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Mr

Swot analysis of volkswagen

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 dealerships where they're also snapping up Passats, Jettas, and Audis •

VW's share price climbed 36% last year, nearly double the pace of the overall German market •

In the US, where VW ADRs trade over the counter, VW outperformed GM •

Piëch has a "name", and had acquire a lot of experience running Audi •

VW managers attend test drives, and therefore know exactly their different products

• Their "family culture", no leading brand •

A non-stop requirement for the new projects •

Cost-control with the purchasing list •

Own seven different car brands, offering two broad categories, one for the traditional driver and one for the performance-minded driver. •

Hide financial results through German accounting principles

Weaknesses •

VW still trails Toyota, Mercedes, Nissan, and Honda in overall quality •

VW is suffering from a bad image of its management department eventhough they have done an incredible work; Piëch has no relational skills, especially with the press

• They have the same problem inside the company, due to the fact that Piëch has put his own team in place when he arrived, firing all potential enemies •

Piëch blurs the line between his family interests and those of VW •

Bad publicity due to the sue from GM •

VW's cost of capital is relatively higher than Daimler's •

VW bungled its communications with investors

Opportunities

•Take advantage of the attractiveness of the new Beetle to get customers into point of sales

• Growth potential in the American market, last year American sales rose to their highest level in 17 years, with a 59% increase for VW and a 39% increase for Audi

• Due to its very good results on the stock exchange, VW may expect to...