Volkswagen Group
Template:Short descriptionTemplate:AboutTemplate:Use dmy dates Template:Infobox company
Volkswagen AG (Template:IPA), known internationally as the Volkswagen Group, is a German public multinational conglomerate manufacturer of passenger and commercial vehicles, motorcycles, engines and turbomachinery. Headquartered in Wolfsburg, Lower Saxony, Germany, and since the late 2000s is a publicly traded family business owned by Porsche SE, which in turn is half-owned but fully controlled by the Austrian-German Porsche and Piëch family.<ref>Template:Cite web</ref><ref>Template:Cite web</ref> The company also offers related services, including financing, leasing, and fleet management. In 2024, it was the world's second-largest automaker by sales. It has maintained the largest market share in Europe for over two decades.<ref name="ACEA2012">Template:Cite web</ref> It ranked 11th in the 2024 Fortune Global 500 list of the world's largest companies.<ref>Template:Cite web</ref> In 2024, Volkswagen Group was the largest company in the European Union and the largest car manufacturer in the world by revenue.<ref>Template:Cite web</ref>
The Volkswagen Group sells passenger cars under the Audi, Bentley, Cupra, Jetta, Lamborghini, Porsche, SEAT, Škoda and Volkswagen brands, motorcycles under the Ducati name, light commercial vehicles under the Volkswagen Commercial Vehicles brand, and heavy commercial vehicles via the marques of the listed subsidiary Traton (International Motors, MAN, Scania and Volkswagen Truck & Bus).<ref>Template:Cite web</ref> Software and techstack under CARIAD. It is divided into two primary divisions: the Automotive Division and the Financial Services Division. As of 2008, it had about 342 subsidiary companies.Template:Sfn Volkswagen also has three joint ventures in China, FAW-Volkswagen, SAIC Volkswagen and Volkswagen Anhui. The company has operations in roughly 150 countries, and it has 100 production facilities across 27 countries.
Volkswagen was founded in Berlin in 1937 and incorporated in Wolfsburg to manufacture the car that would become known as the Beetle. The company's production grew rapidly in the 1950s and 1960s. In 1965, it acquired Auto Union, which subsequently produced the first postwar Audi models. Volkswagen launched a new generation of front-wheel drive vehicles in the 1970s, including the Passat, Polo and Golf; the latter became its bestseller. Volkswagen acquired a controlling stake in SEAT in 1986, making it the first non-German marque of the company, and acquired control of Škoda in 1994, of Bentley, Lamborghini, and Bugatti in 1998, Scania in 2008 and of Ducati, MAN, and Porsche in 2012. The company's operations in China have grown rapidly in the 2010s, with the country becoming its largest market, though sales have declined significantly in the 2020s.<ref>Template:Cite news</ref>
In 2015, Volkswagen was discovered to have used defeat devices to deceive environmental regulators about how much NOx its cars were emitting. The company was fined billions of dollars.
Volkswagen Aktiengesellschaft is a public company and has a primary listing on the Frankfurt Stock Exchange, where it is a constituent of the Euro Stoxx 50 stock market index, and secondary listings on the Luxembourg Stock Exchange and SIX Swiss Exchange. It has been traded in the United States via American depositary receipts since 1988, currently on the OTC Marketplace. Volkswagen delisted from the London Stock Exchange in 2013.<ref name=investorfactsheet>Template:Cite web</ref><ref name=listedexchanges>Template:Cite web</ref> The government of Lower Saxony holds 12.7% of the company's shares, granting it, by law, 20% of the voting rights.<ref name=interim2011>Template:Cite web</ref>
History
[edit]1937 to 1945
[edit]
Volkswagen (meaning 'People's car' in German) was founded in Berlin as the Gesellschaft zur Vorbereitung des Deutschen Volkswagens mbH ('Limited Liability Company for the preparation of the German People's Car', abbreviated to Gezuvor) by the National Socialist Deutsche Arbeitsfront (German Labour Front) and incorporated in the Stadt des KdF-Wagens bei Fallersleben, ("City of the Strength Through Joy car at Fallersleben) on 28 May 1937.Template:Sfn<ref name="porsche-75">Template:Cite web</ref><ref name="sloniger">Template:Cite book</ref> The purpose of the company was to manufacture the Volkswagen car, originally referred to as the Porsche Type 60, then the Volkswagen Type 1, and commonly called the Volkswagen Beetle.<ref name=VW-intl-hist>Template:Cite web</ref> This vehicle was designed by Ferdinand Porsche's consulting firm, and the company was backed by the support of Adolf Hitler.<ref name=SmallWonder>Template:Cite book</ref> On 16 September 1938, Gezuvor was renamed Volkswagenwerk GmbH ('Volkswagen Factory GmbH').Template:Sfn
Shortly after the factory at Fallersleben was completed World War II started, and the plant primarily manufactured the military Kübelwagen (Porsche Type 82) and the related amphibious Schwimmwagen (Type 166), both of which were derived from the Volkswagen. Only a small number of Type 60 Volkswagens were made during this time. The Fallersleben plant also manufactured the V-1 flying bomb, making the plant a major bombing target for the Allied forces.
Slave labour was utilised in the Volkswagen plant, e.g. from Arbeitsdorf concentration camp. The company would admit in 1998 that it used 15,000 slaves during the war effort. German historians estimated that 80% of Volkswagen's wartime workforce was slave labour.<ref>Template:Cite book Extract of page 17</ref> Many of the slaves were reported to have been supplied from the concentration camps upon request from plant managers. A lawsuit was filed in 1998 by survivors for restitution for the forced labour.<ref>Template:Cite news</ref> Volkswagen would set up a voluntary restitution fund.<ref>Template:Cite news</ref>
1945 to 1970
[edit]
After the war in Europe, in June 1945, Major Ivan Hirst<ref name=VW-intl-hist/> of the British Army Royal Electrical and Mechanical Engineers (REME) took control of the bomb-shattered factory for use in repairing British Army vehicles, pending the expected disposal of the plant tooling and equipment as war reparations. However, no British car manufacturer was interested. A British report on the car said that "the vehicle does not meet the fundamental technical requirement of a motor-car … it is quite unattractive to the average buyer … To build the car commercially would be a completely uneconomic enterprise."<ref>Template:Cite news</ref> In 1948, the Ford Motor Company of USA was offered Volkswagen, but Ernest Breech, a Ford executive vice president, said he did not think either the plant or the car was "worth a damn."<ref>Ford: The Times, the Man, the Company by Allan Nevins and Frank Ernest Nevins 1954</ref> Breech later said that he would have considered merging Ford of Germany and Volkswagen, but after the war, ownership of the company was in such dispute that nobody could possibly hope to be able to take it over. As part of the Industrial plans for Germany, large parts of German industry, including Volkswagen, were to be dismantled. Total German car production was set at a maximum of 10% of the 1936 car production numbers.<ref>Template:Cite web</ref> The company survived by producing cars for the British Army, and in 1948 the British Government handed the company back over to the German state, and it was managed by former Opel chief Heinrich Nordhoff.
Production of the Type 60 Volkswagen (re-designated Type 1) started slowly after the war due to the need to rebuild the plant and because of the lack of raw materials, but production grew rapidly in the 1950s and 1960s. The company began introducing new models based on the Type 1, all with the same basic air-cooled, rear-engine, rear-drive platform. These included the Volkswagen Type 2 in 1950, the Volkswagen Karmann Ghia in 1955, the Volkswagen Type 3 in 1961, the Volkswagen Type 4 in 1968, and the Volkswagen Type 181 in 1969.
In 1960, upon the flotation of part of the German federal government's stake in the company on the German stock market, its name became Volkswagenwerk Aktiengesellschaft (usually abbreviated to Volkswagenwerk AG).
On 1 January 1965, Volkswagenwerk acquired Auto Union GmbH from its parent company Daimler-Benz. The new subsidiary went on to produce the first post-war Audi models, the Audi F103 series, shortly afterwards.<ref name="chronicle">Template:Cite book</ref>
Another German manufacturer, NSU Motorenwerke AG, was merged into Auto Union on 26 August 1969, creating a new company, Audi NSU Auto Union AG (later renamed AUDI AG in 1985).<ref name="chronicle"/>
1970 to 1999
[edit]
From the late 1970s to 1992, the acronym V.A.G. was used by Volkswagen AG as a brand for group-wide activities, such as distribution and leasing. Contrary to popular belief, "V.A.G." had no official meaning, and was never the formal name of the Volkswagen Group.<ref name=TTAC.com>Template:Cite web</ref>
On 30 September 1982, Volkswagenwerk made its first step expanding outside Germany by signing a co-operation agreement with the Spanish car manufacturer SEAT, S.A.<ref name="chronicle"/>
To reflect the company's increasing global diversification from its headquarters and main plant (the Volkswagenwerk in Wolfsburg), on 4 July 1985, the company name was changed again—to Volkswagen Aktiengesellschaft (Volkswagen AG).
On 18 June 1986, Volkswagen AG acquired a 51% controlling stake in SEAT, making it the first non-German subsidiary of the Volkswagen Group. On 23 December the same year, it became the Spanish company's major shareholder by increasing its share up to 75%.<ref name="chronicle"/>
In 1990—after purchasing its entire equity—Volkswagen AG took over the full ownership of SEAT, making the company a wholly owned subsidiary, and on 28 March 1991, another step to the expansion of the group's activities was made through the signing of a joint-venture partnership agreement with Škoda automobilová a.s. of Czechoslovakia, accompanied with the acquisition of a 30% stake in the Czech car manufacturer on 16 April 1991.<ref name="chronicle"/>
On 19 December 1994, the group began the acquisition of Škoda Auto by raising its share to 60.3%. Later, on 11 December 1995, it became the Czech company's largest and controlling shareholder by increasing its share up to 70%.<ref name="Skoda Auto ownership chronicle">Template:Cite web</ref>
Three prestige automotive marques were added to the Volkswagen portfolio in 1998: Bentley, Lamborghini, and Bugatti.<ref name="chronicle"/>
2000 to present
[edit]
On 30 May 2000, after having gradually raised its equity share, Volkswagen AG took over the full ownership of Škoda Auto, making the company a wholly owned subsidiary.<ref name="chronicle"/>
From 2002 up to 2007, the Volkswagen Group's automotive division was restructured so that two major Brand Groups with different profile would be formed,<ref>Template:Cite web</ref> the Audi Brand Group focused on more sporty values – consisted of Audi, SEAT and Lamborghini – and the Volkswagen Brand Group on the field of classic values – consisted of Volkswagen, Skoda, Bentley and Bugatti<ref>Template:Cite web</ref><ref>Template:Cite web</ref> – with each Brand Group's product vehicles and performance being respectively under the higher responsibility of Audi and Volkswagen brands.
Volkswagen Group revealed on 24 October 2009 that it had made an offer to acquire long-time partner and German niche automotive manufacturer Wilhelm Karmann GmbH out of bankruptcy protection.<ref name="bbg_20091024">Template:Cite news</ref> In November 2009, the supervisory board of Volkswagen AG approved the acquisition of assets of Karmann, and planned to restart vehicle production at their Osnabrück plant in 2012.<ref name="pr-karman">Template:Cite web</ref>
In December 2009, Volkswagen AG bought a 49.9% stake in Dr. Ing. h.c. F. Porsche AG (more commonly known as Porsche AG) in a first step towards an 'integrated automotive group' with Porsche.<ref name=VWAG_merger>Template:Cite press release</ref><ref>Template:Cite web</ref><ref>Template:Cite web</ref> The merger of Volkswagen AG and Porsche SE was scheduled to take place during the course of 2011. On 8 September 2011, it was announced that the planned merger "cannot be implemented within the time frame provided for in the Comprehensive Agreement". As reasons, unquantifiable legal risks, including a criminal probe into the holding's former management team were given. Both parties "remain committed to the goal of creating an integrated automotive group with Porsche and are convinced that this will take place".<ref>Template:Cite news</ref><ref>Template:Cite web</ref>
On 4 July 2012 Volkswagen group announced they would wrap up the remaining half of Porsche shares for 4.46 billion euros (US$5.58 billion) on 1 August 2012 to avoid taxes of as much as 1.5 billion euros, which would have to be paid if the wrap up happened after 31 July 2014.<ref>Template:Cite web</ref> Volkswagen AG purchased the remaining stake in Porsche AG equaling 100% of the shares in Porsche Zwischenholding GmbH, effectively becoming its parent company as of 1 August 2012.<ref name="VolkswagentoBuyPorsche">Template:Cite news</ref>
Volkswagen AG completed the purchase of 19.9% of Suzuki Motor Corporation's issued shares on 15 January 2010.<ref>Template:Cite web</ref><ref>Template:Cite web</ref> Suzuki invested part of the amount received from Volkswagen into 1.49% percent of Volkswagen.<ref>Suzuki Seeks 'Divorce' From Volkswagen as Their 20-Month Alliance Crumbles Template:Webarchive. Bloomberg. Retrieved on 16 July 2013.</ref> In 2011, Suzuki filed a lawsuit at an arbitration court in London requesting that Volkswagen return the 19.9% stake.<ref>VW Expects Suzuki Decision Mid-2013 at Earliest – WSJ.com Template:Webarchive. Online.wsj.com (14 March 2013). Retrieved on 16 July 2013.</ref>
On 25 May 2010, it was announced that Volkswagen Group, through its subsidiary Lamborghini Holding S.p.A., had acquired a 90.1% stake in the Italian automotive design house Italdesign Giugiaro.<ref name="vw-italdesign">Template:Cite web</ref> In less than three months, the transaction had been completed making the Italian firm a member of the Volkswagen Group.<ref>Template:Cite web</ref> Since 2013 the Volkswagen Group has held a 89.7% stake in Traton.
In 2015 research showed a security flaw in the keyless ignition of Volkswagen and other carmakers' vehicles. Volkswagen spent two years trying to keep the research from the public domain.<ref>Template:Cite news</ref>Template:Undue weight inline
On 3 August 2015, Nokia announced that it had reached a deal to sell its Here digital maps division to a consortium of three German automakers—BMW, Daimler AG, and Volkswagen Group, for €2.8 billion.<ref name=cnet-heresale>Template:Cite web</ref> This was seen as an indication that the automakers were interested in automated cars.
Volkswagen held a 19.9% non-controlling shareholding in Suzuki between 2009 and 2015. An international arbitration court ordered Volkswagen to sell the stake back to Suzuki.<ref>Template:Cite news</ref> On 17 September 2015, Suzuki paid $3.8bn to complete the stock buy-back just hours prior to a major scandal about emissions violations engulfing Volkswagen. Suzuki had wished to buy Fiat diesel engines.<ref name=bbcSuzuki>Template:Cite news</ref>
In 2021, Volkswagen sold their 55% stake in Bugatti to Rimac Group while transferring the remaining 45% to Porsche AG, forming a joint venture company called Bugatti Rimac.<ref name="rimac">Template:Cite web</ref>
In early 2024, Volkswagen Group began looking for partners among international technology corporations to create AI labs, new digital prototypes of products and functions using artificial intelligence.<ref>Template:Cite web</ref>
In October 2024, Volkswagen plans to close at least three plants in Germany and cut jobs, facing challenges from delayed EV investments and a drop in Chinese sales.<ref>Template:Cite news</ref>
Emissions scandal, 2015
[edit]On 18 September 2015, the US EPA announced that Volkswagen had installed a "defeat device" software code in the diesel models sold in the US from 2009 to 2015.<ref name="yosemite.epa.gov">Template:Cite web</ref> The code was intended to detect when an emissions test was being conducted, and altered emissions controls for better compliance. Off the test stand, the controls were relaxed, and emissions jumped 35 to 40 times regulatory levels according to investigators at West Virginia University and the California Air Resources Board. About 482,000 vehicles are under the recall order, a potential $18 billion ($37,500 per violation) in fines are pending, and news accounts speculate a criminal indictment for the deception is certain.<ref>Template:Cite web</ref><ref>Template:Cite magazine</ref> The VW Group CEO, Martin Winterkorn, said he was "deeply sorry" and ordered an external investigation.<ref>Template:Cite web</ref> The software code was only revealed when the EPA refused to certify VW's 2016 models for sale in the US unless the corporation provided full disclosure.<ref>Template:Cite news</ref> On Sunday, 20 September 2015, VW Group announced it was halting the sale of its four-cylinder diesel models in the US.<ref>Template:Cite web</ref> The US EPA press release on its Notice of Violation,<ref name="yosemite.epa.gov"/> and the California Air Resources Board letter<ref>Template:Cite web</ref> dated 18 September 2015 contain significant chronological detail of the agencies interaction with VW on the issue.
On 22 September 2015, VW AG admitted that 11 million cars worldwide had been fitted with software intended to deceive emissions testing. The company issued a profit warning, saying it had set aside $7 billion to fix the fraud.<ref>Template:Cite news</ref> On 23 September 2015, Martin Winterkorn announced his resignation from the CEO position after a crisis meeting of the company board.<ref>Template:Cite web</ref> On 25 September 2015 Matthias Müller was named CEO.<ref>Template:Cite news</ref> Müller was the head of the Porsche marque within the VW corporate umbrella.<ref>Template:Cite web</ref>
On 21 April 2017, a U.S. federal judge ordered Volkswagen "to pay a $2.8 billion criminal fine for rigging diesel-powered vehicles to cheat on government emissions tests". The "unprecedented" plea deal formalized a punishment that Volkswagen AG agreed to earlier in 2017.<ref name=wsj-vk-plea>Template:Cite news</ref> In addition, the plea deal includes a $1.5 billion settlement for various environmental, customs and financial violations.<ref>Template:Cite news</ref>
Overall, Volkswagen will pay more than $30 billion in penalties and lawsuit settlements related to the scandal.<ref name="charges">Template:Cite news</ref>
Huge debt
[edit]In its own financial report for 2023 Volkswagen Group estimated its long, medium and short term debt at 155,6 Billion Euros.<ref>Template:Cite web</ref> It is unclear how Volkswagen group plans to pay off that massive debt considering its falling global vehicle deliveries,<ref>Template:Cite web</ref> planned closure of at least 3 factories in Germany<ref>Template:Cite web</ref> after it previously closed 2 factories in Russia<ref>Template:Cite web</ref> as well as 64% drop in profit for the three months to the end of September 2024.<ref>Template:Cite news</ref> German Chancellor Olaf Scholz criticized Volkswagen's plan to close factories in Germany.<ref>Template:Cite news</ref> He proposed a European subsidy program for electric vehicles.<ref>Template:Cite news</ref>
Latest setback for Volkswagen came on 21 November 2024, when Swedish battery producer Northvolt filed for bankruptcy, Volkswagen previously invested 1.4 billion euros in their failed business.<ref>Template:Cite news</ref> On 27 November 2024, Volkswagen announced sale of its Xinijang factory in China partly because "demand for combustion engine vehicles is going down".<ref>Template:Cite web</ref>
Former member of Croatian parliament Ivan Pernar warned that due to the overall financial situation Volkswagen might go bankrupt just as "too big to fail" heavily indebted Evergrande Group did. He also questioned how will EU tariffs on Chinese cars save Volkswagen when 50% of its sales are in China itself and not in the EU, as well as its management decision to exit the Russian market.<ref>Template:Cite web</ref>
Electrification strategy 2025
[edit]
In 2016, Volkswagen Group announced a corporate "Strategy 2025" that focuses on electrification of its portfolio.<ref>William Boston. "Strategie 2025" VW CEO's Strategy Overhaul Focuses on Electric Vehicles Template:Webarchive. The Wall Street Journal. Published on 16 June 2016.</ref> The VW Group developed the Volkswagen Group MEB platform chassis that will be utilized in a range of various cars and light utility vehicles across several VW Group marques due to its flexibility and floor-mounted battery.<ref>Christiaan Hetzner. VW weighs second EV platform. Automotive News. 28 May 2016.</ref>
As of May 2018, the VW Group has committed $48 billion in car battery supplies<ref name="fortune May 3, 2018">VW doubles its electric vehicle battery contracts to $48 billion Template:Webarchive. Fortune. 3 May 2018.</ref> and plans to outfit 16 factories to build electric cars by the end of 2022.<ref>Darrell Etherington. Volkswagen has locked down $25B in battery supplies for its electric vehicle push Template:Webarchive TechCrunch. 13 March 2018.</ref> According to VW Group CEO Dr. Herbert Diess, the company will offer 25 electric models and 20 plug-in hybrids by 2020.<ref name="fortune May 3, 2018"/>
Production in Xinjiang
[edit]Volkswagen Group came under pressure for cooperating with the Chinese government in the region of Xinjiang. In that same region, western-funded NGOs accused the Chinese government of having committed human rights abuses against the Uyghur minority group, which included mass surveillance, incarceration, and forced labor. After these accusations emerged, Volkswagen responded, "We do not assume any of our employees are forced laborers."<ref name="DW-2019">Template:Cite web</ref> Süddeutsche Zeitung claimed that Volkswagen was operating a plant in Xinjiang at a loss in order to curry favor with the Chinese government to set up more lucrative plants in other parts of China, which Volkswagen denied, saying that the decision to set up the plant in 2012 was purely based on economics.<ref name="DW-2019" /> In November 2024, Volkswagen announced it would sell the plant to Shanghai Motor Vehicle Inspection Certification.<ref>Template:Cite news</ref>
New Auto
[edit]In 2021, Volkswagen Group released their New Auto strategy. The strategy was based on transitioning to electric cars, and building a shared platform, battery systems, software and mobility solutions to use across all their brands.<ref name="2021-03-16-vw-pr">Template:Cite news</ref><ref name="2021-07-14-ars">Template:Cite news</ref> This involves creating the Scalable Systems Platform, as well as developing software under a new subsidiary CARIAD.<ref name="2021-03-16-vw-pr" /><ref name="2021-07-14-ars" /> Volkswagen Group aims by 2024 to transition to selling mostly electric cars.<ref name="2021-07-13-ft">Template:Cite news</ref> It aims to have six battery factories in Europe by 2030.<ref name="2021-07-13-ft" /> In 2023, Volkswagen Group announced plans to cut costs by €10 billion ($11.1 billion).<ref>Template:Cite news</ref> In February 2024, Volkswagen Group and Chinese electric vehicle manufacturer XPeng signed a technology cooperation and joint development agreement on platform and software.<ref>Template:Cite web</ref>
Operations
[edit]
Rooted in Europe, the Volkswagen Group operates in 153 countries.<ref name=fortune20120723>Template:Cite journal</ref> Volkswagen Passenger Cars is the Group's original marque, and the other major subsidiaries include passenger car marques such as Audi, Bentley, Lamborghini, Porsche, SEAT, and Škoda. Volkswagen AG also has operations in commercial vehicles, owning Volkswagen Commercial Vehicles, along with controlling stakes in truck, bus and diesel engine manufacturers Scania AB and MAN SE.<ref>Template:Cite news</ref>
Subsidiaries and brands
[edit]The Volkswagen Group comprises the following vehicle manufacturers and their corresponding brands:<ref group=note>Volkswagen Truck and Bus are renamed to TRATON AG.</ref> Here are the brands operated under the Volkswagen Group:<ref>Template:Cite web</ref>
- Audi AG: 100% ownershipTemplate:Sfn — The current company was formed through the acquisitions of Auto Union from Daimler-Benz on 30 December 1964, and NSU Motorenwerke on 9 March 1969 - Audi being the sole surviving marque from the Auto Union combine.
- Audi Sport GmbH — Audi's performance engineering and manufacturing subsidiary.Template:Sfn
- Automobili Lamborghini S.p.A.: 100% ownershipTemplate:Sfn — acquired by AUDI AG in September 1998.Template:Sfn
- Ducati Motor Holding S.p.A.: 100% ownershipTemplate:Sfn — bought on 19 July 2012.
- Bentley Motors Ltd: 100% ownership.Template:Sfn Volkswagen purchased Rolls-Royce Motors and Bentley from Vickers on 28 July 1998,Template:Sfn however the purchase did not include the license to use the Rolls-Royce trademark on automobiles, which is controlled by Rolls-Royce Holdings plc.<ref name=bmwrolls>Template:Cite web</ref> BMW outmaneuvered Volkswagen, succeeding in obtaining the rights to use the Rolls-Royce trademark on automobiles. From July 1998 until December 2002, BMW continued to supply engines for the Rolls-Royce Silver Seraph and the Bentley division sold cars under both the Bentley and Rolls-Royce marques, under an agreement with BMW. In January 2022, Bentley became part of the Audi Group.<ref>Template:Cite web</ref>
- Dr. Ing. h.c. F. Porsche AG: 75% ownership — Volkswagen AG purchased 49.9% of the shares in Porsche Zwischenholding GmbH (the holding company of Porsche AG) in December 2009.<ref name="Porsche SE Holding Structure">Template:Cite web</ref> Volkswagen AG purchased the remaining stake in Porsche AG equaling 100% of the shares in Porsche Zwischenholding GmbH, effectively becoming its parent company as of 1 August 2012.<ref name="VolkswagentoBuyPorsche" /> 25% of shares sold in an IPO of Porsche AG in 2022.
- Jetta: Joint venture with First Automotive Works created in 2019.
- Scout Motors Inc.: 100% ownership — founded in 2022.
- SEAT, S.A.: 100% ownershipTemplate:Sfn — initially in 1982 a co-operation agreement with AUDI AG; 51% and 75% ownership in 1986, and full ownership in 1990. SEAT was the first non-German subsidiary of the Volkswagen Group.<ref name="chronicle"/>
- Cupra: 100% ownership by SEAT. In 2018, SEAT's motorsport division SEAT Sport was renamed Cupra Racing and at the same time, Cupra was launched as an independent brand alongside SEAT.
- Škoda Auto a.s.: 100% ownershipTemplate:Sfn — initially in 1991 a co-operation agreement and 30% ownership;<ref name="chronicle"/> 60.3% and 70% ownership in 1994 and 1995 respectively, 100% ownership since 2000<ref name="Skoda Auto ownership chronicle"/>
- TRATON SE: 89.7% ownership — Formerly Volkswagen Truck and Bus, TRATON is the holding company for Volkswagen Group's heavy commercial vehicle operations.<ref>Template:Cite web</ref>
- MAN Truck & Bus SE: 100% ownership — Transferred to TRATON SE after it merged with MAN SE in August 2021.
- International Motors: 100% ownership — produces heavy trucks under the International brand. Wholly owned by TRATON SE since July 2021. Volkswagen Truck and Bus (now TRATON) took an initial 16.6% stake in Navistar in February 2017.
- Scania AB: 100% ownership — wholly owned by TRATON SE since 15 January 2015. Volkswagen acquired a controlling stake in July 2008, making Scania the 9th marque of the Volkswagen Group.<ref name="100% of Scania shares held by VW AG">Template:Cite web</ref>
- Volkswagen Truck & Bus: 100% ownership — Volkswagen's Brazilian heavy truck and bus division. Sold by Volkswagen Group to MAN SE in December 2008 and from that point was also known as MAN Latin America. In November 2011, Volkswagen acquired a majority of the shares in MAN SE, bringing Volkswagen Truck & Bus back into the group. Transferred to TRATON SE after it merged with MAN SE in August 2021.
- Volkswagen Commercial Vehicles (Volkswagen Nutzfahrzeuge): 100% ownershipTemplate:Sfn — Volkswagen's light commercial vehicle division started operations as an independent entity in 1995.
- Volkswagen Passenger Cars: 100% ownership — the founding and flagship marque of the company.Template:Sfn
Other subsidiaries and shareholdings:
- Bugatti Rimac: Joint venture between Porsche AG (45%) and Rimac Group (55%).
- Xpeng Motors: 4.99% ownership
- MOIA: 100% ownership — new mobility services company.<ref>Template:Cite web</ref>
- Italdesign Giugiaro S.p.A.: 100% ownership — 90.1% acquired via Lamborghini S.p.A. in May 2010. Remaining shares transferred in July 2015.
- IAV: 50% ownership.
- Diconium: 100% ownership — since January 2020.
- Digiteq Automotive: CARIAD SE owns 51% and Škoda Auto a.s. owns 49% . This makes 100% a member of the Volkswagen Group — since 2020.<ref>Template:Cite web</ref>
The Group also owns five defunct marques which are managed through the companies Auto Union GmbH and NSU GmbH, both of which are 100% owned by AUDI AG:
- Auto Union — the Auto Union company, together with NSU Motorenwerke AG (NSU), were merged into "Audi NSU Auto-Union AG" in 1969. The name was shortened to "AUDI AG" in 1985, and the interlocked four-ring badge from Auto Union is still used by AUDI AG.
- Dampf-Kraft-Wagen (DKW)
- Horch
- NSU Motorenwerke AG (NSU) – bought in 1969 by Volkswagen AG, and merged into "Audi NSU Auto-Union AG"; the NSU brand has not been used since 1977, while the former NSU manufacturing plant at Neckarsulm is still used for Audi assembly.
- Wanderer
Corporate affairs
[edit]Business trends
[edit]| Sector | Share |
|---|---|
| Passenger Cars and Light Commercial Vehicles | 68.9% |
| Financial Services | 16.7% |
| Commercial Vehicles | 13.1% |
| Power Engineering | 1.2% |
| Region | Share |
|---|---|
| Europe/Other Markets | 40.6% |
| North America | 20.9% |
| Germany | 19.1% |
| Asia Pacific | 13.6% |
| South America | 5.8% |
In February 2025, Volkswagen's market capitalization was valued at US$50.5 billion.<ref>Template:Cite web</ref> The key trends for the Volkswagen Group are (as at the financial year ending March 3):<ref>Template:Cite web</ref><ref>Template:Cite web</ref><ref>Template:Cite web</ref>
| Year | Revenue (€ bn)<ref>Template:Cite web</ref> |
Net income (€ bn) |
Employees (k)<ref>Template:Cite web</ref> |
Deliveries (m) |
Sources |
|---|---|---|---|---|---|
| 1990 | 34.8 | 0.55 | 261 | 3.0 | <ref>Template:Cite web</ref> |
| 2000 | 81.8 | 2.6 | 322 | 5.1 | <ref>Template:Cite web</ref> |
| 2001 | 87.3 | 2.9 | 324 | 5.1 | <ref name=":0">Template:Cite web</ref> |
| 2002 | 85.2 | 2.5 | 324 | 4.9 | <ref name=":0" /> |
| 2003 | 84.8 | 1.0 | 335 | 5.0 | <ref name=":1">Template:Cite web</ref> |
| 2004 | 88.9 | 0.69 | 343 | 5.1 | <ref name=":1" /> |
| 2005 | 93.9 | 1.1 | 345 | 5.1 | <ref name=":2">Template:Cite web</ref> |
| 2006 | 104 | 2.7 | 324 | 5.7 | <ref name=":2" /> |
| 2007 | 108 | 4.1 | 329 | 6.1 | |
| 2008 | 113 | 4.6 | 369 | 6.2 | |
| 2009 | 105 | 0.91 | 368 | 6.3 | |
| 2010 | 126 | 7.2 | 399 | 7.2 | |
| 2011 | 159 | 15.7 | 502 | 8.3 | |
| 2012 | 192 | 21.8 | 550 | 9.3 | |
| 2013 | 197 | 9.1 | 573 | 9.7 | |
| 2014 | 202 | 11.0 | 593 | 10.2 | |
| 2015 | 213 | −1.3 | 610 | 10.0 | |
| 2016 | 217 | 5.3 | 627 | 10.2 | |
| 2017 | 230 | 11.6 | 634 | 10.7 | |
| 2018 | 235 | 13.9 | 656 | 10.8 | |
| 2019 | 252 | 12.3 | 671 | 10.9 | |
| 2020 | 222 | 8.3 | 663 | 9.3 | |
| 2021 | 250 | 14.8 | 673 | 8.8 | |
| 2022 | 279 | 14.9 | 675 | 8.2 | |
| 2023 | 322 | 16.0 | 679 | 9.2 | |
| 2024 | 325 | 10.7 | 682 | 9.0 |
Ownership
[edit]Under the Volkswagen Law, no shareholder in Volkswagen AG could exercise more than 20 percent of the firm's voting rights, regardless of their level of stock holding.<ref>Template:Cite news</ref> This law was supposed to protect Volkswagen Group from takeovers.<ref name=MT>Template:Cite web</ref> In October 2005, Porsche acquired an 18.53 percent stake in the business, and in July 2006, Porsche increased that ownership to more than 25 percent. Analysts disagreed as to whether the investment was a good fit for Porsche's strategy.<ref>Template:Cite news</ref>
On 26 March 2007, after the European Union moved against the Volkswagen law, Porsche took its holding to 30.9 percent, triggering a takeover bid under German law. Porsche formally announced in a press statement that it did not intend to take over Volkswagen Group, setting its offer price at the lowest possible legal value, but intended the move to avoid a competitor taking a large stake, or to stop hedge funds dismantling Volkswagen Group, which is Porsche's most important partner.<ref>Template:Cite news</ref> On 16 September 2008, Porsche announced that the company had increased its stake in Volkswagen AG to 35 percent.<ref>Template:Cite news</ref> By October 2008, Porsche held 42.6 percent of Volkswagen AG's ordinary shares, and held stock options on another 31.5 percent.<ref>Template:Cite web</ref> thus, effectively holding over 74 percent; 42.6 percent actual shares, and the rest as convertible options.<ref>Template:Cite web</ref> Volkswagen AG briefly became the world's most valuable company, as the stock price rose to over €1,000 per share as short sellers tried to cover their positions.<ref>Template:Cite web</ref> The substantial investment in Volkswagen left Porsche with huge financial burden with its debts accumulating up to 13 billion euros by 2009.<ref>Template:Cite news</ref> Porsche would get emergency infusion of about a billion dollars from Volkswagen.<ref>Template:Cite web</ref> In July 2012, Volkswagen completed takeover of Porsche ending the four-year saga and formed an integrated automotive group with Porsche. Porsche AG would become the 10th brand of Volkswagen. The holding company Porsche SE was left with 31 percent of the subscribed capital of Volkswagen AG, and 50.7 percent of the voting rights in the company.<ref>Template:Cite news</ref>
Template:As of, share ownership of Volkswagen AG is distributed as follows:<ref name=VWAG-shareholders>Template:Cite web</ref>
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| Percentage | Shareholder name |
|---|---|
| 31.4% | Porsche Automobil Holding SE |
| 25.9% | Foreign institutional investors |
| 14.6% | Qatar Holding LLC |
| 11.8% | State of Lower Saxony |
| 12.9% | Private shareholders / Others |
| 3.4% | German institutional investors |
| Percentage | Shareholder name |
|---|---|
| 53.3% | Porsche Automobil Holding SE |
| 20.0% | State of Lower Saxony |
| 17.0% | Qatar Holding LLC |
| 9.7% | Others |
Stock market listings
[edit]Volkswagen AG shares are primarily traded on the Frankfurt Stock Exchange,<ref name=VWAG-share-info>Template:Cite web</ref> and are listed under the 'VOW' and 'VOW3' stock ticker symbols. First listed in August 1961, the shares were issued at a price of DM 350 per DM 100 share,<ref name=VWAG-share-info/> Volkswagen AG shares are now separated into two different types or classes: 'ordinary shares' and 'preference shares'.<ref name=VWAG-share-info/> The ordinary shares are now traded under the WKN 766400 and ISIN DE0007664005 listings, and the preference shares under the WKN 766403 and ISIN DE0007664039 listings.<ref name=VWAG-share-info/>
Volkswagen AG shares are also listed and traded on other major domestic and worldwide stock exchanges. In Germany's domestic exchanges, since 1961 these include those in Berlin, Düsseldorf, Hamburg, Hanover, Munich and Stuttgart. International exchanges include those in Basel (listed in 1967), Geneva (1967), Zürich (1967), Luxembourg (1979), London (1988), and New York (1988).<ref name=VWAG-share-info/>
Since the start of trading in 1961, Volkswagen AG shares have been subjected to two stock splits – the first was on 17 March 1969 when they were split at a ratio of 2:1, from a DM 100 share to a DM 50 share. The second split occurred on 6 July 1998, the DM 50 share being converted into a share of no overall nominal value, at a ratio of 1:10.<ref name=VWAG-share-info/>
From 23 December 2009, Volkswagen AG preferred shares replaced its ordinary shares in the DAX index.<ref name=VWAG-share-DAX>Template:Cite web</ref>
Leadership, sales and market share
[edit]| Tenure | Leader(s) |
|---|---|
| 1937 to 1945 | Bodo Lafferentz, Ferdinand Porsche, Jakob Werlin<ref>Chronik/Rückblick mit scheinbaren Analogien und ohne Anspruch auf Vollständigkeit Template:Webarchive. Retrieved 22 October 2009.</ref> |
| June 1945 to December 1947 | Ivan Hirst (Royal Electrical and Mechanical Engineers)<ref name=VW-intl-hist/> |
| 1 January 1948 to April 1967 | Heinrich Nordhoff<ref name="Chronicle">Template:Cite webTemplate:Dead link</ref> |
| 1 May 1968 to September 1971 | Kurt Lotz<ref name="Chronicle"/> |
| 1 October 1971 to February 1975 | Rudolf Leiding<ref name="Chronicle"/> |
| 10 February 1975 to December 1980 | Toni Schmücker<ref name="Chronicle"/> |
| 1 January 1982 to December 1992 | Carl Hahn<ref name="Chronicle"/> |
| 1 January 1993 to 16 April 2002 | Ferdinand K. Piëch<ref name="Chronicle"/> |
| 16 April 2002 to 31 December 2006 | Bernd Pischetsrieder<ref name="Chronicle"/> |
| 1 January 2007 to 23 September 2015 | Martin Winterkorn<ref name="Chronicle"/><ref>Template:Cite news</ref><ref>Template:Cite news</ref> |
| 25 September 2015 to 12 April 2018 | Matthias Müller<ref name="volkswagen-media-services.com">Template:Cite web</ref> |
| 12 April 2018 to 31 August 2022 | Herbert Diess<ref name="ReferenceA" /> |
| From 1 September 2022 | Oliver Blume<ref name="Chronicle"/> |
| Group | Units |
|---|---|
| Volkswagen | 10,083,000 |
| Renault-Nissan-Mitsubishi | 10,076,000 |
| Toyota | 10,059,000 |
In 2024, Volkswagen Group's largest single country market was China with 2.93 million units delivered, followed by Germany with 1.12 million units. Divided by regions, Asia-Pacific was the second-largest market of the Volkswagen Group with 3.21 million units in 2013, followed by Western Europe with 3.14 million, and North America with 962,000 units delivered in 2024.<ref name="AR2018">Template:Cite web</ref>
| Group | Units | share |
|---|---|---|
| Volkswagen | 2,957,653 | 25.0 |
| PSA | 1,311,406 | 11.1 |
| RENAULT | 1,076,367 | 10.4 |
The European ranking of automakers is compiled monthly by the European Auto Manufacturers' Association ACEA.<ref name="ACEA2013">Template:Cite web</ref> Volkswagen has held the top spot in Europe uninterrupted for more than two decades.<ref>Template:Cite web</ref>
The company was again the top global automaker in 2018, for the fifth consecutive year, selling 10.083 million vehicles in the year 2018, just 7,000 more than the Renault–Nissan–Mitsubishi Alliance.<ref name="Reuters20190130"/>
Co-management
[edit]Template:Main With 295,178 employees in Germany and 682,724 globally,<ref>Template:Cite web</ref> it is one of the most well organized labour represented companies in the world. The role that Works Councils and the trade union IG Metall play is unique even within Germany. VW workers have some of the strongest collective agreements. With the exception of the United States, all of its major locations are represented in the Global Works Council and local trade union bodies. VW has a strong tradition and practice of social partnership and co-determination rights globally.<ref name="Whittall-2016">Template:Cite web</ref>
In September 2024, in response to the threat of mass layoffs at Volkswagen, German Economy Minister Robert Habeck said that the government would consider how it could help Volkswagen.<ref>Template:Cite news</ref> In December 2024, tens of thousands of VW workers in Germany went on strike.<ref>Template:Cite news</ref>
Sponsorships
[edit]Volkswagen is heavily involved in sports sponsorship, with investments having included the 2008 Summer Olympics, the 2014 Winter Olympics,<ref>Template:Cite press release</ref><ref>Template:Cite news</ref> as well as the David Beckham Academy. Volkswagen AG wholly owns the Bundesliga football side VfL Wolfsburg;<ref>Template:Cite news</ref> the company is also the shirt sponsor of League of Ireland Premier Division Sligo Rovers and top level of the Mexican football league system Liga MX team Puebla F.C.
See also
[edit]- List of automobile manufacturers
- List of automobile manufacturers of Germany
- List of Volkswagen Group factories
- List of Volkswagen Group platforms
- Wolfsburg Volkswagen Plant
- Rivian and Volkswagen Group Technologies
Notes
[edit]References
[edit]Corporate documents
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External links
[edit]Template:Volkswagen Group Template:Automotive industry in Germany Template:Euro Stoxx 50 Companies Template:DAX companies
- Pages with broken file links
- Volkswagen Group
- Conglomerate companies of Germany
- Emergency services equipment makers
- Motor vehicle engine manufacturers
- Diesel engine manufacturers
- Multinational companies headquartered in Germany
- Companies based in Lower Saxony
- Conglomerate companies established in 1937
- Vehicle manufacturing companies established in 1937
- German companies established in 1937
- 1960s initial public offerings
- Companies in the Euro Stoxx 50
- Companies in the DAX index
- Companies listed on the Frankfurt Stock Exchange
- Companies formerly listed on the London Stock Exchange
- Companies involved in the Holocaust
- Government-owned companies of Germany