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Company: Volkswagen (VLKAY)
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edit Labor disadvantages in Germany.

Top Contributor: J.D. Thornton | Created when VLKAY was $32.90 | Edit | History

As of September 2008, 173,879 of Volkswagen's workforce of 373,406 were employed in Germany. Strong union organization and strict labor laws in Germany make it difficult to layoff workers and ensure they receive generous compensation and benefits. While possibly helpful for positive morale, Germany's rigid labor market will be a challenge for Volkswagen during the global economic downturn, as the company will find it difficult to reduce costs and production to meet demand.

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edit Volkswagen needs to shift its geographic focus

Created when VLKAY was $32.90 | Edit | History

Volkswagen needs to do more in terms of changing its focus from Europe to other markets such as the US and Asia which are significantly larger and growing at much greater rates. Volkswagen alreday has so large of a foot hold in Europe that it might be reaching its peak and has very little room for growth there. Resources spent on new plants and incentives in Europe would be better spent elsewhere.

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edit Volkswagen has an aging product line.

Created when VLKAY was $32.90 | Edit | History

Volkswagen has has little left in terms of new products or incentives to keep up its current momentum into the following years as its product line grows old.

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