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Restructuring / Turnaround Strategies Case Study
Case Title:
Volkswagens Turnaround Strategies
Publication Year : 2006
Authors: Philip Anil Kumar, Mridu Verma
Industry: Auto Industry
Region: Germany
Case Code: RTS0136P
Teaching Note: Not Available
Structured Assignment: Not Available
Abstract:
Volkswagen (VW), an automobile manufacturer based in Wolfsburg, Germany is a part of VW Group, one of the world’s four largest car producers. The group consisted of well known brands like Audi, Seat, Skoda, Lamborghini, Bentley and Bugatti.
Since 2001, the company suffered losses in the North American market. In 2005, VW’s sales fell sharply leading to a loss of roughly $1 billion for its operations in the (United States) US and Canada. Its sales fell from 356.000 units to 224.195 units. By 2005, its models were at the bottom of Consumer Reports and J.D. Power reliability rankings. This case study discusses the reasons behind VW’s losses and its attempts for a turnaround.
Pedagogical Objectives:
- To understand the automobile industry scenario in the US
- To discuss Volkswagen’s strategy to make a turnaround.
Keywords : Audi; Seat; Skoda; Jetta; Restructuring / Turnaround Strategies Case Study; Passat; Phaeton; Golf; project M; JD power survey
