Volkswagen: Why the multi-brand strategy will make it no. 1

Tuesday, January 26, 2010

Volkswagen: Why the multi-brand strategy will make it no. 1

Very interesting read here about Volkswagen's multi-brand strategy and why it will be successful in the end.

It's all come good now though. Despite trading in the worst economic recession for generations, Volkswagen AG last week quietly announced that its sales were up 1.1%. In a global market that slumped by well into double figures.

Just think about that for a minute. Two thousand and nine was a nightmare for businesses everywhere. Especially those manufacturing cars in a mature, cut-throat market thwarted by over-capacity. While American giants General Motors and Chrysler fell into bankruptcy and most groups were frantically offloading brands in fire sales, VW quietly stuck to its guns – expanded, even, as it took an audacious 20% stake in Suzuki and started the process of incorporating Porsche.