The Volkswagen Beetle made (VW) is a household name around the world for more than 50 years. But in the early 1990s, the VW Group was in his Audi, Seat, Skoda and brands, in a bad state: high cost base, costly duplication of work between the various car brands, and a weak model line-up was performed profits fall by 85 % in 1992. At this point was Ferdinand Piech, chairman of Audi, asked the CEO of VW Group. The company ended 1993 with a loss of nearly € 1 billion dollars. In 2001, the … Read more »

The Volkswagen Beetle made (VW) is a household name around the world for more than 50 years. But in the early 1990s, the VW Group was in his Audi, Seat, Skoda and brands, in a bad state: high cost base, costly duplication of work between the various car brands, and a weak model line-up was performed profits fall by 85 % in 1992. At this point was Ferdinand Piech, chairman of Audi, asked the CEO of VW Group. The company ended 1993 with a loss of nearly € 1 billion dollars. In 2001, the Group increased its net profit to a record EUR 2.9 billion dollars. Between 1993 and 2001, sales rose by EUR 39100000000-88500000000 dollars with international sales increased from 55% to 72%. VW Group’s turnaround included makes a premium brand Audi, Seat saves from near bankruptcy and transforming Skoda car from a cheap Eastern European carmakers to become a respected player. According to Business Week, VW was “one of the world’s top car companies.” Describes the transition from 1993 to 2001. Takes the reader through the successful implementation of a VW platform production system, its globalization strategy move upmarket and many innovations along the business system.
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from
Z. January Kubes,
George Radler
Source: IMD
35 pages.
Release Date: 1 January 2002. Prod #: IMD141-PDF-ENG
Volkswagen globalization: creating excellence on all fronts HBR case solution

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