Volkswagen Group is one of the world’s leading German automobile manufacturer and has its headquarter in Wolfsburg, Germany.
It is the largest car manufacturer in Europe, with a work force of 610,000+ employees in the group & operates in 153 countries and produces 42,000 vehicles every weekday. It has 119 production plants in 20 European countries and 11 countries in continents of America, Africa and Asia.
The two divisions of the Group are – The Automotive division and the Financial Services division. The Automotive division includes the Passenger Car Business area and the Commercial Vehicles/ the Power Engineering Business area. The Group operates from seven European countries and it includes twelve brands under one umbrella – Volkswagen passenger car, Audi, SEAT, SKODA, Bentley, Bugatti, Lamborghini, Porsche, Ducati, Volkswagen commercial vehicles, Scania and MAN.
The common goal of all the brands is “Mobility. For everyone, all over the world”. Each brand operates separately and is an independent entity in the automotive market. The product portfolio includes motorcycles, luxury vehicles, buses and heavy trucks. The Financial Services division corresponds to the financial services including dealer and customer financing, leasing, direct banking, insurance, fleet management and mobility offerings. Other than these two broad divisions the Group is also involved in other business such as manufacturing large-bore diesel engines, turbochargers, turbomachinery, compressors, special gear units, propulsion, and testing systems. In order to meet the customer demands and go beyond their expectation the Group has a research centre headquartered in Wolfsburg. This research centre conducts research work for all the Group brands. Besides the Group also has research bases in United States (ERL – Electronics Research Lab, Palo Alto, California), China (VRC – Volkswagen Research Lab China) and Japan (VTT- Technical representative Tokyo).
Recently the Volkswagen group was in news and had to face public criticism because of the software used in vehicles with V6 3.01 TDI diesel engines that contained “auxiliary emission control devices” (AECDs) which affected the actual determination of the CO2 levels emitted by the vehicles. The rating agencies such as Moody’s and Standard & Poor’s downgraded the ratings for the Group following this event.