Volkswagen is the largest automotive manufacturer in the world. Aside from the iconic Polo, Golf and Passat — Volkswagen owns a few other motoring companies that you may not know about. These companies have well known brands with powerful brand loyalty, yet very few people know that they are owned by Volkswagen. Vindis, that offers Volkswagen servicing takes a look into the history of some of these companies.
Audi’s acquisition
Believe it or not, Audi became a part of the Volkswagen Group in 1965. It was then that Volkswagen completed the acquisition of Auto Union GmbH from Daimler-Benz, with this subsidiary responsible for producing the first Audi vehicles since the end of the Second World War.
With operations occurring in more than 100 markets across the globe, Audi is referred to as a premium car brand. The German manufacturer is also capturing plenty of attention with its revolutionary technology — piloted driving, electromobility and an Audi AI setup are just a few ways that the brand is helping to shape the future of driving.
Founded: 1909
Employee count: 90,705
Models in the UK: 65
2017 sales: 174,982
Market share in 2017: 6.89%
Bargaining Bentley
It was 1998 when the Volkswagen Group became associated with supreme car manufacturer, Bentley — but the start of that relationship was somewhat complicated.
The entire situation became slightly complicated because in 1997, Vickers decided it was putting Rolls-Royce Motors on the market who owned Bentley at the time. BMW came in with an offer of £340 million for the company — not too big of a surprise considering that BMW had been supplying Bentley and Rolls-Royce with engines and other components, as well as the fact that BMW and Vickers both had experience building aircraft engines.
However, Volkswagen managed to outbid BMW by offering Vickers £430 million. Even with the deal going through, Volkswagen didn’t have ownership of everything. They had the production and administrative facilities, the model nameplates, the vehicle designs and both the Spirit of Ecstasy and Rolls-Royce grille shape trademarks — but they didn’t have the Rolls-Royce name or logo, which remained in ownership of Rolls-Royce Holdings.
However, the situation escalated even further. BMW began to supply components for new Bentley and Rolls-Royce cars in that year, as well as paid £40 million to Rolls-Royce so that they could licence the Rolls-Royce name and logo. After plenty of battling and negotiating, an agreement was made for BMW to continue with their deal to supply engines and components. Meanwhile, Volkswagen gained access to the rights of both the names and logos.
In the first month of 2003, the deal changed. This is when Volkswagen officially became the sole provider of cars that were under the Bentley marque — BMW were presented with Rolls-Royce at the same time.
Founded: 1919
Employee count: 4,332
Models in the UK: 18
2017 sales: 1,753
Market share in 2017: 0.07%
Bugatti
Over the last century, Bugatti has developed some of the world’s most mesmerising cars — with founder Ettore Bugatti having a clear vision and direction for his business. However, the partnership between the Volkswagen Group and Bugatti began in 1998, when Volkswagen bought the rights to produce cars which were under the Bugatti marque.
2000 was the year that Volkswagen welcomed Bugatti Automobiles to its family. Around the same time, the Group also bought the former guest house of Ettore Bugatti — based in Dorlisheim — and transformed it into the company’s headquarters.
Founded: 1909
Employee count: 302
Models in the UK: 1
2017 sales: N/A
Market share in 2017: N/A
Leading Lamborghini
As well as beginning their partnerships with Bentley and Bugatti during that year, the German company also set their sights on adding Lamborghini to their impressive portfolio of acquisitions. A world-renowned manufacturer of super sports cars which catch the eye with their unique designs and leave bystanders in awe with phenomenal levels of power, Lamborghini had gone into 1998 owned by holding company MegaTech — a firm who themselves were owned by Indonesian conglomerate SEDRCO pty.
Around this time, a financial crisis arose which led to Lamborghini having to gain a change in ownership. The new chairman of Volkswagen at the time, Ferdinand Piëch, stepped up and bought Lamborghini for an estimated $110million. Following the acquisition, Lamborghini was restructured into the holding company Lamborghini Holding S.p.A and provided with stability after a tough few months.
Founded: 1963
Employee count: 1,606
Models in the UK: 8
2017 sales: N/A
Market share in 2017: N/A
Purchasing Porsche
Porsche is the most recent car brand to become a part of the Volkswagen Group, though it did take a few years for Volkswagen to become the parent company of the highly successful German sports car manufacturer.
In 2009, the Volkswagen Group successfully purchased a 49.9 per cent stake in Porsche AG. By 2011, a merger between the two companies was scheduled to occur. Unfortunately, unquantifiable legal risks meant that an announcement had to be made stating that the merger was not possible.
However, in 2012, Volkswagen stated that they were in the process of buying the remaining shares for around €4.46 billion. This remaining stake in Porsche was officially made by the Volkswagen Group in August 2012.
Founded: 1931
Employee count: 27,352
Models in the UK: 37
2017 sales: 14,051
Market share in 2017: 0.55%
