VOLKSWAGEN

Financial Analysis of Volkswagen

Financial Analysis of Volkswagen

Introduction

The literal meaning of the word Volkswagen is people's car. Across the globe Volkswagen is well known, it's a German auto maker. Frequently abbreviated as VW, the head office of the company is located in Wolfsburg, Germany. Under the group of Volkswagen, it is the original brand name that also houses Bentley Motors, Audi, Bugatti Automobiles, Skoda, SEAT, Automobili Lamborghini and Scania which is a heavy goods manufacturer. The literal meaning of the word Volkswagen in Germany is people's car. The tagline of Volkswagen says Das Auto which means 'The Car'. Volkswagen is known for manufacturing luxury cars mostly, which are specially designed for the upper level class in the society. In the year 2009, Porsche and Volkswagen they both together surpassed Toyota and then they became the greatest car producing group of the world in terms of production. Read further for the amazing and interesting information on the history and origin of Volkswagen (Wilson.Z, 2010 The History of Volkswagen. Retrieved from http://www.fastcompany.com/pics/history-volkswagen#3)

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 Interesting & Amazing facts about the Origin & Background of Volkswagen 

There were different efforts made by car manufacturers before the decade of 1930, in order to manufacture simple cars which could be affordable for the middle class of the society, but none of the manufacturers were successful in this regard. Most of the cars manufactured by those car manufacturers were so expensive which were costing more than a man's average yearly salary, yet after it was being developed as a simple car in order to meet the basic needs of transportation for the people. Nevertheless, in 1930 Ferdinand Porsche set up a company of automotive design which was called Porsche Buro. The company brought an innovation in the car with independent suspension system at the front that possessed of transversely mounted torsion bars, which was linked to the trailing arms on each of the side. The suspension was much lighter as compared with the suspension of cars manufactured by other car manufacturers of that time.

In the year 1933, Hitler met with Ferdinand and told him to design a Volkswagen that was the innovative point for Volkswagen to do something new. He gave an idea for the car which could accommodate five people, runs up to a speed limit of 62 mph, reverse back at 33 mph and cost just 1000 Marks. This was a brilliant idea and opportunity for Ferdinand to push this idea forward to manufacture a small car which could be afforded by the people of Germany. Porsche nominated this model as the Type 60, which was later on changed to V1. Hitler then again suggested a convertible version of this car which was given the name of V2. Whatsoever, the first two prototypes were not built by Porsche, which were then completed in the year 1935. The design of V1 was later on upgraded and which was then called as VW3. The flooring of this model was designed in metal, it had swing axel rear transmissions, and ...