An Analysis of Volkswagen and General Motors in Today's Market, Production Strategy Essay

1. Issues VW should pursue its quality improvement Bad image of VWs management Production strategy only five platforms similitude between different brands products Communication with shareholders too high cost of capital2. BackgroundCompanyThe first VW Beetle was created by Pichs father at Hitlers request. In 1972, Pich went to VWs Audi unit, where despite his rottweiler reputation, he oversaw enough innovation to win the Audi chairmanship in 1988. He managed to transform Audi into a credible competitor of BMW and then moved to the top spot at VW. In 1993, when Pich took the helm, VW lost 1.1 billion in 1998, profits rose by 63, to 3.6 billion before taxesPorsche and VW have an agreement to jointly develop an SUV platform. Porsche Holding, the private arm of the Porsche empire, became a major importer of VW and Porsche cars in Austria when it was run by Pichs mother, who took charge after his fathers death in 1952.MarketVW and General Motors are very aggressive competitor as the Jos Ignacio fight showed it.VW trails Toyota, Mercedes, Nissan, and Honda in overall quality, eventhough they cut defects of 60 in the past five years.The new Beetle has known a good success in the US. In 1998, American sales rose to their highest level in 17 years, with a 59 increase for VW and a 39 increase for Audi.Each VWs brands has a direct competitor Volvo for Skoda, Alfa-Romeo for SEAT, BMW for Audi, Mercedes for VW.In 1998, VW bought the Bentley brand, and by the same time holded 75 of the ultra-luxury volume when Rolls-Roys was 25.A growing trend is arising from the market, reducing the number of platforms as much as possible.Actually, VW and Toyota are sharing the bronze medal of carmaker.3. SWOT Strengths VW has boosted quality more than any other carmaker in the past five years, cutting defects by 60 The new Beetle has injected buzz into the brand, luring buyers into...

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