Volkswagen Group is a German multinational automotive company; located in Wolfsburg, Lower Saxony, Germany. It was founded in 1937 when the ‘Geselchaft zur Vorbereitung des Deustschen Volkswagen mbH’ company was created under the control of Adolf Hitler’s government to form a new state-owned automobile company.
Volkswagen Group is the largest carmaker in Europe with the annual production of more than 9 million cars, trucks and vans; and the third-largest motor vehicles company in the world, behind General Motors (GM) and Toyota. Volkswagen Group is the market leader in China, one of the world’s most important markets with the constantly rising demand. In Australian market, Volkswagen finished the year of 2013 in eighth position while Toyota in the first place and Holden flying the flag for GM in second position.
There are twelve brands from seven European countries in the Volkswagen Group; these are Volkswagen Passenger Cars, Audi, SEAT (family cars, Spain), SKODA (family cars, the Czech Republic), Bentley, Bugatti, Lamborghini, Porsche, Ducati, Volkswagen Commercial Vehicles, Scania (heavy trucks) and Man. Each brand operates as an independent entity on the market with their own character.
Recent news and growth rate In 2013, Volkswagen Group has the increase in sales revenue by 2.2% to €197.0 billion (which mainly came from an increase in sales of Porsche sports cars in Europe and China). The company also has 572800 employees and the employee growth rate of 4.2%. However, the net profit was €9 billion, down from €21.7 billion the year before (58% drop) due to the difficult market environment such as the lowest level of automotive sales in Europe in two decades or currency risks from emerging markets and higher depreciation as a result of increased capital expenditure.
The company is investing around €100 billion in new plants, products and technology to achieve the sales of more than 10 million vehicles a year by 2018 and the strategies to overtake Toyota Motor Corp, as the industry leader. However, with an increasing trend in 2014, Volkswagen Group may sell more than 10 million vehicles, which is four years earlier than planned. Thus, the sales revenue is expected to increase within a range of 3% around the prior-year figure. The professional analysts predict the net income would increase slightly in near future.
With the success in business activities, at the 54th Annual General Meeting held in Hanover, the shareholders of Volkswagen are to receive a dividend of €4.00 ( previous year: €3.50 ) per ordinary share and €4.06 ( €3.56 ) per preferred share for fiscal year 2013. The Dividend per Share is also expected to increase around €1.00 per year in the near future with the development of the company.
Volkswagen Financial Services (VWFS)
With the launch of Volkswagen Financial Services in 1949, the company provide the automotive finance and insurance solutions for both corporate and private buyers. Customers can get benefits from competitive rates, fast application approvals, convenient repayment options and no account keeping fees to buy their dream cars. In European markets, VWFA is the largest automobile financial services provider with the rapid growth throughout the years. VWFS helps Volkswagen Group and its trading partners to promote the sales of products; and increase the profit through sales and interests with an operating profit of €1.6 billion in 2013. POWERED BY TCPDF (WWW.TCPDF.ORG)