History / Background. 1930s • Ferdinand Porsche designed first Volkswagen "Volkswagen" means, literally, "peoples car” 1940s • Beetle - known as Volkswagon Type 1 - economy car - company's signature platform. History / Background. The VW Beetle. History / Background. 1950s
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• Ferdinand Porsche designed first Volkswagen
"Volkswagen" means, literally, "peoples car”
• Beetle - known as Volkswagon Type 1 - economy car
- company's signature platform
The VW Beetle
• 1950 - Type II Volkswagen introduced, originally
known as transporter or bus or camper.
• The Volkswagen Bus, still today known to many as
the "VW Bully".
• Continual growth for about 20 years,sales of Beetle grew,
company's total worldwide vehicle sales past $1 million.
• Employees and dealers from Germany and abroad
celebrate the production of the one millionth Volkswagen
Beetle in Wolfsburg.
• Volkswagen of America (VWoA) was founded. It is the US
subsidiary of the Volkswagen automobile company in
• 1969 high point of Beetle's sales
• Beetle popularity declined in US, importation was discontinued
• Production of Beetle continued into 1990s in Latin America
• Beetle remains the best-selling car of all time
• On February 17th, 1972 Volkswagen breaks the world car
production record,with 15,007,034 units assembled, the Beetle
surpasses Ford Motor Company's Model T, popularly known as
the "Tin Lizzy", between 1908 and 1927.
• 1973 Passat introduced
• 1974 First Golf built
• 1977 Rabbit introduced
• 1979 Jetta introduced -small family car
The "Himalayas Chart"
Changes by Executives
• Executives wanted to break the pattern of sales.
• Began a more proactive approach to developing &
introducing new models (New Golf, New Jetta,
New Passat, & New Beetle).
• Sales rose into the 21st century.
• New brand positioning & effective advertising helped
move VW into competition with other upscale brands.
• Senior Executives began to broaden their view of the
traditional VW Group portfolio of vehicles.
• 2001 VW Group chairman, Dr. Bernd Pischetsrieder
initiated a strategy of diversifying the product offerings
• New diversification strategy would create a portfolio
that matched the global demand for vehicles.
• Pischetsrieder consolidated VW Group automotive
brands into two groups:
– "Classic" - Bentley & Skoda
– "Sporty" - Audi, SEAT & Lamborghini
• Gerd Klauss, VWoA's CEO - Thoughts & Ideas
• If all models proposed in 2002 were approved and
produced, VWoA would grow from importing 9 models in
2002 to over 22 models in 2008.
The Strategic Change
• Instituted an organizational readiness program called
"Next Round of Growth" (NRG)
• VWoA Core Processes and Major Organizational
• Enterprise Goal Ranking for Project Prioritization
• Matulovic is a member of the ELT
• Likely only ELT staff would challenge
• Much work on project's phases reflects his commitment
• BPTO established to tame difficulties with existing
• Matulovic used gedasUSA staff to create a top-level
• Phase 1 ends with IT projects cut from 210 to 170 million
• ELT's team members can vouch for top projects due to
them doing the prioritizing
• Multi-day meetings lead to overnight work which
suprises returning DBC members
• Some members could report project daily status
rankings to their ELT bosses
• Partially funded, multi-year SAP project needs another
year and still little funds
• SAP project tested the outcomes of Matulovic's 3-Phase
• Can Matulovic organize the established units?
• Acronyms: NRG, BPTO, PMO, ITSC, DBC, and ELT
• Groups must scramble to convene and continually vote
to achieve top 3 picks
• Realized that funding the top 3 exceeded budget
• Look for other projects with higher enterprise goals
• Challenge the merit of Matulovic's goal-selection
• Matulovic might need to fold to take on a decision-maker
who comes with ELT's ulterior motives
• Result: return to favortism for ELT pet projects