In light of the continued Trump tariffs that are threatening the German auto sector, international automaker Volkswagen has announced plans to reduce its workforce by 35,000 employees by 2030 as part of its cost-cutting programme, according to a media report.
Citing a works council meeting at Volkswagen’s Wolfsburg headquarters, a news portal reported that over 20,000 employees at the heart of the Volkswagen brand had decided to take voluntary retirement and terminate their contracts early.
It is anticipated that the majority of the job cutbacks would occur at the automaker’s German operations, and the business hopes to implement the reductions in a way that is “acceptable” to those impacted.
Volkswagen’s Offerings to Exiting Employees
Depending on their duration of service, the German manufacturer intends to provide severance payments to each employee impacted by the cost-cutting strategy.
According to a report, which cited the company’s personnel meeting on June 5, the company is expected to pay up to $400,000, but it did not disclose the exact amount of severance payments.
In addition to laying off employees, the corporation plans to limit the number of apprenticeships it offers each year from 1,400 to 600 beginning in 2026.
According to the news article, the German manufacturer would probably save around 1.5 billion euros annually in labour costs as a result of these cost reductions and the widespread layoffs.
Nearly 130,000, or 13 lakh, workers in Volkswagen’s core team are agreeing to a remuneration freeze in addition to their voluntary resignation. The corporation wants to increase salaries by 5%, which will be paid into a fund in two stages.
This money will be needed to finance flexible work schedules, among other things. The news broadcast also explained how these actions kept the German Volkswagen factory from closing.
Trump Tariff Woes Haunting the German Automaker
Following a report of a decline in the business climate index against the backdrop of the Trump tariffs from the United States, an international news agency previously reported that the German automotive sector further weakened in May 2025.
The European market’s low demand and fierce competition from international brands are already problems for the manufacturers. As a result, Volkswagen, BMW, and Mercedes-Benz began negotiating a settlement with the US government to lessen the effects of tariffs.
According to a media report, the business climate index fell to -31.8 points from -30.7 points in April, while company expectations for May 2025 fell to -28.3 from -25.2 points in April.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Bugatti.
We have all grown up seeing pictures of various luxury cars. We have admired them, fascinated them and wished to own them someday. They are not such easy-buy vehicles. The price they come at is not affordable for the majority of our country’s population. This is one of the main reasons that we are unable to locate any of such premium brand cars on our roads. Another primary reason is the infrastructure facilities in our country.
Certain brands like Rolls-Royce, Audi, Benz, BMW, etc. are being designed suitably for the Indian market. But some premium car models and brands are either not affordable or banned from running on Indian roads. One such premium luxury car brand is Bugatti.
Though Bugatti’s presence in the Indian market is minimal or almost nil, the company’s cars are popular in the Middle East and other parts of the world. Bugatti has more than a century-long history that dates back to the early 1900s. This article covers the complete story of Bugatti right from even before its inception in 1909, its growth, change of ownership, competition and its current status in the world market.
Bugatti is a luxury car manufacturer that was established in 1909 in Molsheim, France. The artistic designs and engineering of automobiles are what Bugatti is known for. Besides, it is also well-known for its sports cars. These cars were extraordinarily well-performing and gained a reputation as one of the most successful racing car brands in the world.
The Bugatti Type 35 model held the crown in the sports car category in the mid-1920s. The Bugatti Veyron model, which gained huge popularity in the early 2000s, remained the fastest car in the world with a speed of 410 kmph for many years. Bugatti is extremely focused on its design and speed which remains uncompromisable for anything.
Bugatti – Industry
The automotive industry involves the manufacturing and marketing of engines, motor vehicles and other related components. It is highly competitive and is one of the largest industries in the world in terms of revenue. As per the statistical reports, China has always led the automotive industry in production and distribution. This industry was on consistent growth in the pre-covid era. In 2017, automobile sales were at a peak and a total of 80 million units were sold during the year. But, the Covid pandemic has stumbled the industry, including China, and is now slowly recovering from its fall.
Bugatti – Founder and Team
Bugatti has been under various leaderships over its 113 years of existence. There have been several people who played a significant role in the growth of the company. The following are the founder and a few other key people of Bugatti during its early stages and present times:
Ettore Bugatti
Ettore Bugatti – Founder of Bugatti
Ettore Bugatti was an automobile Engineer and the founder of Bugatti. Ettore Arco Isidoro Bugatti is his full name and was born on 15 September 1881, in Milan, Italy. His interest in automobile designing and engineering came from his father who was a designer himself in the field of jewelry and furniture and his grandfather who happened to be an architect and a sculptor. He started building prototypes for automobiles right from his late teens and finally established the brand Bugatti in 1909. Ettore Bugatti passed away in August 1947 in France.
Jean Bugatti
Jean Bugatti is the eldest son of Ettore Bugatti and was born in Cologne on 15th January 1909. It was the year of the establishment of Bugatti and the family moved to Molsheim soon after he was born. He naturally got imbibed into the company. Jean served as the test engineer and designer for most of Bugatti’s cars between 1926 and 1939. He created some exceptional designs along with his father and laid a fantastic pathway for the company’s growth. Jean Bugatti died in August 1939 in an accident that occurred while test driving one of the automobile prototypes.
Stephan Winkelmann
Stephan Winklemann was the CEO of Bugatti automobiles, between 2018 and 2021, when the company remained a subsidiary of Volkswagen Group. He was born in 1964 and is a graduate of Political Science. Winklemann started his career as a sales representative of Mercedes Benz and worked in a couple of automobile companies in higher positions. His experience and knowledge in the automobile sector made him the President and CEO of Lamborghini in 2005. He served this position for 11 years before becoming the CEO of Audi in 2016. Stephan Winklemann was again made the Chairman and CEO of Lamborghini in 2020.
Mate Rimac
Mate Rimac is a young entrepreneur from Croatia who is the founder of an electric sports car company named Rimac Automobili. His entrepreneurial and innovative skills attracted many big companies like Porsche, Camel Group, Hyundai, etc. to invest in his company. He recently made an affiliation between his company and Porsche to bring in Bugatti under their joint venture Bugatti Rimac. Mate Rimac is currently the CEO of this new company.
The seed for Bugatti automobiles was sown with the birth of Ettore Bugatti in 1881. His artistic family background engulfed him in the areas of designing and engineering. As a result, Ettore entered an apprenticeship program in a bicycle company named, Prinetti & Stucchi in 1898. He was captivated by the technology and engineering behind motors. This encouraged him to develop a motor tricycle and even participate in some races with those developments.
Then, Ettore Bugatti started making cars and exhibited them at the Milan International Exhibition in 1901. He won an award for his Type 2 Model which he joined hands with the Gulinelli brothers to make it. But the rights to manufacture the model were lost due to the death of one of the Gulinelli brothers and Ettore was too young to sign a deal. Later, he gained his way into the firm that earlier got the rights for manufacturing Ettore’s cars in 1902. Since he was underage, all the agreements were signed by Ettore’s father Carlo Bugatti.
Ettore later designed cars for various manufacturers in the next few years and finally decided to start his own company in 1909. As a result, Bugatti Automobiles was born in 1909 with the support of Pierre de Vizcaya and Darmstadter Bank. The company’s first project was to manufacture five airplane engines and ten cars.
Bugatti – Name and Logo
Bugatti Logo
The name ‘Bugatti’ was derived from the name of its founder Ettore Bugatti. It is the surname of the family. The logo of Bugatti comes in a red oval with ‘BUGATTI’ written in the middle. This oval is surrounded by a white outline that comprises 60 red dots in it. This logo was designed by Ettore’s father Carlo Bugatti who is a jewelry designer. The logo itself looks like a fine jewel. It also carries the symbol ‘EB’ with an inverted E that represents Ettore Bugatti.
Bugatti – Challenges Faced
The following are the challenges faced by Bugatti over the years:
The first major challenge faced by Bugatti after WW1 was a labor strike in 1936. Ettore Bugatti always used to take good care of his employees and hence, he considered this labor strike a personal insult. The issue was resolved but Ettore started distancing himself from the workers and the Molsheim factory.
The next big hit happened in 1939. Jean Bugatti, who played a key role in the company, was killed in an accident during a test drive. The entire company was stunned by his death as there was none left to take the company forward after Ettore. To make this worse, WW2 began a few days later and Bugatti was forced to be sold to an entrepreneur from Germany by the government. Bugatti automobiles were never the same after the above two incidents.
Even after the war, when Ettore Bugatti got the company back, he couldn’t re-establish the business due to insufficient funds. The issues made his health deteriorate and he died in August 1947.
The appointed Managing Director took over the company after Ettore but couldn’t run it efficiently. As a result, the production of Bugatti came to a halt in 1956.
Later, the company was taken over by a Spanish automobile maker. Even then, Bugatti was forced to cease its operation in 1995 due to unsaid reasons and later was acquired by Volkswagen in 1998.
Bugatti Automobiles went through different management and mergers over the years. The first of those came in 1948, right after the death of Ettore Bugatti. Ettore’s heirs appointed Pierre Marco as the Managing Director of Bugatti. But, within three years, another son of Ettore, Roland Bugatti, took over the management.
In 1963, a Spanish-based automobile manufacturer Hispano-Suiza purchased the company. It was later renamed as Messier-Bugatti and continued production.
Romano Artioli, a car dealer and entrepreneur, acquired the rights for the trademark of Bugatti in 1987 and operated it under the name ‘Bugatti Automobili S.p.A. But this company ceased operations in 1995 and the rights for the production of the sports car EB 110 were acquired by Dauer Racing GmbH.
Finally, in 1998, Volkswagen purchased Bugatti and brought it under its portfolio. It was then the company launched some of its successful models like Veyron, Chiron and Divo. But Bugatti left Volkswagen in November 2021 to join hands with Rimac Automobili and Porsche to form a new company ‘Bugatti Rimac’. Rimac controls 55% of the shares while Porsche has the rest in this new venture. All its future operations are expected to happen under this new management.
Bugatti – Growth and Timeline
Number of Deliveries of Bugatti Cars | Bugatti Growth
Though the company was established only in 1909, Ettore Bugatti entered the industry in 1901 with the Type 2 model. He later built the first race car, Type 5, in 1903 which was a chain-driven model with a tubular chassis frame. Ettore started making advanced modeled cars from the previous versions for Mathis and Deutz in 1905 and 1907 respectively. Then came the birth of his own brand Bugatti in 1909 in Molsheim, France.
As the years passed, Bugatti came up with new and advanced models of cars at regular intervals. The company kept innovating and enhancing its automobiles and took part in various international motor car races. In 1913, Peugeot Bebe, a four-cylinder car was launched by Bugatti that reached a top speed of 60 kmph. It is one of the largest produced cars by the company in terms of units at that time. It was followed by ‘Type 13 Brescia’ which remained successful until 1926.
By 1915, Bugatti started manufacturing airplane engines as a result of the First World War. The company broke and created many records in various Grand Prix races in the next couple of decades. With the launch of every new model, there came some enhancement and advanced technological inducement in the vehicles.
1926 marked the dream-come-true moment for Bugatti when it launched its first most luxurious car named ‘Royale’. The company then entered the manufacture of high-speed trains and launched its prototype in 1932. The trial run was made by Jean Bugatti and a record was created at a speed of 166 kmph.
Beginning in 1939 Bugatti faced a series of struggles and changes in management until the end of the 20th century. Except for some race victories and a few models the company faced a severe downfall. It was only in 2001, after the launch of the Bugatti Veyron prototype, that the brand started regaining its image. It refurbished its head office in Molsheim, renamed it ‘The Atelier’ and started manufacturing Veyrons. It turned out to be the fastest car in the world. Now, ‘Bugatti Chiron’ is the most popular, fastest and most successful model of the company.
Despite the struggles Bugatti faced after WW2, it has never lost its brand reputation. The company has always stuck to its quality, design, innovation and speed under any circumstance. They have played a major role in Bugatti’s growth and will continue its streak in its new joint venture ‘Bugatti Rimac’.
Bugatti – Competitors
There are many premium and elegant car manufacturers in the market around the world. Therefore, there is plenty of competition available for Bugatti. Here are some of the top competitors of the company:
Maserati
Maserati is a luxury automobile manufacturer based in Modena, Italy. This company is known for its reliability, luxury and speed. Maserati was started in 1914 during the beginning of WW1. It was earlier a subsidiary of Ferrari and is currently owned by Stellantis since 2021. Ghibli and Alfieri are some of the popular models produced by Maserati.
Ferrari
Ferrari is another company based in Italy that was established in 1947. It manufactures luxury road and sports cars that have a fantastic brand reputation from the people. Ferrari manufactures elegant and expensive cars that have taken part in and won various racing events like Formula One.
Rolls-Royce
Rolls-Royce Motor Cars is a subsidiary of BMW that manufactures extreme luxury road cars. The company is based in the UK and has a history that dates back to 1906. Rolls-Royce Ghost and Phantom series cars are very popular and are known for their astounding looks and sophisticated experience.
Bugatti – Future Plans
Since Rimac is a manufacturer of electric vehicles, Bugatti Rimac is on a path towards electric and hybrid cars. The CEO Mate Rimac announced that the successor of Bugatti Chiron would be all-electric. He also said that the company is into the production of Bugatti Bolide which might be released later in 2022. A teasing image describing all the above announcements was released by the company. Since it is a newly formed venture, its long-term plans and goals related to various aspects of the business are yet to be announced.
FAQs
When was Bugatti founded?
Bugatti was founded in 1909 in Molsheim, France.
Who is the owner of Bugatti?
Rimac Automobili is the owner of Bugatti.
Who is the founder of Bugatti?
Ettore Bugatti is the founder of Bugatti.
What are the top models of Bugatti?
Top models of Bugatti are:
Bugatti Chiron
Bugatti Veyron
Bugatti La Voiture Noire
Bugatti Divo
Bugatti Centodieci
Who are the top competitors of Bugatti?
Top competitors of Bugatti are:
Maserati
Ferrari
Rolls-Royce
What is the revenue of Bugatti?
Revenue for Bugatti is estimated to reach $89.79 million in 2022.
One of the most timeless and iconic cars from the Volkswagen portfolio, the stylish Polo hatchback has completed over a decade in a fierce, competition-packed segment. Over the past ten years, this hatchback has set a higher than usual benchmark in safety. With a Global NCAP crash rating of 4-stars, the hatchback was one of the first and most-loved cars in the Indian market to offer airbags and ABS as standard in all its cars across all trim levels.
Volkswagen Polo has come a long way to becoming peoples’ favorite and loved hatchback. Since its launch, it has also appealed to an incredibly diverse audience by providing as many as eight engine options. Let’s look at its cherished history to understand how the vehicle started on its journey.
Volkswagen Polo is among the best hatchbacks available today. This fun-to-drive car has sold over 14 million units to date. The most well-known Polo ever seen on roadways was Polo Mk 2, produced between 1981 and 1994. Over 2.7 million units of this beast model were sold globally. MK2 was available in three distinct body styles: a 3-door hatchback, a sedan with a 2-door known as the Polo Classic, and a 3-door hatchback.
The first Polo, the 5th generation model, debuted in 2010 and was given an update in 2012. Then, in 2013, GT models of the Polo were released along with the Cross Polo. The Cross Polo was a rugged version of the Polo powered by 1.2-liter petrol and diesel engines. It later received the 1.5-liter diesel engine.
The GT versions were a completely different ball game. There’s a 1.2-liter GT TSI petrol model with 105 horsepower and connected to a seven-speed DSG gearbox. The 1.5-liter GT TDI was a delight too. It’s safe to claim that GT models were among the initial hot hatches to be able to operate on Indian roads.
Then in 2014, Volkswagen added the 1.5-liter TDI engine to the refreshed Polo. Fast forward to 2017, the engine came to India. In a surprising decision, Volkswagen launched the monster of a vehicle named the Polo GTI. Polo GTI equipped with a 1.8L TSI engine produces the power of 192 PS and is coupled to a DSG gearbox.
Polo isn’t only a car that can transport people. Volkswagen’s Motorsports division has used its performance to the fullest extent. Polo has been part of Volkswagen’s Motorsports division since its beginning in 2010. Polo has also been a participant in the Indian National rally championship and has won the POLO WRC award three times from 2013 until 2016.
What Made Volkswagen Polo World’s Most Favorite Hatchback?
The journey of Volkswagen Polo shared above must have given a hint behind its success, but there’s a lot behind it. To help people understand its growth journey, we’ve listed the reasons behind its success. So let’s look at the factors or reasons behind its growth.
Impeccable Safety Features
One of the most striking and appealing advantages of having Volkswagen is its commitment to security. Volkswagen Polo is one of the most secure hatchbacks available. It has an NCAP rating of four stars, which isn’t attainable by all contemporary hatchbacks. Equipped with the latest in occupant safety, the vehicle includes two airbags for passenger and driver anti-lock brake Systems (ABS) and an electronic Anti-theft immobilizer.
Classic and Timeless Design
Volkswagen Polo will never disappoint you if the appearance of a car matters the most to you. The Polo is among the very few hatchbacks made in India that has improved in appearance over time. This Volkswagen Polo sported a clean and swept-back headlamp design. The headlamps opposite side were a horizontal grille, with the triple chrome slat pattern highlighted by a massive Volkswagen logo in the middle.
The design of the Volkswagen Polo features minimal creases and body lines that give the Polo a muscular appearance. From the sides, the Polo did a great job by imparting a look identical to a rugged machine that has elevated suspension and higher floor clearances of 168 millimeters. Volkswagen equipped the Polo with sporty alloy wheels to create a more aggressive design.
Big on Space
The Polo was among India’s top compact hatchbacks when it first came out. In the face of competition, one aspect that made Polo more comfortable was its spacious cabin and a slack stance. With a wheelbase of 2456 millimeters in its first years and then increasing to 2470 mm with the facelifts, the Polo is larger than many competitors.
With the broader diameter of its wheelbase, Polo also allowed for comfortable seating for passengers in the front and rear ends. As a well-constructed and spacious hatchback that is spacious and well-built, this Polo is ideal for many first-time car buyers.
Durable Construction Quality
Another thing that makes the Volkswagen Polo a competent, compact hatchback is its sturdy build quality. When it was first introduced in the market, it was known that the Polo was built on the same platform that was used to make the Audi A1 back then, which itself is a testimony to the excellent build quality of the Polo. It is built using an elegant German design.
A Wide Variety of Efficient Engines
One factor that makes Volkswagen Polo a vehicle worth purchasing is its diverse engine options. In its initial years, Polo was available with the 1.2-liter gasoline engine, mated with a five-speed manual that returned 16.47 kmpl. The diesel engine available as a 1.2-liter TDI diesel engine mated to a manual five-speed that produced 22.08 kilometers per liter of fuel. In the second quarter of 2010, the Volkswagen Polo was released with a 1.6-liter petrol engine, much more potent than the previous engine.
In 2013 the Polo received a 1.2-liter turbocharged TSI engine mated to a seven-speed DSG auto. Volkswagen also gave the vehicle the 1.6-liter TDI diesel engine mated to a five-speed manual and the sports mode in the same year. In 2019 the Polo was subjected to BS6 modifications. It then returned with the 1.0-liter naturally-aspirated petrol engine and a 1.0-liter turbo-petrol TSI engine.
Polo has come a long way in its journey of winning people’s hearts, and for all the right reasons. Be it the engine or safety features, timeless design, or spacious and stylish interiors; many factors have contributed to Polo’s journey to become the world’s best hatchback. In addition to the features, the manufacturer’s efforts in constantly upgrading the vehicle with time contributed massively to Polo’s success. It is not just a hatchback but a dream vehicle for many. Those willing to invest in a safe, stylish, and comfortable car should choose Volkswagen Polo over other hatchbacks.
FAQs
Which is the best hatchback car?
Volkswagen Polo is the most reliable hatchback car in the world. Some other hatchback cars are:
Volkswagen Polo
Ford Fiesta
Ford Focus
Volkswagen Golf
Mini Cooper
Mercedes Benz A-Class
Vauxhall Corsa
BMW 1-series
Vauxhall Astra
Audi A3
When was Volkswagen Polo launched in India?
Volkswagen Polo was launched in February 2010 in India.
Which are the top competitors of Volkswagen Polo?
Top competitors of Volkswagen Polo are:
Ford Fiesta
Vauxhall Corsa
Skoda Fabia
Peugeot 208
Renault Clio
Seat Ibiza
Mini 5-door Hatch
Dacia Sandero
Hyundai i20
Toyota Yaris Hybrid
What is the price of Volkswagen Polo in India?
Volkswagen Polo price in India ranges between INR 6.49 Lakh and INR 10.25 Lakh.
How are the Volkswagen Polo sales in India?
There were 728 Volkswagen Polo sold in May 2022 in India.
Volkswagen is a very familiar name for all automobile enthusiasts across the world. This German motor vehicle manufacturer has fared on the path of success and popularity due to its uncompromising quality and commitment. It was founded on 28 May 1937, by the German Labour Front and is headquartered in Wolfsburg, Germany.
Going by the factual pieces of evidence it can be seen that the Volkswagen group has played a significant role in making cars a product of the middle-class by being a very elitist possession, especially during the second world war. However, it is important to note that Volkswagen is not just a single popular brand. They in fact own many other brands as well. This article will look into the various companies that are owned by the Volkswagen group
It is an independent automotive software company under the Volkswagen Group that consolidates and expands the software competencies of the firm. With a goal to make the best use of technology to benefit the automotive industry, this company is on its way to developing more sustainable automotive services. It was established in 2020.
Volkwagen Group Components
Volkswagen Group Components Logo
This company was founded in 2019 as a part of Volkswagen group strategy 2030. They aspire to improve the potential and viability of component activities through cross-brand management. They are divided into new business areas that are known as Engine & Foundry, Gearbox & Electric Drive, Battery Cell & Battery System, Charge & Energy, Chassis and Seats. Today, they manage over 75,000 people across the globe.
Volkswagen Financial Services
Volkswagen Financial Services Logo
It was founded in the year 1949 and since then has been performing well even during the Covid 19 pandemic. They focus on finding better services with regard to the digital spaces. Their primary focus area revolves around dealer and customer financing, leasing, bank and insurance activities, fleet management and mobility services. They are represented in over 48 markets across the globe.
MOIA
MOIA Logo
MOIA is a company under Volkswagen that focuses on offering mobility services to city dwellers. It was founded in December 2016 and since then has been working towards its primary goal of recruiting the nuances of mobility amongst the people in urban areas. They develop on-demand services including ride pooling. With the Volkswagen group, they are able to thrive under an experienced company while having exposure to a startup culture.
SEAT
Seat Logo
Seat is the first car manufacturing company in Spain and was founded on 9 May 1950. Since then they have been demonstrated evidence that stands as a testament to the robust technology and industrial competence that the firm maintains consistently. Today the company has marked its presence in more than 75 countries employing over 15,000 people. They sell vehicles under two brands namely SEAT and CUPRA.
Skoda
Skoda Logo
Skoda is a Czech Republic company that was founded in 1895 by Vaclav Laurin and Vaclav Klement. It is one of the oldest car manufacturers in the world that is functional even today. For the last 30 years, Skoda auto has been a very important part of the Volkswagen group. Skoda has also not forgotten their commitment to creating a sustainable environment like all other brands under Volkswagen. They are driven by the exporters of a well-construed sustainability advisory board.
Scania
Scania Logo
The Swedish brand was founded in 1891 by Philip Wersen and Surahammarsbruk, which is a centuries-old ironworks. Over the years, they ran into many financial difficulties before they became the general agent for Volkswagen in Sweden. By 2008, Volkswagen owned over 68% of the voting rights and 37.73% of share capital. By 2014, Scania was wholly owned by the Volkswagen Group. The company has grown so much under Volkswagen that in 2020, Scania released its fully electric truck to become one of the topmost companies in the commercial vehicle industry.
Ducati
Ducati Logo
Headquartered in Bologna, Italy, Ducati has never failed to impress motorbike lovers. It was founded by Antonio Cavalieri in the year 1926. Ducati was taken over by Volkswagen in 2012 for $1.2 billion. Through Ducati, Volkswagen has been able to maintain a stronghold in the motorcycle industry as well.
Porsche
Porsche Logo
This popular brand that is known for its premium qualities was founded by Ferdinand Porsche in 1931. It is said that the Beetle designs by Volkswagen were influenced by Porsche. Although the companies agreed to merge in August 2009, it was only towards the end of 2015 that Volkswagen had the majority shareholding in Porsche.
Audi
Audi Logo
This famous automobile brand became an important part of Volkswagen in 1965. It has been offering premium vehicles since its inception in 1909. Today Audi cars have become a measure of the quality of life and place their owners in a certain class of society.
Lamborghini
Lamborghini Logo
Lamborghini was founded by Ferruccio Lamborghini in the year 1963. Since the founding of this Italian company, it has been a competition to Ferrari due to its uncompromising design and quality. The firm shot to fame within a few years. However, due to financial burdens, Lamborghini had to shut down in 1973. After several changes of ownership Volkswagen finally took over the firm in the year 1998. Through the deliverance of unique hybrid technologies, they have generated billions in the automobile industry today with no turning back since the acquisition.
Bentley
Bentley Logo
Bentley was founded in 1919 and Crewe of United Kingdom. Today Bentley is an end to end net carbon neutral company which adds to the unmistakable reputation of the firm. They have been a part of the Volkswagen group since 1998.
It is a subsidiary of the Volkswagen group that was founded in the year 1998. This luxury brand of hyper sports cars is based in Molsheim, France. Today strong brands like Porsche and Rimac have agreed to formulate a joint venture with Bugatti wherein they will produce hypercar models. Right now the two hypercar models that are planned are the Bugatti Chiron and the all-electric Rimac Nevera.
Traton
Traton Logo
Under the umbrella of Volkswagen, Traton has emerged as one of the largest commercial vehicle manufacturers across the globe. Recently they merged with Navistar which has further elevated the prospects of the firm. They aim to become the leading brand in the field of commercial vehicles by giving importance to sustainability and digitalisation.
MAN
MAN Logo
The MAN Truck and Buses are two of the most popular additions of this brand under Volkswagen. However, to focus on the global plans for the premium end of the market, MAN trucks exited the Indian markets 2 years ago.
IAV
IAV Logo
Volkswagen AG and IAV is an auto parts maker that has created standards to follow for latecomers. Volkswagen owns more than 50% of its stake in IAV. It was founded in Berlin in 1983 by Dr Hermann Appel. Over the years they have developed electric vehicle rechargers that are built into the road for which they have submitted patents.
Renk
Renk Logo
It was a subsidiary of MAN since 1923. As Volkswagen acquired MAN in 2011, Renk became a direct subsidiary of Volkswagen. However, the latter happened in 2019. Renk is a remarkable automotive company that is into the manufacturing of engines for trucks, ships and combat defence vehicles.
WirelessCar
WirelessCar Logo
In 2018 Volkswagen group acquired a 75% of stake in WirelessCar which was owned by Volvo information technology AB. it will help the parent company to further extend its mission of improving connectivity. This Swedish telematics specialist is expected to accentuate the growth of the digital ecosystem and thereby provide extensive connectivity for vehicle generations to come. It is expected that WirelessCar technology will ensure a stable and safe exchange of data between various platforms.
From being one of the pioneers in bringing cars into the midst of middle-class households, Volkswagen continues to be the baton bearer of various other important milestones since then. Today, Volkwagen’s electric vehicles are the most frequently delivered passenger car across the world.
Through digitalisation, they have transformed the present and future of the company. They have brought in relevant software updates through which the company have been able to remain customer friendly.
Inadvertently, these efforts have helped them remain focused on their goals to be the best in the industry. The zeal of Volkswagen to not only focus on the present but also invest intelligently in the future is something that has to be appreciated and looked up to.
FAQs
What subsidiaries does Volkswagen own?
Bugatti, Traton, MAN, IAV, Renk, WirelessCar, Lamborgini, Porsche, Ducati, Scania, Skoda, Audi, Seat, and MOIA are some of the subsidiaries of Volkswagen.
Is Bugatti Owned by Volkswagen?
Yes, Volkswagen acquired Bugatti in 1998 for $50 million in an all-stock deal.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Rolls-Royce.
Rolls-Royce is a name that has always gone with luxury. In fact, Rolls-Royce can be used as a term to define luxury. Rolls-Royce refers to Cars, this is what we’ve known so far. But they are more than what we know.
Rolls-Royce is an engineering company that manufactures Aero-engines and power systems for civil, defence and various other industries. It aims at creating power systems for the future that prove to be the safest and cleanest. On the other hand, Rolls-Royce cars are manufactured independently by the company called Rolls-Royce Motor Cars Limited, which is now a subsidiary of BMW.
The company has more than a century-long history dating back to 1904. Started as a car manufacturer, then was forced into the defence industry during the world war for making aero-engines, facing a financial collapse in the 1970s thus resulting in government take-over, various mergers, demergers and acquisitions which led them through a lot of ups and downs. Their journey is nothing short of excitement.
Rolls-Royce – Company Highlights
Company Name
Rolls-Royce
Headquarters
London, England, United Kingdom
Industry
Airspace, Defense, Automotive
Founders
Charles Rolls, Henry Royce
Founded
1904 (Partnership), 1906 (Company)
CEO
Warren East (Rolls-Royce), Torsten Müller-Ötvös (Rolls-Royce Motor Cars)
Parent Organisation
Rolls-Royce Holdings plc (Rolls-Royce), BMW (Rolls-Royce Motor Cars)
Rolls-Royce formally referred to as Rolls-Royce plc, is a company involved in manufacturing propulsion engines for civil and defence services and power systems for oil/gas and other marine industries. Charles Rolls and Henry Royce initially established the company for making cars. But during the First World War in 1914, the government forced them to manufacture Aero-engines for military activities.
They kept manufacturing cars between 1906 and 1973 but concentrated more on expanding their aerospace sector. Rolls-Royce builds engines for civil and defence aircraft, power systems for land and naval military vehicles including submarines. They also provide power solutions to the oil/gas industry and marine activities. In simple terms, Rolls-Royce is into innovating advanced solutions for meeting our planet’s power needs. Rolls-Royce is technically a subsidiary of Rolls-Royce Holdings plc since 2011.
Since 1973, after its demerger from the core company, the Rolls-Royce automotive sector went through a number of changes in ownership. Currently, Rolls-Royce cars are manufactured exclusively by the company Rolls-Royce Motor Cars Limited, which is a subsidiary of BMW.
Rolls-Royce – Latest News
November 8, 2021 – The United Kingdom Space Agency has joined hands with Rolls-Royce to explore the use of nuclear power in space travel. This may help them cut the space journey time and cost.
May 28, 2021 – Rolls-Royce Motor Cars has launched a new luxury model ‘Boat Tail’ priced around $28 million. It allows you to customize not only the interiors but also the body shape of the car.
Rolls-Royce – Founders and Team
Rolls-Royce Founder – Charles Rolls
Charles Stewart Rolls and Sir Frederick Henry Royce are the co-founders of Rolls-Royce. Charles Rolls (1877 – 1910) was a motoring and aviation pioneer who graduated from Cambridge in 1898. Henry Royce (1863 – 1933) was a popular design engineer for car and aeroplane engines.
Henry Royce – Rolls-Royce Founder
In 1904, they both co-founded Rolls-Royce along with Claude Goodman Johnson, who was the founding Managing Director of the company after its incorporation in 1906. Their passion for cars and engineering expertise fuelled the company’s growth all through the years.
Rolls-Royce – Startup Story
The seed for Rolls-Royce was planted in 1884 when Henry Royce started a mechanical and electrical business in Manchester. In the beginning, he was making dynamos and cranes. Later, he acknowledged the market potential of the car industry in the future and started working on it.
On the other hand, Charles Rolls graduated from Cambridge and got himself employed in various companies. But he was keen on marketing and motoring, thus started importing and selling cars.
In 1904, Royce was designing and manufacturing a car of his own and that is when Rolls happened to meet him at an Automobile Club. He was impressed by Royce’s design and agreed to sell all the cars that Royce would make. Thus on 23rd December 1904, at the Paris Motor Show, the brand Rolls-Royce was introduced by displaying their first car Rolls-Royce 10 hp.
It was initially started as a partnership in 1904. Then in 1906, Rolls-Royce was converted into a Private Limited Company and was further transformed into a Public Listed Company the subsequent year. After the death of Charles Rolls in 1910, Henry Royce and Claude Johnson took the company forward. They kept introducing new car models and by 1914, Rolls-Royce started manufacturing civil and defence aircraft engines too and made it a huge success.
Rolls-Royce’s mission is to provide “Better Power for a Changing World”. They aim at improving their standards and performances to provide competitive and clean energy for the future. Rolls-Royce also marches with a vision of Net Zero Carbon in all their endeavours to meet the present and future power needs, while also protecting our society.
Rolls-Royce – Name and Logo
Rolls-Royce Logo
The brand name Rolls-Royce was derived after the founders Charles Rolls and Henry Royce. The company’s name is always used with a hyphen in between, which emphasizes the friendly association between founders.
The logo of Rolls-Royce plc comes in the blue background where two ‘R’s are embedded closely to each other in the middle with Rolls on the top and Royce below. Rolls-Royce Motor Cars Ltd has a similar logo with a white background.
Rolls-Royce’s “Spirit of Ecstacy” emblem is highly admired by many. It resembles a woman leaning forward, with her hands stretched back. Her clothes billow from the back of her neck to her hands which look like wings. The Spirit of Ecstasy, also known as Eleanor or Flying Lady, was designed by Charles Robinson Sykes.
Rolls-Royce’s business model focuses on reducing the costs of its power systems. This helps them utilize funds to invent and innovate techniques that help them move closer to achieving their mission and vision. They generate revenue by selling engines and other power systems to various industries. Also, a part of the income flows through service contracts from airlines for maintaining the aircraft engines.
Rolls-Royce Motor Cars Ltd sells premium luxury cars with high standard and customized features to its customers. Their cars are priced ranging from ₹5 crores to ₹10 crores with Rolls-Royce Phantom topping the price table. Rolls-Royce recently introduced a model named ‘Boat Tail’ for its highly exclusive customers, which is priced at a whopping ₹202 crores.
Rolls-Royce – Challenges Faced
In 1971, Rolls-Royce declared Bankruptcy due to the losses suffered by mismanagement. Their fixed-price contract for manufacturing airlines engines with Lockheed Aircraft Corporation became the reason for their fall. This long-term contract made their losses unbearable. Rolls-Royce’s fall impacted various other industries, and as a result, the government stepped over the issue and nationalized the company. The government’s hold continued till 1987, after which it was again converted into a Private Limited Company.
The next big challenge faced by Rolls-Royce was during the Covid-19 pandemic. The reason stated was, 50% of their revenue comes from aerospace activities which were completely halted due to the crisis. The company reported a loss of around £4 Billion in 2020 which was the biggest loss reported in Rolls-Royce’s history.
Rolls-Royce has so far raised around $266 Million in 2 rounds. Their latest funding was through the Post-IPO Equity round for developing Small Modular Reactors (SMR).
Date
Round
Amount
Investor Name
November 9, 2021
Post-IPO Equity
£195 Million
BNF Resources, Exelon Generation Company
January 21, 2021
Convertible Note
$1 Million
United States Navy
Rolls-Royce – Mergers and Acquisitions
Rolls-Royce Motors demerged from Rolls-Royce (1971) Ltd., in 1973. It operated independently of its parent company along with Bentley Motors until 1980, when Vickers plc acquired this car business. Later in 1998, the Rolls-Royce motors were sold to Volkswagen Groupby Vickersbut the rights for using the name “Rolls-Royce” and the logo were purchased by BMW for £40 Million. From 2003, BMW got the sole right to name, manufacture and sell Rolls-Royce cars.
Roll-Royce plc was brought under Rolls-Royce Holdings plc as a subsidiary after the latter was incorporated in 2011. But all the major and principal operations are carried out by Rolls-Royce plc. The following are some of the top acquisitions and subsidiaries of Rolls-Royce Holdings plc:
Name of the Company
Year of Acquisition/Incorporation
January 14, 2020
QINOUS
March 30, 2015
R.O.V. Technologies
2014
Rolls-Royce Controls and Data Services
2014
Rolls-Royce Power Systems
July 2, 2013
SmartMotor
May 1, 2013
Hyper-Therm High-Temperature Composites
January 8, 2013
PKMJ Technical Services
May 23, 2011
Rolls- Royce plc
September 2, 2011
R. Brooks Associates
January 28, 2010
Europea Microfusioni Aerospaziali
January 6, 2010
ODIM
July 8, 2008
Scandinavian Electric Holding
1995
Rolls-Royce North America (earlier Allison Engine Company)
1998
Rolls-Royce AB (as a part of Vickers acquisition)
1999
Rolls-Royce Marine Power Operations
1998
Vinters Limited (as a part of Vickers acquisition)
Since the car division was demerged in 1973 and later acquired by BMW, it has seen significant growth in its sales over the years. They’ve even made a record sale in their history by selling more than 5000 cars in 2019. Here is the growth record of Rolls-Royce Motor Cars since 2007, according to Statista:
Year
Sales in Units
2007
1010
2008
1212
2009
1002
2010
2711
2011
3538
2012
3575
2013
3630
2014
4063
2015
3785
2016
4037
2017
3438
2018
4194
2019
5100
2020
3756
On the other hand, Rolls-Royce plc maintained their revenue with little ups and downs from 2016-19 but faced a pitfall of 28% due to pandemic in 2020. Here is their revenue chart for the past five years:
Year
Revenue
2016
£14.96 Billion
2017
£14.75 Billion
2018
£15.73 Billion
2019
£16.59 Billion
2020
£11.82 Billion
Rolls-Royce – Competitors
Though Rolls-Royce Holdings plc has a powerful brand identity, they have tough competitors in the market. Here is a couple of them:
General Electric – General Electric along with its partners leads the aero-engine market occupying 55% of the market share and holds the 1st position. GE is also involved in various high-tech industrial activities like power systems, aviation, renewable energy, and the digital industry.
Pratt & Whitney – Pratt & Whitney is another major competitor for Rolls-Royce in the aero-engine market. They also compete with Rolls-Royce in the manufacture of power turbines for marine and other industrial services.
When it comes to cars, Some of the top competitors for Rolls-Royce Motor Cars Ltd. are:
Rolls-Royce invests huge money in inventing technologies for efficiently meeting our world’s power needs. Their innovations are awe-inspiring which reduces cost for the customers as well as protects our environment.
Electic Planes – Rolls-Royce aims at electrifying the aviation sector. Their first all-electric plane made its maiden flight on 18th September 2021. This aircraft is further being enhanced to achieve a speed of 300 mph. In the view of combating climate change, Rolls-Royce is into developing zero-emission aircraft for the future.
Small Modular Reactors (SMR) – Rolls-Royce SMR Ltd was created to build power plants that generate electricity using SMR to meet the future power needs of the UK. This technology is expected to be available by 2030.
Space Exploration – Rolls-Royce is innovating nuclear technologies to develop power systems for space launch. Net Zero Carbon – Rolls-Royce put forth Net Zero Carbon as their major goal in all their present and futuristic development. They target to bring the carbon level to zero in their operations by 2030.
Rolls-Royce – FAQs
What does Rolls-Royce do?
Rolls-Royce is an engineering company that manufactures Aero-engines and power systems for civil, defence, and various other industries.
Is Rolls-Royce owned by BMW?
Rolls-Royce Motor Cars Ltd alone is owned by BMW since 2003. It is a separate entity from that of Rolls-Royce plc which is involved in the manufacture of aero-engines and power systems.
Who are the founders of Rolls-Royce?
Charles Rolls and Henry Royce started Rolls-Royce in 1904 as a partnership and incorporated as a Private Ltd Company in 1906.
Which is the costliest Rolls-Royce car?
The company’s latest introduction of ‘Boat Tail’ is the costliest Rolls-Royce model. Its price is estimated at around ₹202 crores and is made only for a few exclusive customers.
