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U W
Annual Report
1993 Not for
Publication
before March 25,1994
o
> Volkswagen
Seat
Skoda
Audi
Key Figures
Volkswagen Group Volkswagen AG
1993 1992 % 1993 1992 %
Sales DM million 76,586 85,403 - 10.3 42,949 53,182 - 19.2
Vehicle Sales Units 2,962,159 3,432,631 - 13.7 1,402,953 1,876,134 -25.2
Production Units 3,018,650 3,499,678 - 13.7 1,240,124 1,657,605 -25.2
Workforce Average over year
(excluding trainees) 253,108 273,309 - 7.4 111,901 122,749 - 8.8
Capital Investments DM million 4,840 9,254 - 47.7 1,793 4,063 -55.9
Additions to Leasing
and Rental Assets DM million 5,438 6,139 - 11.4
Cash Flow
excl. Leasing/Rental Assets DM million 4,556 7,004 - 35.0 4,349 4,814 - 9.7
incl. Leasing/Rental Assets DM million 9,993 12,079 - 17.3
Depreciation and Write-Down DM million 4,917 5,037 - 2.4 4,507 3,240 + 39.1
Depreciation on Leasing
and Rental Assets DM million 3,012 2,758 + 9.2
Loss/Net Earnings DM million - 1,940 147 X 71 132 -46.3
Dividend of Volkswagen AG DM million 67 66 + 0.5
of which on Ordinary Shares DM million 54 54 -
Preferred Shares DM million 13 12 + 2.6
Production figures
Volkswagen 1993 1992 Audi 1993 1992 North America 1993 1992
Golf 725,191 914,178 Audi 80 214,194 319,370 Beetle 86,613
98,321
Passai 216,097 326,853 Audi 100* 110,239 150,564 Jetta (Vento) 79,517 53,241
Vento 133,309 100,118 Audi Convertible 9,603 9,855 Golf 49,351 35,137
Caravelle, Kombi 74,681 97,237 Audi Coupé/quattro 5,481 9,265 828
Corrado 8,623 16,085 Audi V8 1,439 3,031 Caravelle, Kombi
Jetta 3,912 5,592 11,060 12,490
340,956 492,085
LT-Kombi 1,232 1,914 Transporter
Polo 0 84,268 239,077 188,449
Seat 1993 1992
Scirocco 0 3,317
Polo 176,327 222,222 South America/Africa 1993 1992
Transporter 55,098 78,847 Ibiza 142,987 112,334 Gol 207,478 153,715
LT 13,077 16,030 Toledo 90,533 144,205 Voyage, Gacel, Parati 80,860 87,326
Taro, Hilux 8,904 11,598 Marbella 33,216 74,637 Passat 38,905 31,252
Caddy 0 1,645 Cordoba 19,289 0 Jetta (Vento) 21,563 19,946
1,240,124 1,657,682 Golf 20,518 15,469
Terra 10,626 25,034
Logus, Pointer, Apollo 44,068 10,093
112,000 vehicles - incl. 11,000 from CKD sets - were
472,978 578,432 Caravelle, Kombi 29,686 19,796
produced by the companies of the Asia Pacific Region Beetle 6,389 0
consolidated at equity. Skoda 1993 1992 Audi 100/200 1,760 2,618
•Including assembly kits for Volkswagen Favorit 127,101 118,714 Audi Coupé 78 36
of South Africa. Forman 72,295 64,516
Voyage Saveiro 33,760 27,070
Pick-up 20,216 16,829 Transporter 10,959 10,280
VW trucks 6^353 3,333
219,612 200,059 Gol Furgao 2,947 3,868
Omnibus 1,313 0
Golf pick-up 856 857
507,493 385,659
This version of the Annual Report is a translation from the German original. The German text is authoritative.
S S ^ M U finanCial S t a t e m e n t S °f t h e Volkswagen Group, the management report of the Volkswagen Group and Volkswagen AG and other infor-
The financial statements of Volkswagen AG will be published in the Bundesanzeiger and submitted to the Register of Companies at the Wolfsburg District Court Copies of
the financial statements are available free of charge from Volkswagen AG, Finanz-Publizität und Statistik, 38436 Wolfsburg Germany. 9 Stn°T M
Annual Report 1993 Volkswagen Seat Skoda Audi
Launched in 1991, the Toledo is
Seat's first middle-range model
it
Table of Contents
Supervisory Board 4 Report of the Supervisory Board
and Board of Management
6 Letter to Stockholders
8 Supervisory Board and Board of Management
9 Marque Management Bodies
Report of the 12 Management Report: Volkswagen Group
Board of Management and Volkswagen AG
Information 20 The Major Companies within the Volkswagen Group
about the Fiscal Year
22 Volkswagen
32 Audi
38 Seat
42 Skoda
46 North America Region
48 South America/Africa Region
50 Asia Pacific Region
52 Financial Services
56 Personnel
60 Research and Development
64 Environmental Protection
66 Communication
68 The Volkswagen Share
70 Finance
Financial Statements of the 74 Balance Sheet
Volkswagen Group
for 1993 75 Statement of Earnings
76 Notes on the Financial Statements
88 The Volkswagen Group
in Figures
3
Report of the Supervisory Board
Dr. Klaus Liesen The Board of Management provided the After five years as a member, Mr. Rolf
Supervisory Board with comprehensive Diel resigned from the Supervisory Board
regular reports about the situation of the on June 30, 1993. Dr. rer. pol. Bernd W.
Company, business trends and corporate Voss was appointed by the Wolfsburg
policy during 1993. Measures of particular District Court to succeed him.
importance or requiring the Supervisory
Board's prior approval by law or under the Mr. Franz Steinkühler resigned from the
Company's Articles of Association were Supervisory Board, to which he had
discussed in detail at Supervisory Board belonged for six years, on September 30,
meetings. The Supervisory Board contin- 1993. The Wolfsburg District Court subse-
uously monitored the Company's manage- quently appointed Mr. Klaus Zwickel to
ment on the basis of the written and oral the Supervisory Board with effect from
reporting by the Board of Management October 21,1993. At its meeting on
and was thus able to perform in full this November 26, 1993 the Supervisory
function assigned to it by law. Board elected Mr. Zwickel to the post of
Deputy Chairman.
The financial statements for Volkswagen
AG and the Group as at December 31, The Supervisory Board would like to thank
1993, along with the 1993 Management Mr. Mihr, Mr. Hoffmeister, Mr. Diel and
Report for Volkswagen AG, the Group Mr. Steinkühler for their many years of
Management Report for the fiscal year valuable service and their untiring
1993 and the accounts, were examined by dedication.
the auditors and approved without qualifi-
cation. The Supervisory Board accepts the Volkswagen lost an outstanding figure on
results of this audit. May 9, 1993 with the death of Mr. Alex-
ander Kowling, a man whose leadership
The Supervisory Board's examination of qualities, integrative skills, imagination and
the financial statements, the Management consideration for others will be greatly
Report and the proposal regarding appro- missed. Mr. Kowling had been with the
priation of net earnings available for distri- Volkswagen Group since 1969. Having
bution gave rise to no objections. The worked successfully in the field of human
Supervisory Board approves and therefore resources for many years, he was
confirms the financial statements and appointed to the Volkswagen Manage-
approves the proposal put forward by the ment Body in January 1991, assuming
Board of Management regarding appro- responsibility for Human Resources, and
priation of net earnings available for distri- became a member of the Board of Man-
bution. agement of Volkswagen AG, with respon-
sibility for the same area, on January 13,
Having been requested by the Supervisory 1993. The Volkswagen Group is deeply
Board to establish whether any confiden- indebted to Mr. Kowling for all that he
tial GM/Opel documents or data were accomplished over the years. We shall
passed to or used by Volkswagen, KPMG always honour his memory.
Deutsche Treuhandgesellschaft
conducted its own detailed investigation With effect from June 2, 1993 the Super-
and found no evidence whatsoever that visory Board temporarily assigned respon-
Volkswagen had been passed, was in sibility for the field of Human Resources
possession of or had used such docu- on the Board of Management of Volks-
ments or data. wagen AG to Dr. jur. Jens Neumann, who
subsequently held this post until
Mr. Karl Heinrich Mihr and Mr. Albert September 30, 1993.
Hoffmeister, who had been members of
the Supervisory Board for twenty years Mr. Daniel Goeudevert, Deputy Chairman
and sixteen years respectively, retired of the Board of Management of Volks-
from the Board at the end of the Annual wagen AG and Chairman of the Volks-
Meeting of Stockholders on June 3, 1993. wagen Management Body, left the
Their places on the Supervisory Board Company by mutual agreement on July 31,
were taken by Mr. Gerhard Kakalick and 1993. The Supervisory Board would like to
Dr. jur. Manfred Pilgrim. thank Mr. Goeudevert for his commitment
to the Company's interests. The chair-
manship of the Volkswagen Management
Body has now been assumed by Dr. techn.
h. c. Dipl.-lng. ETH Ferdinand Piëch.
been assumed by the Chairman of the
Board of Management of Volkswagen AG,
Dr. Piëch. Excepted from this arrange-
ment is responsibility for auditing in
connection with the matter pending
between GM/Opel and Volkswagen,
which has been assigned to the new
Board of Management member respon-
sible for Human Resources.
Mr. Juan Antonio Diaz Alvarez, Chairman
of the Board of Management of SEAT,
S.A. and member of the Board of Manage-
ment of Volkswagen AG, left the
Company on September 30, 1993 by
mutual agreement.
After more than twenty-two years on the
Board of Management of Volkswagen AG,
Dr. Frerk retired from his post on
December 31, 1993. The Supervisory
Board would like to express its sincere
thanks to Dr. Frerk for all that he achieved
during his many years with the Company.
Dr. Klaus Liesen
Chairman of the Supervisory Board
At its meeting on September 3, 1993 the AG from September 3, 1988 to March 16,
Supervisory Board appointed Mr. Peter 1993 and was subsequently responsible
Hartz, with effect from October 1, 1993, for Research and Development on the
to the post on the Board of Management Volkswagen Management Body.
of Volkswagen AG carrying responsibility
for Human Resources. Mr. Hartz has also The area of responsibility covered on the
assumed responsibility for the area of Board of Management by Dr. jur. Peter
Human Resources on the Volkswagen Frerk was restructured with effect from
Management Body. September 3, 1993. Responsibility for
Legal Matters and Economics remained
Prof. Dr.-lng. Ulrich Seiffert was appointed with Dr. Frerk until the end of the year and
to the Board of Management of Volks- passed to Dr. Neumann on January 1,
wagen AG with effect from September 3, 1994. The post held by Dr. Neumann on
1993. This appointment was made in the the Board of Management is now desig-
light of the increasingly global nature of nated as covering "Group Strategy, Legal
the Volkswagen Group's development Matters and Organization". Dr. Neumann
activities, which necessitates supervision is also responsible for the field of Orga-
of overall product development. Professor nization and Systems on the Volkswagen
Seiffert had previously been a member of Management Body. Responsibility for
the Board of Management of Volkswagen Auditing and Government Relations has
5
Dear Stockholder, This situation prompted the Board of
Management to reach agreement with the
In past years the unquestioning assump- trade union on the introduction of a four-
tion that the future would bring contin- day working week accompanied by wage
uous growth encouraged the automobile and salary adjustments. This move is
industry to pursue expansion strategies intended to safeguard jobs and ensure
entailing large-scale investment. It is quite that there will be no compulsory redun-
clear today, however, that this way of dancies at Volkswagen AG in the next two
thinking no longer holds good. Only years.
companies capable of manufacturing top-
quality customer-oriented products at low We were able to achieve major progress
cost and marketing them at a reasonable during 1993 in further enhancing the
price will be able to emerge successfully quality of the models produced by all four
from the current recession and structural Group marques. The quality standard exhi-
crisis with good prospects for future bited from the outset by the new models
growth and earnings. launched last year was in particular con-
siderably higher than that displayed by
The Volkswagen Group lost no time in previous models at the same stage. To
radically restructuring its strategy to take ensure that in future we have an edge
account of the changed economic situa- over the competition, we have designated
tion. Rather than thinking solely in terms certain areas of individual Group compa-
of market shares and sales figures, we are nies as "Centres of Excellence", which
now focusing greater attention on produc- are intended to serve as models for the
tivity, quality and progress towards achie- corresponding areas at other Group
ving a sustained increase in earning companies. The basic idea behind this
power. Volkswagen is tackling these areas policy is that the know-how available
with the aid of a comprehensive within a particular Group company should
programme aimed at improving cost struc- also benefit the rest of the Group. The
tures. Key elements of this programme decisive criterion for a Centre of Excel-
are measures to further lower non- lence is the standard achieved by compa-
personnel overheads, continuously reduce rison with our competitors on the world
component diversity, cut material costs market. Three Centres of Excellence have
and above all improve production opera- already been created and others will
tions by introducing "lean" processes follow.
within the framework of the "Continuous
Improvement Process" (CIP2). These In addition to pursuing the strategic goals
steps have already led to significant set out above, we shall continue to devote
improvements in productivity, quality and our innovative skills to developing new
other areas such as material in process products for customers all over the world
and lead times. In addition to curtailment and in so doing also move into segments
and postponement of investments in the of the market in which we have hitherto
automobile sector - with the exception of not been represented. All measures
investments in product development - the aimed at optimizing the added-value chain
package of measures also involves cuts in are not an end in themselves, but are
the workforce, which have been realized intended to benefit the customer by en-
without social hardship by means of a suring that we can offer high-quality,
recruitment freeze, voluntary redundan- reasonably priced and reliable products.
cies and early-retirement schemes.
All in all, I am firmly convinced that our
Despite the sharp decrease in the work- endeavours will be crowned with success.
force, it became apparent that as a result The same goes for the efforts of our
of the productivity-boosting measures suppliers, with whom we work in close
implemented by Volkswagen during 1993 cooperation so that they too can further
and the continuing absence of an upward enhance their productivity and quality
trend on the automobile markets we shall standards.
still have around 30,000 employees more
than are actually needed in 1994 and
1995.
Yours sincerely,
Ferdinand Piëch
We therefore hope that you as Volks-
wagen AG stockholders will continue to
place your confidence in us so that we
can not only emerge from the current
recession and structural crisis in a
stronger competitive position but also
realize our goal of making Volkswagen the
most successful vehicle manufacturer in
the coming years where quality, produc-
tivity and earning power are concerned.
Against the background of the generally
difficult situation, Volkswagen AG was
able to close the fiscal year with a profit
enabling us to pay - as for 1992 - a divi-
dend of DM 2 on both ordinary and
preferred shares.
7
Supervisory Board and Board of Management Marque Management Bodies
Board of Management of
Supervisory Board Volkswagen AG Volkswagen Seat Skoda Audi
Dr. jur. Klaus Liesen (62) Dr. jur. Dr. rer. pol. Bernd W. Voss (54) Dr. techn. h. c. Dipl.-lng. ETH Dr. techn. h. c. Dipl.-lng. ETH Dr. Juan Llorens Carriö (59) Ing. Ludvik Kalma (52) Dr. techn. Herbert Demel (40)
Essen Otto Graf Lambsdorff (67) Frankfurt Ferdinand Piéch (56) Ferdinand Piéch (56) Chairman of the Board of Chairman of the Board of Spokesman of the Board of
Chairman Düsseldorf Member of the Board of Man- Chairman Chairman of the Volkswagen Management of SEAT, S.A. Management of SKODA, Management of AUDI AG,
Chairman of the Board of President, Deutsche Schutz- agement of Dresdner Bank AG (since January 1, 1993) Management Body November 4, 1993 automobilová a. s. Marketing and Sales
Management of Ruhrgas AG vereinigung für Wertpapierbe- July 22, 1993 Member of the Board of August 1, 1993 April 16, 1991 (since February 4, 1994)
July 2, 1987* sitz e.V. (German stockholders' Management Prof. Dr.-Ing. Technical Development
association) Dr. rer. pol. Ulrich Weiss (57) April 10, 1992 Peter Hartz (52) Peter Walzer (56) Volkhard Köhler (50) March 1, 1993
Klaus Zwickel (54) July 2, 1987 Frankfurt Peter Hartz (52) Human Resources Deputy Chairman of the Board Deputy Chairman
Frankfurt Member of the Board of Man- Human Resources October 1, 1993 of Management of SEAT, S.A. Commercial Affairs Jürgen Gebhardt (49)
Deputy Chairman Dr. jur. Manfred Pilgrim (52) agement of Deutsche Bank AG October 1, 1993 (since May 5, 1993) April 16, 1991 Production
Chairman of the Metalworkers Wolfsburg June 30, 1988 Bruno Adelt (54) Technology and Engineering February 1, 1993
Union Senior Executive of José Ignacio López
de Arriortúa (53) Controlling and Accounting November 1, 1990 to Dr. jur. Pavel Novácek (45)
October 21, 1993 Volkswagen AG Changes on the Supervisory August 1, 1992 May 4, 1993 and since Human Resources Andreas Schleef (50)
June 3, 1993 Production Optimization and
Board: March 2, 1994 April 16, 1991 Human Resources
Josef Bauer (54) Procurement
Dr. jur. Jens Neumann (48) March 27, 1985
Ingolstadt Dr. -Ing. E. h. Günther March 16, 1993
Rolf Diel (71) Organization and Systems Detlev Schmidt (49) Detlev Schmidt (49)
Member of the Works Saßmannshausen (63) Düsseldorf Dr. jur. Jens Neumann (48) September 3, 1993 Sales Sales Erich Schmitt (47)
Committee of AUDI AG Hanover Former Chairman of the Group Strategy, Legal Matters January 1, 1994 July 1, 1991 Purchasing, Finance and
July 2, 1987 Chairman of the Supervisory Supervisory Board of and Organization Herbert Schuster (52) Organization
Board of Deutsche Bahn AG Dresdner Bank AG January 1, 1993 Development Roland Schober (42) Dr. -Ing. Gerald Weber (44) November 25, 1992
Dr. rer. pol. Carl H. Hahn (67) July 2, 1987 June 30, 1988 to June 30, 1993 Dr. jur. Martin Posth (50) September 3, 1993 Finance Technology and Engineering
Wolfsburg Asia Pacific September 1, 1993 June 7, 1991 Changes on the Board of
Former Chairman of the Board Dr. rer. pol. Albert Hoffmeister (65) (since January 13, 1993) Folker Weißgerber (52) Management of AUDI AG:
of Management of Friedrich Schiefer (54) Wolfsburg Human Resources Production Changes on the
Volkswagen AG Munich Senior Executive of August 1, 1988 to January 13, (since March 16, 1993) Seat Management Body: Franz-Josef Kortüm (43)
January 1, 1993 Member of the Board of Volkswagen AG 1993 Deputy, Production and Chairman of the Board of
Management of July 5, 1977 to June 3, 1993 Logistics Juan Antonio Management of AUDI AG,
Robert Bosch GmbH Dr. rer. pol.
Wilhelm Hemer (50) December 1, 1991 to Diaz Alvarez (55) Marketing and Sales
July 4, 1991 Werner P. Schmidt (61)
Frankfurt Karl Heinrich Mihr (58) March 16, 1993 Chairman of the Board of January 1, 1993 to
Controlling and Finance
Trade Union Secretary to the Kassel Management of SEAT, S.A. February 4, 1994
Executive Committee of the Siegfried Schinowski (53) (since March 16, 1993)
Member of Works Council of Changes on the Volkswagen June 18, 1986 to Member of the Board of
Metalworkers Union Hanover Overseas Operations and
Volkswagen AG Kassel Plant Management Body: September 30, 1993 Management
May 3, 1989 Chairman of Works Council of Sales Strategy
November 27, 1972 May 1, 1992
Volkswagen AG Hanover Plant August 1,1975 to March 16, 1993
to June 3, 1993 Daniel Goeudevert (52) Ricardo Ibarreche Balda (46)
Walter Hiller (61) July 2, 1992 Prof. Dr.-Ing. Ulrich Seiffert (52)
Chairman of the Volkswagen Production
Hanover Research and Development
Franz Steinkühler (56) Management Body May 5, 1993 to March 2, 1994
Minister for Social Affairs of Gerhard Schröder (49) Frankfurt (since September 3, 1993)
Hanover Research and Development January 1, 1991 to July 31, Human Resources
Lower Saxony Deputy Chairman 1993 October 1, 1989 to May 4,
From April 9, 1986 to June 20, Minister President of the State Former Chairman of the (Group Purchasing Strategy
1993
1990 and since July 17, 1990 of Lower Saxony Metalworkers Union and Coordination)
Hans-Jörg Hungerland (52)
July 17, 1990 September 3, 1988 to
July 2, 1987 to September 30, Sales Manuel Garcia Moreno (46)
Jann-Peter Janssen (49) 1993 March 16, 1993
Dr. rer. pol. Albert Schunk (52) March 1, 1991 to March 31, Sales
Norden Changes on the Board of March 1, 1993 to December
Frankfurt 1993
Chairman of Works Council of Management: 31, 1993
Volkswagen AG Emden Plant Head of the International
Department on the Executive Juan Antonio Diaz Alvarez (55) Alexander Kowling
April 9, 1986 Human Resources Dr. rer. pol.
Committee of the Chairman of the Board of
Metalworkers Union Management of SEAT, S.A. January 1, 1991 to May 9, Eberhard Müller (60)
Gerhard Kakalick (47) 1993 Finance
Kassel July 5, 1977 April 10, 1992 to
September 30, 1993 July 1, 1986 to June 16, 1993
Chairman of Works Council of Prof. Dr.-Ing.
Bernd Sudholt (47) Dr. jur. Peter Frerk (63)
Volkswagen AG Kassel Plant Ulrich Seiffert (52) Juan José Diaz Ruiz (50)
Wolfsburg Legal Matters and Economics
June 3, 1993 Research and Development Sales
Deputy Chairman of the Group December 7, 1971 to
and Joint Works Councils of December 31, 1993 March 16, 1993 to March 1, 1988 to
Walther Leisler Kiep (68) September 3, 1993 February 28, 1993
Volkswagen AG
Frankfurt July 2, 1992 Daniel Goeudevert (52) Development
General partner, Deputy Chairman January 1, 1991 to March 16, Rafael Alvarez Vazquez (52)
Gradmann & Holler Klaus Volkert (51) January 1, 1993 to July 31, 1993 1993 Human Resources
From March 3, 1976 to July 1, Wolfsburg Member of the Board of May 5, 1993 to March 2, 1994
1982 and since January 26, Chairman of the Group and Management Werner Svetlik (55) *Th¡s indicates since when the
1983 Joint Works Councils of September 1, 1989 Procurement person in question has been a
Volkswagen AG member of the body concerned, or
Alexander Kowling January 1, 1991 to March 31,
the period for which the person
July 2, 1990 Human Resources 1993 was a member.
January 13, 1993 to May 9, 1993
8 9Management Report: Volkswagen Group
and Volkswagen AG
The major world passenger car markets Global economy characterized by lack slight revival in demand which had begun
(million units)
of momentum on the American automobile market in
1992 continued in 1993, although here
15 No signs of a global economic recovery again it must be remembered that sales in
were in evidence during 1993. The the previous year had been very low.
12 upswing in the USA was less marked than Overall sales on the Japanese passenger
had been anticipated, while the Japanese car market fell just short of the 1992 level.
9 economy went into a sharp decline. As a
result, these countries were unable to Volkswagen Group continuing to make
6 provide the economies of Western Europe its mark as a global player
with the hoped-for impetus. Germany
3 meanwhile suffered its worst post-war In the face of increasingly tough competi-
slump, and in addition the German tion the Volkswagen Group was able in
economy has to cope with massive struc- 1993 to successfully maintain its position
89 90 91 92 93 tural problems that demand innovative as the world's fourth largest passenger
and intelligent solutions. The continuing car manufacturer and - in terms of vehicle
recession in the industrialized nations had sales - the market leader both in Germany
Western Europe a particularly adverse effect on the auto- and in Europe as a whole. Attractive
mobile industry, highlighting this vital products which in many cases break new
USA sector's susceptibility to the influence of ground as regards safety, technical so-
economic trends. phistication and environment-friendliness,
Japan coupled with extensive programmes
No revival in worldwide passenger car aimed at cutting costs and boosting
sales productivity, will ensure that we remain
one of the world's leading automobile
At 3.2 million, the number of passenger manufacturers. Particular efforts will
cars sold in Germany during 1993 was continue to centre on opening up markets
18.7 % down on the previous year's with growth potential such as those in
figure. This fall in demand can be ascribed China and Eastern Europe.
principally to the general economic situa-
tion and to the end of the sales boom trig- Following the creation of a separate North
gered by Germany's reunification. America Region in March 1991, further
regional operations covering the Asia
The global recession significantly influ- Pacific and South America/Africa Regions
enced demand on the other major were set up in 1993. By placing the
markets in Western Europe, where Group's activities outside Europe on a
passenger car sales were 13.6 % lower regional footing it is aimed to focus Volks-
than in 1992. The only automobile market wagen's interests more effectively and
to exhibit an upward trend was that in thereby bring us closer to our customers.
Great Britain, which recorded an 11.6 %
rise in sales. However, this increase can
be attributed more to the fact that sales
had hit an exceptionally low level in the
previous year than to any general recovery
on the part of the British economy. The
Vehicles delivered to customers 1993 1992 Change %
Western Europe 2,011,298 2,556,993 -21.3
Germany 935,989 1,248,833 -25.1
Italy 269,576 363,916 -25.9
France 165,672 217,226 -23.7
Spain 139,750 184,190 -24.1
Photo on previous pages: Great Britain 114,894 106,793 + 7.6
The Golf Variant is an attractive addition
Belgium 77,678 87,906 - 11.6
to Volkswagen's Golf range
12Vehicle sales to dealers 1993 1992 Change% Sales by divisions
(before consolidation)
Worldwide 2,962,159 3,432,631 - 13.7
Volkswagen 2,110,086 2,428,856 - 13.1
Audi 339,261 473,495 - 28.3
Seat 290,712 337,369 - 13.8
Skoda 222.100 192,911 + 15.1
Sharp drop in number of vehicles The number of vehicles delivered to
delivered to customers by the customers outside Germany fell by 3.9 %
Volkswagen Group to 2,178,891. Domestic deliveries to
customers fell by 25.1 % to 935,989.
The downward trend which had started to Despite a fall of 0.7 % in passenger car
make itself felt on major automobile market share to 28.6 %, the Volkswagen
markets during the second half of 1992 Group defended its leading position in
continued in the year under report, with Germany. In the report year 128,680
the result that the total of 3,114,880 Group models were delivered in the new Volkswagen
passenger cars and commercial vehicles federal states (-18.3 %). In October, Audi
delivered to customers worldwide by the November and December the Volkswagen Seat
Skoda
Volkswagen Group in 1993 was 11.4 % marque was the market leader in eastern North America Region
down on the previous year's figure. While Germany. South America/Africa Region
falls in sales were recorded by Volks- Asia Pacific Region 0.1 %
wagen (-10.0 %), Audi (- 25.1 %) and We should like to take this opportunity of Financial Services/Financing
Seat (- 15.2 %), Skoda sales were up by once again thanking our customers all
9.8 %. The number of commercial over the world for their confidence in our
vehicles delivered to customers fell by products and their loyalty to our Group.
7.0% to 295,332. We shall continue to devote all our ener-
gies to producing highly competitive
Despite a general decline in vehicle sales models unmatched in terms of quality,
in Western Europe, the Volkswagen price and service.
Group was able to maintain its leading
position on this market for the ninth year Our dealers and their employees play a
in succession, delivering a total of vital role in ensuring that we are able to
2,011,298 vehicles to customers in forge links with our customers and fulfil
Western Europe (- 21.3 %) and achieving their requirements. Every day they come
a 16.5 % share of the market as against into contact with over 300,000 customers
17.5 % in 1992. Our largest export
markets were Italy, France, Spain, Great
Britain and Belgium.
Production Units 1993 1992 Change%
Worldwide 3,018,650 3,499,678 - 13.7
Passenger cars 2,843,481 3,291,797 - 13.6
Commercial vehicles 175,169 207,881 - 15.7
In Germany* 1,410,700 1,928,855 - 26.9
Abroad 1,607,950 1,570,823 + 2.4
* Excluding assembly kits for Volkswagen Bruxelles, Volkswagen of South Africa and Volkswagen Bratislava.
13Management Report: Volkswagen Group
and Volkswagen AG
Development of the volume of purchasing worldwide, whose satisfaction depends to billion in 1993, primarily as a result of the
of the Volkswagen Group
and Volkswagen AG (billion DM) a very large extent on the service which decline in vehicle production. By working
they receive from the dealer organization. in still closer cooperation with our
60 We should like to thank our dealers and suppliers we were able to pinpoint further
their employees in Germany and abroad opportunities for savings. Purchasing by
for their untiring efforts and for their Volkswagen AG was also down and
50
willingness to work together with us in a totalled DM 21.2 billion as against DM
spirit of mutual trust. 27.8 billion in 1992, with DM 15.5 billion
40 accounted for by raw materials and
Unit sales and sales revenues down supplies as well as semi-finished and
30 finished products and DM 5.6 billion spent
As a result of the generally adverse on capital goods and services. The Volks-
20 economic situation, the number of wagen Group once again made a major
vehicles sold to the dealer organization by contribution to promoting economic deve-
the Volkswagen Group fell by 13.7 % to lopment in Germany's new federal states,
89 90 91 92 93
2,962,159. This development was also increasing its spending on goods and
reflected in consolidated sales revenues, services from eastern Germany by 7.4 %
which dropped by 10.3 % to DM 76.6 to a total of DM 2.0 billion.
Volkswagen Group
billion despite continuing growth in the
rental and leasing sector. Decreases were The continuing recession in the Western
Volkswagen AG recorded in both domestic sales, which industrialized nations led to a slight fall in
fell by 13.1 % to DM 34.3 billion, and the prices of key raw materials on the
foreign sales, which were down by 7.9 % world markets.
at DM 42.3 billion. Export markets
accounted for 55.2 % of the total sales The general economic situation and
revenues. increasingly tough international competi-
Group volume of purchasing by divisions tion are forcing the automobile industry
At 1,402,953, the number of vehicles sold and its suppliers to take decisive action.
to the dealer organization by Volkswagen We have therefore joined forces with our
AG in 1993 was 25.2% down on the suppliers to develop strategies enabling
previous year. Sales consequently fell by them as well to make their processes
19.2% to DM 42.9 billion, with export more efficient and thus more cost-effec-
sales making up 48.7 % of this total as tive. A particularly important role is played
against 49.7 % in 1992. here by "simultaneous engineering",
which means involving not only our own
Production brought into line with production departments but also our
market situation suppliers in the development of new
products from an early stage. Another
The Volkswagen Group was obliged to modern concept which we have intro-
make allowance for the decline in demand duced in the purchasing sector is that of
which hit the Western European markets the system supplier, with "logistics part-
in particular during 1993. All Group ners" manufacturing complete elements
marques with the exception of Skoda such as sunroof systems or dashboards
were forced to put employees on short and supplying them in this form to the
time in the course of the year, with the Group's interlinked production system.
Volkswagen AG duration of this measure varying from one
Audi plant to another. The Volkswagen Group's The success of our efforts to bring about a
Seat worldwide output fell as a result by strategic reorientation of the Volkswagen
Skoda 13.7 % to 3,018,650 vehicles; out of this Group depends to a large extent on our
North America Region
total, 1,240,124 were built by Volkswagen suppliers, for only by working together
South America/Africa Region
Asia Pacific Region AG (-25.2 %). Average production per can we overcome the current structural
working day within the Group amounted crisis. Thanks are due to all our suppliers
to 14,804 vehicles, 1.8 % down on the for their excellent cooperation during
previous year's figure. Vehicles manufac- 1993.
tured abroad accounted for 53.3 % of total
output. Creation of a new operational sector to
optimize procurement and production
Decrease in volume of purchasing
The establishment of an operational
The Volkswagen Group's volume of sector bearing the designation "Produc-
purchasing - excluding sales tax - fell tion Optimization and Procurement" at
from DM 53.8 billion in 1992 to DM 43.8 Group level is intended to focus responsi-
14bility for all production processes as well actually required. To overcome this Expenditure on research and
development by the Volkswagen Group
as all purchasing and procurement activi- problem, we are implementing a package and Volkswagen AG (billion DM)
ties. This step will enable us to realize of measures which represents a com-
extensive process optimization measures pletely new departure in the personnel
and significant improvements in produc- sector. Among the measures included are 3.0
tivity throughout the Group. the four-day week (28.8-hour week)
accompanied by wage and salary cuts, a 2.5
Optimizing production through scheme giving employees flexibility in
continuous improvement processes their annual working hours in such a way 2.0
that they can take several months off at a
Volkswagen is breaking new ground in its time, and a system incorporating a gradual 1.5
efforts to boost productivity and enhance increase in weekly working hours for
competitiveness. Numerous ways of young employees who have just 1.0
achieving greater efficiency were worked completed their training and a step-by-
out and the necessary measures imme- step reduction in working hours for older
diately put into practice by way of conti- employees who will be reaching retire- 89 90 91 92 93
nuous improvement processes (CIP2) - ment age in the foreseeable future.
with the power of two intended to
express the urgency of this step - incor- These three schemes will all enable us to Volkswagen Group
porating around 2,000-workshops held in increase productivity and thus effectively
the course of the year. The idea is that cut unit costs. Volkswagen AG
these workshops should become an esta-
blished institution not just at the individual Expenditure on research and
plants but throughout the entire added- development remained at a high level
value chain from supplier to dealer. Active
participation by all concerned will enable In the fiscal year ended the Volkswagen
us to become still more competitive and Group undertook expenditures of DM 2.9
pave the way for success in the future. billion (-4.1 %) on research and develop-
ment, which represents 3.8 % of Group
Necessary adjustments to the sales revenues. Of this, DM 1.6 billion
workforce was accounted for by Volkswagen AG
(- 5.6 %). Expenditures on research and
Further cutbacks in the workforce neces- development at the other Group marques
sitated by low market demand and struc- amounted to: Audi DM 750 million
tural changes were accomplished in 1993 (-16.5 %), Seat DM 259 million (+ 1.7 %),
without causing any social hardship, Skoda DM 79 million (21 million).
primarily by means of a recruitment
freeze, voluntary redundancies and early- Among the outstanding technical achieve-
retirement schemes. ments realized by our engineers are the
new TDI engine for the Golf, Vento,
The average number of employees in the Passat, Audi 80 and Audi 100, the Golf
Volkswagen Group fell by 7.4 % in 1993 Ecomatic and the aluminium Audi Space
to 253,108, of whom 149,524 were with Frame (ASF) concept vehicle. These inno-
Group companies in Germany (- 8.7%) vative developments set new technical
and 103,584 with foreign subsidiaries standards and confirm yet again the Volks-
(- 5.4 %). At the end of the year the wagen Group's position as the automobile
Group employed a total of 251,643 people industry's leading trend-setter.
incl. trainees, 8.2 % down on the 1992
figure. The workforce at Volkswagen AG The Volkswagen Group employed a total
in 1993 averaged 111,901 (- 8.8 %), of 13,278 staff in the research and devel-
reaching a total of 108, 467 at the end of opment sector, 6,910 of them at Volks-
the year incl. trainees (- 8.5 %). wagen AG alone.
New directions in personnel policy at
Volkswagen AG
The combination of ongoing productivity-
boosting processes, a poor economic
situation and reduced sales prospects
means that in both 1994 and 1995 Volks-
wagen AG's German plants will have
around 30,000 employees more than
15Management Report: Volkswagen Group
and Volkswagen AG
Capital investments and cash flow Market-oriented model policy
within the Volkswagen Group (billion DM) New additions to the range of engine
(excl. leasing and rental assets) systematically continued options in the 1994 model year are the 2.8
litre six-cylinder engine in the Audi 80
The 1993 International Motor Show in Avant and the five-cylinder turbocharged
Frankfurt gave the Volkswagen Group the engine, producing 169 kW (230 bhp), in
opportunity to present a number of the Audi S2 sports saloon. Both the Audi
impressive new developments. Volks- 80 1.9 TDI and the Audi 80 Avant 1.9 TDI
wagen provided renewed proof of its are now also available with automatic
market-oriented model policy in the shape gearbox. A further innovation was
of the new Golf Convertible, the Golf presented for the first time at the Tokyo
Variant, the Golf Ecomatic and the new Motor Show in the shape of the study for
Passat. Also on show was the unique a powerful W12 drive unit in the ASF
Audi Space Frame (ASF) study, featuring a concept vehicle. The special feature of
direct-injection turbo-diesel V8 engine. this highly advanced twelve-cylinder
What makes this vehicle so special is its engine is that major components such as
body design, in which both the main load- crankcase and cylinder heads are made of
bearing structure known as the "space aluminium.
frame" and the body panels - which like-
Capital investments wise perform a load-bearing function - are Capital investments drastically reduced
made solely of aluminium, as is the
Cash flow engine. The ASF concept is now ready to The need to implement extensive
go into production and at the Geneva measures aimed at boosting earnings,
International Motor Show in March of this coupled with the constraints imposed by
year Audi was able to unveil a revolution- the general economic situation, meant
ary addition to the upper-range vehicle that originally scheduled capital invest-
market in the form of the Audi A8, the ments - particularly in the automobile
first production model with ASF body. sector - had to be drastically curtailed or
Visitors to the Frankfurt International extended into subsequent years. Improve-
Motor Show also had their first chance to ments in productivity achieved by virtue of
see the new Avant RS2, a high-perfor- synergistic effects and optimized produc-
mance sports car developed jointly by tion processes also helped to reduce
Audi and Porsche. Seat presented two expenditure. While overall capital invest-
new models in Frankfurt: the new Seat ment by the Volkswagen Group was
Ibiza, which was on show in Germany for 47.7 % down on the 1992 level at DM
the first time, and the Cordoba, a notch- 4,840 million, product-related investments
back saloon positioned between the Ibiza were excepted from the economy
and the Toledo. The Cordoba was launch- measures.
ed in Europe in November 1993 and has
been extremely well received by the Investments in tangible assets were
market. devoted primarily to new products, model
upgrading measures, further optimization
Both motoring experts and the general of manufacturing methods and our new
public were impressed by Volkswagen's production plants in eastern Germany,
latest development in the engine sector, a Spain and Portugal. The volume of invest-
1.9 litre four-cylinder diesel engine with ment in the leasing and rental sector was
direct injection, turbocharging and charge- 11.4 % down on the 1992 figure, amoun-
air cooling (TDI) for the Golf, Vento and ting to DM 5,438 million.
Passat ranges. This engine, which delivers
66 kW (90 bhp), is characterized by excel- Volkswagen AG invested a total of DM
lent pulling power and, thanks to a variety 1,793 million in 1993, 55.9 % less than in
of sophisticated details, requires an the previous year. Investments in tangible
average of less than five litres per 100 km assets, which at DM 1,286 million were
over the three basic fuel consumption 44.0 % down on 1992, focused mainly on
cycles, while at the same time complying measures in connection with the start of
with the stringent US emission standards. production of new models and on further
In addition, it already more than fulfils the improving manufacturing structures.
emission standards for direct-injection Financial investments fell by 71.9 % to
diesel engines scheduled to come into DM 491 million, with the major proportion
force within the European Union in 1996. of this sum relating to capital increases at
subsidiaries.
16Agreement reached on assembly of faced not only with falling earnings but
Volkswagen Transporters in Poland also with heavy cost burdens. The rise in
the price of imported materials following
In May 1993 Volkswagen AG and the the devaluation of the peseta, the high
Polish company FSR Polmo reached cost of financing the large-scale invest-
agreement in Warsaw on establishment ments needed for the new plant in Marto-
of a joint venture to assemble VW Trans- rell and the start-up costs incurred in
porters in Poznan. Volkswagen has a connection with the new Ibiza and
25.4 % holding in this new company, Cordoba all led to heavy losses for the
which goes by the name of Volkswagen Seat group, necessitating implementation
Poznan. The intention is to set up an of an extensive reorganization concept.
assembly facility capable of turning out
4,750 vehicles a year. The first phase of The key elements of this concept are the
the project has already been completed strengthening of the capital base and
and daily output currently stands at 20 comprehensive restructuring measures.
Transporters. Apart from enabling Volks- As an initial step at the end of 1993 Volks-
wagen to gain a foothold in the Polish wagen AG began the process of conver-
market, this new venture also opens up ting receivables due from SEAT, S.A. into
opportunities for improved access to the equity capital in the amount of DM 1
markets of Eastern Europe. billion at a set value of 82.3 billion
pesetas. This process will be formally
AutoEuropa - a joint venture to completed in spring 1994 by adoption of
produce a people-carrier the appropriate resolution by the Annual
Meeting of Stockholders of SEAT, S.A.
AutoEuropa, our joint venture with Ford- The restructuring concept also schedules
Werke AG to manufacture a people-carrier concentration of Seat vehicle production
in the Portuguese town of Setubal, is now at the Martorell plant near Barcelona.
well under way. With both development Further measures include hiving off the
of the vehicle and construction of the Pamplona plant, where the Polo is manu-
plant proceeding on schedule, it is antici- factured, and selling off the Spanish finan-
pated that production operations can cing company FISEAT to Volkswagen
commence in January 1995. Finanz GmbH on January 1, 1994. Adjust-
ments to the workforce have also been
The training centre run jointly by AutoEu- agreed with the Madrid and Catalonian
ropa and the Portuguese Government was governments.
officially opened on February 1, 1993 and
training of the employees already Work on Transporter plant in Taiwan
recruited for the new plant has now proceeding as scheduled
begun.
Construction of the new Transporter/Cara-
Key suppliers have entered into agree- velle plant in Taiwan, to be operated by
ments confirming their intention to esta- the joint venture known as Ching Chung
blish themselves in the industrial park on Motor Co., Ltd., is continuing to proceed
the AutoEuropa site. The necessary infra- on schedule and it is planned to
structure measures have now been commence production in mid-1994. To
completed and construction work enable us to create an efficient dealer
commenced on schedule. organization and firmly establish our posi-
tion on the Taiwanese market, Transporte
Despite the general decline in passenger and Caravelle models imported from
car sales on the European markets, Germany have been sold in Taiwan since
demand for people-carriers has risen March 1993 in order to prepare the
steadily in recent years and this trend is ground.
expected to continue.
Radical reorganization concept for Seat
SEAT, S.A. was badly hit in 1993 by
sharply declining demand both in Spain
and on major export markets. The situa-
tion on the domestic market was further
exacerbated by the need for increasingly
competitive pricing. However, SEAT wasManagement Report: Volkswagen Group
and Volkswagen AG
Capital investments 1994-1998 Reorganization of the Volkswagen leading to a drastic fall in vehicle sales.
by divisions
Group's financial services sector Further problems were created by a struc-
(69 billion DM)
tural crisis which, in the case of Volks-
A reorganization of the financial services wagen and many other companies, neces-
sector within the Volkswagen Group took sitated radical measures.
effect at the beginning of 1994, with the
companies in France, Spain and Italy be- For the Volkswagen Group, 1993 was a
coming wholly-owned subsidiaries of the year in which the individual quarters wit-
German company Volkswagen Finanz nessed varying trends where earnings
GmbH. Alongside V.A.G Bank, V.A.G were concerned. While the first half of the
Leasing and SkoFIN s. r. o., all our European year brought a loss of DM 1,602 million -
operations in the field of financial services it must be pointed out that the second-
have thus now been brought together quarter loss was considerably smaller than
under the control of a single company. that recorded for the first three months of
1993 - in the third quarter the Group was
Following on from this step, preparations once again able to post a profit. Although
are currently being made for transforming there was no relaxation of efforts to opti-
Volkswagen Finanz GmbH into a joint mize cost structures through reduction of
stock company to be known as Volks- material costs, adjustments to the work-
wagen Financial Services AG. This move force, introduction of new working-hours
Volkswagen will create a company which is eligible to schemes, curtailment of investment
Audi enter the capital market and which at the projects and development of lean produc-
Seat
Skoda same time has access to the international tion processes, these improvements were
North America Region money markets, thereby gaining the more than offset in the fourth quarter
South America/Africa Region opportunity to avail itself of the best above all by Seat's earnings problems and
Asia Pacific Region sources of financing worldwide. the loss recorded by the North America
Financial Services/Financing Region. Adjustments to the workforce at
These restructuring measures represent our Spanish subsidiary also gave rise to
the systematic continuation of a strategy substantial costs. The Volkswagen Group
designed to take account of the expansion therefore closed the fiscal year 1993 with
and increasingly international nature of our a loss of DM 1,940 million as against net
operations in the financial services sector. earnings of DM 147 million in 1992. Volks-
wagen AG achieved net earnings of DM
It is also planned that our financial 71 million compared with DM 132 million
services activities in Great Britain should in the previous year.
in future likewise be handled by a Group
company. After transferring to free reserves DM 9
million from net earnings and the balance
Unchanged dividend carried forward from 1992, the Board of
Management and the Supervisory Board
During 1993 the economic slowdown propose to the Annual Meeting of Stock-
which had been apparent since the holders the payment of a dividend of
second half of 1992 developed into the DM 2 on each ordinary and preferred
worst recession of the post-war era, share.
Proposal on appropriation of net
earnings available for distribution DM
Dividend distribution on subscribed
capital of DM 1,670.6 million* 66,577,000
of which
on ordinary shares 54,000,000
on preferred shares 12,577,000
Balance
(carried forward) 151,300
Net earnings available for distribution 66,728,300
* DM 6.2 million deriving from the capital increase effec in November 1993 carried no dividend rights for
the fiscal year 1993.
18Current situation in litigation pending 1994. Germany's economic development Wolfsburg, February 22, ,1994
between Opel/GM and Volkswagen is stagnating, with unemployment contin-
uing to rise. Italy, France and Spain have The Board of Management
On February 2, 1994 the Frankfurt yet to emerge from recession and the
Regional Court rejected the Opel/GM same is true of Japan. The only European
application for an order prohibiting Volks- country currently experiencing an upswing
wagen from employing the seven staff is Great Britain, which is set to record a
members who had left to join Volkswagen growth rate of around 3 % this year.
AG at the same time as Mr. López. The Given this general trend, 1994 is unlikely
court was of the opinion that Volkswagen to see any major reduction in unemploy-
had in no respect acted in a manner ment, which has risen sharply during the
contrary to the requirements of fair recession. Although the USA and Canada
competition when taking on former are now once again experiencing growth
GM/Opel employees. It thereby also in terms of their gross national product,
confirmed in the proceedings on the main the recovery is not sufficiently marked to
issue the rulings already made in favour of bring about a significant fall in unemploy-
Volkswagen AG by the Frankfurt Regional ment.
Court and the Frankfurt Higher Regional
Court in connection with the application The worsened situation on major automo-
for a temporary injunction. bile markets has highlighted the industry's
vulnerability not only to adverse economic
This decision has no effect on the action trends but also to structural crises. One in
brought by the seven employees against every seven jobs in Europe alone is
Opel/GM, and currently pending before dependent on the automobile industry.
the Brunswick Labour Court, to secure
Opel/GM's refrainment from interference The current trend indicates that overall
in the contractual relationship between demand for automobiles in Western
themselves and Volkswagen AG as their Europe will remain at the same low level
employer. Mr. López and Volkswagen AG as in 1993, while the German market is
have joined this action as third parties. likely to exhibit a slight decrease in size.
The cross-action brought by Opel/GM
aims among other things to secure a ban In the light of this situation and the ever
on Volkswagen's employing Mr. López, keener competition resulting from the
with the court also being requested to find existence of excess capacities worldwide,
that Opel/GM is entitled on the merits of it will be increasingly important for us to
its claim to damages for "poaching" of make continued progress in improving the
employees and alleged divulging of Volkswagen Group's cost structures.
secrets. Measures in this area will this year once
again enable us to make considerable
Criminal investigations by the Public savings. While we anticipate a slight rise
Prosecutor's Office in Darmstadt and the in vehicle sales in Germany and on the
US Department of Justice are as yet major European export markets, a down-
incomplete. It is at present impossible to ward trend is likely to become apparent in
say how long this will take. Volkswagen the South America/Africa region. Sales in
has been cooperating fully throughout in the Asia Pacific region will continue to rise
the interest of ensuring that the matter is in 1994 and increases are also in prospect
cleared up and the investigations are in North America. All in all, production and
concluded as soon as possible. Having unit sales will probably be on a par with
been requested by the Supervisory Board the 1993 levels, while sales revenues
to establish whether any confidential should rise slightly. It is therefore realistic
GM/Opel documents or data were passed to assume that in 1994 Volkswagen AG
to or used by Volkswagen, KPMG Deut- will return a profit and the Volkswagen
sche Treuhandgesellschaft conducted its Group an improvement on the 1993
own detailed investigation and found no result.
evidence whatsoever that Volkswagen
had been passed, was in possession of or
had used such documents or data. l i . i i - f H
Prospects for 1994
Few countries exhibited any signs of an
economic recovery at the beginning of
19The Major Companies within the Volkswagen Group
Volkswagen Seat Skoda Audi Regions Financial Services Financing Companies
Volkswagen AG Volkswagen Sachsen GmbH SEAT, S.A. SKODA, automobilova a. s. AUDI AG Volkswagen Finanz GmbH Coordination Center
North America
Wolfsburg Mosel Barcelona, Spain Mlada Boleslav, Czech Republic Ingolstadt Brunswick Volkswagen S.A.
Subscribed capital: DM 10,000,000 ESP 84,000,000,000 CZK 9,642,000,000 DM 215,000,000 Volkswagen de Mexico, DM 700,100,000 Brussels, Belgium
DM 1,670,625,000 100 % Volkswagen AG 99.99 % Volkswagen AG 31 % Volkswagen AG 98.99 % Volkswagen AG S.A. de C.V. 100 % Volkswagen AG BEC 14,000,000,000
Puebla/Pue., Mexico 60 % Volkswagen AG
Plant locations: Volkswagen Bruxelles S.A. Seat Deutschland GmbH SKODA France AUDI HUNGARIA MXN 304,343,224 V.A.G Bank GmbH 40 % Volkswagen Bruxelles
Wolfsburg Brussels, Belgium Mörfelden-Walldorf Automobiles S.A. MOTOR Kft. 100 % Volkswagen AG Brunswick S.A.
Hanover BEC 1,925,000,000 DM 10,000,000 Paris, France Györ, Hungary DM 622,500,000
Kassel 100 % Volkswagen AG 100 % SEAT, S.A. FRF 15,000,000 DM 2,000,000 V o l k s w a g e n of America, inc. 100 % Volkswagen Finanz Volkswagen International
Emden 100 % V.A.G France S.A. 100 % Audi AG Auburn Hills, Mi., USA GmbH Finance N.V.
Salzgitter V.A.G France S.A. Seat France, S.A. USD 242,422,222.92 Amsterdam, Netherlands
Brunswick Paris, France St. Ouen I'Aumone, France SKODA Automobili Italia S.r.l. 100 % Volkswagen AG V.A.G Leasing GmbH NLG 226,000,000
FRF 50,000,000 FRF 50,000,000 Verona, Italy Brunswick 100 % Volkswagen AG
100 % Volkswagen AG 100 % SEAT, S.A. ITL 1,000,000,000 V o l k s w a g e n Canada Inc. DM 100,000,000
100 % AUTOGERMA S.p.A. Toronto, Ontario, Canada 100 % Volkswagen Finanz Volkswagen Investments Ltd.
AUTOGERMA S.p.A. Seat Italia, S.p.A. CAD 500,000 GmbH Dublin, Ireland
Verona, Italy Milan, Italy SKODA Automobile 100 % Volkswagen AG DM 600,000,000
ITL 90,000,000,000 ITL 20,000,000,000 Deutschland GmbH V.A.G Financement S.A. 100 % Volkswagen AG
100 % Volkswagen AG 100 % SEAT, S.A. Weiterstadt South America/Africa Paris, France
DM 4,000,000 FRF 95,000,000
AutoEuropa Automöveis Lda. Seat UK Ltd. 67 % SKODA, automobilova a.s. Autolatina 99.68 % Volkswagen Finanz
Palmela, Portugal Crawley, West Sussex Comércio, Negocios e GmbH11
ESC 21,266,189,000 Great Britain Participaçôes Ltda. 0.32 % Volkswagen AG
50 % Volkswagen AG £4,000,000 Säo Paulo, SP, Brazil
100 % SEAT, S.A. BRR 4,475,504,500 FISEAT, S.A.
V.A.G Sverige AB 51 % Volkswagen AG* Madrid, Spain
Södertälje, Sweden Gearbox del Prat, S.A. ESP 8,207,390,000
SEK 84,000,000 El Prat de Llobregat, Spain Autolatina Brasil S.A. 100 % Volkswagen Finanz
50 % Volkswagen AG ESP 9,800,000,000 Säo Paulo, SP, Brazil GmbH21
100 % SEAT, S.A. BRR 849,414,330
Volkswagen Bratislava, 42.58 % Volkswagen AG* VW Credit, Inc.
spol. s r. o. Auburn Hills, Mi., USA
Bratislava, Slovak Republic Autolatina Argentina S.A. USD 100,000
SKK 1,054,800,000 Buenos Aires, Argentina 100 % Volkswagen of
80 % Volkswagen AG ARS 99,651,560 America, Inc.
51 % Volkswagen AG*
V.A.G Transport FINGERMA S.p.A.
GmbH & Co. OHG Volkswagen of South Africa Verona, Italy
Wolfsburg (Pty.) Ltd. ITL 10,000,000,000
DM 1,000,000 Uitenhage, C.P., South Africa 100 % Volkswagen Finanz
81 % Volkswagen AG ZAR 9,362,650 GmbH
19 % AUDI AG 100 % Volkswagen AG
SkoFIN s. r. o.
VOTEX GmbH Asia Pacific Prague, Czech Republic
Dreieich CZK 30,000,000
DM 1,000,000 Shanghai-Volkswagen 100 % Volkswagen Finanz
100 % Volkswagen AG Automotive Company, Ltd. GmbH
Shanghai, China
Europcar International S.A. CNY 1,200,000,000 Volkswagen Financial
Boulogne-Billancourt, France 50 % Volkswagen AG Services, S.A. de C.V.
FRF 553,500,000 Puebla, Mexico
50 % Volkswagen AG FAW-Volkswagen MXN 100,000
Automotive Company, Ltd. 100 % Volkswagen de Mexico,
V.A.G (United Kingdom) Ltd. Changchun, China S.A. de C.V.
Milton Keynes, Great Britain CNY 1,680,000,000
£ 9,600,000 40 % Volkswagen AG
100 % Volkswagen Group
Holdings (UK) Ltd. V o l k s w a g e n A u d i N i p p o n K.K. * Volkswagen AG's
Toyohashi, Japan direct and indirect holding
HH Producing Companies JPY 23,174,100,000 11 Indirect holding via V.A.G Holding
• • Distributing Companies 100 % Volkswagen AG Financière S.A.
^ Other Companies * As of January 1, 1994
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