The Volkswagen Group
The Volkswagen Group, with its headquarters in Wolfsburg, is one of the world’s leading automobile manufacturers and the largest carmaker in Europe.
In difficult market conditions, the number of Group vehicles delivered to customers rose to 10.8 million in 2018 (2017: 10.7 million). The global car market share rose slightly to 12.3 percent. Group sales revenue in 2018 totaled € 236 billion (2017: € 230 billion), while earnings after tax amounted to € 12.2 billion (2017: € 11.5 billion).
The Group comprises twelve brands from seven European countries: Volkswagen Passenger Cars, Audi, SEAT, ŠKODA, Bentley, Bugatti, Lamborghini, Porsche, Ducati, Volkswagen Commercial Vehicles, Scania and MAN. Each brand has its own character and operates as an independent entity on the market. The product spectrum ranges from motorcycles to small cars and luxury vehicles.
The Commercial Vehicles Business Area primarily comprises the development, production and sale of light commercial vehicles, trucks and buses from the Volkswagen Commercial Vehicles, Scania and MAN brands, the corresponding genuine parts business and services. The collaboration between the MAN and Scania commercial vehicle brands is coordinated within the TRATON GROUP. The commercial vehicles portfolio ranges from pickups to heavy trucks and buses. The Power Engineering Business Area combines the largebore diesel engines, turbomachinery, special gear units, propulsion components and testing systems businesses.
In addition, the Volkswagen Group offers a wide range of financial services, including dealer and customer financing, leasing, banking and insurance activities, and fleet management.
The Group operates 122 production plants in 20 European countries and a further 11 countries in the Americas, Asia and Africa. 664,496 employees worldwide produce vehicles, and work in vehicle-related services or other fields of business. The Volkswagen Group sells its vehicles in 153 countries.
With the future program TOGETHER – Strategy 2025 announced in 2016, the Volkswagen Group aim to make the Group more focused, efficient, innovative, customer-oriented and sustainable, and systematically geared towards generating profitable growth. The program creates the framework for the Group’s vision of being one of the world’s leading providers of sustainable mobility. The Volkswagen Group is therefore resolutely pursuing its transformation. By maintaining the course, the Group will continue to shape individual mobility in the future.
In order to achieve this, the Group will restructure its automotive core business and will be launching about 70 new electric car models by 2028. Additionally the expanding battery technology and autonomous driving as new core competences are in the focus. Furthermore, a cross-brand business unit for intelligent mobility solutions is to be established as a second pillar.
Another initiative of our future program TOGETHER –Strategy 2025 focuses on establishing a cross-brand mobility solutions business. Our mobility business MOIA is to become one of the leading providers of innovative transport services and will develop profitable and globally scalable business models. Strategic investments and partnerships are also being sought. Our strategic goal is to make Volkswagen one of the world’s leading providers of efficient and convenient smart mobility services by 2025, with a portfolio encompassing all brands and both “mobility as a service” and “vehicle on demand” services.
Thanks to our strategic partnership with Microsoft, we are accelerating our transformation into a mobility service provider with a fully connected vehicle fleet and our digital ecosystem “Volkswagen We”. Working together, we aim to press ahead with software development for the automobile of tomorrow and new services for our customers. This enables the comprehensive strengthening and expansion of our IT expertise and solutions. Developing battery technology as a core competency has also been defined in a strategic initiative of the Volkswagen Group.
The successful transformation requires the Group to place its innovation power on an even broader footing: the Group is driving forward with digitalization across all brands, areas and functions.
At the same time, Volkswagen will rely to a greater extent than before on partnerships, acquisitions and strategic investments.
The Volkswagen Group consists of two divisions: the Automotive Division and the Financial Services Division. The Automotive Division comprises the Passenger Cars, Commercial Vehicles and Power Engineering business areas. We report on the Passenger Cars segment and the reconciliation in the Passenger Cars Business Area. The Commercial Vehicles Business Area and Power Engineering Business Area correspond to the segments of the same name. Activities of the Automotive Division comprise the development of vehicles and engines, the production and sale of passenger cars, light commercial vehicles, trucks, buses and motorcycles, as well as genuine parts, large-bore diesel engines, turbomachinery, special gear units, propulsion components and testing systems businesses. The Ducati brand is allocated to the Audi brand and thus to the Passenger Cars Business Area. The activities of the Financial Services Division, which corresponds to the Financial Services segment, comprise dealer and customer financing, vehicle leasing, direct banking and insurance activities, fleet management and mobility offerings.