An Analysis of Volkswagen AG’s Mission and Vision Statement

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Volkswagen Mission and Vision: An Analysis

VW mission and vision

 

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Volkswagen is one of the most well known brands of automobiles globally. The Volkswagen AG brand is made of 12 individual brands in some of which it has large controlling stakes. From Skoda to Audi, Bugatti and Ducatti, it has large portfolio of luxury automobiles. This is also what makes VW a premium automotive brand. Its vehicle sales declined in 2021 compared to the previous year, but the net revenues of the company experienced significant growth . While the 2015 Diesel scandal somewhere affected the brand’s image and reputation and marked a turning point in its history, the brand was forced to define new priorities before shifting gear. In 2021, the company generated more than 250 billion Euros in net revenues. The brand is set in a new direction and has redefined its strategy for faster and more impressive growth. This is an analysis of its mission and vision statements. These statements are a critical part of business strategy and define what the brand stands for as well as what its future direction is or the direction it is set in and the position it is trying to achieve.

 

Mission Statement of Volkswagen AG:

We offer tailor made mobility solutions to our customers.

We serve our customers’ diverse needs with a portfolio of strong brands.

We assume responsibility regarding the environment, safety and social issues.

We act with integrity and build on reliability, quality and passion as the foundation of our work.

The mission statement of Volkswagen AG can be considered a customer oriented mission statement because the main focus is customer. The first line focuses on customer convenience, the second on their diverse needs and then come accountability, ethics and passion. The focus is on the purpose that Volkswagen serves in the global society along-with responsibility and sustainability. Focus on accountability and sustainability has grown all the more important in the light of the diesel scandal of 2015. The mission statement talks of the large product portfolio of the brand, it ability to provide tailor made solutions and the increased focus on sustainability and driver safety. While ethics and reliability are important focus areas in its business strategy, the mission statement does not talk of market size, market position or employees. These are also important parts of business strategy and can be included as a part of mission statement.

 Vision Statement:

We are a globally leading provider of sustainable mobility.

The vision statement of VW looks very generic as compared to its mission statement and does not discuss in detail its focus upon future. It just indicates that VW is geared towards being a provider of sustainable automobiles. Sustainability is not just a trend and in the field of mobility, the focus is getting shifted towards vehicles that consumer less fuel and are less damaging to the environment. However, a vision statement shows the future course of a brand and where it is trying to be in the coming years. While it can be easily understood that the brand is trying to build a more accountable image with regards to sustainability and driver safety, there are more factors like market expansion and financial position that must be included in the vision statement. Currently, it does not clearly state what kind of financial future the brand wants and where it is set to move with regards to market competition.

Sources:

https://www.volkswagenag.com/en/group/strategy.html

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https://www.volkswagenag.com/presence/investorrelation/publications/annual-reports/2017/volkswagen/en/Y_2016_e.pdf