SKODA

SKODA
A Strategic Management Case Study

Tony Gauvin, UMFK, 2009
2
How do you double the value of a Skoda?
Fill the gas tank
What do you call a Skoda convertible?

A dumpster
What do you call a Skoda with twin exhaust pipes?
A wheelbarrow.
Why does a Skoda have a double rear window heater ?
To keep your hands warm, while you push it.
A guy goes into his local garage and asks "Do you have a windshield
wiper for my Skoda???”
"Sounds like a fair swap" replied the man in the garage.

© 2009, Tony Gauvin, UMFK 03/07/11
http://web.ukonline.co.uk/k.frost/czech/skoda_jokes.html
3
Overview
Company Overview
Strategy Formulation
A Brief history of Skoda
SWOT Matrix
Existing Mission and Vision
Porter Generic Strgefics
Existing Objectives and
Strategies Space Matrix
IE Matrix
Current Issues & Challenges Grand Strategy Matrix
New Mission and Vision Matrix Analysis
External Assessment QSPM Matrix
Industry analysis Strategic Plan for the Future
Porter’s Five Forces Objectives
Opportunities and threats Strategies
EFE Matrix Implementation Issues
Internal Assessment Evaluation
Strengths and weaknesses
Financial Condition Skoda 2008 Update
IFE Matrix
© Tony Gauvin, UMFK, 2009 3/30/2009

4
History
• 1895 Vaclav Laurin and Vaclav Klemnet form bicycle company
1891 laurin and Kelemnt start making motorcycles
• 1905 The first car, called the “Voiturette A”, leaves the factory gates and thanks to its quality and
attractive appearance soon gains a stable position in the emerging international automobile markets.
• 1907 Laurin & Klement set up a joint-stock company that goes on to export cars to markets the
world over.
• 1925 The Laurin & Klement automobile factory merges with the Škoda machinery manufacturing
company in Plzeň.
• 1939–1945 During the war years, the factory focuses on producing materials for the military. Just a
few days before the war ends, the factory is bombed and sustains considerable damage. The
enterprise is nationalized in the autumn of 1945.
• 1946 The enterprise’s reconstruction takes place under a new name, AZNP (“Automobilové závody,
národní podnik” – Automotive Plants, National Enterprise).
• 1989 Czech republic formed
• 1991 April 16 marks the beginning of a new chapter in the Company’s history, when it is acquired by
the strategic partner Volkswagen. Škoda becomes the Volkswagen Group’s fourth brand.
• 1996 Production commences of another milestone car model for the Company – the Škoda Octavia.
© 2009, Tony Gauvin, 03/07/11

UMFK
5
Skoda History
http://www.skoda-auto.com/moss/100/home/
6
(r) 2009, Tony Gauvin, UMFK 03/07/11

7
Skoda key facts

• Oldest Car Company in Central Europe
• Largest employer in Czech Republic
• Produced over half a million cars in 2006 & 630
million in 2007
▫ Just behind Volkswagen and Audi in VAG
• Skoda in the Czech language means “a shame”
• Czech Republic largest exporter

8
Skoda Mission Statement

• Three basic values of the Skoda brand
▫ Intelligence We continuously seek technical solutions and
new ways in which to care for and approach the customers that
are the most important for us. Our conduct towards the
customers is aboveboard, and we respect their desires and needs
▫ Attractivesness We develop automobiles that are aesthetically
and technically of high standard and always constitute and
attractive offer for our customers not only in terms of design or
technical parameters but also the wide range of offered services
▫ Dedication We are following the steps of the founders of our
company; Messrs. Laurin and Klement. We are enthusiastically
working on the further development of our vehicles; we identify
ourselves with out product

9
Current Issues and Challenges

• Challenges
▫ Companies in the former Soviet Union had not been forced to produce quality goods that can
compete in world markets
▫ Employees in nationalized companies have been assured of “lifetime employment,” so they are
not motivated to produce a high-quality product
▫ Banks are being privatized very slowly so infusions of capital normally Must come from outside
the country. In addition, because all of the companies had been owned by the Soviets, there was
no private money available to purchase companies offered by the state for sale
▫ Most companies have old and obsolete equipment that would take years to replace
▫ There is an insufficient infrastructure because the Soviets have never put money into such “public
goods;” in their satellites (occupied states)
▫ Lack of development of managerial skills.
• Issues
▫ Does Skoda become a Global brand or a European Brand ?
 Currently sold in Europe (>95%) and Asia (<5%)
▫ Where to position Skoda
 Within Volkswagen’s portfolio
 As a European only brand
 As a global brand
▫ Where to manufacture Sk0das?
 Czechoslovakia or seek cheaper labor (China?)

10
New Vision
A world leader in high-quality,

value-priced automobiles for the
21st century consumer s

11
New Mission
Skoda Auto mission is to anticipate consumer needs and
provide safe, quality, reliable, and innovative automotive
products and services to consumers around the world (1, 2,
3). Meeting and exceeding customer’s expectations for
exceptional quality, cutting-edge technology, and superior
customer service will enable us to maximize returns to our
shareholders. (4, 5). We are passionately committed to
ensure we do the right thing for our customers, our
employees, our environment, and our society (6, 9). Skoda
is committed to leading all automotive firms in quality and
safety in Europe and abroad. Along with our commitment to
saving the environment, we can continue to add to our proud
heritage (7, 8).

12

13
Global Industry Analysis

• 5.2% growth in 2006  $1,176.5 Billion
• 65.7 million units sold in 2006
• 66.5% of sales are cars
• US accounts for 38.4 % of global market share
• Europe accounts for 29.3%
• Industry leader is GM with 17.3% Market Share
• CAGR from 2002 t0 2006 was 4.7%
• Projected CAGR of 4.5% in period from 2006-2011

14

15

16

17
Porter five forces models

18
Five Forces Analysis

• Threat of Entry
Because of the increased buying power of consumers in former Soviet Union countries and
in emerging countries, many firms may see this as an opportunity to move plants to
Eastern Europe to reduce their costs and compete in that market. In addition, for the first
time in 50 years, Eastern European consumers have access to a greater variety of cars than
they have had. Both of these factors should heat up the competitive environment.
• Bargaining Power of Buyers
With increased competition worldwide in the automobile manufacturing industry,

consumers have many more choices from which to select when purchasing a car. In
addition, the movement to a global industry from one which had been formerly a monopoly
or oligopoly within a country or region, has caused intense price competition to arise.
Therefore, this industry could certainly be classified as a “buyer’smarket” today. In less
developed countries, buyers are being wooed with lower prices; and in more developed
countries, they are being wooed with product differentiation.

19
Five Forces Analysis

Bargaining Power of Suppliers
With a movement toward just-in-time inventory systems worldwide in the automobile manufacturing
industry, there has been greater pressure upon suppliers to move their plants to locations contiguous to
the automobile plants they are supplying. Some automobile companies have also begun supplying their
own parts and thereby eliminating many of the suppliers they formerly used. Therefore, the bargaining
power of suppliers has been greatly weakened.
Pressure from Substitute Products
There appears to be very little pressure from substitute products in this market because automobiles have
actually become the substitute product for other forms of transportation such as bicycles in developing
countries. The only true threat of a substitute product in more developed, heavily populated countries is
public transportation. This supplies a cheaper, faster means of transportation into large cities where
parking is at a premium. This is often a product of choice in many European countries where public
transportation has been greatly refined.
Rivalry Among Existing Competitors
The global automobile manufacturing industry is one of the most competitive in the world. In addition,
new car companies are emerging in the developing countries of Asia and Central and Eastern Europe.
These companies are all trying to reduce costs by moving to low-cost countries, so Skoda’s location in such
a country will not be a competitive advantage for long.

20
Opportunities
1. Growing automobile market in Eastern Europe,

China, Africa, India and other emerging
economies.
2. Possibility of moving manufacturing and
assembly plants to low-cost countries.
3. First mover advantage to those companies
using alternative fuels
4. American Markets favor European-
manufactured cars
21
Threats
1. Movement of the global automobile manufacturing industry
to a monopolistically-competitive structure with increased
competition.
2. Costliness of non-renewable energy sources.
3. Higher wage rates in some countries are making it difficult
for automobile manufacturers to remain competitive.
4. Decline in sales in Eastern European countries that have
become a part of the European Union because of the
increased availability of used vehicles from other European
countries.
5. There is an insufficient infrastructure because the Soviets
have never put money into such “public goods;” in their
satellites (occupied states)

22
EFE
External Factor Evaluation Matrix
Key External Factors Weights Rating Weighted Score
0.0 to 1.0 1 to 4
Opportunities
Growing automobile market in Eastern Europe, China, Africa, India and other
emerging economies. 0.15 4 0.6
Possibility of moving manufacturing and assembly plants to low-cost countries. 0.1 4 0.4
First mover advantage to those companies using alternative fuels 0.15 2 0.3
American Markets favor European-manufactured cars 0.13 2 0.26
Threats 0
Movement of the global automobile manufacturing industry to a monopolistically-
competitive structure with increased competition. 0.08 3 0.24
Costliness of non-renewable energy sources. 0.11 2 0.22
Higher wage rates in some countries are making it difficult for automobile
manufacturers to remain competitive. 0.15 4 0.6
Decline in sales in Eastern European countries that have become a part of the
European Union because of the increased availability of used vehicles from
other European countries. 0.08 3 0.24
There is an insufficient infrastructure because the Soviets have never put

money into such “public goods;” in their satellites (occupied states) 0.05 2 0.1
Totals 1 2.96

23

24
Financial Data
1 USD = 0.6790 Euro = 18.11 CZK Dec , 31, 2007

25
Financial Data

26
Financial Data
1 USD = 0.6790 Euro = 18.11 CZK Dec , 31, 2007

27
Financial Ratios Industry Comparison

D&B D&B D&B
Top Quartile median Bottom
Quartile
Current Ratio 2.2 1.5 1.1 1.478
Quick ratio 1.0 0.6 0.3 1.124
Liabilities 103.3 167.2 345.4 1.804
To equity
Assets to sales 27.6 48.1 78.0 0.516
Return on Sales 5.1 1.8 0.4 0.054
Return on 9.5 4.2 0.7 0.105

Assets

28
Volkswagen Financial Data
ŠKODA BRAND
2007 2006 %
Deliveries (thousand units) 630 550 + 14.6
Vehicle sales 620 562 + 10.2
Production 661 556 + 18.8
Sales revenue (€ million) 8,004 7,186 + 11.4
Operating profit 712 515 + 38.4
as % of sales revenue 8.9 7.2
1 USD = 0.6790 Euro = 18.11 CZK Dec , 31, 2007

29
Volkswagen Financial Data
KEY FIGURES BY BRAND AND BUSINESS FIELD
Vehicle sales Sales revenue Sales to Operating

third parties result
thousand vehicles/€ million 2007 2006 2007 2006 2007 2006 2007 2006
Volkswagen Passenger Cars 3,664 3,451 73,944 70,710 60,201 58,839 1,940 918
Audi 1,200 1,139 33,617 31,720 21,078 20,521 2,705 2,054
Škoda 620 562 8,004 7,186 5,925 5,378 712 515
SEAT 411 419 5,899 5,874 4,375 4,433 8 -159
Bentley 10 10 1,376 1,340 1,294 1,251 155 137
Commercial Vehicles 427 388 9,297 8,092 6,548 5,732 305 138
VW China1 930 694
Other -1,070 -943 -33,385 -28,918 750 743 0-6312 0-632
Automotive Division 6,192 5,720 98,752 96,004 100,171 96,897 5,194 3,540
Financial Services Division 10,145 8,871 8,726 7,978 957 843

Group before special items 108,897 104,875 108,897 104,875 6,151 4,383
Special items - -2,374
Volkswagen Group 6,192 5,720 108,897 104,875 108,897 104,875 6,151 2,009
1 USD = 0.6790 Euro = 18.11 CZK Dec , 31, 2007

30
Production Markets

31
Strengths
1. 100-year history as a vehicle manufacturer.
2. Capital infusions from Volkswagen.
3. Emphasis on research and development from
Volkswagen.
4. Strength of Volkswagen’s reputation.
5. Highly-skilled work force available in the Czech
Republic.
6. Relatively low wages in Czech Republic.
7. Largest employer in the Czech Republic.
8. Synergy with other Volkswagen products.

32
Weaknesses
1. Location in a country that must deal with outdated
infrastructure.
2. Perception from the past that Skoda produces a low-
quality product.
3. Perception by some that their new 4-door limousine is
not a limousine at all.
4. Growing unrest of Skoda’s employees in seeking higher
wages which decrease profit margins.
5. Reputation of Skoda may spill over to the Bentley and
frighten off buyers.

33
IFE
Key Internal Factors Weights Rating Weighted Score
0.0 to 1.0 1, 2, 3 or 4
Internal Strengths
100-year history as a vehicle manufacturer. 0.06 3 0.18
Capital infusions from Volkswagen. 0.1 4 0.4
Emphasis on research and development from Volkswagen. 0.08 4 0.32
Strength of Volkswagen’s reputation. 0.1 4 0.4
Highly-skilled work force available in the Czech Republic. 0.07 3 0.21
Relatively low wages in Czech Republic. 0.06 3 0.18
Largest employer in the Czech Republic. 0.04 3 0.12
Synergy with other Volkswagen products. 0.06 4 0.24
Internal Weaknesses
Location in a country that must deal with outdated
infrastructure. 0.1 1 0.1
Perception from the past that Skoda produces a low-quality
product. 0.07 2 0.14
Perception by some that their new 4-door limousine is not a
limousine at all. 0.08 2 0.16
Growing unrest of Skoda’s employees in seeking higher
wages which decrease profit margins. 0.1 1 0.1
Reputation of Skoda may spill over to the Bentley and frighten
off buyers. 0.08 2 0.16
Totals 1 2.71

34

35
SWOT MATRIX
SO Strategies ST Strategies
• Develop a new car line to use • Expand collaboration and
Alternative Fuels for global innovation with other VAG
market (O3, O4, S2, S3, S5) brands (T1, S1, S2, S3, S4, S5,
• Expand Sales in emerging S6, S8 )
counties in Eastern Europe, • Move manufacturing to
(Near & Far) Asia & Africa (O1, countries with low wages and
S2, S4, S8) demand for value priced
• Develop a low cost and automobiles (T3, T4, S1, S2)
economical to operate SUV for
American Markets (O4, S1, S2,
S3, S4, S5)

36
SWOT MATRIX
WO Strategies WT Strategies
• Move manufacturing to • Brand Skoda as a subdivision
countries with low wages and of VAG, a well know German
demand for value priced brand (W2, W1, T1)
automobiles (W1,W2, O1, O2) • Develop a new car line to use
• Rebrand Skoda as a value Alternative Fuels for global
priced quality built Europe market leveraging the VAG
made automobile (W1, W2, O1, brand (T1, T2, T3, W1, W4,
O4) W5)

37
Porter’s Generic Strategies

38
Alternative Cost leadership Strategies

1. Move production facilities to countries that have a skilled yet
relatively inexpensive work force and a stable economic and
political environment.
2. Produce automobiles that meet the needs of that particular
region. For example, an SUV or truck would be
inappropriate in the former Soviet Union countries or
developing countries where petroleum prices are high and
wages relatively low.
3. In constructing new plants in countries hitherto not utilized,
consider such additional factors as energy costs, access to
the necessary infrastructure and closeness to important
world markets.
4. Consider mergers with other appropriate companies in the
target market to achieve economies of scale.

39
Space Matrix Data

Financial Strength rating is 1 (worst) to 6 (best) Ratings
1 Rerturn on Assets 4.0
2 Leverage 2.0
3 Net Income growth 4.0
4 Income/employee 5.0
5 Cash Reserves 6.0
Industry Strength rating is 1 (worst) to 6 (best) FS Total 21.0
1 Growth Potential 5.0
2 Finacila Stabiliy 3.0
3 Ease of Entry in Market 6.0
4 Resource Utilazation 4.0
5 Profit Potential 5.0
Environmental Stability rating is -1 (best) to -6 (worst) IS Total 23.0
1 Rate of Infaltion -3.0
2 Technologocal Changes -4.0
3 Preice Elasticity of Demand -3.0
4 Competiove Pressure -6.0
5 Barriers to Entry -2.0
6 Globalization
Competitive advantage rating is -1 (best) to -6 (worst) ES Total -18.0
1 Market Share (Czech Republic) -1.0
2 Market Share Europe -4.0
3 Product Quality -5.0
4 Customer Loyally -5.0
5 Technological Know How -1.0
6 Control over suppliers -1.0
7 Market Share Global -6.0
CS total -23.0

SPACE Matrix
FS
Conservative Aggressive
+6
ES average -3.60
+5
CA average -3.29 +4
IS average 4.60
FS average 4.20 +3
X Coordinate 1.31
+2
Y Coordinate 0.60
+1
CA IS
-6 -5 -4 -3 -2 -1 -1 +1 +2 +3 +4 +5 +6
-2
-3
-4
-5
Defensive Competitive
-6
ES
GSM
RAPID MARKET GROWTH
Quadrant II Quadrant I
1. Market development 1. Market development
2. Market penetration 2. Market penetration
3. Product development 3. Product development
4. Horizontal integration 4. Forward integration
5. Divestiture 5. Backward integration
6. Liquidation 6. Horizontal integration
WEAK 7. Concentric diversification
STRONG
COMPETITIVE COMPETITIVE
POSITION Quadrant III Quadrant IV
POSITION
1. Retrenchment 1. Concentric diversification
2. Concentric diversification 2. Horizontal diversification
3. Horizontal diversification 3. Conglomerate
4. Conglomerate diversification
diversification 4. Joint ventures
5. Liquidation
SLOW MARKET GROWTH
K,
2009
Hold and Maintain

IE Matrix
IFE Scores
Strong Average Weak
3-4 2-2.99 1-1.99
I II III
High
3-4
IV V VI
Scores
EFE
Medium
2-2.99
VII VIII IX
Low
1-1.99
42 3/30/2009
43

44
Matrix analysis
Alternative Strategies IE SPACE GRAND Porter’s COUNT
(Europe)
Forward Integration X X X 3
Backward Integration X X X 3
Horizontal Integration X X 2
Market Penetration X X X 3
Market Development X X X 2
Product Development X X X X 4
Concentric Diversification X X 2
Conglomerate X 1
Diversification
Horizontal Diversification X 1
Joint Venture X 1
Retrenchment
Divestiture
7-Apr-08
Liquidation
45
Possible Strategies
• Develop an alterative fuel car for global marketplace
▫ Product Development, Market development and Market
penetration, Porter’s Type 3
• Move Manufacturing to low-cost labor countries
with high demand for value priced automobiles
(China and India)
▫ Product development, Forward & backwards integrations.
Porter’s type 1
• Leverage Volkswagen Auto Groups brand to create
a global market for Skoda Cars
▫ Market development, Market Penetration, Joint venture, Porter’s
type 2
© 2009, Tony Gauvin, 03/07/11

UMFK
46
QSPM
Move to China/India Alternative Fuel VAG Global Brand
Key factors Weight AS TAS AS TAS AS TAS
External 1 to 4 1 to 4 1 to 4
O1 0.15 4 0.6 2 0.3 1 0.15
O2 0.1 4 0.4 2 0.2 1 0.1
O3 0.15 1 0.15 4 0.6 2 0.3
O4 0.13 0 0 0
0 0 0
T1 0.08 2 0.16 1 0.08 4 0.32
T2 0.11 4 0.44 1 0.11 3 0.33
T3 0.15 4 0.6 1 0.15 3 0.45
T4 0.08 4 0.32 1 0.08 2 0.16
T5 0.05 4 0.2 1 0.05 2 0.1
1
Internal 1 to 4 1 to 4 1 to 4
S1 0.06 0 0 0
S2 0.1 4 0.4 3 0.3 3 0.3
S3 0.08 2 0.16 4 0.32 4 0.32
S4 0.1 0 0 0
S5 0.07 2 0.14 4 0.28 4 0.28
S6 0.06 1 0.06 2 0.12 3 0.18
S7 0.04 0 0 0
S8 0.06 1 0.06 2 0.12 4 0.24
0 0 0
W1 0.1 4 0.4 1 0.1 1 0.1
W2 0.07 0 0 0
W3 0.08 0 0 0
W4 0.1 3 0.3 1 0.1 1 0.1
W5 0.08 4 0.32 1 0.08 1 0.08
0 0 0
1
4.71 2.99 3.51
© 2009, Tony Gauvin, 03/07/11

UMFK
47
Recommendations
• Next 3 years
▫ Move Manufacturing to low-cost labor countries
with high demand for value priced automobiles
(China and India)
• Next 5 to 7 years
▫ Develop an alterative fuel car for global
marketplace
• Continuing
▫ Leverage Volkswagen Auto Groups brand to
create a global market for Skoda Cars

48
Annual Objectives
• Year one
▫ Get plants up and running in China and India
• Year two
▫ Increase Production& Sales
 ~ 100,000 units in China, 25% export
~ 30,000 units in India, 0% export
• Year three
▫ Increase Production& Sales
> 150,000 units in China, 35% export
~ 45,000 units in India, 10% export

49

50
Financial
• Cost
▫ 2 factories in China @ 30,000,000
each
▫ 1 factory in India @ 50,0000,000
• Skoda is wholly owned by

Volkswagen AG
▫ No stock … so EPS/EBIT is not
important
• The Financing decision is to
borrow money or fund from
extensive cash reserves
▫ Czech national bank is listing a
1.5% Prime rate making this a “no-
brainer” ---Borrow the cash!

51
© 2009, Tony Gauvin, 03/07/11

UMFK
Management
Skoda Automobile followed the
German model of utilizing the members of
the Board of Directors as the top
management of the company. This is very
different from the composition of the top
management of large corporations in this
country.
Boards in the United States are

typically composed of more outside directors
(those employed by a company other than the
company on which they are serving as board
members) than inside directors. Most U.S.
institutional investors and watchdog groups
would prefer a majority of outside directors
because it is believed that they can be more
objective in making decisions than inside
directors.
OrganisationStructure.pdf
52
(r) 2009, Tony Gauvin, 03/07/11

UMFK
IT
Skoda Auto employs a best of
Breed Enterprise Resource
Planning infrastructure,
SAP/R3, allowing for digital
optimization across the
company.
The difficulty comes in

integrating other acquisitions
and partner firms in the vale
chain.
53
Marketing
Product Positioning within VAG
Sporty
Value Priced Luxury
Consevative

54

55

56

57

58
Data Sources
• Skoda Auto – 2007 Case Notes Marlene M. Reed:
Baylor University
• http://new.skoda-auto.com
• http://en.wikipedia.org/wiki/%C5%A0koda_Auto#History
• Datamonitor
▫ Global Automobile Manufacturers March 2007
▫ Volkswagen AG 2008
• Automotive Forecast December 2005, Czech republic, The
Economist Intelligence Unit Limited
• Skoda 2007 Annual Report
• Skoda 2006 Annual Report
• Volkswagen 2007 Annual Report

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SKODA

A Strategic Management Case Study

How do you double the value of a Skoda?

Fill the gas tank

What do you call a Skoda convertible?

What do you call a Skoda with twin exhaust pipes?

Why does a Skoda have a double rear window heater ?

To keep your hands warm, while you push it.

"Sounds like a fair swap" replied the man in the garage.

© Tony Gauvin, UMFK, 2009 3/30/2009

© 2009, Tony Gauvin, 03/07/11

© 2009, Tony Gauvin, UMFK 03/07/11

(r) 2009, Tony Gauvin, UMFK 03/07/11

Skoda key facts

© 2009, Tony Gauvin, UMFK 03/07/11

Skoda Mission Statement

© 2009, Tony Gauvin, UMFK 03/07/11

Current Issues and Challenges

(r) 2009, Tony Gauvin, UMFK 03/07/11

A world leader in high-quality,

© 2009, Tony Gauvin, UMFK 03/07/11

© 2009, Tony Gauvin, UMFK 03/07/11

© 2009, Tony Gauvin, UMFK 03/07/11

Global Industry Analysis

© 2009, Tony Gauvin, UMFK 03/07/11

© 2009, Tony Gauvin, UMFK 03/07/11

© 2009, Tony Gauvin, UMFK 03/07/11

© 2009, Tony Gauvin, UMFK 03/07/11

Porter five forces models

© 2009, Tony Gauvin, UMFK 03/07/11

Five Forces Analysis

• Bargaining Power of Buyers

With increased competition worldwide in the automobile manufacturing industry,

© 2009, Tony Gauvin, UMFK 03/07/11

Five Forces Analysis

Pressure from Substitute Products

Rivalry Among Existing Competitors

© 2009, Tony Gauvin, UMFK 03/07/11

1. Growing automobile market in Eastern Europe,

(r) 2009, Tony Gauvin, UMFK 03/07/11

There is an insufficient infrastructure because the Soviets have never put

© 2009, Tony Gauvin, UMFK 03/07/11

© 2009, Tony Gauvin, UMFK 03/07/11

© 2009, Tony Gauvin, UMFK 03/07/11

© 2009, Tony Gauvin, UMFK 03/07/11

1 USD = 0.6790 Euro = 18.11 CZK Dec , 31, 2007

Financial Ratios Industry Comparison

Return on 9.5 4.2 0.7 0.105

© 2009, Tony Gauvin, UMFK 03/07/11

Volkswagen Financial Data

1 USD = 0.6790 Euro = 18.11 CZK Dec , 31, 2007

Volkswagen Financial Data

KEY FIGURES BY BRAND AND BUSINESS FIELD

Vehicle sales Sales revenue Sales to Operating

Financial Services Division 10,145 8,871 8,726 7,978 957 843

1 USD = 0.6790 Euro = 18.11 CZK Dec , 31, 2007

© 2009, Tony Gauvin, UMFK 03/07/11

(r) 2009, Tony Gauvin, UMFK 03/07/11

(r) 2009, Tony Gauvin, UMFK 03/07/11

© 2009, Tony Gauvin, UMFK 03/07/11

© 2009, Tony Gauvin, UMFK 03/07/11

© 2009, Tony Gauvin, UMFK 03/07/11

© 2009, Tony Gauvin, UMFK 03/07/11