Volkswagen austerity weak performance fade

Posted on 11/19/2014 11:23:48 AM

Volkswagen AG in third quarter profit growth of 16% is an impressive performance. But the media in the country have revealed internal defects asset position of the Volkswagen Group, the company will adopt austerity measures to save € 5 billion per plan year.
During the year award by the good car "Golden Steering Wheel" in conjunction with Porsche Volkswagen took six sack seven awards in total annual German celebrity award. At least in the eyes of their customers, the largest car manufacturers in Europe in the automotive world still proud "warlords."
However, the "Süddeutsche Zeitung" has released a set of numbers in internal public. From a financial plan, the public medium-term balance of payments gap should be 6%, the current is kept at around 2% in addition to Pioneer products amount of market share in Europe Porsche and Audi continues to decrease, further loss of market car brand. Group management has decided to cut "overhead" section, and ask for the sales department must ensure that each vehicle sold to maximize revenue.
In the eyes of industry experts, Volkswagen currently produces more than 300 types of models as well. Mass Engineers design that takes into account all the cars can be considered, which increases manufacturing costs. Winterkorn, Volkswagen has criticized President inside the device more than a "toy", these devices make driving complicate and increase the cost.
Expert after investigation found that Toyota Motor Corp. and Volkswagen's annual production and value of the height, but the former is more profit. 2013, all public employees to create value for € 20,375, Toyota employees to create more value almost doubled to € 37.768 per person. The reason behind this is that the quality of Toyota's technology to the public is simple, is not worse than the general public. They are easy to produce, and various international markets.
Therefore, Volkswagen, Toyota has become the main competitor. The United States is the largest public in China, except for the international market, but the general public in the market share of the United States of only 3.6%, while the market share of the United States of Toyota has reached 14.4%.
In addition, Volkswagen substantial growth in the Chinese market, the state is changing. Winterkorn admitted that the business market the complex world's largest, as well as other international competitors cars, local auto companies are ambitiously trying to occupy the market rate. Chinese market gradually bring results can not compensate for the losses generated by markets in the United States and Europe.

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