INTRODUCTION TO VOLKSWAGEN GROUP

Type: Public Company

Headquarters: Germany

Industry: Automotive

Products: Cars, Trucks

Revenue: €113.8 billion (2008)

Operating income: €6.61 billion (2008)

Profit: €4.68 billion (2008)

Employees: 369,928(2008)

Vehicle brand companies

Audi
Bentley motors ltd.
Bugatti automobile
Subsidiaries: Lamborghini
Seat
Skoda auto
Scania
Volkswagen passenger car
Volkswagen commercials vehicles
 INTRODUCTION TO VOLKSWAGEN

Type: Subsidiary of Volkswagen group

Founded: May 28, 1937

Founders: Ferdinand Porsche, Adolf Hitler

Headquarters: Wolfsburg, Germany

Area served: Worldwide

Key people:

Martin Winterkorn
(Chairman of board of management)

Christian kingler:
Ferdinand piech: (board of management of the Volkswagen passanger cars)
(chairman of Volkswagen supervisory board
In German, ‘Volks’ pronounced as (folks), means people and ‘Wagen’
means ‘Car’. Hence:

Volkswagen means "people's car" in German, in which it is

pronounced [fɔlksvaɡən].

Its current tagline or slogan is Das Auto (in English The Car).

Its previous German tagline was Aus Liebe zum Automobil, which
translates to: Out of Love for the Car, or, For Love of the
Automobile, as translated by VW in other languages.
 History of Volkswagen

Adolf Hitler had a keen interest in cars even though he did not like to drive. In 1933, shortly
after taking over as leader of Germany, he teamed up with Ferdinand Porsche to make changes
to Porsche's original 1931 design to make it more suited for the working man. Hans Ledwinka
discussed his ideas with Ferdinand Porsche, who used many Tatra design features in the 1938
"KdF-Wagen", later known as the VW Käfer—or Volkswagen Beetle. When Chrysler brought
out the 1934 DeSoto Airflow coupe, its design enabled Mr. Porsche to finalize his design of the
Beetle. On 22 June 1934, Dr. Ferdinand Porsche agreed to create the "People's Car" for
Hitler's mother.

New factory started

The building of the new factory started 26 May 1938 in the new town of KdF-Stadt, now called
Wolfsburg, which had been purposely built for the factory workers. This factory only produced
a handful of cars by the time war started in 1939. None were actually delivered to any holder of
the completed saving stamp books, though one Type 1 Cabriolet was presented to Hitler on 20
April 1938 (his 49th birthday).
At the times of 1st world War, Volkswagen War meant production changed to military vehicles,
the Type 82 Kübelwagen ("Bucket car") utility vehicle (VW's most common wartime model),
and the amphibious Schwimmwagen which were used to equip the German forces.
Volkswagens were first exhibited and sold in the United States in 1949, but only sold two
units in America that first year. On its entry to the U.S. market, the VW was briefly sold as a
"Victory Wagon". Volkswagen of America was formed in April 1955 to standardize sales and
service in the United States. Production of the Type 1 Volkswagen Beetle increased dramatically
over the years, the total reaching one million in 1955.
Volkswagen was in serious trouble by 1973. Beetle sales had started to decline rapidly in
European and North American markets. The company knew that Beetle production had to end
one day, but the conundrum of replacing it had been a never-ending nightmare. VW's ownership
of Audi / Auto Union proved to be the key to the problem - with its expertise in front-wheel
drive, and water-cooled engines which Volkswagen so desperately needed to produce a credible
Beetle successor. Audi influences paved the way for this new generation of Volkswagens, known
as the Polo, Golf and Passat.

In the late 90s Volkswagen acquired the three luxury brands Lamborghini (through Audi),
Bentley and Bugatti which were mainly due to Ferdinand Piech and added to the group
portfolio.
 Volkswagen Group owns nine active automotive companies:

• Audi : 99.55% ownership; the Audi marque is the sole active brand of the former

Auto Union, bought from Daimler-Benz on 30 December 1964.

• Automobili Lamborghini:, 100% ownership by Audi AG; company was

bought in June 1998.

• Bentley Motors Limited,: 100% ownership by Volkswagen AG; the

company (at the time known as Rolls-Royce & Bentley Motors Ltd.) was bought on 28
July 1998 from Vickers, but did not include the 'Rolls-Royce' brand name. The Rolls-
Royce marquee was subsequently restarted by BMW who had licensed the brand from
Rolls-Royce plc.
• Bugatti Automobiles : 100% ownership via the Volkswagen France
subsidiary of VWAG, Bugatti Automobiles SAS was created after Volkswagen
purchased the right to the Bugatti marque.

• SEAT, :- Initially cooperation agreement with Audi AG, 51% (1986) and 100%
ownership by the VW Group since 1990, and was the first foreign subsidiary in the VW
Group.

• Škoda Auto,:- 100% ownership since 1999.

• Volkswagen Passenger Cars,:- 100% ownership.

• Volkswagen Commercial Vehicles (VWCV) or 'Volkswagen

Nutzfahrzeuge' (VWN) (German) — 100% ownership; started operations as an
independent entity in 1995. VWCV/VWN is in charge of all commercial vehicle
developments within the Group and has control over Scania and is a shareholder in MAN
AG.

• Scania AB,:- 70.94% of voting rights as at 27 February 2009 .

 Volkswagen in India

Recently Volkswagen paved the way for sustainable market activities in India. With the
investment agreement signed at the end of 2006 the brand sets a new course that unites two
success stories – Volkswagen and India.

Volkswagen AG is to build a new production plant in Pune in the Indian state of Maharashtra.
With investment totaling some 410 million euros, a full production plant with a press shop, body
shop, paint shop and assembly lines is to be built on the 230 hectare site in the Chakan industrial
park near Pune. The German brand and Europe’s largest automotive manufacturer will be
entering the Indian market to meet the rapidly growing demand for mobility. Volkswagen will be
developing a vehicle in the foreseeable future specifically tailored to the needs of the Indian
market offering all the features of a genuine Volkswagen.

For the first step the Volkswagen brand will bring locally produced vehicles to the Indian market
up from the third quarter of 2007. To accompany the growing supply of Volkswagen Passenger
Cars, the Group has established a separate Indian sales company in 2007, initially for
Volkswagen as well as for Audi. “Volkswagen Group Sales India Private Limited” registered in
Mumbai will distribute locally manufactured and imported vehicles in India.

Thus, Volkswagen can bring one of it's upper-premium sedan as the first locally produced
vehicle to the Indian market. In April 2006, Volkswagen produced the 14 millionth of its
bestseller. The Passat has become the very image of automotive progress, representing what
“Made in Germany” means. This long-term success is confirmed by numerous accolades from
experts, journalists and customers who have put the car through its paces in recent months. This
image is characterized by vehicle size, drive technologies, safety features such as airbags, ABS
and ESP in addition to quality details including galvanized bodies. Imported vehicles such as the
premium Sports Utility Vehicle Touareg will complement the range.
Products Profile for models available in India:

Passat

Technical specifications
Vehicle Model Passat TDI 2.0 Exclusive

Engine Type 4-cylinder diesel engine

Displacement(liters/cc) 2.01/1968cc
Max. Torque(NM at RPM) 320/1750-2500
Transmission 6 speed DSG-direct shift gearbox
Bore/Stroke(mm) 81/95.5
Max. Power output(kw(PS) @ RPM 103(140) at 4000
Emission Category Euro 4

Price 2518279
Jetta

Technical specifications
Vehicle Model Jetta 1.6 L (Petrol) Jetta 1.6 L TDI (Diesel)
Jetta 1.9 L TDI
(Trendline)/Comfortline
Engine Type 4-cylinder diesel 4-cylinder diesel engine
engine
Displacement(liters/cc) 1.6/1595cc 1.9/1896cc
Max. Torque(NM at RPM) 148/3800 250/1900
Transmission 5 speed manual 5 speed manual /6 speed
gearbox automatic DSG gearbox
Max. Power output(kw(PS) @ 75(102) at 5600 77(105) at 4000
RPM
Price 1,335,851 1,463,613/ 1,713,646
Touareg

Technical specifications
Vehicle Model Touareg 3.0 V6 TDI Touareg 5.0 V10 TDI
Engine Type 6-cylinder ‘V’turbo 10-cylinder ‘V’ bi-turbo
diesel diesel
Displacement(liters/cc) 3.0/2967 5.0/4921
Max. Torque(NM at RPM) 550/2250-2500 750/2000
Bore/Stoke mm 83.0/91.4 81.0/95.5
Compression Ratio 17.0:1 18.5:1
Max. Power output(kw(PS) @ 176@4000-4400 230@3750
RPM
Fuel Type Diesel 51CZ Diesel 51CZ
 Introducing POLO in India

Volkswagen India will launch its first small car, the Polo, in the domestic market
in the early part of 2010. The car will be priced and positioned in line with the A2
compact car category, which includes models such as Maruti's Swift & Ritz, and be
built on a new platform. The Polo will be made at the company's new
manufacturing facility at Chakan, Pune, with locally sourced auto components
being about 50 per cent.

"The all-new platform for the Polo has been designed keeping Indian road
conditions in mind. The Polo will be benchmarked against the market leader in this
segment, which is Maruti Suzuki's Swift. The Polo would be available in the
petrol and the diesel engine variant.
Company hope to sell around 30,000 units in 2010. Then, by 2014, and hope to
cross the 100,000 mark, by which time the car market in India would have crossed
two million units
Till date, VW India has invested Rs 3,800 crore (Rs 38 billion) in setting up its
operations in India. The facility at Chakan has an annual capacity of up to 110,000
cars on a single shift.