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Volkswagen AG - Company Strategy & Performance Analysis

Volkswagen AG - Company Strategy & Performance Analysis

Summary

Volkswagen AG (Volkswagen) is an automobile company involved in the design, development, production and sale of a range of vehicles and engines. It commercializes both passenger and commercial vehicles, including low-consumption small cars and luxury class vehicles.

The company sells its products under the SEAT, Bentley, Scania, MAN, Ducati, Volkswagen, Audi, Volkswagen Skoda, Bugatti, and Lamborghini brands. Volkswagen also offers financial services, including banking and insurance, customer financing, leasing and fleet management solutions.

MarketLine Premium’s company strategy reports provide in-depth coverage of the performance and strategies of the world’s leading automotive companies. The report details company operations in key geographies and offers a comprehensive analysis of each firm’s growth strategy and financial performance. The reports benchmark company performance via key indicators, including sales units, production units, operating income, net income, and total revenue.

Key Highlights

Automotive segment contributed significantly to the company’s revenue
The company’s automotive segment revenue recorded an increase of 0.9%, rising from US$207.5bn in 2015 to US$209.4bn in 2016. This was due in part to an increase in vehicle deliveries, which posted a rate of 3.7%, from 9.9 million in 2015 to 10.3 million in 2016. Revenues in the financial services segment registered a growth of 5.1%, from US$29.3bn in 2015 to US$30.8bn in 2016. An increase in customer financing, leasing services and insurance contracts contributed.

An increase in number of contracts led to revenue growth
This financial services division offers dealer and customer financing, leasing, banking, insurance and fleet management services in 51 countries. It operates through VW Credit, Inc. in North America, and Volkswagen Bank GmbH, Volkswagen Leasing GmbH and Volkswagen Versicherungsdienst GmbH in Europe. Its revenue rose at a rate of 5.1%, from US$29.3bn in 2015 to US$30.8m in 2016 due to growth in its businesses supported by customer financing, leasing, service and insurance contracts secured through selected insurance partners. In local currency terms, it reported an annual growth of 5.5%. The division accounted for 14.4% of the company's total revenue in 2016, while the volume of contracts increased at rate of 9.9%, from 14.7 million in 2015 to 16.1 million in 2016.

The company recorded an improvement in revenue in Q3 2017 in comparison to Q3 2016
The company’s revenue increased at rate of 9.6%, to reach US$62.0bn in Q3 2017 in comparison to US$57.4bn in Q3 2016. An increase in vehicle sales contributed. In comparison to 2,454,000 units in Q3 2016, vehicle sales reached 2,642,000 units in Q3 2017 due in part to strong growth in Europe and the Americas. The company’s new products are anticipated to drive its future profits and include T-Roc, the Audi A8, the ŠKODA VISION E electric concept car, and the SEAT eon CUPRA R.

Scope

  • Company Snapshot - Details key indicators and rankings of Volkswagen in terms of revenue, sales units and production units.
  • Company SWOT Analysis - Outlines Volkswagen's strengths and weaknesses, and any opportunities and threats facing the company.
  • Growth Strategies - Provides an overview of Volkswagen's corporate goals and strategic initiatives to evaluates their outcomes.
  • Company Performance and Competitive Landscape - Analyses the company’s performance by geographical segment and provides a peer comparison on parameters such as revenue and market share.
  • Key Developments - Showcases Volkswagen's recent corporate events and initiatives.
  • ICT Spending Prediction - Details how the company allocates its ICT budget across the core areas of its business, specifically hardware, software, IT services, communications and consulting.
Reasons to buy
  • How does Volkswagen rank among its peers in terms of revenue and market share?
  • What are Volkswagen's main growth strategies and how successful has the company been at implementing them?
  • How has the company performed since 2014?
  • How has Volkswagen performed in comparison to its main competitors?
  • What are Volkswagen's strengths and weaknesses and what opportunities and threats does it face?


Company Snapshot
Company SWOT Analysis
Growth Strategies
Company Performance
Competitive Landscape
Deals
Key Developments
ICT Spending Predictions
Financial Summary
Appendix

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