In the automotive world, we are surrounded by just a bunch of abbreviations related to cars. But often the reductions concern companies and concerns. One of these abbreviations that has been around for a long time is VAG! Some say that this is another name for VOLKSWAGEN, others call VAG all German cars (including Mercedes and BMW). But how does it really work? It turns out it's simple...
Let's start as usual with a definition.
VAG - this is an abbreviation for Volkswagen Aktiengesellschaft (the second word in the name means "joint stock company"), the abbreviation is Volkswagen AG (because Aktiengesellschaft is a difficult word to pronounce and it was replaced with an abbreviation). In turn, the word Volkswagen is also abbreviated, hence the VAG.
In the “people”, VAG is deciphered as Volkswagen - AUDI Group, but this is not at all correct. However, the manufacturer himself does not confirm such a reduction, but he does not deny it either, that is, this is not an official name, but, let's say, “folk”!
What is the official name?
For a given period of time, there is an official company name, it's just - Volkswagen Konzern- German (translation - "Volkswagen Concern"). However, in English-language sources, Volkswagen Group, sometimes VW Group. Translated simply - the Volkswagen group of companies.
So how many brands are included?
If we take 2011, then approximately 50.73% of VAG shares belonged to the PORSCHE holding. BUT VAG owns 100% of shares in the intermediate holding Porsche Zwischenholding GmbH, which in turn owns the right to manufacture prestigious cars PORSCHE AG. It turns out that the company is, as it were, closed on itself.
However, for a given period of time, this concern includes a lot of other brands, such as:
- Volkswagen itself. It is mainly engaged in the production of passenger cars.
- AUDI. It was purchased from Daimler-Benz in 1964.
- NSU Motorenwerke is a manufacturer of motorcycles. Purchased in 1969.
- SEAT is a passenger car manufacturer.
- SKODA - bought in 1991
- Volkswagen Commercial Vehicles - Engaged in the production of minibuses, buses, tractors.
- BENTLEY - purchased in 1998
- ROLLS ROYCE.
- BUGATTI - purchased in 1998
- Lamborghini - bought in 1998
- Scania AB - owns a controlling stake (about 71%). Tractors, dump trucks, trucks, buses, as well as diesel engines are produced.
- MAN AG - a controlling stake (about 56%), purchased in 2011. They also produce special equipment - tractors, dump trucks, trucks, buses, diesel and hybrid power plants.
- Porsche
- DUCATI Motor Holding S.p.A - purchased in 2012, is engaged in the production of premium motorcycles.
- ItalDesign Giugiaro - 90.1% of the shares, bought in 2010, are developing auto design for new models, as well as restyling old ones.
- SUZUKI Motor Corporation - owns a large stake.
- Trademark "ALEKO" - under which the well-known "MOSKVICH" was sold, the rights to the brand belong to 2021.
This is just the tip of the iceberg, the concern itself consists of 342 companies that manufacture cars, motorcycles, special equipment, engines, etc. In 2009, it was the world's largest corporation engaged in the production of vehicles. And of course, it holds the lead in the European market for a given period of time, from 25 to 30% of all sales are occupied by cars of this brand.
Actually, that's all for today, I think the article is really useful to you. Sincerely yours AUTOBLOGGER.
In the very early days of the automobile industry, all car manufacturers were, of course, independent of one another. But . As a result, more successful car companies began to buy competing car brands. Subsequently, the world's largest conglomerates began to be created in the automotive industry, which to this day are the largest auto companies in the world in terms of the number of products produced and, naturally, in terms of sales. Let's look at the current state of the global auto business. We invite you to find out which famous and popular ones are currently under the control of large corporations and auto alliances.
Abarth - owned by Fiat/Chrysler
Abarth was founded in 1949. Initially, the auto brand was engaged in the production of racing cars and the production of automotive components for powerful vehicles. In 1971, company founder Carlo Abat sold his brand to the company. Abarth is currently producing more powerful versions based on Fiat vehicles.
Alfa Romeo - Owned by Fiat/Chrysler
At the moment, the Audi brand is the largest part of the world's largest auto concern Volkswagen.
Bentley - Owned by Volkswagen
Ferrari - owned by Fiat
In 1969, Fiat acquired a 50% stake in Ferrari after a planned buyout of the Italian premium brand by Ford failed. Fiat eventually increased its shareholding to 90%. In 2014, Fiat Chrysler decided to separate the brand from the main group. As a result, the deal was completed in 2016, and the Agnelli family, who founded Fiat, became the largest shareholder of Ferrari.
Infiniti - Owned by Nissan
Lamborghini - owned by Volkswagen
In the late 1980s and early 1990s, Lamborghini was owned by Chrysler. Currently part of the Volkswagen Group. Lamborghini became part of this company in 1998, when the brand came under control.
Land Rover - Owned by TATA
Land Rover has been owned by many well-known automobile brands throughout the long history of the automotive industry, ranging from and ending with the American company Ford. But in 2008, the Land Rover brand, along with Jaguar, came under the control of the Indian industrial giant Tata. Immediately after the takeover, the two independent brands and Jaguar were merged into one company.
Lexus - Owned by Toyota
Lexus is wholly owned by Toyota. The brand is the luxury division of a Japanese company. Like Acura, Infiniti, which are owned and respectively, the Lexus brand was brought to market to enter the US premium car market as well as the UK.
Lotus - Owned by Proton
Malaysian automaker Proton bought the company in 1993 from Italian businessman Romano Artioli (who owned Bugatti in those years). Today, the Lotus brand is still owned by Proton. The strangest thing is that Lotus cars are still produced and sold all over the world (mainly in England), while the production of cars under the Proton brand has been discontinued.
Maserati - Owned by Fiat-Chrysler
Maserati has been a 100% subsidiary of Fiat since 1993. Today it belongs to the Fiat-Chrysler automaker.
Mercedes - Owned by Daimler
Mercedes-Benz is the largest and most well-known automobile brand within the Daimler Corporation. Daimler also owns several commercial vehicle manufacturers.
MG - Owned by Saic
MG is owned by a Chinese company after MG Rover went bankrupt in 2005. Initially, the MG brand was bought by the Chinese company Nanjing Automobile, but then it was bought by the Shanghai company SAIC.
Mini - Owned by BMW
In 2000, BMW sold their MG, Rover and Land Rover brands, which were known to be part of the Rover Group. But in the sale, BMW retained control of Mini. As a result, today BMW, in addition to Rolls-Royce, retains control over the brand.
Mitsubishi - Owned by Nissan-Renault
Mitsubishi Motors is the automotive division of the Mitsubishi Group, which, in addition to auto production, is involved in projects in nuclear energy, banking and many other business areas. In October 2016, Nissan became the company's largest shareholder by purchasing a 34% stake. So Mitsubishi became part of the Renault-Nissan auto alliance.
Nissan - Owned by the Renault-Nissan Auto Alliance
After several years of financial difficulties, Nissan entered into an alliance with Renault in 1993. Technically, the two companies are separate. But the technologies, methods of work in the production of cars are the same. The autoalliance also has a single CEO, Carlos Ghosn. Nissan has a smaller stake in Renault, while Renault has a larger stake in Nissan, which is essentially a junior partner.
Porsche - Owned by Volkswagen
The car manufacturer is a subsidiary of Volkswagen.
Renault - Owned by the Renault-Nissan Alliance
Renault was once owned by the French government. In 1996 the company was privatized. But today, France still has a stake in Renault. Today, Renault is part of the world's largest auto alliance Renault-Nissan, which recently also included Mitsubishi.
Rolls-Royce - Owned by BMW
Rolls-Royce Motors was bought by Volkswagen in 1998. Five years later, the company was taken over by BMW.
Seat - Owned by Volkswagen
Since 1986 it has been the single largest car manufacturer in Spain. Since this year, the company has been part of Volkswagen.
Skoda - Owned by Volkswagen
Volkswagen began buying Skoda shares in 1991, at a time of great change in the former Czechoslovakia. Since 2000, Skoda has been wholly owned by the VW Group.
Smart - Owned by Daimler
Initially, the idea of a radical city car was first proposed by the owner of watch manufacturer Swatch. Smart is now wholly owned by Daimler.
SsangYong - Owned by Mahindra & Mahindra
Although SsangYong is still based in South Korea, the main owner of the Korean auto brand is the Indian company Mahindra & Mahindra, which acquired a 70% stake in the Korean company in 2011.
Subaru - Owned by Fuji
Subaru is owned by Fuji Heavy Industries (FHI), which will soon change its name to Subaru Corporation. FHI has six independent automotive companies. The major shareholders of the company are Toyota and Suzuki. Suzuki has a large share.
Vauxhall / Opel - Owned by PSA (Citroen-Peugeot)
Vauxhall cars / despite the fact that they were positioned as British and German car brands, in fact, for a long time they were part of the world's largest automaker General Motors. General Motors has owned the Vauxhall/Opel brands since 1925. In March 2017, it was announced that the Vauxhall/Opel brands were being taken over by the Citroen-Peugeot Auto Alliance (PSA).
Volvo - Owned by Geely
After being a completely independent Swedish car brand for more than 70 years, Volvo became part of Ford in 2000, which 9 years later sold the Swedish brand to the Chinese company Geely.
Lada AvtoVAZ - Owned by Renault-Nissan Alliance and Rostec
In 2008, a controlling stake in the AvtoVAZ car plant was received by Renault.
GAZ - Owned by Basic Element, Oleg Deripaska
In 2000, a controlling stake in GAZ OJSC was acquired by Oleg Deripaska's Basic Element. In 2001, the Gorky Automobile Plant became part of the RusPromAvto auto holding.
In this article, we have systematized the information so that you can easily find out what isVAG (VAG) and what is included in its structure, as well as what brands of cars are included in the concern VAG. We made brief conclusions on the formation and functioning VAG on January 3, 2019.
In the automotive world, it is customary to use various abbreviations that not every person can decipher the first time. After all, most of these abbreviations relate to automotive companies and concerns.
One of the most common and well-known abbreviations for several years remains VAG. The opinions of the townsfolk on the issue of its decoding were divided. Many believe that this is simply an abbreviated version of VOLKSWAGEN, while another part claims that all German cars, including Mercedes and BMW, belong to the VAG.
Let's try to figure out how things really are.
How is VAG (VAG) deciphered?
Previously, the abbreviation VAG stood for Volkswagen Audi Group but currently it is Volkswagen Aktiengesellschaft (Volkswagen AG). The second word in the name means "joint-stock company".
At the moment, there is one official German company name - Volkswagen Konzern, which translates as "Volkswagen Concern", and in English sources - this is the Volkswagen Group (Volkswagen group of companies). The group headquarters is located in Wolfsburg, Germany.
What car brands are included in the VAG concern?
Today, the VAG concern includes 12 separate car brands: Audi, Bentley, Bugatti, Lamborghini, Porsche, Seat, Skoda, Volkswagen, MAN, Scania, Volkswagen Commercial Vehicles and Ducati.
At the end of summer 2009 Porsche SE and Volkswagen Group reached an agreement whereby Volkswagen and Porsche AG decided to merge by 2011.
By this time, about 50% of VAG shares belonged to the PORSCHE holding. In turn, VAG owns 100% of the intermediate holding Porsche Zwischenholding GmbH, which has the right to manufacture PORSCHE AG cars.
The Volkswagen Group includes the following car brands:
- Audi- the last car brand of the Auto Union group, acquired from Daimler-Benz in 1964.
- NSU Motorenwerke- was purchased in 1969 and entered the Audi Division. Not used as an independent brand since 1977.
- seat- A controlling stake in the company (53%) was acquired from the state in 1986. Since 1990 the brand is practically the property of the Volkswagen Group, which owns 99.99% of the company's shares.
- Skoda- bought in 1991
- Volkswagen Commercial Vehicles (Volkswagen Nutzfahrzeuge) - was part of Volkswagen AG, but in 1995, thanks to Bernd Weidemann, the previous chairman of the board of the group, it became an independent division within the Volkswagen Group. The division is engaged in the production of minibuses, buses and tractors.
- Bentley- (1998) was bought from the British concern Vickers together with Rolls-Royce, but cannot independently produce cars under this brand, since the brand itself was sold to BMW.
- Bugatti- (1998)
- Lamborghini - (1998)
- Porsche
The concern includes 342 companies engaged in the production of cars, motorcycles, special equipment, engines, etc.
The Volkswagen Group owns 48 automotive companies in 15 European countries and six countries in the Americas, Asia and Africa. The group employs more than 370,000 people, produces more than 26,600 vehicles daily, and has authorized vehicle sales and service in more than 150 countries.
Thus, the concernVAG was created with the goal of taking over smaller car brands by the big car giants. In our opinion, this was done for the following reasons:
- Create imaginary competition among automobile manufacturers;
- Dictate your price conditions in the European automotive market.
About thirty years ago, the famous American manager Lee Iacocca said that by the beginning of the 21st century, only a few players would remain in the global automotive market. The ex-president of Chrysler and Ford saw through the trends in the further development of the automotive industry, so it is not at all surprising that his predictions are confirmed.
The world's largest automakers and alliances
At first glance, it may seem that there are many independent automakers in the world, but in fact, most auto companies are part of various groups and alliances.
Thus, Lee Iacocca looked into the water, and today there are actually only a few automakers left in the world who have divided the entire global car market among themselves.
What brands are owned by Ford
Interestingly, the companies he headed - Chrysler and Ford - the leaders of the American auto industry, suffered the most serious losses during the economic crisis. And they had never been in such serious troubles before. Chrysler and General Motors went bankrupt, and only a miracle saved Ford. But for this miracle, the company had to pay too dear a price, because as a result, Ford lost its premium division Premiere Automotive Group, which included Land Rover, Volvo and Jaguar. Moreover, Ford lost Aston Martin, the British supercar manufacturer, a controlling stake in Mazda, and liquidated the Mercury brand. And today, only two brands remain from the huge empire - Lincoln and Ford itself.
What brands belong to the auto concern General Motors
General Motors suffered no less serious losses. The American company lost Saturn, Hummer, SAAB, but its bankruptcy did not prevent it from defending the Opel and Daewoo brands. Today, General Motors includes such brands as Vauxhall, Holden, GMC, Chevrolet, Cadillac and Buick. In addition, the Americans own the Russian joint venture GM-AvtoVAZ, which produces the Chevrolet Niva.
Automaker Fiat and Chrysler
And the American concern Chrysler now acts as a strategic partner of Fiat, which has brought together such brands as Ram, Dodge, Jeep, Chrysler, Lancia, Maserati, Ferrari and Alfa Romeo under its wing.
In Europe, things are somewhat different than in the US. Here the crisis has also made its own adjustments, but the position of the monsters of the European automobile industry has not been shaken by this.
What brands belong to the Volkswagen Group
Volkswagen is still accumulating brands. After buying Porsche in 2009, the Volkswagen Group has nine brands - Seat, Skoda, Lamborghini, Bugatti, Bentley, Porsche, Audi, truck manufacturer Scania and VW itself. There is evidence that soon this list will include Suzuki, 20 percent of whose shares are already owned by the Volkswagen Group.
Brands owned by Daimler AG and BMW Group
As for the other two "Germans" - BMW and Daimler AG, they cannot boast of such an abundance of brands. Under the wing of Daimler AG are the brands Smart, Maybach and Mercedes, and the history of BMW includes Mini and Rolls-Royce.
Renault and Nissan Automobile Alliance
Among the world's largest automakers, one cannot fail to mention the Renault-Nissan alliance, which owns such brands as Samsung, Infiniti, Nissan, Dacia and Renault. In addition, Renault owns 25 percent of AvtoVAZ shares, so Lada is also not an independent brand from the French-Japanese alliance.
Another major French automaker, PSA, owns Peugeot and Citroen.
Japanese automaker Toyota
And among Japanese automakers, only Toyota, which owns Subaru, Daihatsu, Scion and Lexus, can boast of a “collection” of brands. Also part of Toyota Motor is the truck manufacturer Hino.
Who owns Honda
Honda's achievements are more modest. In addition to the motorcycle department and the premium Acura brand, the Japanese have nothing else.
Successful Auto Alliance Hyundai-Kia
In recent years, the Hyundai-Kia alliance has been successfully breaking into the list of leaders in the global automotive industry. Today, it produces cars only under the brands Kia and Hyundai, but the Koreans are already seriously engaged in creating a premium brand that could be called Genesis.
Acquisitions and mergers in recent years include the takeover of the Chinese brand Volvo by Geely, as well as the acquisition of the British premium brands Land Rover and Jaguar by the Indian company Tata. And even the most curious case is the purchase of the famous Swedish brand SAAB by the tiny Dutch supercar manufacturer Spyker.
The once powerful British auto industry is dead. All the famous British car manufacturers have long since lost their independence. Their example was followed by small English firms that passed to foreign owners. In particular, the legendary Lotus today belongs to Proton (Malaysia), and the Chinese SAIC bought MG. By the way, the same SAIC had previously sold the Korean SsangYong Motor to the Indian Mahindra&Mahindra.
All of these strategic partnerships, alliances, mergers and acquisitions have once again proven Lee Iacocca right. Single firms in the modern world are no longer able to survive. Yes, there are exceptions, like the Japanese Mitsuoka, the English Morgan or the Malaysian Proton. But these companies are independent only in the sense that absolutely nothing depends on them.
And in order to have annual sales amounting to hundreds of thousands of cars, not to mention millions, one cannot do without a strong “rear”. In the Renault-Nissan alliance, partners provide support to each other, while in the Volkswagen Group, mutual assistance is ensured by the number of brands.
As for such companies as Mitsubishi and Mazda, in the future they will face more and more difficulties. While Mitsubishi can get the help of partners from PSA, Mazda will have to survive alone, which in the modern world is becoming more and more difficult every day ...
