Volkswagen of America is the U.S. subsidiary of the Volkswagen automobile company in Germany. Formed in April 1955 in Englewood Cliffs, New Jersey to standardize dealership service in the United States, it grew to 909 Volkswagen dealers in the United States by 1965 under the leadership of Dr. Carl Hahn. Under him and his successor as president of Volkswagen of America, J. Stuart Perkins, VW's U.S. sales grew to 569,696 cars in 1970, an all-time peak, when Volkswagen captured 7 percent of the U.S. car market and had over a thousand U.S. dealerships. The Volkswagen Beetle was the company's best seller in the United States by a wide margin.…
Furthermore, the industry is in the mature stage and has achieved economies of scale through mass production. The new, successful companies in the auto industry are now conceived through joint ventures such as GM and Shanghai Automotive Industry in China. Emerging automobile companies…
Luftman (2000) stresses that alignment of IT and business within an organization is paramount for the effective and efficient functioning of an organization. VWoA2 began to realize its strengths in 2002 after a structural alignment with the formation of the BPTO3 (Chan, 2002) and started response time to changes and demands decreased. They prioritized business goals and started doing things right (efficiency) (Luftman, 2000). Then they turned to effectiveness by choosing the right projects to do with respect to the business goals. This was the first sign of strategic IT alignment in the company (Luftman, 2000; Chan, 2002).…
Porsche, a luxury automobiles manufacturer, announced in 2005 that the company had intention to purchase 20% Volkswagen shares to support German politician’s plan of reducing foreign ownership and improve domestic investment as Volkswagen’s shares were majorly held by Lower Saxony (just over 20%) and the rest were freely traded in the market.…
Through constant evolution, Volkswagen has not only dominated the automotive market in terms of lower-priced cars,…
In 1983 American Motors Corporation (AMC) signed a twenty-year agreement with Beijing Auto Works (BAW) to form Beijing Jeep Corporation (BJC) - an equity joint venture. AMC were the pioneers in Chinese brand new auto market, and, therefore, the process of creation of BJC was lengthy and arduous. Due to China’s commercial isolation neither BAW nor AMC had a clear understanding of either side’s business practices. For example, the Chinese unfamiliarity with the inflation factor concept had created problems in the negotiations over the prices for auto parts. Interestingly enough, “the 1979 Law employed the use of terms, such as "profits”, which had no meaning in the context of Chinese domestic law, which is based on socialistic principles.” (https://www.law.upenn.edu/journals/jil/articles/volume14/issue1/Potter14U.Pa.J.Int'lBus.L.1(1993).pdf, 2012) Consequently, the negotiations between AMC and BAW had a great impact on formation and subsequent modifications of the Chinese 1979 Joint Venture Law.…
In 2011 alone General Motors sold a total of $9,025,942 vehicles globally (International Trade Association, n.d, Para. 12). Part of GM’s global globalization strategy is selling and manufacturing cars in China, since they make up such a large portion of GM’s sales. In China alone, GM has 11 joint ventures and two wholly owned foreign enterprises with more than 35,000 employees. In 2011, these firms produced 2.5 million vehicles and generated some $1.5 billion in profits for GM in the U.S (Politifact.com, 2012). GM’s success in China signals a brighter economic future for the company. The increased global profits have allowed GM to gain some control of the company after turning it over to the Government five years ago. However, GM is faced with issues concerning their Chinese…
Volkswagen entered the Brazilian auto manufacturing market in 1953 and by 1969 held a 61% share. Through some tough economic times in the late ‘80s and early ‘90s, the overall auto market in Brazil declined 20%. In 1991, Volkswagen, Ford, General Motors and Fiat dominated the Brazilian market with a combined 97% share. However, by 2008, other companies from France, Japan, Korea and China entered the Brazilian market. At this point, the top 4 only made up 77% of the auto manufacturing market; the 20% decline coming mainly from Volkswagen. Looking at the time period from 1994 – 2008, Exhibit 2A shows VWB’s market share peaks around 1996/1997 with a 35% share of the car and light vehicle market and by 2008, their share of the market has declined to roughly 22%. In 2003, in the face of consistent year over year declines in market share and losses at the Company, VWB attempted to change their strategy. New CEO, Thomas Schmall noted the appreciation of the Brazilian currency together with increases in labor and raw material costs on top of mounting international competition meant VWB could not raise prices. In turn, margins could not cover excess capacity costs. And in 2006, in spite of changes in strategy, VWB saw their eighth consecutive year of losses (two key performance indicators also fell below management expectations).…
Chinese began to open its market and reduces of governmental control over marketing and labour mobility in the1980s. After twenty year reform of state-ownership enterprises the SOEs remained the most significant role in China economy and control the key industry of China. The adjustment of government policy and stabile political environment played a role in the recent increase of foreign investment in China. By the end of June 1997, it was reported that over 200,000 business joint ventures had been registered in China, with a total foreign investment of $204 billion ($15.7 billion from US companies) (China National Statistics Bureau, 1997). Chinese government was full support the automobile industry and regards this industry as the ‘pillar’ industry of the nationally economy. But increased restrictions on foreign exchange and set up high tariff barrier for foreign investment. In addition China’s entry into the WTO would dramatically alter the competitive landscape on one hand and also lower the tariffs on the other hand.…
Tao Q., 2006. ‘Race to Great Wall: Competing in the Chinese Automobile Industry’, Global Strategy, Thomson South-Western, 165-170.…
GM was a US automaker company, and entered the market of China by joint ventures. SAIC is GM’s major joint venture partner, and it had become the largest plant in China. GM was earning high profits from China by 2004. However, GM faced the challenges from both foreign and local competitors, overcapacity and intervention from Chinese Government. In 2004, the sales dropped sharply.…
SAIC-- Shanghai automobile industry corporation is one of the third largest carmakers in China at the turn of the century, whose main businesses are the manufacture, development and investment of the passenger cars and commercial vehicles and relatively financial services. To enlarge the market share and with the desire for independent brands and R&D…
Computer systems are vulnerable to many threats that can inflict various types of damage resulting in significant losses. This damage can range from errors harming database integrity to fires destroying entire computer centers. Losses can stem, for example, from the actions of supposedly trusted employees defrauding a system, from outside hackers, or from careless data entry clerks. Precision in estimating computer security-related losses is not possible because many losses are never discovered, and others are "swept under the carpet" to avoid unfavorable publicity. The effects of various threats varies considerably: some affect the confidentiality or integrity of data while others affect the availability of a system.…
closing the gap with sales increased by 26% year-on-year to 252,896 units. SGM said that its…
During the current investigation, most of them stated that they got to work under time pressure within a ‘climate of fear’. Indeed, they had to deliver clean diesel motors which were also able to respect standards on fuel economy and low emission of gaz. Such standards were very difficult to reach. Indeed, Volkswagen prioritized the development of Diesel vehicles, highly popular in Europe, instead of electric cars. Thus, to reach the American market, traditionally diesel-averse, VW engineers got to deliver a clean diesel to respect U.S. regulations. Due to the eternal belief of executives into innovation to solve any problem, such a situation involved huge costs in terms of R&D. Thus, it is possible to assume that the defeat device permitted to launch new models like Jetta TDI in 2009 and Golf TDI in 2010 with great success and without the implication of such high R&D…