Report for Volkswagen Company in Germany & China

Running Head: REPORT FOR VOLKSWAGEN COMPANY, GERMANY & CHINA 1
REPORT FOR VOLKSWAGEN COMPANY, GERMANY & CHINA
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Table of Contents

REPORT FOR VOLKSWAGEN COMPANY, GERMANY & CHINA 2
1.0 BUSINESS OVERVIEW..........................................................................................................4
2.0 PURPOSE OF THE REPORT...................................................................................................5
3.0 ANALYSIS OF THE MARKET STRUCTURE- GERMANY & CHINA..............................5
3.1 GERMANY...........................................................................................................................5
3.2 CHINA...................................................................................................................................7
4.0 MACROECONOMIC INDICATORS- GERMANY & CHINA..............................................8
5.0 ANALYSIS OF THE MONETARY AND FISCAL POLICY...............................................16
6.0 ANALYSIS OF FOREIGN TRADE POLICY INSTRUMENTS..........................................17
7.0 REFERENCES........................................................................................................................18
LIST OF FIGURES

REPORT FOR VOLKSWAGEN COMPANY, GERMANY & CHINA 3
FIGURE 1.1: GDP GROWTH RATE, CHINA & GERMANY
FIGURE 1.2: GDP CONSTANT-PRICE, CHINA & GERMANY
FIGURE 1.3: INFLATION RATES, CHINA & GERMANY
FIGURE 1.4: UNEMPLOYMENT RATES, CHINA & GERMANY
FIGURE 1.5: GENERAL GOVERNMENT BALANCES, CHINA &GERMANY
FIGURE1.6: BALANCE OF PAYMENTS, CHINA & GERMANY

REPORT FOR VOLKSWAGEN COMPANY, GERMANY & CHINA 4
1.0 BUSINESS OVERVIEW
Volkswagen is a major automobile manufacturer in Germany which was founded by the
government of Germany in the year 1937 to facilitate massive production of low priced people’s
vehicles. The headquarters of this company is in Wolfsburg in Germany. Originally, the
company was operated by German Labour Front (Deutsche Arbeitsfront). Ferdinand Porsche, the
original designer of the Volkswagen cars had been hired in the year 1934 from Australia by the
German Labour Front and left in the year 1938 to a new factory in Lower Saxony state. The
1939 outbreak of World War II occurred before the company picking up fully and that saw it
repurposed for production of military equipment and vehicles. Its military involvement, however,
acted as a disadvantage to it by making it a target for Allied bombers and by the time war ended,
it had been left in a devastated condition (Wei, Zhao,Wang, Cheng & Zhao, 2016). Later, it was
rebuilt by the British and mass production began in 1946. In 1949, the company control was then
transferred to West German government and Lower Saxony state. By that time, it had picked
because most of the passenger cars which were being produced within the country were
Volkswagens. Since the 1950s to today, the company production has been expanding rapidly
than any other automotive company in the country. This can be affirmed from its brands like
Audi and others like Porsche which have currently hit the market creating a lot of interest. Its
expansion has seen it establish branches in different countries like China as it will be seen
beneath (BoydUniversity, 2015).
History has recorded Volkswagen as the first German automobile company that entered
the Chinese market after opening policy and reforms were established. The company is recorded
to have entered the Chinese market through the joint venture of the two Chinese owned
enterprises, Changchun and Shanghai. The company has been considering doing well in China