Automotive concern Volkswagen

Volkswagen is known all over the world. This is indeed the largest group of companies involved in the production of cars. The parent company (or, as they say, the parent company) is in Wolfsburg and is known as Volkswagen AG. Well, this concern has a very rich and long history and a lot of interesting facts. So it's worth to talk about it in more detail.

"Porsche" and "Volkswagen"

So, the headquarters of this concern is in Germany, in Wolfsburg. The company was named "Volkswagen", which in German means "people's car". To date, about half of the shares belong to a holding company like Porsche SE. But nevertheless concern Volkswagen owns all one hundred percent of usual actions of intermediate holding, that is called Porsche Zwischenholding GmbH. In general, in fact, "Porsche" - a machine that produces "Volkswagen". To date, management companies are negotiating to connect the firms into a single structure, which could be called VW-Porsche. It is also interesting that Martin Winterkorn (a fairly well-known personality of the automobile world) until September 2015 served as chairman of the board of both Volkswagen and Porsche.

But that is not all. To date, the Volkswagen Group consists of 342 companies that manufacture cars and provide services related to this area. It is the largest machine manufacturer in the world. And of course, the undisputed leader of the car market in Europe. 25% of cars that travel on the roads of the continent are produced by Volkswagen.

About the history

Concern Volkswagen begins its history in 1937. The founder of the company is Ferinand Porsche. It was he who created the so-called Society for the preparation of Volkswagen MBH. And in 1938 they started building the first Volkswagen plant. Of course, it was in Wolfsburg. In addition to the automobile industry, the plant was engaged in one more activity. Concern Volkswagen AG then provided logistical and financial services. And besides that, I had a small food company.

In the 90s the company began to experience major difficulties. Serious financial problems appeared. But thanks to the entrepreneurial spirit of Ferdinand Piech, the crisis manager, everything was fine. In fact, this man saved Volkswagen. The concern switched to a 4-day working week, began to follow the offensive policy and began to develop even more rapidly. In the end, the company managed to acquire just a huge number of popular brands.

Rolls-Royce and Suzuki

From 1998 to 2002, the Volkswagen automobile concern was engaged in the production of such machines as Rolls-Royce. All these people know about these luxury models, even those who are not familiar with the automotive world. This topic is quite interesting. The division of the group "Volkswagen Bentley" was engaged in the production of these machines by agreement with another company - BMW. Why? But because the Munich firm bought from such a concern as Vickers, the rights to this brand. And since 2003, only "BMW" has the right to manufacture and produce cars with the emblematic emblem "Rolls-Royce".

In 2009, Volkswagen Group took a step further - it entered into an alliance with a company like Suzuki. The firms exchanged shares (German manufacturers got 20% of Suzuki's securities) and made an announcement of joint development of so-called ecological machines. But in 2011 the alliance disintegrated, as announced to the world.

The scandal of 2015

In September of this year, 2015, a worldwide scandal broke out around Volkswagen. The concern was accused of the fact that the program that the developers used in the onboard computers, which they release, determined one important moment. Namely, in what mode the machine works - in the usual or in the test. This program was introduced in cars with diesel power units. Including VW Jetta, Audi A3, Golf, Passat, Beetle. When testing began, the car automatically switched to an environmentally friendly mode of operation. Very smart and thoughtful system, I must say. However, this turned out for the concern a huge disaster and financial costs.

The Environmental Protection Agency said that for every machine that does not comply with US standards, the company will have to pay a fine amounting to 37.5 thousand dollars. It turns out a fabulous amount. After 2008, the concern sold 482,000 cars. And the total amount of fines can reach a figure of 18 billion! To date, half a million of its cars have been recalled from the United States. This is also a loss. Chairman of the company Martin Winterkorn after the incident brought a public apology and said he would definitely support the investigation. By the way, the Ministry of Transport of Germany deals with it . After that, Martin retired after not one decade, worked out in the Volkswagen.

Acquired companies up to the year 2000

So, it's worth to talk in more detail about what is included in the Volkswagen concern. Naturally, the bulk of it - is the company Volkswagen, which produces cars. The firm is not registered as a "daughter" of the parent company, but is a division directly subordinate to the management of VW AG.

In 1964, the company "Audi" was added to this structure. It was bought from Daimler-Benz. Following after Audi became such firm, as NSU Motorenwerke. She was bought in 1969. This brand has not been used as an independent brand for a long time - since 1977. And before that the company produced motorcycles and cars.

In 1986, the Germans joined the Spanish brand Seat, which exists since 1950. "Volkswagen" owns 99.99% of the company's shares. The most interesting models began to appear after the addition of Seat to the German structure. For example, SEAT Bocanegra with a 180-horsepower engine, the design of which was worked by the specialists of Lamborghini.

In 1991, the company acquired Czech Škoda, and then returned Volkswagen Commercial Vehicles. This company was once part of VW AG, but in 1995 it became an independent brand. Or rather, the unit. "Bentley", "Bugatti", "Lamborghini" - these brands are known to date around the world. And these are concerns owned by Volkswagen since 1998. That year became a shock for the firm. After all, these machines are considered one of the most popular, known and actively purchased by people.

Acquired firms after 2000

Concern Volkswagen Group continued to acquire shares and beyond. In 2009, he bought almost 71% of Scania AB's securities. This production is engaged in the development and production of dump trucks, buses, trucks, truck tractors and diesel engines. Another company, MAN AG, bought in 2011, produces all of the above, as well as hybrid powertrains in addition. VW AG has a 55.9% stake in the company.

Ducati Motor Holding SpA and ItalDesign Giugiaro are two more manufacturers bought by Volkswagen. The first of the listed companies is one of the leading manufacturers of motorcycles belonging to the premium class. And the second - a studio, engaged in the design of cars. It is interesting that 90% of the shares of this company were purchased by Lamborghini Holding in 2010. So "Volkswagen" and so was the owner of the studio, but after the registration of documents has also become the official owner.

And one more interesting information. VW AG in 2013 acquired the Russian trademark Aleko (it was under this TM for some time sold well-known cheap "Muscovites"). The right to use this brand and any emblems belongs to the German concern until 2021.

Financial questions

In 1991, in March, in order to optimize the organizational structure, the German concern decided to form an internal subdivision that would deal with financial issues. It was called the Volkswagen Finanz. In 1994, it became a closed joint-stock company. This banking and financial structure receives full access to international financial markets, as well as the opportunity to finance on very favorable terms. This unit deals with important issues. For example, financing the development, production and purchase of machines for corporate and individual customers. Also provides banking, leasing and insurance services to these individuals. In general, useful activities and, most importantly for the company, profitable.

About profit

And a couple of interesting facts in the end. In 2010, VW AG raised a huge amount of money, amounting to 57.243 billion euros! But of all this, net profit was only 1.55 billion. It seems small compared to revenue. However, in fact, this is a lot of money. After all, all the expenses that go to almost 350 companies are taken into account. Because the profits are really solid. Therefore, the fact that Volkswagen is by far the largest, rich and famous company is not surprising.