Volkswagen Operations Strategy

Product Design

In 1945, a rare and curious Volkswagen car was shipped from its bomb-damaged German factory to England. Here, a commission of leading British motor manufacturers inspected the small car. It would be “quite unattractive to the average motorcar buyer”, the commission reported. “It is too ugly and noisy”, while “to build the car commercially would be a completely uneconomic enterprise.” The commission was mistake, however, and the Volkswagen Beetle, with its friendly styling by the Austrian designer Erwin Komenda, and innovative engineering by Ferdinand Porsche, became the best-selling car of all time.

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Production of the Beetle outstripped that of Henry Ford’s Model-T when the 15,007,034th car rolled off the line at Wolfsburg in 1972. As its name made clear, the Volkswagen was truly a ‘People’s Car’. Ultimately, the sheer quality, along with the affordability, reliability, economy and distinct look and feel of the Beetle, ensured its success. Sold to the United States in a brilliant ‘Think Small’ advertising campaign launched in 1959 and devised by the New York agency Doyle Dane Bernbach, the Beetle became the biggest selling foreign-made car in America throughout the ’60s.

Now days VW Beetles incorporated many new features such as:

• Heated power side mirrors: Even the side mirrors on a Beetle can bring the heat. If the fog start, it will help the driver to have a clear view.
• LED taillights: The available LED taillights have been styled with precise contours that perfectly flow with its design lines. The bright illumination can also help cars behind you know that the driver is applying the brakes.
• Iconic design: Taken its iconic look to the next level. The Beetle unites classic styling and modern technologies.
• Panoramic sunroof: See the brighter side of life while driving, opening the sunroof lets the driver enjoy the sunshine.
• Bi-Xenon headlights: Available Bi-Xenon headlights with sleek LED Daytime Running Lights boost a longer life and use less energy. It’s a really bright side to this headlight story
• 17- and 18-inch alloy wheels A Beetle this distinctive needs wheels to match. The available designs are perfectly matched to this time machine. (https://www.vw.com, 2017)

Operations Strategy

VW have introduced a new strategy that facing ever challenging industry, strategy 2025 focused on many important aspect of any car makers challenges such as:

• Flatter hierarchies or horizontal organization to establish a communication channel between staff and executives.
• A fundamental change, which means a change on the basic level of Volkswagen.
• More autarchy of Volkswagen’s 12 core brands.
• Lower cost cars, to compete against the Japanese and Korean car makers.
• Lower costs and higher profits, lowering the cost of operation to generate more profit.
• Electrification, more electric car to produce, and to develop the technology needed to support the expansion of Hybrid and Full Electrical Cars.
• Digitalization and connectivity, by eliminating the old fashion way of paper documentation, and to improve the communication by using latest technology in this field.
• Volkswagen as a mobility company. (Schmitt, 2016)

VW have categorized the main Initiatives for Strategy 2025 as follow: