Volkswagen is a German multinational automaker that was founded in 1937 by the German Labour Front. The German company has been one of the best performing car companies in the world and in 2019, the automaker generated a revenue of US$278 billion. Volkswagen is the second-largest car manufacturing company in the world and has a production output of 10.3 million vehicles! The impressive German company holds the 9th place on the 2019 Fortune 500 list of companies with the highest revenue.
Volkswagen’s top competitors include: Toyota, Ford, General Motors, Hyundai, and Nissan.
How the company makes money
Volkswagen has a great reputation for making top-class high-quality cars. Although the company isn’t considered a luxury brand, their prices are catered to middle and high-class consumers. Their strategy has obviously worked wonders as it is one of the best performing car brands in the world. With a workforce of more than 300,000 employees and 7,700 dealerships worldwide, the German company is a world-class brand.
The global car industry had an estimated worth of US$4 trillion in 2019, one of the most profitable business sectors in the world. The automotive industry is the category that falls under any marketing, distribution, manufacturing, and production of vehicular components. With an estimated 1.4 billion cars on the road around the world, automobiles are one of the most flourishing markets in the world
Volkswagen has always made high-quality vehicles. Their reputation for quality is legendary and their classic cars, like the Beetle, prove it. About 40% of the German company’s revenue comes from China, one of their leading consumers.
Toyota is a Japanese multinational automotive manufacturer and was founded in 1937 by Sakichi Toyoda after producing automatic looms for nearly 13 years. The Japanese company is the largest automotive company in the world and has the history-making achievement of being the first car company to manufacture 10 million cars in a year, something only Volkswagen has managed to reproduce.
The Japanese company currently has the biggest workforce in the automotive industry, with over 350,000 employees and 69 manufacturing locations worldwide. On the Fortune 500 list, Toyota holds the 10th rank, just one place behind Volkswagen. Toyota is one of the best car brands in the world and has a reputation that most car companies could dream of.
Together with being the number one vehicle manufacturer in the world, Toyota also has a great reputation for smaller and mid-sized vehicles. But Volkswagen, despite not having as much operating power, outperforms Toyota in net revenue.
Ford is an American multinational automaker that was founded by American entrepreneur Henry Ford. Every time the Ford Motor Company is mentioned, Henry Ford’s contribution to the automaking industry must always be reestablished. The American entrepreneur revolutionized the car industry in the early 1900s and invented factory lines, one of the brilliant ways he was able to mass-produce vehicles.
As of 2019, Ford generated a total revenue of US$155 billion and holds the 12th place in the Fortune 500 list. The American brand is one of the United States’ finest and has a long reputation for making high-quality performing sturdy cars. Ford trucks are one of their best-selling products.
When you think of pick-up trucks and large vehicles, most people would think of Ford or General Motors. The American company has one of the best track records when it comes to the quality of their vehicles, most especially their trucks. Volkswagen has the upper hand with smaller and mid-sized vehicles in sales, as well as the Chinese market which has a huge impact on their annual revenue.
Initially founded as a holding company in 1908 by William C. Durant and Charles Stewart Mott, General Motors has significantly changed through time and for the better. The American multinational corporation is one of the largest automobile manufacturers in the World, with a production volume of 6.8 million. Together with the other car brands they own, the company produces 9 million vehicles annually.
General Motors owes a lot of its success to the twelve premium car companies they currently own under their corporation. The American company generated a total revenue of US$137 billion as of 2019. Just like the other car companies, General Motors ranks among the highest in the Fortune 500 list holding 13th place.
Contending with a great reputation for high-quality and great performing vehicles, General Motors is also one of America’s biggest brands. However, where Volkswagen always seems to win is in their Chinese sales which all competing car companies can’t seem to compete against.
Hyundai is a South Korean car company that is part of a larger conglomerate called the Hyundai Motor Group. The Korean Conglomerate is the world’s third-largest vehicle manufacturer by production volume with a production output of over 7.2 million vehicles. Hyundai Motors formed when the Korean company bought over 50% of their Korean rival, Kia Motors in 1998.
As of 2019, Hyundai operated in over 193 countries and has a massive workforce of over 260,000 employees. The previous year, the Korean company generated a total revenue of US$224 billion in sales. One of the best safety performing brands in the world, Hyundai also makes its name for having high-rated quality cars.
However despite being one of the best car manufacturers in the game, Hyundai has long operated against the general public’s misconceptions about their brand, like supposedly being prone to breaking down. While Hyundai struggles with their public image, Volkswagen continues to shine in the limelight.
One of Japan’s most famous brands, The Japanese multinational automobile manufacturer was founded in 1933 by Masujiro Hashimoto. Nissan would later become a contender for one of the world’s leading automakers. The Japanese company is the sixth-largest vehicle manufacturer in the world. As of 2019, Nissan generated a total of US$101 billion in total revenue.
Nissan employs over 138,000 employees, which is impressive considering they manufacture 5.7 million vehicles annually. Nissan has always had a reputation for high-quality vehicles and has managed to be one of the safest brands in the world, with multiple five-star crash test ratings across multiple products.
Small SUVs, mid-sized vehicles, Nissan has been known for the competitive quality in their products as well as their impressive variety of vehicles. However, Volkswagen has a great advantage in their pricing and targeting consumers with the least competitors like China and the middle to upper-class.
The top 5 Volkswagen direct competitors are: Toyota, Ford, General Motors, Hyundai, and Nissan. Together these companies employ 1.1 million people worldwide, with Volkswagen employing only 304 thousand people and ranked 1st among Volkswagen’s Top 5 competitors in total revenue. The top 5 competitors average about 222 thousand employees.
VOLKSWAGEN COMPETITORS STATS
|NAME||FOUNDED||HEADQUARTERS||NO. OF EMPLOYEES|
|Toyota||1937||Toyota City, Japan||359,000|
|Hyundai||2000||Seoul, South Korea||262,000|
|General Motors||1908||Detroit, Michigan, U.S.||164,000|
|Ford||1903||Dearborn, Michigan, U.S.||190,000|
|Nissan||1933||Nishi-ku, Yokohama, Japan||138,000|