Foreign business units of Volkswagen Group

Existing companies’ internationalization theories

Name	Essence	Description
Stepwise model	Internationalization is a gradual, logical and ordered process common for every company. So, company must go through several definite stages in its international development.	Stepwise model is dominant but also scarified theory. Lack of experience and knowledge of international markets impedes company’s development. And only experience and practice can help. Increases in long-term profit and risk minimization are the principles of its theory. Internationalization process passes through several stages: no export in other country, export through intermediary agents, trading branch establishment, launching production process in other country. First of all company discovers closer markets and then – more distant ones. So, company gradually becomes global multinational corporation.
Conditional model	Conditional models are formed in accordance with the “if…, then…”. Internationalization depends on its external environment: branch structure, government regulation and so on.	In accordance with its model company is exposed to unfavorable external environment. Managers should find a balance between its environment (opportunities and threats) and the company (strength and weaknesses). Process of internationalization is unique for every company because of difference of its internal and external environment.
Action-oriented model	Its model focuses on the process of interaction between companies.	There are three types of economic activity arrangement: hierarchy, market and network. They are fundamentally different but complement each other.

Appendix 10

Region	Country	VW Group unit	Branches	Production
Africa	South Africa	Volkswagen of South Africa (Pty) Ltd.		Volkswagen cars
Asia	China	Shanghai- Volkswagen Automotive Company Ltd.	Anting, Nanjing, Loutang, Changchun, Chengdu, Jiading	Skoda, Volkswagen cars, engines, gear boxes
	India	Skoda Auto India Private Ltd.	Aurangabad Plant	Skoda, Volkswagen, Audi cars
Europe	Belgium	Audi Brussels	Brussels	Volkswagen, Audi cars
	Czech Republic	Skoda Auto a.s.	Kvasiny, Mlada Boleslav, Vrschlabi	Skoda cars, engines, gearboxes, foundry
	France	Bugatti Automobiles	Molsheim	Bugatti cars
	Germany	Volkswagen Sachsen	Chemnitz, Zwickau	Engines, VW cars, press shop, chassis, plastics technology
	Germany	Volkswagen AG	Brunswick,Emden, Hanover, Kassel, Salzgitter,Wolfsburg	Volkswagen cars, engines, chassis, foundry, heat exchangers
		Automobil Dresden	Dresden	Volkswagen cars
		Audi AG	Ingolstadt, Neckarsulm	Audi cars, engine components
		Sitztechnik GmbH	Wolfsburg plant	Seating technology
	Great Britain	Bentley Motors Ltd.	Crewe	Bentley cars, engines
	Hungary	Audi Hungaria Kft.	Gyor	Audi cars, engines

End аppendix 10

	Italy	Automobili Lamborghini	Sant’Agata Bolognese	Lamborghini cars, engines
	Netherlands	Scania AB	Meppel plant, Zwolle plant	Components paint shop; assembpy of trucks
	Poland	Sitech Sp. z.o.o.	Polkowice	Seating technology, engines
	Russian Federation	OOO Volkswagen Rus	Kaluga plant	Volkswagen, Skoda cars assembling
		Scania AB	St. Petersburg	Assembly of bus bodies
	Slovakian Rebublic	Volkswagen Slovakia	Bratislava	Volkswagen, Skoda, Audi, Porsche cars, gearboxes (assembly)
	Spain	Seat, S.A.	Barcelona, Martorell	Press shop, Seat cars, engines (assembly)
		Volkswagen Navarra	Pamplona	Vokswagen cars, engines assembly
	Sweden	Scania AB	Lulea, Oskarshamn, Sodertalje	Production of frame memders, cubs,
North America	Mexico	Volkswagen de Mexico	Puebla	Volkswagen cars, engines: foundry
	USA	Volkswagen Group of America	Chattanoga	Cars of all brands
South America	Argentina	Volkswagen Argentina S.A.	Cordoba, Pacheco	Gearboxes, Volkswagen cars, engines (assembly only), power train components.
	Brazil	Volkswagen do Brasil Industria de Veiculos Automotores Ltda.	Anchieta, Curitiba, Resende, Sao Carlos, Taubate	Volkswagen cars, engines, gear boxes:foundry, axles,cabs, trucks and bus chassis

Appendix 11

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