Investment Strategies of Volkswagen

“Alexandru Ioan Cuza ” University of Iași

Faculty of Economics and Business Administration

Investment Strategies of Volkswagen

Academic Adviser, Student,

Iaşi

2014

Table of contents:

Chapter 1: An overview of Volkswagen AG

1. Short history…………………………………………………………………….……3

2. Main operations……………………………………………………………….……..6

3. Organizations………………………………………………………………….…….8

4. Market and Competition…………………………………………………………...10

Chapter 2: Financial Management

1. Decision-making process…………………………………………………………..14

2. Organization of financial departments and specific activities……………………15

Chapter 3: Investment strategies

1. Goals and expanding strategies………………………………………….………..17

2. Analysis of the merger between Volkswagen and Porsche………………………18

References………………………………………………………………20

Chapter 1: An overview of Volkswagen AG

1. Short history

Volkswagen is a German automobile manufacturer with headquarters in Wolfsburg, Germany. Volkswagen is the innovational and best sold marques of the Volkswagen Group, the biggest German automobile manufacturer and the second largest automobile manufacturer in the world.

If we were to translate the meaning of the word Volkswagen in English, it stands for "people’s car".

The German Labour Front was the founder of Volkswagen in 1937. Looking back, the German auto industry was mostly composed of luxury models in the early 1930s and the medium German car buyer could not afford anything more than just a simple motorcycle. Because of this, only one German from 50 had a car. In an attempt of finding a potential new market, some automobile manufacturers began conducting independent "people’s car" projects such as: Mercedes' 170H, Steyr 55, Adler's AutoBahn and Hanomag 1,3L.

In 1933, Adolf Hitler demanded the production of a simple automobile able of transporting a family (two adults and three...