Europe market is the core market of Volkswagen

The company already operates the market for years and establish strong, completely and comprehensive Production Plants and Sales place. It has 60 production plants in 19 Europe countries. Each Production plant has different duties and scale. For example, The Hanover Production plant has 12, 864 employees and worked on foundry and heat exchange, but in Berlin production plants only have 483 employees and work on Multi-Shake compressors. It covers most of the Europe countries. It take over multiple auto company includes economic and Luxury cars such as Audi and Skoda.

These brand factories locate in different countries to maintain the product culture. For example, Bentley locates in Crewe in British, and Lamborghini locates in Italy. Although the Volkswagen is the biggest manufacture in Europe, its profit drops 26% to 2.34 billion euros for the first quarter. The basic reason is the Europe crisis that causes the decreasing demand and intensive competition. But the CEO of VW, Martin, has the confidence that the profit and sales will rise again because of the 2018 strategy. It is also important to maintain the Europe market to achieve the goal of 2018 strategy. So the Volkswagen designs to strategy to maintain its position and increase the sales.

The company designs the new-generation Skoda Octavia and the modular toolkit system that can reduce the significant cost to maintain and rise the cost advantage, It also can provide more cheaper price to attract customers. Another strategy is to publish new products. The Volkswagen Offset plunging European demand this year by rolling out 60 new and updated models including the luxury cars such as Bentley. But the major products are Audi A3, Skoda, and Golf that are economic cars. They hope that these models can increase the sales.