Word: profits
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...people worldwide and manufactures some 5 million units a year, including the brands Audi, Bugatti, Seat and Skoda. Those quality issues are also raising concerns about VW's hold over the North American market - the largest and most vibrant in the world and one critical for VW's profit growth. While VW is holding its own in Europe's anemic market - the VW group has an 18% market share in Western Europe, and sold almost 2 million cars in that region in the first nine months of 2003 - the company is struggling in the U.S. The VW brand...
...product don't match." Can VW get groovin' again? Investors seem to think so - VW's share price has rallied 12.23% since the start of the year. Equity analysts cite the Touareg and Touran multi-purpose vehicle (MPV) as signs that VW is broadening its mix, enabling it to profit in hot segments such as SUVs and MPVs - a trend it was slow to pick up on - and hedge against downturns in other segments. Continuing down the road paved by his predecessor, Pischetsrieder plans to launch dozens of new models over the next two years, including a new Microbus, smaller...
...finance and marketing - is implementing a plan to save $3.4 billion over the next five years. He wants to cut costs by sharing more components across VW's models and brands, like engines, transmissions and ventilation systems. To instill a sense of entrepreneurship and accountability, he has set profit targets and production goals for project managers. There are also signs that VW is finding creative solutions to hold down labor costs. Under pressure from the state of Lower Saxony, which owns a 22% stake in the automaker and occupies two seats on its supervisory board, VW in 2001 agreed...
...share of 1.7%, now on par with VW's Skoda brand. And Toyota's Yaris, packed with features and options for under $17,000 in most markets, is a bargain compared to VW's $18,000 Golf. The euro's strength against the yen is also bolstering Asian automakers' profit margins, putting pressure on higher-cost manufacturers. VW's competition is also heating up in China, now the world's hottest car market. The firm's market share has fallen from 60% to under 40% in only two years as more than 100 local and foreign automakers have entered what...
...result, the WRC investigations are conducted and decisions about follow-up mediation are made independently of the brands involved. The FLA relies on the same corporations it’s supposed to monitor for much of its funding—seven out of the 11 monitors are for-profit, some with a history of doing business with the companies they’re monitoring. Especially given the recent record of failed corporate self-supervision and political sponsorship (think Enron), Harvard should know better than to let the fox guard the hen house...