Overview of Automobile Company

Describe about the Automobile Company for Commercial Design and Distribute.

Generally, an automobile company primarily is the organization that manufactures design and distribute commercial as well as passenger vehicles in the market. An automobile is also provides and designs turbomachinery, engines, motorcycles, cards, and other passenger and commercial vehicles. Moreover, it is also found that, million vehicles including cars, bus, motorcycle, are produced and designed by the automobile company. Moreover, automobile company is also sells different products including vehicle parts, accessories, engines etc in the different nations. Moreover, an automobile company develops its unique image in the eyes of global consumers by using cost leadership strategies that helps in improving the market share in the international market. Apart from this, it is also important to know that, in order to produce and sell products its products, automobile company is use customer friendly business strategies and practices. Finally, it can be said that, all these things helps an automobile company to gain maximum market share (Jalopnik 2015).        

In the current time, VOLKSWAGEN is one of the leading, most profitable, biggest and market leader in the global Automobile business sector. In addition to this, it is found that, it is the largest automaker company of Germany in term of total market share, revenues, sales, level of profitability. Moreover, it is also important to know that, VOLKSWAGEN was founded by German Labour Front in the year 1937 at Wolfsburg, Germany. It is also the largest provider and producers of luxury models at affordable prices worldwide. According to the financial report of the company, the total revenues of the company are 245 billion USD.

Additionally, it is the world’s second biggest manufactures of vehicles after the Toyota (Volkswagen Group, 2016). Along with this, by producing a wide range of vehicles at the most affordable and low cost, the company had maintained the largest market share in Europe. For case, according to the Fortune Global 500 list of 2016, the company is the market leader in the Automobile sectors. The main passenger cars sold by the company worldwide are Bentley, Audi, Porsche, SEAT, Lamborghini, Porsche etc. On the other hand, the commercial products/ vehicles are sold by the company under the marques MAN, Neoplan, Scania etc (Green, 2008). Along with this, it has more than 340 subsidiary organizations in the different countries. Furthermore, the automobile business operations of the company have in more than 150 nations with approximate 100 production units/ facilities. It is also the world’s most trusted auto brand that produces new designs of vehicles based on the technology. Finally, it can be said that, the company VOLKSWAGEN is well known in the global world for its quality and innovative vehicles. This had helped the company to compete in the automobile sector effectively (Volkswagen, 2016).  At the same time, it is also accessed that, there are various service centers, branches and offices are also established by the company at the different location of the global world.               

Volkswagen: A Global Leader in Automobile Industry

Volkswagen Australia Ltd was established and developed in the year 1957 in order to provide low cost passenger and commercial vehicles. Moreover, the founder of the company was Volkswagen AG of Germany and different distributors of the Australia. In addition to this, for the purpose to expand and grow the business in Australia, the company acquired the vehicle assembly facilities of Martin & King at Clayton in Victoria. In the year, 1957, Volkswagen (Australasia) Pty Ltd was formed in the nation. After some years, the 100,000th Volkswagen was produced in Australia. Moreover, in the year, the company had launched its official website in the country (Volkswagen Australia, 2016).

In addition to this, it is also accessed and found that, Country Buggy was developed by the company as a unique model in the Australia in 1967. Moreover, the company had maintained its total market share in the Australia in order grows. In the current time, Volkswagen is selling more than 14 different models within the Australian automobile sector. In the current time, it is the most selling vehicle company in the Australia. On the other hand, it is also analyzed that, the company is also providing, designing and producing a lot of brands within innovative models in the country in order to satisfy the Australian customers effectively. Moreover, both types of vehicles provided by the company are highly innovative with unique deigns (Volkswagen Australia, 2016).

In the current time, Volkswagen, Australia has strong business operations in the country. Based on the customer feedbacks, and reputation of the company in the Australian market, it is found that, there are a lot of serious issues/problems/challenges are faced and encountered by the Volkswagen in Australia (Kennedy, 2012). These issues negatively affected the success, profit level, market share, profitability and reputation of the company. For example, the company had failed to follow ecological and environmental standards and rules. Moreover, the rules, regulations and laws of the Australian Automobile industry were not properly and effectively followed and applied by the company in the Australia that create several legal and political issues in the front of the company Volkswagen (Kapferer, 2012).

On the other hand, in the Australia, issues related with the labor laws and minimum wages are also encountered by the Volkswagen in Australia that developed negative image of the company in the front of customers. Moreover, it is also found that, the company had failed to fulfill its corporate social responsibilities related functions in the market (Sercu, 2009). For case, the CSR functions were not effectively and properly achieved by the company in the Australia. Along with this, it is also important to know that, several issues or challenges with regards to quality of engines and vehicles are also faced by the Volkswagen in Australia. For instance, due to offering of number of vehicles, Volkswagen, Australia had failed to maintain the level of quality standards. All these issues not only affected the business performance and market share of the company negatively but also created negative it image in the front of internal and external stakeholders (Smith, 2013).

Volkswagen’s Operations in Australia

Recently, it is admitted by the Volkswagen Australia that more than 91,000 vehicles are sold by the company with emissions-masking software in the Australian market. Due to this, several passengers and commercial vehicles are recalled. The software, designed to mislead emissions tests, has caused a global scandal for Germany’s largest automaker. The consumer watchdog of Australia is trying to investigate and analyze this issue. The company is founded guilty so strict legal actions costing would be taken soon for making misleading claims. In the same way, it can be said that, disappointments of the programmed transmission (known as DSG, or direct move gearbox) are high on the rundown of protestations, with a few proprietors asserting they’ve been compelled to pay up to $8000 for repairs. Numerous are stating they won’t purchase another Volkswagen accordingly (Hagon, 2013). Overall, it can be said that, various serious challenges and issues are faced and encountered by Volkswagen in Australia.     

On the basis of above identified issues and challenges faced by Volkswagen in Australia, it is suggested and recommended to the company that it should focus on adopting innovative, specific and dynamic business strategies and methods. For example, it is suggested to the company that, the company should adopt, apply and follow the rules, laws and regulations of the Australian automobile sector proposed by the government properly and accurately. Additionally, the company should develop innovative policies to deal with the political and legal issues and also follow the labor laws in an effective and proper manner (Watanabe, 2009).

On the other hand, the importance of CSR should be understood by the company and its management and try to fulfill such functions ethically and professionally. At the same time, the company must also follow and adopt the quality standards in designing and producing of their vehicles and maintain the quality of their brands effectively (Berger & Luckmann, 2011). Along with this, it is also suggested to the company that, it should try to manage the issues related to DSG GEARBOX and other challenges by using strategic business strategies in order to reduce the dissatisfaction of the customers effectively. Moreover, before launching any vehicles in the market, the company Volkswagen should cross check different aspects related to vehicle safety, security etc. Hence, it can be recommended to Volkswagen that all these strategies must be used effectively (Jalopnik, 2015).     

Conclusion

Based on the above facts and analysis, it is concluded that, Volkswagen is second largest automobile company that sells and design both passenger and commercial vehicles in the global world. In addition to this, it is also found that, Volkswagen is a multinational company of Germany that providing a lot of vehicle with different brands. Additionally, Volkswagen was come into the Australian automobile industry in the year 1957 to offer the quality vehicles. In addition to this, it is also concluded and summarized that, in the Australian market, different kinds of serious issues/problems and challenges are faced by the company that created negative image and reduce the level of profit and market share directly. Finally, it can be said that, it should adopt specific business strategies and ways to deal with such issues.

References

Berger, P. & Luckmann, T. (2011). The Social Construction of Reality: A Treatise in the Sociology of Knowledge. Australia: Open Road Media.

Green, D. (2008). From Poverty to Power: How Active Citizens and Effective States Can Change the World. UK: Oxfam.

Hagon, T. (2013). Failure to fix issues worse than damage of recall. Available at: https://www.drive.com.au/motor-news/failure-to-fix-issues-worse-than-damage-of-recall-20130531-2nha9.html {Accessed on: 21 Sept, 216}.

Jalopnik (2015). JalopnikÕs Book Of Car Facts And History Even Gearheads DonÕt Know. Australia: Gawker Media Group.

Kapferer, J.N. (2012). The New Strategic Brand Management: Advanced Insights and Strategic Thinking. USA: Kogan Page Publishers.

Kennedy, C. (2012). The World Beneath. USA: Atlantic Books Ltd.

Sercu, P. (2009). International Finance: Theory into Practice. Australia: Princeton University Press.

Smith, R.D. (2013). Strategic Planning for Public Relations. UK: Routledge, 2013

Volkswagen (2016). Our Models. Available at: https://en.volkswagen.com/en/models.html {Accessed on: 21 Sept, 216}.

Volkswagen Australia (2016). About Us. Available at: https://www.volkswagen.com.au/en/company/volkswagen_australia/volkswagen-in-australia.html {Accessed on: 21 Sept, 216}.

Volkswagen Group (2016). About Us. Available at: https://www.volkswagenag.com/content/vwcorp/content/en/homepage.html {Accessed on: 21 Sept, 216}.

Watanabe, K. (2009). Problem Solving 101: A Simple Book for Smart People. Australia: Portfolio.