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Volkswagen – The Key To Its Success

Filed Under (Volkswagen) by admin on 21-11-2008

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Volkswagen cars just seems to go from strength to strength. In recent times it has quietly risen through the ranks of the motor industry to appear as the third largest car manufacturer in the world today. It has done this by a combination of sheer business acumen, some clever acquisitions and a certain amount of good fortune.

Volkswagen Group, or VW AG, as it is now known from its previously ill-advised acronym VAG is Europe’s biggest car manufacturer, with its headquarters located in Wolfsburg in central Germany. VW AG not only owns the brand VW, but also owns Audi cars, Bentley cars, Bugatti cars, Lamborghini cars, Seat and Skoda cars which is an enviable portfolio by anyone’s reckoning.

To give a brief history lesson, it was in the year 1933 that Adolf Hitler decided that the German public deserved a “people’s car”; in essence it should have four seats to accommodate the average German family, be able to drive up to 60mph but most importantly to be purchased by means of a saving scheme whereby people saved five German marks a week in order to purchase a car. Many paid into the savings scheme but the outbreak of war ultimately meant that few actually received their car with the notable exception of Hitler who although couldn’t drive received a Beetle for his 49th Birthday! The later success of the Beetle and ultimately the success of Volkswagen arose from these humble beginnings.

The manufacture of the Beetle was a key factor to its success. The main aim was to keep the production cost per unit as low as possible. Since this was the most challenging part of the equation, an entire city, Wolfsburg, was built in central Germany to host the production site. Wolfsburg’s infrastructure was based on the specific needs of Volkswagen. The production facility benefited from its location in relation to other industrial areas of Germany. In addition the railway connection to the Ruhr-Valley, Germany’s largest industrial area, was vital as VW was dependent on the steel supply from there. Wolfsburg was built near the town of Braunschweig, which enabled VW to recruit a skilled local workforce.

Once the production aspect was completed, Ferdinand Porsche facilitated the manufacturing process and introduced flow production. He based this on the same principles of flow production at Henry Ford’s production lines in Detroit/USA. The disadvantage of flow production was the limited variety and flexibility within the production line, which was overcome through the production of just one model – the Beetle.

Through continuous re-investment of profits into research and development, VW grew in importance through the 70s, 80s and 90s. However, in the early 90s, VW was facing a dilemma regarding their position in the market. It seemed that the luxury car for sale market was growing extensively, leaving VW exposed with their medium range vehicles.

VW’s CEO was keen to be involved with high-class brands like Bentley, who had serious financial problems at the time and were in need of backing. VW embarked on a number of high profile acquisitions and with each one introduced the same business philosophies that had worked for them. By the late 90s all of the brands were competing successfully in their markets, improving VW’s overall position. By 2000 VW was operating in nearly every sector of the market including Trucks, leaving them less exposed to risk should one particular market encounter difficulties.

VW’s move to production in Eastern Europe was criticised as it led to job cuts in Germany. However, this was deemed necessary to keep VW competitive as cheaper labour contributed to reducing costs. The ongoing success of Volkswagen is still largely dependent on their well organised infrastructure, not only in Germany but also through their supply channels around the world, which keeps production costs low whilst still maintaining quality, something which has backfired for other car makers.

Volkswagen New Range Of Cars Is A Combination Of Its Old Models & New Technology

Filed Under (Cars) by admin on 12-11-2008

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Volkswagen’s rich history in the automobile industry is a key element to its success and current status as one of the top car manufacturers on the planet. No wonder, the German carmaker is now the world’s third largest auto maker. Volkswagen’s most popular model, the Type 1 car or more popularly known as the Volkswagen Beetle car, still enjoys a large number of followers all across the globe despite the cessation of its production in 2003.

Volkswagen’s new range of cars is a combination of its old models and new technology. Most of the current models still have some traces of the old designs of their predecessors. Foremost among these is the New Beetle. From its name alone, it can be inferred that the brand is a redesign of the old Type 1 Beetle car, the heart and soul of the Volkswagen car brand. The New Beetle’s “gene” is undoubtedly an offspring of the historic Beetle. It bears a striking resemblance to the older version. The new generations of the Rabbit/Golf, Polo and Passat models are of no exception as well. It seems that Volkswagen will not go away with the “looks” that made its cars famous.

Despite the apparent likeness of the new versions, Volkswagen made great effort to give its new cars a new look. The new Golf, for example, has been given a rigid, sporty appearance. The tail end of the car makes the most striking difference with new designs. The new Golf’s body is also designed with prominent lines on the sides and a highly glossed radiator grille.

The new Passat CC, meanwhile, has a dynamic, elegant and modern interior design. The interior trims are made of high quality Walnut and Vavona woods with Titanium Silver inlays. Its body, while retaining the old coupe design, has been added with a muscular line below the window of its doors. This feature was added to allow a smooth passage of the wind, thus preventing a barrier on the car’s speed.

The new range of Volkswagen contract hire cars jives really well with the new generation. The carmaker is now offering a clean-diesel technology to several of its brands. Models such as the Beetle, Golf and Jetta have Turbocharged Direct Injection (TDI) diesel engines that landed on the list of top ten fuel-efficient cars in the United States. This new technology will allow all TDI diesel engine Volkswagen cars to be driven with biodiesel
fuel. However, Volkswagen has not yet introduced an electric car for sale into the market.

The Top 5 cars for 2009

Filed Under (Cars) by admin on 05-11-2008

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1) BMW 335d
BMW’S 335d showcases how well advanced, efficient, and clean diesel power can be incorporated into a performance-based sport sedan. With 23 mpg city/33 mpg highway fuel economy and gobs of torque, there’s no sacrifice for performance fans here. This car, as per reports, is definitely heading India’s way in the next year or so.

2) Ford Fusion Hybrid
Ford’s first hybrid sedan uses a more advanced adaptation of the automaker’s full hybrid system to allow electric driving up to 47 mph, bringing the roomy five-passenger Fusion best-in-class fuel economy. An innovative SmartGauge with EcoGuide helps drivers achieve maximum mpg.

3) Saturn Vue 2 Mode Hybrid
The Vue 2 Mode breaks new ground as the first application of GM’s two mode hybrid technology in a V-6 front-wheel-drive vehicle. The compact SUV combines welcome functionality and fuel economy with sprightly performance and a very smooth hybrid powertrain.

4) Smart fortwo
The smart fortwo represents an all new type of vehicle for American drivers. Now, the tiny two-seater that’s been a popular choice in Europe for years has come here, bringing with it a small eco footprint, higher fuel efficiency, and a trendy ‘green’ ride for new car buyers.

5) Volkswagen Jetta TDI
The 2009 Volkswagen Jetta TDI builds on VW’s 30-plus years of diesel experience in the U.S. The latest diesel technology is used to enable this fuel efficient, affordable – and dare we say ‘fun’ – clean diesel sedan to meet tight emissions certification in all 50 states.

All five models here are important milestones for their manufacturers. This site is ‘Indian’ so, considering the Indian Market, the Beamer and VW are our favourites. The Volkswagen car and BMW car clean diesels are leading edge models signaling the advent of highly efficient, advanced diesel sedans that meet all emission certifications worldwide. Ford’s Fusion Hybrid, a full hybrid, is this automaker’s first hybrid sedan. Saturn’s Vue 2-Mode is GM’s first application of its two mode hybrid system in a V6 front-drive platform. The smart fortwo is a micro car with a very small eco footprint.

Of all the five cars for sale, the 335d and the Jetta are the only diesel engined cars. These two cars, keep showing to the world that, Internal combustion engine is still alive, and can give Hybrids a run for their money! What amazed us is Jetta, which gets featured in almost all green journals- the latest being the EPA list. Quite simply the Jetta has become synonymous to fuel economy!