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.............................. Volkswagen
Logo and Trademark..............................
Volkswagen AG (ISIN: DE0007664005), or VW, is an automobile manufacturer based in Wolfsburg, Germany. It forms the core of Volkswagen Group and is the world's fourth largest car producer after Toyota, GM, and Ford, respectively. The name means "people's car" in German, Its old German tagline is "Aus Liebe zum Automobil", which is translated as "Out of love for the car" - or, "For Love of the People's Cars", as translated by VW in other languages. The new tagline is "Volkswagen - Das Auto" or "Volkswagen - The Car".
Volkswagen began introducing an array of new models after Bernd Pischetsrieder became Volkswagen Group CEO (responsible for all Group brands) in 2002. The fifth generation Volkswagen Golf was launched in 2004, came runner-up to the Fiat Panda in the 2004 European Car of the Year, and has spawned several cousins: SEAT Toledo, Skoda Octavia and Audi A3 hatchback ranges as well as a new mini-MPV, the SEAT Altea. The GTI, a "hot hatchback" performance version of the Golf, boasts a 2.0 L Turbocharged direct injection engine. VW began marketing the Golf under the Rabbit name once again in the U.S. and Canada in June 2006. (The GTI had arrived to North America four months earlier.) The fifth-generation Jetta, and the performance version, the GLI, are also available in the United States and Canada. 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 Coupé. 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. Winterkorn is credited with making Audi a challenger to the dominance of BMW and Mercedes and his design-led strategy has led to Audi being considered one of the most important brands in the world. It remains to be seen how Winterkorn's focus on design shapes the Volkswagen brand's future. Nevertheless, Volkswagen continues to have complicated relations with both unions and shareholders. The German state of Lower Saxony owns significant stock in VW, as does sportscar manufacturer Porsche.
In North America, VW faced many challenges. After rising significantly between 1998 and 2001, VW's North American sales began to fall sharply leading to a 2005 loss of roughly $1 billion (U.S.) for its operations in the U.S. and Canada. Profitablility has not been strong, and the lack of reliability of the company's South American and Latin American-produced cars appears to bear some of the responsibility for this situation. By 2005, its models sat near the bottom of Consumer Reports reliability ratings, and J.D. Power and Associates ranked VW 35th out of 37 bands in its initial quality survey. Attempts to enter a new market segment also compromised Volkswagen's standing in North America. In 2002, Volkswagen announced the debut of its Phaeton luxury car, which was critically acclaimed but not well received in the marketplace. VW announced its discontinuance in the U.S. market for the 2007 model year due to the disappointing sales.
Volkswagen in 2005, despite challenges, still maintained North American sales of 224,195 -- a dramatic increase from the low in 1993 when US sales totaled only 49,533 vehicles. 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. VW plans to close out the decade with the release on several new vehicles worldwide and a barrage of advertising. In conjunction with the introduction of new models, production location of Volkswagen vehicles also underwent great change. The 2007 Eos, a hardtop convertible, is produced in a new facility in Portugal. All Golf/Rabbit 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 principally 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 magazines "10 Best" for 2007, and Automobile Magazine's 2007 Car of the Year. J.D. Power and Associates 2006 Automotive Performance, Execution and Layout (APEAL) Study scored Volkswagen fourteenth overall with strong performances by its new Jetta and Passat models.
Volkswagen is recognized as one of the leading small diesel engine manufacturers, and is partnering with Mercedes and other companies to market BlueTec clean diesel technology. Volkswagen has offered a number of its vehicles with a TDI (Turbo Direct Injection) engine, which lends class-leading fuel economy to several models. According to the United States Environmental Protection Agency, four of the ten most fuel efficient vehicles available for sale in the U.S. in 2004 were powered by Volkswagen diesel engines. They were a three-way tie for 8th (TDI Beetle, TDI Golf, TDI Jetta) and ninth, the TDI Jetta Wagon. As of 2007, VW has not yet offered a gas-electric hybrid powertrain such as that in the Toyota Prius (though a diesel-electric hybrid 5th generation Jetta was produced as a test vehicle). In addition, all Volkswagen TDI diesel engines produced since 1996 can be driven on 100% biodiesel fuel. 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 are due for 2008.
Volkswagen long resisted adding an utility vehicle to its lineup, but it finally relented with the introduction of the Touareg in the early 2000s, sharing major components with the Porsche Cayenne sport utility vehicle. Though acclaimed as a fine handling vehicle, the Touareg has been a modest seller at best. Some automotive analysts blame the Touraeg's absence of a third-row seat, the relatively poor fuel economy, and the high vehicle mass. VW plans to add a compact SUV with styling influences from its "Concept A" concept vehicle. On July 20, 2006, VW announced that the new vehicle would be called the Tiguan. One major irony of Volkswagen's current North American lineup is the absence of a minivan, considering that VW is credited for inventing the minivan with its original Transporter, but the firm is currently developing just such a vehicle for the U.S. and Canadian markets with DaimlerChrysler, with current plans to introduce it in 2008. Volkswagen is also considering a new entry-level model for the North American lineup. A venture with DaimlerChrysler to produce such a vehicle was considered but dropped as of September 2006. Due to technical difficulty adapting the Polo to meet North American vehicle regulations, VW presented in 2006 the "Iroc" as a concept of the proposed 2009 Scirocco as a potential new small model.
In September 2006, Volkswagen began offering the City Golf and City Jetta only for the Canadian market. Both models are basically the Mk.IV Golf and Jetta, making them smaller than the current Rabbit and Jetta and competing directly to the Toyota Yaris and Honda Fit. 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.
When Martin Winterkorn became the eighth postwar CEO of Volkswagen, the company made several personnel changes in Wolfsburg. Other key personnel changes were made at Volkswagen of America in Auburn Hills, Michigan, as VW tries to continue increasing U.S. sales while trying to return the American operations to profitability. In 2007 Volkswagen of America declared it would relocate its headquarters from Auburn Hills, Michigan to Herndon, Virginia, located in the Washington DC metropolitan area.
Though the VW Group already had their presence in India with Škoda Auto, Volkswagen introduced the Passat and Touareg with TDi engine to India's automobile market in September 2007.
Volkswagen and Sanyo team up to develop hybrid vehicle battery system. Volkswagen boss Martin Winterkorn has confirmed the company plans to build compact hybrid vehicles. There will definitely be compact hybrid models, such as Polo and Golf, and without any great delay", with gasoline and diesel engines. Also underway at Volkswagen's Braunschweig R&D facilities in Northern Germany is a hybrid version of the next-generation Touareg, due in 2010.
All future VW models to have hybrid option. “Future VW models will fundamentally also be constructed with hybrid concepts,” VW head of development Ulrich Hackenberg told Automobilwoche in an interview. Hackenberg mentioned that the car based on the Up! concept seen at Frankfurt motorshow , as well as all future models, could be offered with either full or partial hybrid options. The rear-engine Up! will go into production in 2011. Nothing has been said about plug-in hybrid option.
Adolf Hitler had a keen interest in cars even though he did not drive. In 1933, he asked Ferdinand Porsche to make changes to his 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 Beetle. Erwin Komenda, the longstanding AUTO UNION chief designer, developed the car body of the prototype, which was recognizably the Beetle we know today. It was one of the first to be designed with the aid of a wind tunnel; unlike the Chrysler Airflow, it would be a success.
The new factory in the new town of KdF-Stadt, now called Wolfsburg, purpose-built for the factory workers, only produced a handful of cars by the time war started in 1939. None were actually delivered to holders of the completed saving stamp books, though one Type 1 Cabriolet was presented to Hitler on his birthday in 1938. War meant production changed to military vehicles, the Type 81 Kübelwagen ("Bucket car") utility vehicle (VW's most common wartime model) and the amphibious Schwimmwagen which were used to equip the German forces.
Volkswagen was in serious trouble by the end of the 1960s. The Type 3 and Type 4 models had been comparative flops, and the NSU-based K70 also failed to woo buyers. The company knew that Beetle production had to end one day, but the conundrum of replacing it had been a never-ending nightmare. The key to the solution was the 1964 acquisition of Audi/Auto Union. The Ingolstadt-based firm had the necessary expertise in front wheel drive and water-cooled engines that 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.
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 five generations of the Volkswagen Golf, the first of which was produced from the summer of 1974 until the end of 1983, sold as the Rabbit in the United States and Canada and as the Caribe in Latin America. Its chassis also spawned the Scirocco sport coupe, Jetta sedan, Cabriolet convertible, and Caddy pickup. North American production of the Rabbit commenced at a factory in New Stanton, Pennsylvania in 1978. The production numbers of the first-generation Golf has continued to grow annually in South Africa with only slight modifications to the interior, engine and chassis. It would be produced in the United States as the Rabbit until the spring of 1984. The second-generation Golf hatchback/Jetta sedan ran from late 1983 to late 1991, and a North American version produced in Pennsylvania went on sale at the start of the 1985 model year.
In 1991, Volkswagen launched the third-generation Golf, garnering the European Car of the Year for 1992 (the previous two generations were nominated but lost to the Citroën CX in 1975 and the Fiat Uno in 1984). (The Mark 3 Golf and Jetta arrived in North America just before the start of 1994 model year, first appearing in southern California in the late spring of 1993.) The sedan version of the Golf was badged Vento in Europe (but remained Jetta in the USA, where its popularity outstripped the Golf).
The late 1990s saw a gradual change in perception of the company's products - with Audi having elevated itself into same league as BMW and Mercedes-Benz, Volkswagen moved upmarket to fill the void left by Audi; with Seat and Skoda now occupying what was once VW's core market. The first tangible evidence of this was the fifth-generation Passat in 1996 with its high-quality interior trim and standards of build quality which were demonstrably a cut above contemporary products from Ford and Opel.
This move upmarket was continued with the Mark 4 Golf, 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, still called Jetta in the USA), VW New Beetle, SEAT Toledo, SEAT León, Audi A3, Audi TT and Skoda Octavia. However, it was beaten into third place for the 1998 European Car of the Year award by the winning Alfa Romeo 156 and runner-up Audi A6.
The other main models have been the Polo, a smaller car than the Golf, and the larger Passat for the segment above the Golf. The Scirocco and Corrado were both Golf-based coupés.
By the early nineties, Volkswagen's sales in the United States were below 100,000, and many car buyers found the company's products to be lacking in value. Some automotive journalists believed that Volkswagen would have to quit the North American market altogether. VW eventually realized that the Beetle was the heart and soul of the brand in North America, and the firm quickly set about creating a new Beetle for American and Canadian showrooms.
In 1994, Volkswagen unveiled the J Mays-designed Concept One, a "retro"-themed car with a resemblance to the original Beetle but based on the Polo chassis. Its genesis was secret and in opposition to VW management, who felt it was too backward-looking. Management could not deny the positive public response to the concept car and gave the green-light to its development as the New Beetle. The production car would be based on the Golf rather than the Polo, because the Polo chassis was too small for the car to pass crash test standards in the U.S. It has been quite popular in the North America, less so in Europe.
Volkswagen's fortunes in North America improved once the third-generation Golf and Jetta models became available there. Sharp advertising and savvy promotional stunts, like including Trek bicycles and accompanying bike racks with a limited edition of the 1996 Jetta sedan, were credited for the firm's recovery in the U.S. and Canada, but the introductions of the New Beetle and the fifth-generation Passat were a major boost to the brand.
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