Volkswagen: The automobile industry is replete with legendary brands, yet hardly a few corporations have created an international empire like Volkswagen.
The majority of people are familiar with Volkswagen because of its well-selling vehicles such as the Golf, Passat, and Beetle. But the thing that most car lovers are unaware of is that Volkswagen is not a single brand.
Who Owns Volkswagen?
VWAG or Volkswagen Aktiengesellschaft is the primary company of the Volkswagen Group. It was the German government that initially set up the company in the year 1937 in Germany but with the aim of manufacturing cheap cars to the common people.
Indeed, Volkswagen has a literal meaning of People-Car
The company has since developed to transform into a publicly traded international company. Wolfgang is today traded in the Frankfurt Stock Exchange and is owned by the Porsche Automobil Holding SE which possesses majority of the voting rights in the company.
Regardless of the complicated ownership structure, the Volkswagen AG acts as the heart of the company to regulate the production, developing, and selling process of vehicles of all Volkswagen Group brands.
What is the Size of the Volkswagen Group?
VW is a giant in the world of meanwhile manufacturing cars. It also has two key divisions in its operations namely automotive production and financial services.
The automotive division is involved with designing and manufacturing of vehicles and the financial services division designs leasing, fleet management, financing and mobility services.
Wolfswagen has over the years developed a huge corporate structure comprising of hundreds of subsidiaries in the world. It is reported that the group has over 300 subsidiary companies, as well as, several joint ventures in other countries such as China.
Some of the popular joint ventures are:
- SAIC Volkswagen
- FAW-Volkswagen
- Volkswagen Anhui
- Bugatti Rimac combined venture.
- Joint venture IAV engineering.
Such alliances assist Volkswagen to increase its production and dominance in the international markets.
Key Brands that are owned by Volkswagen
Although Volkswagen began its operations as a single company that produced cars, it has several brands today, which are distributed in almost all types of vehicles. The portfolio of the Volkswagen Group has been so diverse, starting with the motorcycles and moving on to the luxury sports cars.
Amongst the most crucial brands under Volkswagen are:
- Volkswagen
- Audi
- Porsche
- Bentley
- Lamborghini
- Skoda
- SEAT
- Ducati
- Scania
- MAN
The brands play a distinct role in the overall strategy of the firm.
Volkswagen: The Core Brand
The main brand of the Volkswagen is still the pillar of the group. The company was founded in 1937 and it became famous all over the globe with the legendary Volkswagen Beetle, which was among the most sold car in history.
Wolfsburg Volkswagen has over the years diversified into other vehicles like golf, polo and passat. The brand today manufactures passenger vehicles, commercial vehicles, trucks, and an increasing number of electric vehicles.
As of now, Volkswagen is the biggest car manufacturer in Europe, and the company still invests a lot in electric mobility and digital technology.
Audi and Porsche: Driving and Innovation
Audi is one of the most successful luxury brands of Volkswagen. Audi cars are regarded as high-technology products with high design that are sold in the global market and compete with such brands as BMW and Mercedes-Benz.
Audi joined the Volkswagen company as the company bought the Auto Union Group in 1960s. After that, Audi has become one of the most appreciated automotive brands in the world.
Porsche is another legendary brand of the Volkswagen company as it deals with high performance sport cars. Cayenne and Porsche 911 are famous models that have made Porsche one of the most profitable automotive brands in the world.
In the Volkswagen Family, there are Luxury Supercar Brands
The most interesting part of the business strategy of Volkswagen is its possession of a variety of luxury and supercar brands.
In 1998 Lamborghini, the Italian supercar legend entered the Volkswagen Group, and it is run by Audi. Lamborghini is a well-known brand that is associated with models, such as the Aventador and Huracan, and lies on the high-performance wing of the Volkswagen ecosystem.
Another high-end brand among Volkswagen is Bentley which manufactures luxury cars that are characterized by their handiwork and strong engines. Through these brands, Volkswagen is able to operate in the ultra-luxury car industry and still achieve high profitability.
Commercial Vehicle Giants: Scania, MAN and Navistar
Volkswagen does not only deal with passenger cars. The company also produces heavy trucks, buses and industrial transport vehicles through its commercial vehicle business unit.
The Traton Group which is the truck and bus branch of Volkswagen has major companies like:
- Scania
- MAN Truck & Bus
- Navistar
Scania, which is a Swedish company, is associated with industrial engines and high quality trucks. MAN is a company based in Germany that produces commercial trucks that are used throughout Europe and other markets around the world.
In 2021, Volkswagen entered the North America market by acquiring Navistar, a prominent truck and bus manufacturer company in America.
New and Emerging Volkswagen Brands
Volkswagen is still developing its ecosystem via new brands and new mobility solutions. Scout Motors, which was introduced in 2022, is aimed at serving the American market with electric off-road vehicles and SUVs. The company will launch the first electric models within the next few years.
Jetta is yet another brand that is unique and was developed with Chinese market in mind, in collaboration with FAW Group. These activities demonstrate that Volkswagen is concerned with the future mobility, electric cars, and international growth.
Frequently Asked Questions (FAQs)
What is the number of brands of Volkswagen?
VW group has approximately 15 large automobiles brands, and hundreds of subsidiaries across the globe.
Is Lamborghini owned by Volkswagen?
Yes, Lamborghini is an Audi, a company of Volkswagen Group.
Is Porsche a subsidiary of Volkswagen?
Yes Porsche is a part of Volkswagen Group though Porsche Automobil Holding has a controlling interest in Volkswagen.
Does Volkswagen own Ducati?
Yes, Ducati motorcycles belong to Audi that is a part of Volkswagen Group.
What is the Traton Group?
Traton is the commercial car unit of Volkswagen which deals with Scania, MAN, and Navistar.
Disclaimer: The article is not a commercial one but rather informational and educational. The change in company ownership patterns and the relation between the company and the brand could vary with time because of the acquisitions, partnerships, or the restructuring of the company.
