volkswagen ag marketing strategy recommendation eba 605, dr. j. coleman saturday, april 22, 2006...
TRANSCRIPT
Volkswagen AGVolkswagen AG
Marketing Strategy RecommendationMarketing Strategy RecommendationEBA 605, Dr. J. ColemanEBA 605, Dr. J. ColemanSaturday, April 22, 2006Saturday, April 22, 2006
Team Maxxim presents
Volkswagen AG
AgendaAgenda
I.I. Current Situation & TrendsCurrent Situation & Trends
II.II. Performance ReviewPerformance Review
III.III. Key IssuesKey Issues
IV.IV. ObjectivesObjectives
V.V. Marketing StrategyMarketing Strategy
VI.VI. Action PlanAction Plan
VII.VII. Projected Profit-and-Loss StatementProjected Profit-and-Loss Statement
VIII.VIII. ControlsControls
IX.IX. Contingency PlansContingency Plans
Volkswagen AG
Market SituationMarket Situation
Mature passenger car market in North America and Mature passenger car market in North America and EuropeEurope
Sales expected to rise 0.6% and 1.6% for North Sales expected to rise 0.6% and 1.6% for North America and Europe, respectively, through 2009America and Europe, respectively, through 2009
Global passenger car sales are forecast to grow by Global passenger car sales are forecast to grow by around 7 million units through 2009, or just under 3% around 7 million units through 2009, or just under 3% annuallyannually
India and China is expected to account for more than India and China is expected to account for more than half of this growthhalf of this growth
Volkswagen AG
Mil. Vehicles
Fiat/Ferrari
PSA
Nissan
Volkswagen
DaimlerChrysler
Ford/Volvo
GM
Toyota/Daihatsu
8.2
6.8
4.7
6.7
5.2
3.4
2.9
BMW
Honda
1.2
3.0
Renault 2.5
1.9
Source: manufacturer`s data, JAMA.
Car Sales According to Groups, WorldwideCar Sales According to Groups, Worldwide
Volkswagen AG
Global Competitive OverviewGlobal Competitive Overview
*Numbers based on 2004 Marke tshare
Global Top Auto Companies
18%
14%
14%
11%
10%
7%
7%
7%
5%4% 3% GM
Ford
Toyota
Volkswagen
DaimlerChrysler
PSA/Peugeot-Citroen
Nissan
Honda
Renault
Fait/Ferrai
BMW
Volkswagen AG
WORLD CAR POPULATIONWORLD CAR POPULATIONWORLD CAR POPULATIONWORLD CAR POPULATION
Greater Demand Greater Demand & Less & Less ResourcesResources
Accelerated Accelerated Greenhouse Greenhouse EmissionsEmissions
Environmental & Environmental & Energy Trends = Energy Trends = Negative Negative Economic Economic Impacts Impacts
Developing World = 300% Increase Between 1995 & 2020Developing World = 300% Increase Between 1995 & 2020
TREND IN WORLD CAR POPULATION
0
100000000
200000000
300000000
400000000
500000000
600000000
700000000
800000000
YEAR
World Car Population
1930 1940 1950 1960 1970 1980 1990 2000 2010 2020
CARS IN REST OF WORLD
CARS IN U.S.
Volkswagen AG
Competitive SituationCompetitive Situation
General Motors, Nissan and Toyota have cut into General Motors, Nissan and Toyota have cut into Volkswagen’s market shareVolkswagen’s market share
Volkswagen once held a 50% market share in China, Volkswagen once held a 50% market share in China, it’s now around 20%it’s now around 20%
China and India both serving as key manufacturing China and India both serving as key manufacturing locations with major playerslocations with major players
Volkswagen AG
Corporate OverviewCorporate Overview
HQ: Wolfsburg, GermanyHQ: Wolfsburg, Germany US Operations: Auburn Hills, MIUS Operations: Auburn Hills, MI Europe’s #1 automobile manufacturerEurope’s #1 automobile manufacturer Annual production: 5M vehiclesAnnual production: 5M vehicles Annual sales: $121,345/ 10.9 YOY growthAnnual sales: $121,345/ 10.9 YOY growth Employees: 342,502 worldwideEmployees: 342,502 worldwide
Volkswagen AG
Key MilestonesKey Milestones1930s1930s Factory opened in
Wolfsburg, Germany
1940s1940s Production of first Volkswagen Company turned over to German government
1950s1950s VW begin building foreign plants Launched “Beetle” in US market Developed Microbus
1960s1960s Sold stock to the German public Purchased Auto Union (AUDI) US Beetle sales took off
1970s1970s Beetle discontinued in every country except Mexico
1980s1980s Begin car venture in China Purchased SEAT Formed Autolatin in Brazil
1990s1990sBuilt China’s largest auto plantIntegrate Skoda Acquires Rolls-Royce and Bugatti Launched New Beetle in US
2000s2000sSpent 3.1B to modernize factoriesThe final Beetle ended a 70-year runInvested 1.7B in China (Asia/Pacific)Bernd Pischetsrieder joined company
Volkswagen AG
Volkswagen Global Marketing MixVolkswagen Global Marketing Mix
2
3
4
Brand portfolio Volkswagen Audi Seat Škoda Bugatti Bentley Lamborghini Commercial vehicles
1
Unique brand identity for
each nameplate Complete product range Mostly standardized products
with minor adaptations
Setting prices with regard to
competitors Price discrimination across
regions No price competition in
emerging markets Strict cost controlling
Localized communication Emphasis on the European
market Brand advertising Emotionalization
Development of
distribution partners Separated
distribution
channels for each
brand International
standardization of
dealers
Global Marketing Mix
Volkswagen AG
Volkswagen GroupVolkswagen Group
Automotive DivisionAutomotive Division Financial Financial Services DivisionServices Division
VW Brand VW Brand GroupGroup
Audi Brand Audi Brand GroupGroup
Commercial Commercial VehiclesVehicles
Other Other CompaniesCompanies
Financial Financial ServicesServices
EuropcarEuropcar
VW P CarsVW P Cars
*Passat*Passat
*FOX*FOX
*Jetta*Jetta
*Beetle*Beetle
*Golf*Golf
SkodaSkoda
BentleyBentley
BugattiBugatti
AudiAudi
SEATSEAT
LamborghiniLamborghini
Buses and Buses and VansVans
FinancingFinancing
ServicingServicing
Dealer & Dealer & Customer Customer FinancingFinancing
LeasingLeasing
InsuranceInsurance
Fleet businessFleet business
Rental Rental BusinessBusiness
Source: www.volkswagen-ir
Volkswagen AG
Key IssuesKey Issues Extreme global competition, particularly from Extreme global competition, particularly from
American and Asian manufacturers American and Asian manufacturers Slow revenue growth due to inflated cost of raw Slow revenue growth due to inflated cost of raw
material and rising administrative costsmaterial and rising administrative costs Stagnant demand because of overcapacity and Stagnant demand because of overcapacity and
product proliferation in western marketsproduct proliferation in western markets Controlling cost while simultaneously Controlling cost while simultaneously
generating revenuegenerating revenue Rapid foreign investment in Chinese and Indian Rapid foreign investment in Chinese and Indian
marketsmarkets
ObjectivesObjectives
Increase operating cash flowIncrease operating cash flow Increase sales and market shareIncrease sales and market share Expand targeted-market segmentExpand targeted-market segment Maximize fuel efficiencyMaximize fuel efficiency Be first to market with new productBe first to market with new product Introduce hybrid vehicle, Introduce hybrid vehicle, ŜŜkoda Octavia, in koda Octavia, in
IndiaIndia Conduct financial feasibility studyConduct financial feasibility study
Volkswagen AG
SIMPLY CLEVER
163
2,8753,702 3,814 4,175
2,674 2,489 2,517
4,815 4,843
10,073
ŠKODA AUTO / ŠKODA GROUP –PROFIT BEFORE TAXATION
1996 1997 1998 1999 2000 2001 2002 2003 2004 2004 2005
Profit before taxationRate of turnover return (%)
Millions of CZK
1.73.5
0.3
3.5 3.1 1.73.2 3.21.7
3.0
5.4
ŠKODA AUTO a.s. according to ČÚS*
IFRS CZ, Škoda
Group
* ČÚS – Czech Accounting Standards
Financial FeasibilityFinancial Feasibility
Volkswagen AG
Financial Feasibility – Labor CostsFinancial Feasibility – Labor CostsExhibit 4A Average annual base pay
2007 2008 Position
India # of
Employees Total Cost Salary # of
Employees Total Cost
HR manager
$15,100.00 3 $
45,300.00
$15,855.00 3 $
47,565.00
Marketing manager
$14,300.00 1 $
14,300.00
$15,015.00 1 $
15,015.00
Project manager
$10,000.00 2 $
20,000.00
$10,500.00 4 $
42,000.00
Software development engineer
$10,300.00 1 $
10,300.00
$10,815.00 1 $
10,815.00
Financial analyst $
8,400.00 1 $ 8,400.00 $
8,820.00 1 $ 8,820.00
Accountant $
5,700.00 2 $
11,400.00 $
5,985.00 2 $
11,970.00
Senior customer service officer $
8,200.00 2 $
16,400.00 $
8,610.00 2 $
17,220.00
Sales representative $
4,700.00 3 $
14,100.00 $
4,935.00 3 $
14,805.00
Customer service assistant $
1,600.00 5 $ 8,000.00 $
1,680.00 5 $ 8,400.00
Production worker (skilled) $
1,900.00 280 $
532,000.00 $
1,995.00 428 $
853,860.00
300 $
680,200.00 450
$1,030,470.00
Volkswagen AG
Financial Feasibility – Labor CostsFinancial Feasibility – Labor CostsExhibit 4B Average annual base pay
2009 2010 Position
Salary # of
Employees Total Cost Salary # of
Employees Total Cost
HR manager
$16,647.75 3 $
49,943.25
$17,480.14 3 $
52,440.41
Marketing manager
$15,765.75 1 $
15,765.75
$16,554.04 1 $
16,554.04
Project manager
$11,025.00 6 $
66,150.00
$11,576.25 6 $
69,457.50
Software development engineer
$11,355.75 1 $
11,355.75
$11,923.54 1 $
11,923.54
Financial analyst $
9,261.00 1 $ 9,261.00 $
9,724.05 1 $ 9,724.05
Accountant $
6,284.25 2 $
12,568.50 $
6,598.46 2 $
13,196.93
Senior customer service officer $
9,040.50 2 $
18,081.00 $
9,492.53 2 $
18,985.05
Sales representative $
5,181.75 3 $
15,545.25 $
5,440.84 3 $
16,322.51
Customer service assistant $
1,764.00 5 $ 8,820.00 $
1,852.20 5 $ 9,261.00
Production worker (skilled) $
2,094.75 576
$1,206,576.00 $
2,199.49 576
$1,266,904.80
600
$1,414,066.50 600
$1,484,769.83
Volkswagen AG
Financial Feasibility – Labor CostsFinancial Feasibility – Labor CostsExhibit 4C Average annual base pay
2011 Position
Salary # of
Employees Total Cost
HR manager
$18,354.14 3 $ 55,062.43
Marketing manager
$17,381.74 1 $ 17,381.74
Project manager
$12,155.06 6 $ 72,930.38
Software development engineer
$12,519.71 1 $ 12,519.71
Financial analyst
$10,210.25 1 $ 10,210.25
Accountant $
6,928.39 2 $ 13,856.77
Senior customer service officer $
9,967.15 2 $ 19,934.30
Sales representative $
5,712.88 3 $ 17,138.64
Customer service assistant $
1,944.81 5 $ 9,724.05
Production worker (skilled) $
2,309.46 576 $1,330,250.04
600 $1,559,008.32
Volkswagen AG
Financial FeasibilityFinancial FeasibilityReported Annual Income Statement Actual Actual Actual Projected Projected Projected Projected Projected Projected
Currency 2003 2004 2005 2006 2007 2008 2009 2010 2011
Auditor Status Dollars Dollars Dollars Dollars Dollars Dollars Dollars Dollars Dollars
Consolidated Yes Yes Yes Yes Yes Yes Yes Yes Yes
Scale millions millions millions millions millions millions millions millions millions
Sales revenue 109,394 121,346 112,826 116,211 119,697 123,886 128,842 135,284 142,048
Cost of sales 97,597 106,992 97,576 100,503 103,518 106,624 109,822 113,117 116,510 Gross profit automotive division 11,798 14,353 15,250 15,708 16,179 17,263 19,020 22,167 25,538 Gross profit financial services division - - - - - - - - -
Depreciation & Amortization 10,541 9,251 8,352 7,517 7,211 6,920 6,644 6,382 6,133
Distribution costs 9,880 10,291 10,718 11,255 11,845 12,467 13,152 13,876
Administrative expense 2,800 2,852 2,904 3,021 3,141 3,267 3,398 3,534 Selling & distribution expenses - - - - - - - - General administration expenses - - - - - - - -
Other operating income 5,393 5,602 5,819 6,052 6,294 6,545 6,807 7,080
Other operating expenses 3,477 3,162 2,875 2,990 3,109 3,234 3,363 3,498
Operating profit
11,798 3,589 4,548 5,029 4,965 5,461 6,598 9,061 11,710
Net Cash Flow 22,339 12,840 12,900 12,546 12,175 12,381 13,242 15,443 17,843
Volkswagen AG
Financial Feasibility – Break Even PointFinancial Feasibility – Break Even Point
Break Even Point - Volkswagen India
$-$100.00$200.00
$300.00$400.00$500.00$600.00
$700.00$800.00$900.00
Year 1 Year 2 Year 3 Year 4 Year 5
Break Even Point
Volkswagen AG
Financial Feasibility – Sales Per YearFinancial Feasibility – Sales Per YearSales per Year
VolkswagenExhibit 2
90,000
95,000
100,000
105,000
110,000
115,000
120,000
125,000
2000 2001 2002 2003 2004 2005
Year
Do
llars
in m
illio
ns
Scale Sales revenue Log. (Scale Sales revenue)
Volkswagen AG
Financial Feasibility – Sales Per YearFinancial Feasibility – Sales Per Year
Cost of SalesVolkswagen
Exhibit 3
91,018 91,384 89,694
97,597
106,992
97,576
80,000
85,000
90,000
95,000
100,000
105,000
110,000
2000 2001 2002 2003 2004 2005
Years
Do
llars
in m
illio
ns
Cost of sales Log. (Cost of sales)
Volkswagen AG
Weighted Average Cost of CapitalWeighted Average Cost of Capital
Cost of CapitalCost of CapitalComponentComponent WeightWeight CostCost Weighted CostWeighted Cost
Common EquityCommon Equity 0.750.75 $125,000,000$125,000,000 $97,750,000$97,750,000
DebtDebt 0.150.15 $125,000,000$125,000,000 $18,750,000$18,750,000
Preferred StockPreferred Stock
0.10.1 $125,000,000$125,000,000 $12,500,000$12,500,000
WACCWACC
0.12910.1291 $125,000,000$125,000,000 $16,137,500$16,137,500
Volkswagen AG
Financial Feasibility – Profit/Loss StatementFinancial Feasibility – Profit/Loss Statement
Projected Net Cash Flow for India0 1 2 3 4 5
Investment Outlays: Long Term Assets 2006 2007 2008 2009 2010 2011Equipment (125,000,000.00)$ Additional Net Working Capital
Operating Cash Flows over Project's LifeUnits sold 2500 3750 5000 5000 5000Sales 75,500,000.00$ 113,250,000.00$ 151,000,000.00$ 151,000,000.00$ 151,000,000.00$ Costs (from cost sheet) 2,130,200.00$ 3,242,970.00$ 3,000,000.00$ 3,050,000.00$ 3,075,000.00$ Net Revenue 73,369,800.00$ 110,007,030.00$ 148,000,000.00$ 147,950,000.00$ 147,925,000.00$ Depreciation (from depreciation - input sheet) 25,000,000$ 25,000,000$ 25,000,000$ 25,000,000$ 25,000,000$ Before-tax-income 48,369,800$ 85,007,030$ 123,000,000$ 122,950,000$ 122,925,000$ Taxes (40%) (30,200,000.00)$ (45,300,000.00)$ (60,400,000.00)$ (60,400,000.00)$ (60,400,000.00)$ Net Income 18,169,800$ 39,707,030$ 62,600,000$ 62,550,000$ 62,525,000$ Add Depreciation 25,000,000$ 40,000,000$ 23,750,000$ 15,000,000$ 13,750,000$ Net Operating Cash Flow 43,169,800$ 79,707,030$ 86,350,000$ 77,550,000$ 76,275,000$
Salvage Cash flowsAfter Tax Salvage Cash Flows from equipmentReturn of NOWC
Net Cash Flows 76,275,000.00$
Net Terminal Cash flows at Year 4
Salvage Value $100,000,000 $60,000,000 $36,250,000 $21,250,000 $7,500,000Tax on Salvage Value $40,000,000 $24,000,000 $14,500,000 $8,500,000 $3,000,000Recovery on NWC $24,000,000 $14,400,000 $8,700,000 $5,100,000 $1,800,000Net Terminal Cash Flow
Volkswagen AG
Marketing StrategyMarketing Strategy
Enhance regional presence and geographical Enhance regional presence and geographical spreadspread
Increase customer orientation – Leapfrog Increase customer orientation – Leapfrog approachapproach
Niche penetrationNiche penetration Technological differentiationTechnological differentiation More efficient use of resourcesMore efficient use of resources
Volkswagen AG
Action PlanAction Plan
Select “premier” dealerships to carry the Select “premier” dealerships to carry the ŜŜkoda hybridkoda hybrid Develop dealer training programsDevelop dealer training programs Project and sales managers collaborate to acquire Project and sales managers collaborate to acquire
new customers and increase customer loyaltynew customers and increase customer loyalty Build awareness of Build awareness of ŜŜkoda hybrid through sales koda hybrid through sales
promotions and easy financingpromotions and easy financing Use Volkswagen Group’s brands to increase customer Use Volkswagen Group’s brands to increase customer
awarenessawareness
Volkswagen AG
Volkswagen Group Brand PortfolioVolkswagen Group Brand Portfolio
EmotionFunctionality
Sophistication
Zones of Low Demand
Zones of Low Demand
Volkswagen AG
The VW CustomerThe VW Customer Positioning Statement: Positioning Statement:
For the cost conscience buyer, Volkswagen For the cost conscience buyer, Volkswagen
offers reliability and value.offers reliability and value. Value Proposition:Value Proposition:
– Target Market: Cost conscience buyer Target Market: Cost conscience buyer (parents, females, young adults)(parents, females, young adults)
– Benefits offered: German technologyBenefits offered: German technology
– Relative price: Affordable, reliableRelative price: Affordable, reliable
Volkswagen AG
Controls & Contingency PlanControls & Contingency Plan
Design service programs that address potential Design service programs that address potential concernsconcerns
Continued research and development aimed at Continued research and development aimed at product improvements or modifications that appeal to product improvements or modifications that appeal to target segmenttarget segment
Increase penetration with market segments and/or Increase penetration with market segments and/or distribution intensitydistribution intensity
Volkswagen AG
The Golden Steering Wheel to the New Škoda OctaviaThe Golden Steering Wheel to the New Škoda Octavia
The new Škoda Octavia won the Bild am Sonntag‘s prestigious Golden Steering Wheel award during a ceremony in Berlin.
ReferencesReferences
Volkswagen AG
Brodrick, Sean. Set Your Sights On Asia’s Sleeping Elephant. Brodrick, Sean. Set Your Sights On Asia’s Sleeping Elephant. http://www.escapeartist.com/efam/70/Invest_In_India.htmlhttp://www.escapeartist.com/efam/70/Invest_In_India.html Culp, Eric, “VW in Fresh Trouble as it Withdraws US Model”, Knight Ridder Tribune Business News, November 2005, pg. 1.Culp, Eric, “VW in Fresh Trouble as it Withdraws US Model”, Knight Ridder Tribune Business News, November 2005, pg. 1. Datamonitor. Volkswagen AG: Company Profile <http://www.datamonitor.com (October 2004)>Datamonitor. Volkswagen AG: Company Profile <http://www.datamonitor.com (October 2004)> Datamonitor. Volkswagen AG: Company Profile <http://www.datamonitor.com (October 2005)>Datamonitor. Volkswagen AG: Company Profile <http://www.datamonitor.com (October 2005)> Eisenstein, Paul A. Putting things right at the “people’s car” company. TheCarConnection Eisenstein, Paul A. Putting things right at the “people’s car” company. TheCarConnection
<http://www.thecarconnection.com/Auto_News/Profiles_QA/QA_VW_CEO_Bernd_Pischetsrieder.s193.A7952 January 10, 2005)><http://www.thecarconnection.com/Auto_News/Profiles_QA/QA_VW_CEO_Bernd_Pischetsrieder.s193.A7952 January 10, 2005)> Flint, Jerry, “The Fast and the Furious”, www.forbesauto.com, January 2006.Flint, Jerry, “The Fast and the Furious”, www.forbesauto.com, January 2006. Fondon, Daren, “A Pitch to the Rich”, Time Online, November 2003.Fondon, Daren, “A Pitch to the Rich”, Time Online, November 2003. ““ForMotion Program and New Model Initiative Generate Significant Increase in Volkswagen's Earnings.” The VWGazette <ForMotion Program and New Model Initiative Generate Significant Increase in Volkswagen's Earnings.” The VWGazette <
http://vwgazette.blogspot.com/2006/03/formotion-program-and-new-model.htmlhttp://vwgazette.blogspot.com/2006/03/formotion-program-and-new-model.html
(March 7, 2006) >(March 7, 2006) > Hoover’s Company Information, Hoovers, Inc. 2006.Hoover’s Company Information, Hoovers, Inc. 2006. Landler, Mark, “Volkswagen Chairman Step Down”, Landler, Mark, “Volkswagen Chairman Step Down”, New York TimesNew York Times, January 2006. , January 2006. Landler, Mark, “Porsche to Build a 20% Stake in VW”, The Detroit News – Auto Insider/New York Times News Service, September 2005.Landler, Mark, “Porsche to Build a 20% Stake in VW”, The Detroit News – Auto Insider/New York Times News Service, September 2005. Pischetsrieder, Bernd. “Letter To Our Shareholders.” Pischetsrieder, Bernd. “Letter To Our Shareholders.” Annual Report 2005Annual Report 2005 <http://gb.volkswagen.de/index.php@id=757&type=2.html (March 7, 2006)> <http://gb.volkswagen.de/index.php@id=757&type=2.html (March 7, 2006)> Power, Stephen, “Once Hot Volkswagen Attempts to Reverse U.S. Sales Decline”, Power, Stephen, “Once Hot Volkswagen Attempts to Reverse U.S. Sales Decline”, Wallstreet Journal (Eastern Edition)Wallstreet Journal (Eastern Edition) , New York, NY, September , New York, NY, September
2005, pg A82005, pg A8 Racanelli, Vito J., “Turn Around Ahead at Volkswagen”, Racanelli, Vito J., “Turn Around Ahead at Volkswagen”, Barron’sBarron’s, May 2005, Volume 85, Issue 20, pg 26., May 2005, Volume 85, Issue 20, pg 26. ““Škoda Reaches Record Sales in March and the First Quarter of 2006.” Škoda Auto Škoda Reaches Record Sales in March and the First Quarter of 2006.” Škoda Auto
<http://www.volkswagen-ir.de/fileadmin/vw-ir2/dokumente/inv_news/2006/Q2/20060410_Skoda_e.pdf (October 4, 2006)><http://www.volkswagen-ir.de/fileadmin/vw-ir2/dokumente/inv_news/2006/Q2/20060410_Skoda_e.pdf (October 4, 2006)> Source: adapted from P. Dicken (2003) Global Production Networks In Europe And East Asia: The Automobile Components Industries, GPN Working Source: adapted from P. Dicken (2003) Global Production Networks In Europe And East Asia: The Automobile Components Industries, GPN Working
Paper 7, University of Manchester, http://www.sed.manchester.ac.uk/geography/research/gpn/gpnwp7.pdfPaper 7, University of Manchester, http://www.sed.manchester.ac.uk/geography/research/gpn/gpnwp7.pdf Tierney, Christine. “Teutonic infighting tests VW's resolve to revive operations.” The Detroit News – Auto Insider/The Insiders Tierney, Christine. “Teutonic infighting tests VW's resolve to revive operations.” The Detroit News – Auto Insider/The Insiders
<http://detnews.com/apps/pbcs.dll/article?AID=/20060314/AUTO02/603140345/-1/ARCHIVE (March 14, 2006)><http://detnews.com/apps/pbcs.dll/article?AID=/20060314/AUTO02/603140345/-1/ARCHIVE (March 14, 2006)> Thomas, Chad & Archey, Sheenagh, “Porsche Buys 20% in VW’s Shares to Prevent Takeover”, Bloomberg News, Thomas, Chad & Archey, Sheenagh, “Porsche Buys 20% in VW’s Shares to Prevent Takeover”, Bloomberg News, http://http://quote.bloomberg.comquote.bloomberg.com
/apps/news/apps/news, September 2005, September 2005 ““Volkswagen announces worldwide sales record in first quarter.” Volkswagen announces worldwide sales record in first quarter.” Volkswagen AG: Investor Relations Volkswagen AG: Investor Relations
<http://www.volkswagen-ir.de/fileadmin/vw-ir2/dokumente/inv_news/2006/Q2/20060405_VW_e.pdf (April 5, 2006)><http://www.volkswagen-ir.de/fileadmin/vw-ir2/dokumente/inv_news/2006/Q2/20060405_VW_e.pdf (April 5, 2006)> Xinhuanet, “Volkswagen sales in China hit record.”Xinhuanet, “Volkswagen sales in China hit record.” New Age Business <New Age Business <http://www.newagebd.com/2005/oct/13/busi.htmlhttp://www.newagebd.com/2005/oct/13/busi.html (October 13, 2005)> (October 13, 2005)>