63-535: Volkswagen AG ( German: [ˈfɔlksˌvaːɡn̩] ), known internationally as the Volkswagen Group , is a German public multinational conglomerate manufacturer of passenger and commercial vehicles, motorcycles, engines and turbomachinery. Headquartered in Wolfsburg , Lower Saxony , Germany, and since the late 2000s is a publicly-traded family business owned by Porsche SE , which in turn
126-429: A $ 2.8 billion criminal fine for rigging diesel-powered vehicles to cheat on government emissions tests". The "unprecedented" plea deal formalized a punishment that Volkswagen AG agreed to earlier in 2017. In addition, the plea deal includes a $ 1.5 billion settlement for various environmental, customs and financial violations. Overall, Volkswagen will pay more than $ 30 billion in penalties and lawsuit settlements related to
189-585: A 51% controlling stake in SEAT, making it the first non-German subsidiary of the Volkswagen Group. On 23 December the same year, it became the Spanish company's major shareholder by increasing its share up to 75%. In 1990—after purchasing its entire equity—Volkswagen AG took over the full ownership of SEAT, making the company a wholly owned subsidiary, and on 28 March 1991, another step to the expansion of
252-525: A 90.1% stake in the Italian automotive design house Italdesign Giugiaro . In less than three months, the transaction had been completed making the Italian firm a member of the Volkswagen Group. Since 2013 the Volkswagen Group has held a 89.7% stake in Traton . In 2015 research showed a security flaw in the keyless ignition of Volkswagen and other carmakers' vehicles. Volkswagen spent two years trying to keep
315-402: A certain size must be listed on an exchange. In most cases, public companies are private enterprises in the private sector, and "public" emphasizes their reporting and trading on the public markets. Public companies are formed within the legal systems of particular states and so have associations and formal designations, which are distinct and separate in the polity in which they reside. In
378-440: A company they perceive as possibly lacking liquidity. For example, if all shareholders were to simultaneously try to sell their shares in the open market, this would immediately create downward pressure on the price for which the share is traded unless there were an equal number of buyers willing to purchase the security at the price the sellers demand. So, sellers would have to either reduce their price or choose not to sell. Thus,
441-575: A corporate "Strategy 2025" that focuses on electrification of its portfolio. The VW Group developed the Volkswagen Group MEB platform chassis that will be utilized in a range of various cars and light utility vehicles across several VW Group marques due to its flexibility and floor-mounted battery. As of May 2018, the VW Group has committed $ 48 billion in car battery supplies and plans to outfit 16 factories to build electric cars by
504-632: A drop in Chinese sales. On 18 September 2015, the US EPA announced that Volkswagen had installed a "defeat device" software code in the diesel models sold in the US from 2009 to 2015. The code was intended to detect when an emissions test was being conducted, and altered emissions controls for better compliance. Off the test stand, the controls were relaxed, and emissions jumped 35 to 40 times regulatory levels according to investigators at West Virginia University and
567-401: A long period of time after maturity into a profitable company. However, from 1997 to 2012, the number of corporations publicly traded on US stock exchanges dropped 45%. According to one observer ( Gerald F. Davis ), "public corporations have become less concentrated, less integrated, less interconnected at the top, shorter lived, less remunerative for average investors, and less prevalent since
630-494: A motor-car … it is quite unattractive to the average buyer … To build the car commercially would be a completely uneconomic enterprise." In 1948, the Ford Motor Company of USA was offered Volkswagen, but Ernest Breech , a Ford executive vice president, said he did not think either the plant or the car was "worth a damn." Breech later said that he would have considered merging Ford of Germany and Volkswagen, but after
693-612: A profit warning, saying it had set aside $ 7 billion to fix the fraud. On 23 September 2015, Martin Winterkorn announced his resignation from the CEO position after a crisis meeting of the company board. On 25 September 2015 Matthias Müller was named CEO. Müller was the head of the Porsche marque within the VW corporate umbrella. On 21 April 2017, a U.S. federal judge ordered Volkswagen "to pay
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#1732779761920756-553: A separate entity, its former shareholders receiving compensation in the form of either cash, shares in the purchasing company or a combination of both. When the compensation is primarily shares then the deal is often considered a merger . Subsidiaries and joint ventures can also be created de novo . That often happens in the financial sector. Subsidiaries and joint ventures of publicly traded companies are not generally considered to be privately held companies (even though they themselves are not publicly traded) and are generally subject to
819-692: A technology cooperation and joint development agreement on platform and software. Rooted in Europe, the Volkswagen Group operates in 153 countries. Volkswagen Passenger Cars is the Group's original marque, and the other major subsidiaries include passenger car marques such as Audi , Bentley , Lamborghini , Porsche , SEAT , and Škoda . Volkswagen AG also has operations in commercial vehicles , owning Volkswagen Commercial Vehicles , along with controlling stakes in truck, bus and diesel engine manufacturers Scania AB and MAN SE . The Volkswagen Group comprises
882-535: Is half-owned but fully controlled by the Austrian-German Porsche and Piëch family . The company also offers related services, including financing, leasing, and fleet management. In 2016, it was the world's largest automaker by sales, and keeping this title in 2017, 2018, and 2019, selling 10.9 million vehicles and was the largest automaker by revenue in 2022. It has maintained the largest market share in Europe for over two decades. It ranked seventh in
945-408: Is privately held can buy out the shareholders of a public company, taking the company off the public markets. That is typically done through a leveraged buyout and occurs when the buyers believe the securities have been undervalued by investors. In some cases, public companies that are in severe financial distress may also approach a private company or companies to take over ownership and management of
1008-537: Is traded on a major stock exchange, it is not uncommon when shares are traded over-the-counter (OTC). Since individual buyers and sellers need to incorporate news about the company into their purchasing decisions, a security with an imbalance of buyers or sellers may not feel the full effect of recent news. American depositary receipt Too Many Requests If you report this error to the Wikimedia System Administrators, please include
1071-404: Is when a company has little or no trading activity and the market price is simply the price at which the most recent trade took place, which could be days or weeks ago. This occurs when there are no buyers willing to purchase the securities at the price being offered by the sellers and there are no sellers willing to sell at the price the buyers are willing to pay. While this is rare when the company
1134-729: The Audi Brand Group focused on more sporty values – consisted of Audi, SEAT and Lamborghini – and the Volkswagen Brand Group on the field of classic values – consisted of Volkswagen, Skoda, Bentley and Bugatti – with each Brand Group's product vehicles and performance being respectively under the higher responsibility of Audi and Volkswagen brands. Volkswagen Group revealed on 24 October 2009 that it had made an offer to acquire long-time partner and German niche automotive manufacturer Wilhelm Karmann GmbH out of bankruptcy protection. In November 2009,
1197-536: The United States , for example, a public company is usually a type of corporation though a corporation need not be a public company. In the United Kingdom , it is usually a public limited company (plc). In France , it is a société anonyme (SA). In Germany , it is an Aktiengesellschaft (AG). While the general idea of a public company may be similar, differences are meaningful and are at
1260-878: The Volkswagen Commercial Vehicles brand, and heavy commercial vehicles via the marques of the listed subsidiary Traton ( International Motors , MAN , Scania and Volkswagen Truck & Bus ). It is divided into two primary divisions : the Automotive Division and the Financial Services Division. As of 2008, it had about 342 subsidiary companies. Volkswagen also has three joint ventures in China, FAW-Volkswagen , SAIC Volkswagen and Volkswagen Anhui . The company has operations in roughly 150 countries, and it has 100 production facilities across 27 countries. Volkswagen
1323-593: The 2020 Fortune Global 500 list of the world's largest companies. In 2023, Volkswagen Group was the largest company in the European Union and the largest car manufacturer in the world by revenue. The Volkswagen Group sells passenger cars under the Audi , Bentley , Cupra , Jetta , Lamborghini , Porsche , SEAT , Škoda and Volkswagen brands, motorcycles under the Ducati name, light commercial vehicles under
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#17327797619201386-484: The British Army Royal Electrical and Mechanical Engineers (REME) took control of the bomb-shattered factory for use in repairing British Army vehicles, pending the expected disposal of the plant tooling and equipment as war reparations . However, no British car manufacturer was interested. A British report on the car said that "the vehicle does not meet the fundamental technical requirement of
1449-582: The British Government handed the company back over to the German state, and it was managed by former Opel chief Heinrich Nordhoff . Production of the Type 60 Volkswagen (re-designated Type 1 ) started slowly after the war due to the need to rebuild the plant and because of the lack of raw materials, but production grew rapidly in the 1950s and 1960s. The company began introducing new models based on
1512-572: The California Air Resources Board. About 482,000 vehicles are under the recall order, a potential $ 18 billion ($ 37,500 per violation) in fines are pending, and news accounts speculate a criminal indictment for the deception is certain. The VW Group CEO, Martin Winterkorn , said he was "deeply sorry" and ordered an external investigation. The software code was only revealed when the EPA refused to certify VW's 2016 models for sale in
1575-829: The Type 1, all with the same basic air-cooled, rear-engine, rear-drive platform. These included the Volkswagen Type 2 in 1950, the Volkswagen Karmann Ghia in 1955, the Volkswagen Type 3 in 1961, the Volkswagen Type 4 in 1968, and the Volkswagen Type 181 in 1969. In 1960, upon the flotation of part of the German federal government 's stake in the company on the German stock market, its name became Volkswagenwerk Aktiengesellschaft (usually abbreviated to Volkswagenwerk AG ). On 1 January 1965, Volkswagenwerk acquired Auto Union GmbH from its parent company Daimler-Benz . The new subsidiary went on to produce
1638-548: The US unless the corporation provided full disclosure. On Sunday, 20 September 2015, VW Group announced it was halting the sale of its four-cylinder diesel models in the US. The US EPA press release on its Notice of Violation, and the California Air Resources Board letter dated 18 September 2015 contain significant chronological detail of the agencies interaction with VW on the issue. On 22 September 2015, VW AG admitted that 11 million cars worldwide had been fitted with software intended to deceive emissions testing . The company issued
1701-816: The United States via American depositary receipts since 1988, currently on the OTC Marketplace . Volkswagen delisted from the London Stock Exchange in 2013. The government of Lower Saxony holds 12.7% of the company's shares, granting it, by law, 20% of the voting rights. Volkswagen (meaning 'People's car' in German) was founded in Berlin as the Gesellschaft zur Vorbereitung des Deutschen Volkswagens mbH ('Limited Liability Company for
1764-511: The United States, companies with over 500 shareholders in some instances are required to report under the Securities Exchange Act of 1934 ; companies that report under the 1934 Act are generally deemed public companies. A public company possess some advantages over privately held businesses. Many stock exchanges require that publicly traded companies have their accounts regularly audited by outside auditors and then publish
1827-484: The Volkswagen Group are (as at the financial year ending March 3): Public company A public company is a company whose ownership is organized via shares of stock which are intended to be freely traded on a stock exchange or in over-the-counter markets. A public (publicly traded) company can be listed on a stock exchange ( listed company ), which facilitates the trade of shares, or not ( unlisted public company ). In some jurisdictions, public companies over
1890-544: The Volkswagen Type 1, and commonly called the Volkswagen Beetle . This vehicle was designed by Ferdinand Porsche 's consulting firm, and the company was backed by the support of Adolf Hitler . On 16 September 1938, Gezuvor was renamed Volkswagenwerk GmbH ('Volkswagen Factory GmbH'). Shortly after the factory at Fallersleben was completed World War II started, and the plant primarily manufactured
1953-458: The Volkswagen portfolio in 1998: Bentley , Lamborghini , and Bugatti . On 30 May 2000, after having gradually raised its equity share, Volkswagen AG took over the full ownership of Škoda Auto, making the company a wholly owned subsidiary. From 2002 up to 2007, the Volkswagen Group's automotive division was restructured so that two major Brand Groups with different profile would be formed,
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2016-470: The accounts to their shareholders. Besides the cost, that may make useful information available to competitors. Various other annual and quarterly reports are also required by law. In the United States, the Sarbanes–Oxley Act imposes additional requirements. The requirement for audited books is not imposed by the exchange known as OTC Pink. The shares may be maliciously held by outside shareholders and
2079-432: The company. One way of doing so would be to make a rights issue designed to enable the new investor to acquire a supermajority . With a supermajority, the company could then be relisted, or privatized. Alternatively, a publicly traded company may be purchased by one or more other publicly traded companies, with the target company becoming either a subsidiary or joint venture of the purchaser(s), or ceasing to exist as
2142-422: The core of international law disputes with regard to industry and trade. Usually, the securities of a publicly traded company are owned by many investors while the shares of a privately held company are owned by relatively few shareholders. A company with many shareholders is not necessarily a publicly traded company. Conversely, a publicly traded company typically (but not necessarily) has many shareholders. In
2205-685: The end of 2022. According to VW Group CEO Dr. Herbert Diess , the company will offer 25 electric models and 20 plug-in hybrids by 2020. Volkswagen Group came under pressure for cooperating with the Chinese government in the region of Xinjiang . In that same region, western-funded NGOs accused the Chinese government of having committed human rights abuses against the Uyghur minority group, which included mass surveillance , incarceration, and forced labor. After these accusations emerged, Volkswagen responded, "We do not assume any of our employees are forced laborers." Süddeutsche Zeitung claimed that Volkswagen
2268-839: The end of September 2024. Latest setback for Volkswagen came on November 21, 2024 when Swedish battery producer Northvolt filed for bankruptcy, Volkswagen previously invested 1,4 Billion Euros in their failed business. On November 27, 2024 Volkswagen announced sale of it's Xinijang factory in China partly because "demand for combustion engine vehicles is going down". Former member of Croatian parliament Ivan Pernar warned that due to overall financial situation Volkswagen might go bankrupt just as "too big to fail" heavily indebted Evergrande Group . He also questioned how will EU tariffs on Chinese cars save Volkswagen when 50% of its sales are in China itself and not in EU, as well as its manangment decision to exit Russian market. In 2016, Volkswagen Group announced
2331-444: The firm's stock. For many years, newly-created companies were privately held but held initial public offering to become publicly traded company or to be acquired by another company if they became larger and more profitable or had promising prospects. More infrequently, some companies such as the investment banking firm Goldman Sachs and the logistics services provider United Parcel Service (UPS) chose to remain privately held for
2394-531: The first post-war Audi models, the Audi F103 series, shortly afterwards. Another German manufacturer, NSU Motorenwerke AG , was merged into Auto Union on 26 August 1969, creating a new company, Audi NSU Auto Union AG (later renamed AUDI AG in 1985). From the late 1970s to 1992, the acronym V.A.G. was used by Volkswagen AG as a brand for group-wide activities, such as distribution and leasing. Contrary to popular belief, "V.A.G." had no official meaning, and
2457-500: The following vehicle manufacturers and their corresponding brands : Here are the brands operated under the Volkswagen Group: Other subsidiaries and shareholdings: The Group also owns five defunct marques which are managed through the companies Auto Union GmbH and NSU GmbH, both of which are 100% owned by AUDI AG: In November 2018 Volkswagen's market capitalization was valued at US$ 73.8 billion. The key trends for
2520-571: The group's activities was made through the signing of a joint-venture partnership agreement with Škoda automobilová a.s. of Czechoslovakia , accompanied with the acquisition of a 30% stake in the Czech car manufacturer on 16 April 1991. On 19 December 1994, the group began the acquisition of Škoda Auto by raising its share to 60.3%. Later, on 11 December 1995, it became the Czech company's largest and controlling shareholder by increasing its share up to 70%. Three prestige automotive marques were added to
2583-426: The latter became its bestseller. Volkswagen acquired a controlling stake in SEAT in 1986, making it the first non-German marque of the company, and acquired control of Škoda in 1994, of Bentley, Lamborghini, and Bugatti in 1998, Scania in 2008 and of Ducati, MAN, and Porsche in 2012. The company's operations in China have grown rapidly in the past decade, with the country becoming its largest market. In 2015, Volkswagen
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2646-609: The military Kübelwagen (Porsche Type 82) and the related amphibious Schwimmwagen (Type 166), both of which were derived from the Volkswagen. Only a small number of Type 60 Volkswagens were made during this time. The Fallersleben plant also manufactured the V-1 flying bomb , making the plant a major bombing target for the Allied forces. Slave labour was utilised in the Volkswagen plant, e.g. from Arbeitsdorf concentration camp. The company would admit in 1998 that it used 15,000 slaves during
2709-425: The number of trades in a given period of time, commonly referred to as the "volume" is important when determining how well a company's market capitalization reflects true fair market value of the company as a whole. The higher the volume, the more the fair market value of the company is likely to be reflected by its market capitalization. Another example of the impact of volume on the accuracy of market capitalization
2772-793: The original founders or owners may lose benefits and control. The principal–agent problem , or the agency problem is a key weakness of public companies. The separation of a company's ownership and control is especially prevalent in such countries as the United Kingdom and the United States. In the United States, the Securities and Exchange Commission requires firms whose stock is traded publicly to report their major shareholders each year. The reports identify all institutional shareholders (primarily firms that own stock in other companies), all company officials who own shares in their firm, and all individuals or institutions owning more than 5% of
2835-751: The preparation of the German People's Car', abbreviated to Gezuvor ) by the National Socialist Deutsche Arbeitsfront (German Labour Front) and incorporated in the Stadt des KdF-Wagens bei Fallersleben, ( " City of the Strength Through Joy car at Fallersleben ) on 28 May 1937. The purpose of the company was to manufacture the Volkswagen car, originally referred to as the Porsche Type 60, then
2898-497: The price per share. For example, a company with two million shares outstanding and a price per share of US$ 40 has a market capitalization of US$ 80 million. However, a company's market capitalization should not be confused with the fair market value of the company as a whole since the price per share are influenced by other factors such as the volume of shares traded. Low trading volume can cause artificially low prices for securities, due to investors being apprehensive of investing in
2961-473: The purchase of 19.9% of Suzuki Motor Corporation 's issued shares on 15 January 2010. Suzuki invested part of the amount received from Volkswagen into 1.49% percent of Volkswagen. In 2011, Suzuki filed a lawsuit at an arbitration court in London requesting that Volkswagen return the 19.9% stake. On 25 May 2010, it was announced that Volkswagen Group, through its subsidiary Lamborghini Holding S.p.A., had acquired
3024-564: The remaining half of Porsche shares for 4.46 billion euros (US$ 5.58 billion) on 1 August 2012 to avoid taxes of as much as 1.5 billion euros, which would have to be paid if the wrap up happened after 31 July 2014. Volkswagen AG purchased the remaining stake in Porsche AG equaling 100% of the shares in Porsche Zwischenholding GmbH, effectively becoming its parent company as of 1 August 2012. Volkswagen AG completed
3087-536: The research from the public domain. On 3 August 2015, Nokia announced that it had reached a deal to sell its Here digital maps division to a consortium of three German automakers— BMW , Daimler AG , and Volkswagen Group, for €2.8 billion. This was seen as an indication that the automakers were interested in automated cars. Volkswagen held a 19.9% non-controlling shareholding in Suzuki between 2009 and 2015. An international arbitration court ordered Volkswagen to sell
3150-446: The same reporting requirements as publicly traded companies. Finally, shares in subsidiaries and joint ventures can be (re)-offered to the public at any time. Firms that are sold in this manner are called spin-outs . Most industrialized jurisdictions have enacted laws and regulations that detail the steps that prospective owners (public or private) must undertake if they wish to take over a publicly traded corporation. That often entails
3213-522: The scandal. In its own financial report for 2023 Volkswagen Group estimated its long, medium and short term debt at 155,6 Billion Euros. It is unclear how Volkswagen group plans to pay off that massive debt considering its falling global vehicle deliveries, planned closure of at least 3 factories in Germany after it previously closed 2 factories in Russia as well as 64% drop in profit for the three months to
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#17327797619203276-819: The stake back to Suzuki. On 17 September 2015, Suzuki paid $ 3.8bn to complete the stock buy-back just hours prior to a major scandal about emissions violations engulfing Volkswagen. Suzuki had wished to buy Fiat diesel engines. In 2021, Volkswagen sold their 55% stake in Bugatti to Rimac Group while transferring the remaining 45% to Porsche AG , forming a joint venture company called Bugatti Rimac . In early 2024, Volkswagen Group began looking for partners among international technology corporations to create AI labs, new digital prototypes of products and functions using artificial intelligence. In October 2024, Volkswagen plans to close at least three plants in Germany and cut jobs, facing challenges from delayed EV investments and
3339-450: The supervisory board of Volkswagen AG approved the acquisition of assets of Karmann, and planned to restart vehicle production at their Osnabrück plant in 2012. In December 2009, Volkswagen AG bought a 49.9% stake in Dr. Ing. h.c. F. Porsche AG (more commonly known as Porsche AG) in a first step towards an 'integrated automotive group' with Porsche. The merger of Volkswagen AG and Porsche SE
3402-428: The turn of the 21st century". Davis argues that technological changes such as the decline in price and increasing power, quality and flexibility of computer numerical control machines and newer digitally enabled tools such as 3D printing will lead to smaller and more local organization of production. In corporate privatization, more often called " going private ," a group of private investors or another company that
3465-472: The war effort. German historians estimated that 80% of Volkswagen's wartime workforce was slave labour. Many of the slaves were reported to have been supplied from the concentration camps upon request from plant managers. A lawsuit was filed in 1998 by survivors for restitution for the forced labour. Volkswagen would set up a voluntary restitution fund. After the war in Europe, in June 1945, Major Ivan Hirst of
3528-521: The war, ownership of the company was in such dispute that nobody could possibly hope to be able to take it over. As part of the Industrial plans for Germany , large parts of German industry, including Volkswagen, were to be dismantled. Total German car production was set at a maximum of 10% of the 1936 car production numbers. The company survived by producing cars for the British Army, and in 1948
3591-409: The would-be buyer(s) making a formal offer for each share of the company to shareholders. The shares of a publicly traded company are often traded on a stock exchange . The value or "size" of a company is called its market capitalization , a term which is often shortened to "market cap". This is calculated as the number of shares outstanding (as opposed to authorized but not necessarily issued) times
3654-681: Was based on transitioning to electric cars , and building a shared platform, battery systems, software and mobility solutions to use across all their brands. This involves creating the Scalable Systems Platform , as well as developing software under a new subsidiary called CARIAD . Volkswagen Group aims by 2024 to transition to selling mostly electric cars. It aims to have six battery factories in Europe by 2030. In 2023, Volkswagen Group announced plans to cut costs by €10 billion ($ 11.1 billion). In February 2024, Volkswagen Group and Chinese electric vehicle manufacturer XPeng signed
3717-679: Was discovered to have used defeat devices to deceive environmental regulators about how much NO x its cars were emitting. The company was fined billions of dollars. Volkswagen Aktiengesellschaft is a public company and has a primary listing on the Frankfurt Stock Exchange , where it is a constituent of the Euro Stoxx 50 stock market index , and secondary listings on the Luxembourg Stock Exchange and SIX Swiss Exchange . It has been traded in
3780-513: Was founded in Berlin in 1937 and incorporated in Wolfsburg to manufacture the car that would become known as the Beetle . The company's production grew rapidly in the 1950s and 1960s. In 1965, it acquired Auto Union , which subsequently produced the first postwar Audi models. Volkswagen launched a new generation of front-wheel drive vehicles in the 1970s, including the Passat , Polo and Golf ;
3843-619: Was never the formal name of the Volkswagen Group. On 30 September 1982, Volkswagenwerk made its first step expanding outside Germany by signing a co-operation agreement with the Spanish car manufacturer SEAT, S.A. To reflect the company's increasing global diversification from its headquarters and main plant (the Volkswagenwerk in Wolfsburg ), on 4 July 1985, the company name was changed again—to Volkswagen Aktiengesellschaft (Volkswagen AG). On 18 June 1986, Volkswagen AG acquired
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#17327797619203906-458: Was operating a plant in Xinjiang at a loss in order to curry favor with the Chinese government to set up more lucrative plants in other parts of China, which Volkswagen denied, saying that the decision to set up the plant in 2012 was purely based on economics. Volkswagen is still operating a plant in the region as of 2020. In 2021, Volkswagen Group released their New Auto strategy. The strategy
3969-612: Was scheduled to take place during the course of 2011. On 8 September 2011, it was announced that the planned merger "cannot be implemented within the time frame provided for in the Comprehensive Agreement". As reasons, unquantifiable legal risks, including a criminal probe into the holding's former management team were given. Both parties "remain committed to the goal of creating an integrated automotive group with Porsche and are convinced that this will take place". On 4 July 2012 Volkswagen group announced they would wrap up
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