with the Spanish car maker SEAT in 1982, Hahn expanded the
company by purchasing a majority share of SEAT up to 75% by the end of 1986, which VW bought
outright in 1990.

19911999 - In 1991, Volkswagen launched the third-generation Golf, which

was European Car of the Year for 1992. The Golf Mk3 and Jetta arrived in North
America in 1993. The sedan version of the Golf was badged Vento in Europe,
but remained Jetta in the U.S. The Scirocco and the later Corrado were both
Golf-based coups. In 1994, Volkswagen unveiled the J Mays-designed Concept
One, a "retro"-themed concept car with a resemblance to the original Beetle,
based on the platform of the Polo. Due to a positive response to the concept, a
production version was developed as the New Beetle, based on the Golf's
larger platform.[29]
In 1995 the Sharan was launched in Europe, the result of a joint venture with
Ford, which also resulted in the Ford Galaxy and SEAT Alhambra.[30]
The company's evolution of its model range was continued with the Golf Mk4,
introduced at the end of 1997 (and in North America in 1999), its chassis
spawned a host of other cars within the Volkswagen Group; the Volkswagen
Bora (the sedan called Jetta in the U.S.), SEAT Toledo, SEAT Len, Audi A3, Audi
TT, and koda Octavia. Other main models during the decade include the Polo,
a smaller car than the Golf, and the larger Passat for the segment above the
Golf.
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In 1998 the company launched the new Lupo city car. In 1999 they announced
the first "3-litre" car, a lightweight version of the Lupo that could travel 100 km
with only 3-litres of dieselmaking it the world's most fuel efficient car at the
time
2000present: Further expansion - Volkswagen began introducing an array of
new models after Bernd Pischetsrieder became Volkswagen Group CEO
(responsible for all Group brands) in 2002. The sixth-generation VW Golf was
launched in 2008, came runner-up to the Opel/Vauxhall Insignia in the 2009
European Car of the Year, and has spawned several cousins: VW Jetta, VW
Scirocco, SEAT Len, SEAT Toledo, koda Octavia and Audi A3 hatchback
ranges, as well as a new mini-MPV, the SEAT Altea. The GTI, a "hot hatch"
performance version of the Golf, boasts a 2.0 L Turbocharged Fuel Stratified
Injection (FSI) direct injection engine. VW began marketing the Golf under the
Rabbit name once again in the U.S. and Canada in 2006. The sixth-generation
Passat and the fifth-generation Jetta both debuted in 2005, and VW has
announced plans to expand its lineup further by bringing back the Scirocco by
2008. Other models in Wolfgang Bernhard's (Volkswagen brand CEO) "product
offensive" include the Tiguan mid-sized SUV in 2008 and a Passat Coup. In
November 2006 Bernd Pischetsrieder announced his resignation as Volkswagen
Group CEO, and was replaced by Audi worldwide CEO Martin Winterkorn at the
beginning of 2007. The sixth-generation Passat and the fifth-generation Jetta
both debuted in 2005, and VW has announced plans to expand its lineup
further by bringing back the Scirocco by 2008. Other models in Wolfgang
Bernhard's (Volkswagen brand CEO) "product offensive" include the Tiguan
mid-sized SUV in 2008 and a Passat Coup. In November 2006 Bernd
Pischetsrieder announced his resignation as Volkswagen Group CEO, and was
replaced by Audi worldwide CEO Martin Winterkorn at the beginning of 2007.
Volkswagen in 2005 maintained North American sales of 224,195. Momentum
continued for fiscal 2006, as VW's North American sales for the year were
235,140 vehicles, a 4.9 percent increase over 2005, despite a slump in
domestic North American manufacturer's sales. In conjunction with the
introduction of new models, production location of Volkswagen vehicles also
20

underwent great change. The 2007 Eos, a hardtop convertible, is produced in a

new facility in Portugal. All Golfs/Rabbits and GTIs as of 2006 are manufactured
in Wolfsburg, Germany, rather than VW's Mexican factory in Puebla, where
Golfs and GTIs for the North American market were produced from 1989 to
1998, and the Brazilian factory in Curitiba, where Golfs and GTIs were produced
from 1999 to 2006 (the Jetta has primarily been made in Mexico since 1989).
VW is also in the process of reconfiguring an automotive assembly plant in
Belgium. The new models and investments in manufacturing improvements
were noticed immediately by automotive critics. Favorable reviews for VW's
newest cars include the GTI being named by Consumer Reports as the top
sporty car under $25,000, one of Car and Driver magazine's "10 Best" for 2007,
Automobile Magazine's 2007 Car of the Year, as well as a 2008 Motor Trend
comparison ranking the mid-size Passat first in its class. Volkswagen partnered
with Daimler AG and other companies to market the BlueTec clean diesel
technology on cars and trucks from Mercedes-Benz, Volkswagen, and other
companies and brands. According to the United States Environmental
Protection Agency, four of the ten most fuel-efficient vehicles available for sale
in the U.S. are powered by Volkswagen diesel engines.[32] Volkswagen has
offered a number of its vehicles with a TDI (Turbocharged Direct Injection)
engine, which lends class-leading fuel economy to several models. They were a
three-way tie for 8th (TDI Beetle, TDI Golf, TDI Jetta) and ninth, the TDI Jetta
Wagon. In addition, all Volkswagen TDI diesel engines produced from 1996 to
2006 can be driven on 100% biodiesel fuel.[citation needed] For the 2007
model year, however, strict U.S. government emissions regulations have forced
VW to drop most diesels from their U.S. engine lineup, but a new lineup of
diesel engines compatible to U.S. standards returned to the American market
starting with Model Year 2009. These post-2009 Clean Diesel engines are
limited to running on 5% (B5) biodiesel only to maintain Volkswagen's
warranty. Volkswagen long resisted adding a SUV to its lineup, but relented
with the introduction of the Touareg, made in partnership with Porsche, while
they worked on the Porsche Cayenne and later the Audi Q7. Though acclaimed
as a fine handling vehicle, the Touareg has been a modest seller at best, and it
21

has been criticised by auto reviewers for its absence of a third-row seat, the
relatively poor fuel economy, and the high vehicle mass. VW set plans to add a
compact SUV with styling influences from the "Concept A" concept vehicle
introduced at the 2006 Geneva Auto Show, and on 20 July 2006, VW
announced that the new vehicle, called the Tiguan.
Since the discontinuance of the T4 in 2003 and decision not to bring the T5 to
the US market, Volkswagen, ironically, lacked a van in its North American
lineup. To change this, Volkswagen launched the Volkswagen Routan, a badgeengineered Dodge Grand Caravan made for the American and Canadian
markets, in 2008.
In September 2006, Volkswagen began offering the City Golf and City Jetta only
for the Canadian market. Both models were originally the Mk4 Golf and Jetta
but were later replaced with the Brazilian versions of the Golf Mk4 and Bora.
Volkswagen's introduction of such models is seen as a test of the market for a
subcompact and, if successful, may be the beginnings of a thriving subcompact
market for Volkswagen.
In May 2011, Volkswagen completed Chattanooga Assembly in the US state of
Tennessee. The facility has produced Volkswagen cars and SUVs specifically
designed for North American markets, beginning with the Passat B7 in 2011.
The company recently announced plans to expand further by investing $900
million to add floor space to the factory.
The VW XL1 began a limited production run in 2013. The XL1 is a lightweight
and fuel efficient two-person vehicle (only 795 kg).
The CrossBlue (a placeholder name for an as-yet-unnamed large crossover
SUV) begins production in late 2016, and aims to help end several years of
losses for Volkswagen in the US, the world's second-largest auto market.
On September 14, 2016, Volkswagen announced its partnership with three
Israeli cybersecurity experts to create a new company, Cymotive, dedicated to
automotive security

Passenger Cars:
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Volkswagen Group sells passenger cars under the Audi, Bentley, Bugatti,
Lamborghini, Porsche, SEAT, koda and Volkswagen brands; motorcycles under
the Ducati brand; and commercial vehicles under the MAN, Scania and
Volkswagen Commercial Vehicles brands.
It is divided into two primary divisions, the Automotive Division and the
Financial Services Division, and consists of approximately 340 subsidiary
companies.
The company has operations in approximately 150 countries and operates 100
production facilities across 27 countries.
It holds a 19.9% non-controlling shareholding in Suzuki and has two major jointventures in ChinaFAW-Volkswagen and Shanghai Volkswagen.
Besides VW itself, there is Audi, Porsche, Lamborghini, Bentley, Bugatti, Ducati,
SEAT, Skoda, MAN, Scania and Volkswagen Commercial Vehicles, most of which
are multibillion-dollar businesses in their own right. As a whole, VW works as an
automotive conglomerate, with each semiautonomous unit funneling profits
from sales of 280 different models back to the mother ship.
List of Volkswagen Passenger Cars:
Cars:

Beetle

Bora

CC

Eos

Fox

Gol

Golf

Jetta

Lavida

New Santana

Passat

Passat NMS

Phaeton

Phideon

Polo

Scirocco

23

Up

Vento

Voyage

SUVs/Crossovers:

CrossFox

CrossPolo

CrossGolf

CrossTouran

Passat Alltrack

Tiguan

Touareg

Vans

Caddy

Sharan

Suran

Touran

Pick-up trucks/Utilities

Amarok

Saveiro

Discontinued vehicles
Aircooled:

181

411/412 (Type 4)

1500/1600 (Type 3)

Beetle (Type 1)

Braslia

Country Buggy (Sakbayan)

Hebmller Cabriolet

Karmann Ghia

Kommandeurswagen

Kbelwagen

Schwimmwagen

SP2

Voyage

Type 18A

Type 147 (Fridolin)

VW-Porsche 914

24

Watercooled:

Apollo

Citi Golf

Corrado

Gol

Iltis

K70

Lupo

Parati

Pointer/Logus

New Beetle

Routan

Saveiro

Voyage

Concept vehicles

ARVW

1-Litre / L1 / XL1 Concept

GX3

Iroc

EcoRacer

Bio Runner

BUDD-e

C Coupe GTE

Chico

Concept A

Concept D

Concept R

Cross Coupe concept

CrossBlue Concept

New Beetle Ragster

EDAG Biwak (New Beetle estate)

Microbus Concept

W12 Coupe/Roadster (Nard)

Stanley

Concept BlueSport

Milano Taxi

Bulli Concept

25

New Compact Coup

Alltrack Concept

Touran HyMotion

Taigun Concept

GTI Roadster/Supersport Vision Gran Turismo

VW-based kit-cars/Racing Cars

Polo R WRC

Formula Vee

Baja Bug

Meyers Manx

EMPI Imp

26