REPORT 2010
About this reportContents                                                                       The business reports of th...
VOLKSWAGEN FINANCIAL SERVICES                                                                AKTIENGESELLSCHAFTPortrait of...
7,278,440                     vehicles                                          sold                                      ...
Strategy   8    Economy 20      Society 28 Environment 42Key Indicators 56      Back-up 72
By 2018 we’re aiming to be Number 1 –     both economically and ecologically.6
Dear Reader,                        Responsible business management and commercial success are two sides of the same      ...
1   Strategie & Management    Strategie 2018    Management       Strategy    Herausforderungen       Strategy 2018       S...
St r at e g y | E c o n o my | S o c i e t y | E n v i r o n m e n tDriving success.Our strategy pursues a clear objective...
Globalisation has developed an enormous eco-        making an effective contribution to sustainable                       ...
St r at e g y | E c o n o my | S o c i e t y | E n v i r o n m e n t                                 St eering a cl ea r c...
term, LichtBlick will be networking 100,000 dis-     Volkswagen will be providing increasing sup-                         ...
St r at e g y | E c o n o my | S o c i e t y | E n v i r o n m e n t                                                  0.9 ...
Sustainability management                                      rate strategy focused on the long term, squaring           ...
St r at e g y | E c o n o my | S o c i e t y | E n v i r o n m e n t                                                      ...
Together with the German Nature and Biodiver-                   Sustainable Development of German Business                ...
St r at e g y | E c o n o my | S o c i e t y | E n v i r o n m e n t                                            124       ...
Efficient productionEmployment                                Efficient powertrains                                       ...
St r at e g y | E c o n o my | S o c i e t y | E n v i r o n m e n t          Customer satisfaction                       ...
2    Strategie 2018     Management     Herausforderungen                       Economy     Strategie & Management         ...
S t r at e g y | E c o n o m y | S o c i e t y | E n v i r o n m e n tMaking business sustainable.For a company to achieve...
Ev                                                                    er y sm                                       It is ...
S t r at e g y | E c o n o m y | S o c i e t y | E n v i r o n m e n t                                                    ...
Ethnic marketing                                      procurement process and a supplier monitoring                       ...
S t r at e g y | E c o n o m y | S o c i e t y | E n v i r o n m e n t                      2006                          ...
Compliance                                                                      The Ombudsman system, introduced through- ...
S t r at e g y | E c o n o m y | S o c i e t y | E n v i r o n m e n t                                                    ...
3    Strategie  Management     Strategie 2018     Management                      Society                   Employment    ...
S t r at e g y | E c o n o m y | S o c i e t y | E n v i r o n m e n tBuilding a top team.From vocational training to skil...
A top team                                         Employment                                          meet present and fu...
S t r at e g y | E c o n o m y | S o c i e t y | E n v i r o n m e n tIncluding the Chinese joint ventures, the Volks­    ...
Vwag nachhaltigkeitsbericht online_e
Vwag nachhaltigkeitsbericht online_e
Vwag nachhaltigkeitsbericht online_e
Vwag nachhaltigkeitsbericht online_e
Vwag nachhaltigkeitsbericht online_e
Vwag nachhaltigkeitsbericht online_e
Vwag nachhaltigkeitsbericht online_e
Vwag nachhaltigkeitsbericht online_e
Vwag nachhaltigkeitsbericht online_e
Vwag nachhaltigkeitsbericht online_e
Vwag nachhaltigkeitsbericht online_e
Vwag nachhaltigkeitsbericht online_e
Vwag nachhaltigkeitsbericht online_e
Vwag nachhaltigkeitsbericht online_e
Vwag nachhaltigkeitsbericht online_e
Vwag nachhaltigkeitsbericht online_e
Vwag nachhaltigkeitsbericht online_e
Vwag nachhaltigkeitsbericht online_e
Vwag nachhaltigkeitsbericht online_e
Vwag nachhaltigkeitsbericht online_e
Vwag nachhaltigkeitsbericht online_e
Vwag nachhaltigkeitsbericht online_e
Vwag nachhaltigkeitsbericht online_e
Vwag nachhaltigkeitsbericht online_e
Vwag nachhaltigkeitsbericht online_e
Vwag nachhaltigkeitsbericht online_e
Vwag nachhaltigkeitsbericht online_e
Vwag nachhaltigkeitsbericht online_e
Vwag nachhaltigkeitsbericht online_e
Vwag nachhaltigkeitsbericht online_e
Vwag nachhaltigkeitsbericht online_e
Vwag nachhaltigkeitsbericht online_e
Vwag nachhaltigkeitsbericht online_e
Vwag nachhaltigkeitsbericht online_e
Vwag nachhaltigkeitsbericht online_e
Vwag nachhaltigkeitsbericht online_e
Vwag nachhaltigkeitsbericht online_e
Vwag nachhaltigkeitsbericht online_e
Vwag nachhaltigkeitsbericht online_e
Vwag nachhaltigkeitsbericht online_e
Vwag nachhaltigkeitsbericht online_e
Vwag nachhaltigkeitsbericht online_e
Vwag nachhaltigkeitsbericht online_e
Vwag nachhaltigkeitsbericht online_e
Vwag nachhaltigkeitsbericht online_e
Vwag nachhaltigkeitsbericht online_e
Vwag nachhaltigkeitsbericht online_e
Vwag nachhaltigkeitsbericht online_e
Vwag nachhaltigkeitsbericht online_e
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  1. 1. REPORT 2010
  2. 2. About this reportContents The business reports of the individual brands and compa-This report contains information about the sustainability nies are available on their respective websites.activities of the Volkswagen Group. It outlines strategic prin-ciples and presents practical examples. The report is divided The period under review extends from 15 June 2009, wheninto central chapters on Strategy, Economy, Society and the last report went to press, until March 31, 2011. The factsEnvironment. The key sustainability indicators are set out in this report are constantly updated on the Internet. Thestarting on page 56. next Sustainability Report will be published in the second quarter of 2012.ScopeUnless otherwise indicated, the information in this reportrelates to the entire Group, in which case we refer to the“Group” or “Volkswagen Group”. When we use “Volkswagen”on its own, we mean the Volkswagen brand. >>01 Internet concept This printed sustainability report is closely linked to the website volkswagenag.com/sustainability. The entire contents of the present report are also available there. The Internet content is constantly updated. This website also offers you a wealth of additional in-depth information: The >> 01 -numbers in the text of this report indicate a specific link. These sources are listed in the List of Links on page 78 (cover), with a brief indication of their contents. This List of Links can also be found on the website volkswagenag.com/ If you have a smartphone, this sustainability, where a click on the relevant link will take you to the appropriate information. code will take you straight to the website volkswagenag.com/ www.volkswagenag.com/sustainability sustainability. The charges de- pend on your individual mobile call rates.Indexes – Rankings – AwardsThe Volkswagen Group is represented in all leading sustainability and corporate social responsibility (CSR)indexes. Moreover, this report was prepared in accordance with internationally recognised reporting standards.An overview of all indexes and awards can be found on page 68.Furthermore, the selection of topics and our editorial processes and choice of indicators have been analysed andverified by independent auditors and stakeholders. For further information, see the Back-up section starting onpage 72.
  3. 3. VOLKSWAGEN FINANCIAL SERVICES AKTIENGESELLSCHAFTPortrait of the GroupThe Volkswagen Group, based in Wolfsburg, is one of the In 15 European countries and six countries in the Americas,world’s leading automobile manufacturers and the largest Asia and Africa, the Volkswagen Group operates 62 produc-automaker in Europe. In 2010 the Group increased the tion facilities (as of December 31, 2010). Around the world,number of vehicles delivered to customers to 7.2 million nearly 400,000 employees produce more than 29,600 vehi-(2009: 6.3 million), which equates to a global market cles per working day or provide vehicle-related services.share of 11.4 percent. In Western Europe more than one The Volkswagen Group’s sales operations cover more thanfifth of all new cars (21.0 percent) were manufactured by 150 countries worldwide. The Group’s aim is to offer attrac-the Volkswagen Group. tive, safe and eco-friendly vehicles that set the global benchmark in their respective classes.The Group’s sales revenue rose from €105.2 billion in 2009to €126.9 billion in 2010. Profit after tax in the fiscal year 2010 At the end of 2010, the subscribed capital of Volkswagen AGtotalled €7.2 billion (2009: €0.9 billion). The Volkswagen comprised 295,045,567 ordinary shares and 170,142,778Group owns nine brands from seven European countries: preference shares. Porsche Automobil Holding SE, Stuttgart,Volkswagen, Audi, Škoda, SEAT, Bentley, Lamborghini, held 50.74 percent of the voting rights. The second-largestBugatti, Volkswagen Commercial Vehicles and Scania. shareholder was the State of Lower Saxony, with 20.0 percentEach brand has its own distinctive character and operates of the voting rights. Qatar Holding LLC was the third-largestautonomously in the marketplace. The passenger car port- shareholder with 17.0 percent, while Porsche Holding GmbH,folio extends from economical compact cars to luxury high- Salzburg, held 2.37 percent. The remaining 9.89 percentend models. In the commercial vehicle sector, the range were held by other shareholders. Information on productionstarts with pick-up trucks and extends all the way to buses and deliveries of the main Volkswagen Group products canand heavy-duty trucks. be found in the Annual Report 2010 on pages 108-123. > >01VO L K SWA G E N G R O U P Data 2010 2009 Vehicle sales (units) 7,278,440 6,309,743 Production (units) 7,357,505 6,054,829 Employees at Dec. 31 399,381 368,500 Proportion of female employees (percent) 14.2 14.2 Health index (percent) 96.7 97.5 CO2 emissions, European new vehicle fleet (g/km) 144 151 Direct CO2 emissions (kg/vehicle) 175.19 234.67 Energy consumption (MWh/vehicle) 2.55 2.81 Financial data (IFRS), € million 2010 2009 Comments on the key sustainability indicators can be found in the Key Sales revenue 126,875 105,187 Indicators chapter of Operating profit 7,141 1,855 this report (page 56). You will find revenue Profit before tax 8,994 1,261 and profit figures bro- ken down by brand and Profit after tax 7,226 911 business field in our cur- rent annual report. >>02
  4. 4. 7,278,440 vehicles sold 399,381 employees worldwide4.6 percent less CO2 emissions by EU new vehicle fleet (EU 27) than 116 models with CO2 emissions of less than 120 g/km, including 20 with less than 8.4 percent more employees than in 2009 in 2009 100 g/km > >04, >>05, >>06 62 production plants, including 57 certified to inter- national environmental management standards 51,585 employees took part in training run by Volkswagen Coaching in 2010 such as ISO 14001 and EMAS; 4 plants are current- ly preparing for certification >>03
  5. 5. Strategy 8 Economy 20 Society 28 Environment 42Key Indicators 56 Back-up 72
  6. 6. By 2018 we’re aiming to be Number 1 – both economically and ecologically.6
  7. 7. Dear Reader, Responsible business management and commercial success are two sides of the same coin. In the last two years the Volkswagen Group has again given an impressive demon- stration of this fact. In a challenging environment we have continued to post solid growth, enabling us to set new records in the 2010 financial year with 7.2 million vehi- cles delivered and an operating profit of €7.1 billion. Sustainability is and will remain the foundation of our corporate policy. One clear focus Prof. Dr. rer. nat.Martin Winterkorn is on “green” mobility. This is dictated by both social responsibility and sound business thinking. In the last five years, for example, we have reduced our fleet’s CO 2 emissions by 15 percent to 144 grams per kilometre. Today the Volkswagen Group’s portfolio already includes 20 model variants with emissions of less than 100 grams of CO2 /km. Tomorrow’s mobility will be determined by efficiency and diversity. Which is why our Group, with the concentrated innovative power of its multi-brand alliance, is forging ahead with the entire technology and powertrain spectrum: from optimised combustion engines through lightweight design to electric drive. With our “one-litre” car XL1 we have already demonstrated technologies that could go into series production in the near future. Bernd Osterloh Green mobility goes hand in hand with environmentally sound production processes. The Volkswagen Group is making great efforts to further improve resource efficiency at its 62 production facilities. Our new factory in Chattanooga is setting standards in this respect. Equally high standards are characteristic of our worldwide labour relations: our self-image as a fair employer and our established culture of co-determination have proved to be anchors of stability and a clear competitive advantage. Moreover, success- ful initiatives such as “A chance to play” in South Africa demonstrate that our social commitment does not end at the factory gates. In keeping with its responsibility for society, environment, employees and customers, the Volkswagen Group continues to adhere to the principles of the United Nations Glob- al Compact. The effectiveness of our sustainability strategy is confirmed by internation- al indexes such as the Dow Jones Sustainability Index and the FTSE4Good, in which the Volkswagen Group is again represented this year. Because sustainability calls for trans- parency, we have had this report audited in accordance with the AA1000AS standard. The Global Reporting Initiative (GRI) has again awarded us its highest rating “A+”. Supported by corporate leadership that is sustainable in all respects, our 400,000 em- ployees are dedicated to making the Volkswagen Group the world’s leading automaker by 2018 – both economically and ecologically. And they are also working on the best ideas for the next 125 years of automotive diversity. See for yourself how far we have already travelled along this road. We trust you will find informative insights into the world of Volkswagen on the pages of this report, and we look forward to engaging in dialogue with you. Prof. Dr. rer. nat. Martin Winterkorn Bernd Osterloh Chairman of the Board of Management of Volkswagen Aktiengesellschaft Chairman of the General and Group Works Councils 7
  8. 8. 1 Strategie & Management Strategie 2018 Management Strategy Herausforderungen Strategy 2018 Sustainability management Materiality8
  9. 9. St r at e g y | E c o n o my | S o c i e t y | E n v i r o n m e n tDriving success.Our strategy pursues a clear objective: By 2018 the Volkswagen Group is to be the world’s mostsuccessful and fascinating automobile manufacturer – and the leading light when it comes tosustainability. Our Strategy 2018 paves the way to this goal. 9
  10. 10. Globalisation has developed an enormous eco- making an effective contribution to sustainable nomic momentum. This increases people’s mobility – with technologies for the cleanest prospects of participation. Trade, transport and and most economical cars. Job security and division of labour are the elementary driving profitability are goals of equal importance in forces behind an economic development that Volkswagen’s corporate activities. puts people in a position to raise their standard of living. Volkswagen stays on course: If, as expected, the world’s population grows to Strategy 2018 more than nine billion by 2050, this means that The Volkswagen Group has emerged safely and companies will have to satisfy the needs of bil- with renewed strength from the worldwide cri- lions more people. These people need energy sis that was triggered by the financial markets. and food, housing and mobility, education and Deliveries were at an all-time high of 7.2 million healthcare. vehicles. With growth of 13.7 percent, we outper- formed the market as a whole and extended our Our Strategy 2018 focuses special Technical progress and significant productivity share of the global passenger car market to 11.4 attention on the ecological orien- increases, innovations and structural change percent. tation and benefits of our vehicle will help to achieve the necessary improve- projects. We will be setting new ments. The guiding principle for the 21st centu- With our “Strategy 2018” we are building con- ecological standards with regard ry is sustainability. In other words, the way we sistently on the company’s strengths and setting to vehicles, major components manage our lives and the resources we consume new goals. Attractive models and new vehicle and lightweight design. must not reduce the opportunities available to segments, plus innovative environmental tech- future generations. nologies, are paving the way for increasingly economical combustion engines and power- Sustainability is the foundation of Volkswagen’s trains, for hybrid and electric vehicles, and for corporate strategy. This means that sustainabil- future biofuels. The latest example is the pres- ity is integrated in the entire value-added pro- entation of the XL1, a study with series-produc- cess. In the long term, corporate responsibility tion potential which marks the third stage in the committed to the vision of sustainability safe- evolution of the Volkswagen Group’s “1-litre” car guards the future viability of the company, while strategy. Its plug-in hybrid system, lightweight respecting the need to harmonise economic, design and impeccable aerodynamics enable environmental and social goals. the two-seater to manage on a bare 0.9 litres per 100 kilometres. That equates to CO2 emissions As a group with worldwide operations, Volks­ of just 24 g/km. Currently the world’s most wagen acknowledges this corporate responsi- efficient vehicle and due to go into (limited) bility and devotes its entire innovative power to series production in 2013, the XL1 underpins the10
  11. 11. St r at e g y | E c o n o my | S o c i e t y | E n v i r o n m e n t St eering a cl ea r courseVolkswagen Group’s claim to play a leading based on attractive vehicles that appeal to cus- Gaining worldwide acceptance –environmental role. Added to which there are tomers in all parts of the world and meet the in- while catering for regionalthe electric vehicles “up! blue-e-motion”, “Golf dividual regional requirements and cost targets. differences.blue-e-motion” and “Audi A1 e-tron”. Through Our modular approach will be a great help inits approach, the Group will be underlining the this respect. In conjunction with our TSI® andneed for e-mobility to remain affordable. TDI® engines, the innovative DSG® dual-clutch gearbox and future electric powertrains, theWith these technological innovations, the Volks­ MQB will play its part in ensuring that the Volks­wagen Group can build on a strong tradition wagen Group meets its ambitious fuel consump-and corporate culture that has always centred tion and emissions targets. With its broad prod-on a capacity for social and ecological change. uct and segment coverage as a multi-brandThrough our corporate values we are committed company, the Volkswagen Group is in an almostto a sustainable and socially responsible course unparalleled position to ensure very speedyof action. For us, commercial success must in- implementation of innovations in high-volumevariably go hand in hand with an intact environ- brands and markets and thereby achieve sig­ment and social responsibility. nificant improvements in efficiency. > 07 >Our basic position remains that, as the Volks­ Above and beyond this, we also apply our techno-wagen Group, we act responsibly towards our logical expertise in the interests of other prod-customers, our shareholders, our employees ucts and services with the aim of safeguardingand towards society. jobs, protecting the environment and boosting our profitability. These include, for example,Through our Strategy 2018 we are pursuing the projects focused on the development and use oflong-term goal of firmly anchoring the Volks­ industrial engines or boat engines that combinewagen Group among the most successful au- superior motive power with excellent fuel con-tomakers in the world. This applies to profita- sumption figures and low emissions.bility, customer satisfaction and quality, todeveloping new markets and stepping up our One milestone here is the incorporation of theproduction volume, and to our attractiveness as million-selling 2-litre natural-gas engine froman employer. the Salzgitter plant in the EcoBlue compact CHP units. These are the packages contributed byWith a model portfolio geared to ecological Volkswagen to the “Home Power Plant” devel-principles and the strong position of its brands oped by the power partnership with energy sup-in the global marketplace, the Volkswagen plier LichtBlick. The Home Power Plants areGroup will be systematically building on its used by LichtBlick to realise an innovative, intel-competitive advantages. Our growth strategy is ligent heat and power supply concept. In the long 11
  12. 12. term, LichtBlick will be networking 100,000 dis- Volkswagen will be providing increasing sup- tributed Home Power Plants to create Germany’s port for its dealers as the vital link with the cus- largest virtual gas power station. The plants will tomer and expanding its marketing measures. generate “swarm power” – so called because, as The greatest long-term growth potential in this in a swarm of fish, many small units will be mov- respect is to be found in Brazil, China, India, ing in the same direction – supplementing fluc- Russia and the USA. Localising supplier rela- tuating wind and solar power generation as nec- tions not only makes us less dependent on ex- essary. The heat produced will be stored and will change rates, but enables us to contribute to be available locally for heating and hot water. economic development and location upgrading The first Home Power Plants have already been in the individual countries. And our suppliers installed at private and commercial customers in are subject to the same ecological and social Hamburg. > >35 standards as our own production facilities. We can only attain our ambitious goals as car- The competence of our employees provides the makers if, in addition to our existing customer basis for our business. Volkswagen will only be base, we succeed in attracting many new cus- successful in mastering the present and future tomers all over the world. With this in mind, challenges of the automobile manufacturingThe “1-litre car”The XL1 prototype, which made itsdebut at the Qatar Motor Show inJanuary 2011, is a milestone on theway to sustainable mobility. With aconsumption of 0.9 l/100 km, theXL1 only emits 24 grams of carbondioxide per kilometre. This is possi-ble thanks to consistent lightweightdesign using glass fibre-reinforcedplastic, perfect aerodynamics anda plug-in hybrid system. The hybridsystem comprises a two-cylinderTDI engine and an electric motorcoupled with a 7-speed DSG dual-clutch gearbox and a lithium-ionbattery.12
  13. 13. St r at e g y | E c o n o my | S o c i e t y | E n v i r o n m e n t 0.9 litres is all the XL1 needs to go 100 kilometres.sector if all employees – from apprentice to top wagen brings together, under the heading ofmanager – consistently deliver the outstanding BlueMotionTechnologies, the best available con-performance needed to safeguard the excellent temporary environmental technologies. In thequality of innovation and products in the Volks­ next few years we will be investing more thanwagen Group in the long term. Outstanding €8 billion a year in developments such as the op-performance, the resulting successes and par- timisation of our existing TSI®, TDI® and DSG®ticipation in the rewards are at the focus of Volks- technologies, as well as the ongoing enhance-wagen’s human resources strategy of being a ment of our TSI® technology to run on naturalgood and attractive employer and building a top gas or as a flex-fuel powertrain. We will also beteam. Be it vocational training, continuing pro- forging ahead with progress in the field of future Improving the efficiency offessional development at home and abroad, a biofuels. And finally we will be investing a great conventional powertrains whileforward-looking remuneration policy or em- deal of funds and effort in the electrification au- forging ahead with electromobility.ployee involvement: the Volkswagen Group al- tomobiles. The success of electric powertrainsways sets standards for good work in a process depends to a very large extent on the batteriesof dialogue with its employees. employed, and this is an area where much pro- gress still needs to be made. The topic is supple-The advancement and professional develop- mented by new mobility concepts that create anment of women in particular is a central princi- attractive package of the various means of trans-ple of personnel work at Volkswagen. We are port and the ways they are used.keen to encourage even more female graduatesto commit to engineering and scientific profes- In other words, it will still be some time beforesions and play their part in shaping the car of the paradigm shift to electric cars takes place.the future. One example of our initiatives here Here too, Volkswagen’s credo remains un-is the “Woman Driving Award”. changed: we will settle for nothing less than of- fering our customers the best solution. WhenOur Strategy 2018 will take us forward along our developing new vehicles, CO 2 emissions are acharted course. In this context we assign top key parameter. Consequently, at every stage ofpriority to ecological relevance and sustainable the product creation process, the CO2 emissionscommercial success. The initiatives that we are determined for all vehicles, and every deci-have already set in motion to boost productivity sion in favour of a specific product is made withand quality will continue undiminished. By ap- a view to its impact on the climate. That way weplying rigorous discipline in terms of costs and can ensure that the objectives laid down in thecapital expenditure, we will put the necessary Group’s Environmental Principles and in theconditions in place for attaining our long-term Environmental Goals of the Technical Develop-earnings targets and ensuring a sustainable ment Department are achieved.high level of liquidity. The Volkswagen Group’s maxim for its progressFor Volkswagen, “green mobility” means no less towards its goal of most successful automaker isthan setting new ecological standards in automo- to accept responsibility for people, the environ-bile manufacturing in order to put the cleanest, ment and society. In this way Volkswagen makesmost economical – and at the same time most a substantial contribution to a world worthfascinating – cars on the road. To this end Volks- living in – today and for future generations. 13
  14. 14. Sustainability management rate strategy focused on the long term, squaring For the Volkswagen Group, living up to our cor- up to challenges which are not only economic, porate social responsibility (CSR) is a corporate but also ecological and social in nature. >>08 contribution to sustainable development. For us, CSR means voluntary acceptance of respon- Since 2006 our CSR Office has been responsible sibility for social concerns on a scale that goes for coordinating corporate activities in the field beyond mere compliance with statutory regula- of CSR and sustainability management through- tions. With its integrated CSR concept, the out the Volkswagen Group. Its task is to deter- Volkswagen Group seeks to prevent risks, en- mine the strategic direction of CSR and opti- sure timely identification of growth opportuni- mise sustainability management activities. ties and enhance the company’s reputation. As a whole, CSR management and sustainability In 2010, with the aim of strengthening manage- management make an important contribution ment processes, the CSR Steering Group and to safeguarding the long-term future of the com- the Sustainability Reporting Group were com- pany and increasing its value over time. bined to form the CSR & Sustainability Steering Group. The CSR & Sustainability Office reports Model of Sustainable Development to the CSR & Sustainability Steering Group, We have formulated the principles of sustainable which consists of representatives of all central business in our Model of Sustainable Develop- corporate departments at top management level ment. For us this is the benchmark for a corpo- plus the Group Works Council. Management Steering group Group Board of Management CSR & Sustainability Steering Group CSR & Sustainability Office Strategic goals and statements on CSR and sustainability Definition of Group-wide steering indicators for CSR and sustainability Commissioning and approval of sustainability reporting CSR & Sustainability – Project teams Brands and regions In 2010 management processes Interface for CSR sustainability fields and topics Annual conference were strengthened by merging w the CSR Steering Group and the Evaluation and development of stakeholder dialogue Sustainability Reporting Steer- Sustainability reporting / Corporate profiles for rankings ing Group to form the CSR & Sustainability Steering Group.14
  15. 15. St r at e g y | E c o n o my | S o c i e t y | E n v i r o n m e n t 1 unit brings together the various sustainability management bodies.The aim of the Steering Group’s work is to foster opment of German Business – and in various Sustainability is measurable...networks linking internal functions and working groups on issues such as “Making sus-strengthen the sharing of information between tainability measurable” and “Sustainability inspecialist departments. Our CSR project teams the supply chain”.carry out cross-functional work on topical issuessuch as the enhancement of Group sustainability Stakeholder involvementreporting; since the creation of a Group-wide As a good “corporate citizen” we are committedCSR body in 2009 there has been a regular inter- to an ongoing dialogue with our stakeholders.national exchange of information with the CSR Since 2002 Volkswagen has supported the Glob-coordinators of the brands and regions. al Compact (GC) initiated by former UN Secre- tary General Kofi Annan. With over 7,000 com-One central field of activity is the establishment panies in more than 135 countries, this is theof an IT-based CSR key indicator system cutting world’s biggest and most important CSR initia-across regional and brand boundaries. During tive. Its goal is to bring about a fairer and morethe last financial year we successfully completed sustainable global economy. Volkswagen playsthe first phase of the introduction of this key in- an active part in ensuring that this goal isdicator system. We are now in a position to steer achieved.CSR activities more efficiently, making themmore transparent and more successful. This has The GC is based on ten principles relating to hu-created an important foundation for up-to-date man rights, labour standards, environmentalCSR and sustainability reporting by the Group. protection and anti-corruption measures. InIn the second phase we are rolling out the key 2010 Volkswagen continued to align its businessindicator system across the brands and regions. activities with these principles at all locations.Thus Volkswagen is meeting its stakeholders’ We make our know-how available within the GCincreasing expectations with regard to differen- so that other companies also have a chance totiated, up-to-the-minute reporting of the live up to their global responsibility. The pro-Group’s performance in the fields of CSR and gress made by Volkswagen as a result of its ac-sustainability. tive participation in the GC is documented in an annual report.The Volkswagen Group contributes its experi-ence and competence to the business sector’s Here are two examples: Volkswagen participatesCSR networks at national, European and inter- in the GC project “Supply Chain Sustainability”.national levels and supports the projects initiat- The results of the project were brought togethered there. One important task is to prepare in- in a manual and presented at the GC summit information on ecological and social standards New York in June 2010. In addition, the interna-for suppliers. For this purpose the online portal tional GC Yearbook contained a report on theof CSR Europe, the leading European business sustainability project for water utilisation in thenetwork for corporate social responsibility, pro- mountain region of Izta-Popo in Mexico, whichvides an important communication platform was run by Volkswagen de México. We also pre-that enjoys international recognition. We are sented the project at the world biodiversity sum-also actively involved in the steering body of mit in Nagoya in September 2010. > 09>“econsense” – the Forum for Sustainable Devel- 15
  16. 16. Together with the German Nature and Biodiver- Sustainable Development of German Business sity Conservation Union (NABU – Naturschutz- (econsense) and the World Business Council for bund Deutschland) we play a part in specific en- Sustainable Development (WBCSD). One exam- vironmental protection projects. In the course ple of this is the study “Vision 2050: a new agen- of this cooperation we raise society’s awareness da for businesses” presented by the WBCSD in of environmental and sustainability issues, for 2010, which Volkswagen supported in the field example through jointly-run fuel-saver courses. of sustainable mobility in particular. Based on With our incentive systems for fleet operators the assumption that the Earth’s population will we also create additional arguments for eco- grow to around nine billion people by 2050, the friendly mobility. study describes ways of making more sustaina- ble and more efficient use of the existing re- Guidelines sources. A total of 29 global companies in vari- Along with our Code of Conduct, further key ref- ous industries were involved in preparing and erence points for our corporate strategy are the discussing the study in numerous workshops. Convention of the International Labour Organi- On the way to sustainable mobility it is only by sation (ILO) and the OECD Guidelines for Multi- taking a longer-term view of the future that we national Enterprises. We are also actively in- will be able to integrate underlying sociological volved in CSR Europe, the Forum for and technological trends into our research and Intl. conventions Human rights Declaration on Fundamental Principles and Rights at Work, 1998 (especially Principles: Excerpt from the Code of Conduct the following topics: abolition of child labour; elimination of forced or As well as the laws and regulations of individual countries, there are a number compulsory labour; ban on discrimination; freedom of association; and the of conventions and recommendations drawn up by international organisa- right to collective bargaining) tions. They are primarily addressed to the member states, not to individual • OECD Convention on Combating Bribery of Foreign Public Officials in companies. They do however constitute important guidelines for the International Business Transactions, 1997 behaviour of an international group and its employees. We therefore attach • “Agenda 21” on sustainable development (final document of the ground- great importance worldwide to ensuring that our corporate activities are in breaking United Nations Conference on Environment and Development, keeping with these guidelines. The main conventions of this kind are listed Rio de Janeiro 1992) below: • Principles of the Global Compact for more social and more ecological • The Universal Declaration of Human Rights, dating from 1948 (UNO), globalisation, 1999 and the European Convention on Human Rights (formerly Convention for • OECD Guidelines for Multinational Enterprises, 2000 the Protection of Human Rights and Fundamental Freedoms), 1950 • International Covenant on Economic, Social and Cultural Rights, 1966 We also profess our commitment to the “Declaration on Social Rights and • International Covenant on Civil and Political Rights, 1966 Industrial Relationships at Volkswagen” (Volkswagen Social Charter) and the • Tripartite Declaration of Principles Concerning Multinational Enterprises and Charter on Labour Relations concerning fundamental social rights and Social Policy, ILO (International Labour Organisation) 1977, and ILO principles. > 10 >16
  17. 17. St r at e g y | E c o n o my | S o c i e t y | E n v i r o n m e n t 124 studies were evaluated to select the topics in the materiality matrix.development activities. It was with this in mind sis were not only presented to internal steeringthat Volkswagen Group Research formulated its bodies, such as the Corporate Strategy Group,“Research Visions” in 2010. The topics are mobil- but also discussed with external stakeholders,ity, energy, the driving experience, safety, cost- for example the German Nature and Biodiversi- A cross-functional team evaluatedeffectiveness in the product life cycle, and the en- ty Conservation Union (NABU). They then un- internal and external sources tovironment. And with our Environmental Radar derwent further revision and specification in identify the most important sus-we have also created a separate early-warning the light of comments. This procedure enabled tainability issues. Their findingssystem for evaluating ecological risks. us to achieve further improvements in the were discussed with independent transparency and quality of our agenda. stakeholders.In our day-to-day work we attach great impor-tance to prudence in addressing potentialenvironmental and sustainability risks to thecompany. To this end we have installed a riskmanagement system that enables us to identifynew risks and minimise existing ones. More-over, the Supervisory Board has established anAudit Committee that is particularly concernedwith accounting, risk management includingthe internal audit system, and compliance is-sues. > 19 >MaterialityOn the basis of our main topics in the Strategy2018 and a broad evaluation of recent interna-tional sustainability analyses, we set in motionan internal discussion and filtering process toidentify issues that are of priority importancefor us. Major external sources included interna-tional studies in the fields of politics and re-search, financial market analyses and positionpapers published by NGOs. Using a multi-stagescoring system we finally arrived at a short listof the most important topics. The main classifi-cation criteria were stakeholder expectations onthe one hand and importance for the company’sperformance on the other. Another aspect takeninto account was Volkswagen’s capacity as anautomaker to impact these issues. > >11A cross-functional team was set up to preparethis materiality matrix. The results of the analy- 17
  18. 18. Efficient productionEmployment Efficient powertrains Localisation Climate protection & energy efficiency Economic stability e-mobility Raw materials & resource efficiency Social responsibility Compliance Mobility concepts Biodiversity Demographic change Air quality Diversity Water Human rights Market shifts Health Food Land take Segment shifts Urbanisation Noise Urban mining18
  19. 19. St r at e g y | E c o n o my | S o c i e t y | E n v i r o n m e n t Customer satisfaction Supplier relationsand fuelsSTAKEHOLDER EXPECTATIONS Water Compliance e-mobility Employment Supplier Customer relations satisfaction Diversity Social Localisation responsibility Human Climate protection & rights Mobility concepts energy efficiency Biodiversity Efficient powertrains and fuels Efficient production Air quality Raw materials & Food Health Demographic resource efficiency change Economic stability Noise Land take Urban mining Urbanisation Segment Market shifts shifts IMPORTANCE FOR BUSINESS SUCCESS The materiality matrix is the result of the analysis rant should not by any means be seen as unimportant and scoring system mentioned earlier. It is the main within the general sustainability agenda: either they thread running through our sustainability topics and are largely beyond our control or they do not yet have projects, and hence a frame of reference for further any significant influence on the company’s perfor- descriptions in this sustainability report. The main mance. More detailed information, e.g. about the defi- topics are shown in the highlighted quadrant. Our pro- nitions of the individual topics and the classification jects and related measures are described in the chap- criteria, can be found via the online link. > 11 > ters that follow. Topics not represented in this quad- 19
  20. 20. 2 Strategie 2018 Management Herausforderungen Economy Strategie & Management Customer satisfaction Supplier relations Raw materials Localisation Compliance Economic stability20
  21. 21. S t r at e g y | E c o n o m y | S o c i e t y | E n v i r o n m e n tMaking business sustainable.For a company to achieve sustainable development it must first achieve commercial success. Becauseonly a successful company can shape all its processes itself and ensure they are sustainable throughout.Only a successful company can make substantial investments in environmental protection and thedevelopment of sustainable products and solutions. And finally, only a successful company can offer itsemployees secure prospects for the future. 21
  22. 22. Ev er y sm It is our customers who determine the Group’s department promptly translates this input into success – millions of times a day. Not just when new design solutions, which are incorporated 29,000-plus vehicles are handed over to their into facelifted or new models. As a result, we are new owners, but every time someone drives one able to adapt to and keep pace with changing cus- of our cars, fills the tank or visits a workshop. tomer requirements. One of the latest examples The more often a satisfied smile appears on the is the new Jetta in the USA, which was developed faces on our customers in the process, the bet- in direct response to customer feedback. ter it is. We also take a proactive approach to reducing the risk of incorrect operation of our vehicles by Customer satisfaction customers – and the associated risk of customer Customer satisfaction is the That explains why we consider customer satisfac- dissatisfaction. In this connection we also incor- decisive factor in assuring our tion a crucial factor in our sustainable corporate porate customer feedback into our product com- long-term success. success and have made it the core of our corpo- munication at dealerships. In the USA, the IQS rate Strategy 2018. That is the year by which we Challenge training programme for sales person- are aiming to rank among the three leading com- nel combines specifically sales-related training panies in all our markets. To measure our pro- with technical training delivered by representa- gress, we refer to the findings of two strategic tives from the vehicle-manufacturing plants. studies: the New Car Buyer Study (NCBS) and the This equips sales personnel to give technically International Aftersales Customer Satisfaction sound and to-the-point advice that increases the Study (IACS). Our interim goal for 2012 is to be at customer’s interest in the technical features of least among the top five in all our markets. the vehicle. This will also reduce the likelihood of incorrect operation – thereby increasing satis- Volkswagen measures three different categories faction with the product. of customer satisfaction: satisfaction with the purchasing process, satisfaction with the prod- We have been analysing customer satisfaction uct and satisfaction with the most recent work- for many years. In 2011, the number of markets shop visit. around the world where customer satisfaction analysis is carried out increased to 19. In the case The data is obtained from various sources: from of the Volkswagen brand for example, that means day-to-day market analysis, from asking custom- we are now obtaining customer feedback on ers about their needs, at customer workshops, more than 90% of all cars we ship. Current and from analysis of online discussion forums customer satisfaction levels are reported to the using web-tracking tools. We then actively inte- Board of Management via the customer satisfac- grate this customer feedback into the product de- tion forum up to six times a year. >> 12, >> 13 velopment process. The Technical Development  page 2422
  23. 23. S t r at e g y | E c o n o m y | S o c i e t y | E n v i r o n m e n t n t sil e co uWhat customers wantMany different things can raise a smile. And in cars in particular, so many different factors determine how happy a customer is with thevehicle. Everyone has their own personal preferences, be it in terms of equipment levels or accessories. But customers who buy carsfrom the Volkswagen Group expect them to display high quality, reliability and economy, combined with high levels of comfort andconvenience, safety and environmental compatibility.Comfort and convenience Safety Environmental compatibilityActive safety systems such as the Electron- A sustainable vehicle must also enhance The efficient cars built by the Volkswagenic Stability Program (ESP), Lane Assist safety for its occupants. With their crash- Group stand for low CO2 emissions. Theand ACC automatic distance control with resistant bodies and intelligent safety sys- aim is to produce a fuel consumption lead-Front Assist Ambient Traffic Monitoring tems, the cars built by the Volkswagen Group er in every class of vehicle. We also set theall help to make the driver’s task easier in lead the field in this respect. We are contin- highest standards in terms of the materialscomplex driving situations. The drowsi- uously working on new ways to improve our we select, our production processes andness monitor warns drivers if it detects passive safety systems. In 2010, we equipped when it comes to recycling, because ansigns of fatigue because steering inputs the Sharan and Passat with a safety package end-of-life vehicle is a source of raw mate-have become very infrequent. Our lighting consisting of an optimised body structure rials: up to 95 percent of a car by weight canand vision systems help drivers see better and a highly effective belt-and-airbag com- today be recycled or recovered. Along withat night by providing optimal illumina- bination. Both vehicles received 5 stars in fuel-efficient cars built by environmentallytion, whether for long-range vision, cor- the NCAP crash test, which means they are compatible production methods, anothernering or making a turn. Dynamic Light among the safest in their class. increasingly important aspect is an envi-Assist is an assistance system which dips ronmentally aware style of driving. Our fu-just certain portions of the high beam, to To help prevent accidents, first we have to el-saver driving courses are conducted byprevent other road users being dazzled, know what causes them. With this in Volkswagen driving experience. On top ofwhile the Area View camera system allows mind, Volkswagen has been investing in this, since 2003 5,000 people have attend-the driver to monitor the entire vehicle accident research since the early 1990s, ed the fuel-saver training sessions we offerperiphery. By providing the best possible not only in Germany, but also in China in conjunction with the German Natureassistance in tricky driving situations, for and India. To facilitate the effective ex- and Biodiversity Conservation Unionexample when pulling into or out of a change of the latest research findings be- (NABU).parking spot on a busy road, our driver as- tween industry and public research insti-sistance systems also help to avoid acci- tutions, in 2010 the Group’s Volkswagen, For further details on environmental pro-dents. One thing all these systems have in Audi and Porsche brands joined with BMW tection and resource conservation in thecommon, however, is that they always and Daimler to form the “Trauma Biome- Volkswagen Group can be found starting onleave the final decision up to the driver. chanics” research network at Regensburg page 42. 14 University of Applied Sciences. 14 23
  24. 24. Ethnic marketing procurement process and a supplier monitoring Since 2005 Volkswagen AG has been successful- and development process. The sustainable supply ly engaged in ethnic marketing in the form of chain policy applies to all brands and all regions. the project “Volkswagen speaks Turkish”. The Its effectiveness is continuously reviewed and essence of the project is that in all forms of mar- assessed, and new purchasing employees are keting, it caters for the cultural and ethnic tra- trained to be aware of the policy right from the ditions of the Turkish population in Germany. It start. is intended to demonstrate the high regard which Volkswagen AG has for its Turkish-born Our international “Sustainable Procurement Net- clientele in Germany. work” ensures that the principle of sustainability is applied throughout the Group, despite culturalAlong with meeting customer wish- The pillars of this project are Turkish-speaking differences. The supplier integration strategieses regarding their vehicles, respect- sales staff as the most important actors in car are incorporated into action plans and regularly ing traditional cultural influences sales and the direct points of contact for the cus- reviewed. Following the successful supplier devel- is another key factor in ensuring tomer – which of course means all customers, opment project in 2009, a second series of events satisfied customers. regardless of their ethnic origins, since these in India was held in 2010. Further supplier devel- sales staff speak German equally well. The opment projects also took place in Brazil, Argen- ethnic marketing project also means that a tina and Mexico. In line with this continuously growing group of certified sales staff of Turkish evolving system, when submitting a quote, all origin are being offered good career prospects suppliers must declare that they agree to abide by at Volkswagen dealerships. These jobs are Volkswagen’s sustainability requirements. Since coupled with excellent training in keeping with 2010, supplier sustainability information has Volkswagen’s acknowledged high standards, been electronically catalogued. and they offer unique career opportunities for these young German Turks as an important From the second quarter of 2011, global supplier basis for successful integration. In this way the development will be supported by a development project makes an important contribution to cul- module which suppliers will find on the online tural diversity at Volkswagen; it is also supported platform www.vwgroupsupply.com. Development by the Works Council. It effectively fosters mutu- workshops will also be held in selected regions. al understanding and trust between Turks and 16, 17, 18, 65 Germans at both employee and customer level, and is thus an active expression of progressive integration and cultural diversity. 15 Raw materials Volkswagen depends on reliable supplies of strategically important high-grade raw materi- Supplier relations als, especially metals. For this reason the Sustainability in the supply chain has been a key Group’s Environmental Research Department, focus of the Group Purchasing department since in conjunction with the Federal Institute of Geo- 2006. Volkswagen’s sustainable supply chain pol- sciences and Raw Materials (Bundesanstalt für icy comprises four main components: sustaina- Geowissenschaften und Rohstoffe – BGR), has bility requirements for suppliers, an early warn- developed a system of criteria and indicators for ing system for minimising risk, a transparent systematic analysis of the raw materials markets.24
  25. 25. S t r at e g y | E c o n o m y | S o c i e t y | E n v i r o n m e n t 2006 was when Volkswagen made its “Sustainability in Supplier Relations” concept a top priority for the Group Purchasing function.In addition to risk factors, this also observes ther business development in a timely manner. The Board of Management is keptand assesses the extraction of raw materials in This means that the Board of Management al- fully informed of the current riskpolitically unstable countries to make sure that ways has access to an overall picture of the cur- position.it is socially acceptable. In this context, Volkswa- rent risk situation through the documented re-gen seeks to engage in dialogue with NGOs such porting channels.as the Extractive Industries Transparency Initi-ative (EITI). The EITI supports a standardised We are prepared to enter into transparent risksprocess in which payments by the raw materials that are proportionate to the benefits expectedindustry to the government are disclosed and from the business. 19then verified by independent validators. Thishelps to curb corruption, thereby improving theeconomic and social climate and maximising Localisationprotection of the environment in the country in A central element of our strategy is the localisa-question. tion of production and supplier relations and, in- creasingly, of financial services. Localisation not only enables us to reduce foreign exchange risksRisk management and achieve cost levels appropriate to the mar-The Group’s risk management system is de- kets, but also to inject extra added value intosigned to identify potential risks at any early growth markets. This generates considerablestage so that suitable countermeasures can be momentum for the economic development of thetaken to avert the threat of loss to the Company, individual regions. Localisation means creationand any risks that might jeopardize its contin- of jobs in the regions in question. This upgradesued existence can be ruled out. the locations where our facilities are based and paves the way for follow-up activities. SecondaryThe risk management system is an integral part and tertiary effects have a positive overall impactof the Volkswagen Group’s structure and work- on the infrastructure in general. Decisions to lo-flows and is embedded in its daily business pro- cate production facilities – and thus the relevantcesses. Events that entail a risk are identified suppliers – in a specific place give rise to new al-and assessed on a decentralized basis in the di- liances with schools and universities, for exam-visions and at the investees. Countermeasures ple, and attract further service-sector compa-are introduced immediately, their effects are as- nies.sessed and the information is incorporated intothe planning in a timely manner. The results of The overall impact is to invest such a region – bethe risk management process are used to sup- it in Chattanooga or Pune, in Kaluga or Chengduport budget planning and controlling on an – with a new quality. For the Volkswagen Group,ongoing basis. The targets agreed in the budget localisation not only has economic benefits; itplanning rounds are continually verified in re- also improves the prospects of sustainable struc-volving planning reviews. tural development in the regions concerned.At the same time, the results of risk mitigationmeasures that have already been taken are in-corporated into the monthly forecasts on fur- 25
  26. 26. Compliance The Ombudsman system, introduced through- In 2010, we heightened our focus on transpar- out the Group in 2006, has also become success- ent corporate responsibility, creating the new fully established. Through this system, two in- Governance, Risk Compliance unit. The head dependent lawyers are available as ombudsmen of the unit is also the Group Chief Compliance to all employees via an international hotline. Officer of the Volkswagen Group, reporting di- The lawyers are bound by their obligation of se- rectly to the Chairman of the Board. His respon- crecy. sibilities include the introduction, control and monitoring of preventive measures. Further employee training and information events are planned for 2011. These will include We have drawn up a corporate Code of Conduct, measures and events aimed at specific target which was rolled out across the Group in 2010. groups as part of the new Compliance Pro- Employees were made aware of this through gramme, focusing on anti-trust and competition brochures, in the internal media and at infor- law. Additional compliance activities will also be mation events. All employees are able to contact devised in future, and the Compliance organisa- the Compliance organisation via an internal tion will be further expanded. 20 e-mail address. 21 As an anti-corruption measure, Volkswagen has been using an online learning program since 2009, designed specifically to increase employ- ee awareness. This program was rolled out to management and other employee groups of Volkswagen AG and also to other Group compa- nies. Face-to-face events were also arranged. Research and Financial Purchasing Production Distribution Development Services • Adaptation to local • Localised purchasing • Local production • Strong dealer • Local offer of customer needs throughout supply facilities for key network Financial Services • Local RD chain products • Adapted local Teams in regions marketing Market entry2 1 New: Quick Market Localisation creates new Pune expansion entry2 jobs and adds local value – 1 New: Quick Market Kaluga expansion entry2 substantial growth factors 1 Partial development capacity 2 Market entry planned for the local economy.26
  27. 27. S t r at e g y | E c o n o m y | S o c i e t y | E n v i r o n m e n t Economy In the spotlight Volatility Market players are already reacting are only seventh when it comes toEconomic stability Although the long-term global to inflation risks and turning to real operating profit. This is not goodIn the years ahead, three mega- growth trend is basically stable, assets such as gold, shares, commod- enough to achieve our targets fortrends on the economic front will fluctuations around this trend are ities and real estate. This encourages 2018.be particularly important for increasing considerably. For example, speculative bubbles.Volkswagen: shifts in global the financial crisis is by no means Conclusionsequilibrium, addressing financial over. Substantial risks to the world Another risk takes the form of Volkswagen already has a strongchallenges in the face of growing economy include growing levels of persistent significant balance of presence in many important marketsvolatility, and the (re-)emergence national debt in many countries, trade and balance of payments and is profiting from global growth.of old and new competitors. the instability of the financial deficits, as in the present situation The challenge now is to achieve system, growth deficits in selected between the USA and China, because systematic growth in localEquilibrium industrialised countries, persistent these increase the underlying value-added, in order to continueThe BRIC states are at the forefront imbalances of trade and current probability of protectionist measures. reducing dependence on exchangeof the present economic recovery. account figures, and the amount of rates and the risk of barriers to trade.They are resuming a growth trend speculation in the markets. On top of this, speculators are Increasing localisation of productsthat is well above European and contributing to the great volatility and financial services is at the sameNorth American levels and which Levels of national debt in several of the financial markets. The scale of time a central key to achievingwill bring about substantial Eurozone countries remain critical. their influence is evident from crude market-oriented cost levels andmedium-term shifts in global The resulting potential instability oil trading, for example: in recent adequate profitability worldwide.economic equilibrium. As a result, of the banking system and the years the number of speculativethe economic power of the emerging uncertainty about the future of transactions has undergone such a This financial robustness is importantmarkets will continue to increase. the Euro states tend to encourage massive increase that, these days, to ensure that Volkswagen is well sudden and sharp exchange-rate only about one seventh of all trans- equipped to face future crises. A largeThis opens up opportunities for fluctuations and cast a shadow actions physically involve crude oil. measure of flexibility and financialVolkswagen, with prospects of large over economic prospects. In many independence is absolutely essentialsales volumes. The rapid rise in the countries the central banks are for dealing successfully with eco-prosperity of broad sections of the trying to combat this by pursuing an Competition nomic risks. Fluctuations in thepopulation is creating new customer expansive monetary policy. In the The pace of competition in the global commodity and currency marketsgroups, and high priority must be short term this has many beneficiar- markets is increasing. By way of must not be allowed to throw us offgiven to recruiting these groups. ies, including Volkswagen which has illustration, the market shares of the course, any more than falling unitLocalised products adapted to already felt the substantial benefit four largest manufacturers in China, sales in times of recession.individual markets are needed to of the economic upswing. In the the USA and Brazil have shown afire their enthusiasm. And to ensure medium term, however, this significant drop over the past We are acting from a position ofsustainable success, the contribution approach involves a risk of higher decade. strength and are well on the way tothat these products make to inflation, which could have a achieving the ambitious targets ofearnings needs to be stepped up considerable destabilising effect Despite this difficult situation, our Strategy 2018.substantially. on the economic system. Volkswagen is doing very well on the whole. In global terms, we rank third among car manufacturers on the basis of unit sales. By contrast, we 27
  28. 28. 3 Strategie Management Strategie 2018 Management Society Employment Herausforderungen Demographic change Advancing women and promoting diversity Social responsibility28
  29. 29. S t r at e g y | E c o n o m y | S o c i e t y | E n v i r o n m e n tBuilding a top team.From vocational training to skills development at home and abroad, and from a forward-looking paypolicy to employee involvement, the Volkswagen Group is working with its employees to set the higheststandards right across its operations. Our employees also play an active part in a wide variety of socialcontexts. 29
  30. 30. A top team Employment meet present and future challenges if its em- The Volkswagen Group’s Strategy 2018 sets out ployees – from apprentices to top managers – how it intends to achieve its goal of becoming consistently turn in an outstanding perfor- the car industry’s global market leader in terms mance to ensure that innovation and product of unit sales and top the rankings in terms of quality remain at the very highest level in the customer satisfaction and profitability. On top long term. of that, Volkswagen also wants to be the most attractive employer in the automotive sector by Securing outstanding performance, generating 2018. The Group’s business strategy is a multi- success and giving employees a share in the dimensional stakeholder strategy that balances profits are central to Volkswagen’s HR strategy. the interests of customers, shareholders, em- Securing the outstanding performance re- ployees and other stakeholders. quired to assure Volkswagen of pole position in the international automobile industry means In the 2010 financial year, the Volkswagen having a top team, an HR principle that applies Group has made full use of the opportunities of- across the Group’s global operations. And it is a fered by its superb current range of models, principle that is particularly important when winning new customers and expanding its mar- the Group is growing, as it has done over the ket shares across the globe. However, it can only past few years. Employment Circle of success Excellent No. 1 performance Top team Good performance Success Top employer Good The circle of success from our team “Strategy 2018” shows that only an attractive employer can re- Good cruit a good team and develop it employer into a top team. And only a top team can turn in excellent performance.30
  31. 31. S t r at e g y | E c o n o m y | S o c i e t y | E n v i r o n m e n tIncluding the Chinese joint ventures, the Volks­ Group to achieve its aim of recruiting even morewagen Group employed a total of 399,381 people apprentices.worldwide on December 31, 2010, 8.4 percentmore than in December 2009 (368,500 employ- In September 2010, the number of employeesees). But as our workforce grows, so too does in vocational training across the Volkswagenthe complexity of the Group. The number of pro- Group exceeded 10,000 for the first time. Atduction sites, the range of technology used and the end of 2010, Volkswagen AG was trainingthe diversity of processes are expanding across approximately 4,500 apprentices and studentsthe Group as it diversifies from vehicles with in 32 professions and 21 courses at its six Ger-conventional drive into hybrid- and electric- man locations alone (Wolfsburg, Hanover,drive vehicles. It is therefore more important Braunschweig, Kassel, Emden and Salzgitter)than ever that the Group has access to the right under the StiP integrated study and traineeshipskills in the right place at the right time. scheme. In February 2010, the newly established Volkswagen Osnabrück GmbH also took on a further 99 StiP apprentices and students fromTraining and skills development the insolvent Karmann company.Over the next few years, the need for vocationaltraining and skills development and transfer is While undergoing vocational training at Volks­set to increase across the Group. Volkswagen wagen, apprentices can benefit from a widesets great store by being a learning and teaching range of additional training programmes andorganisation and is making every effort to en- events. These include cooperation betweensure that it has the appropriate skills levels Volkswagen’s vocational training division andacross its locations. “Jugend gründet”, a nationwide online busi- ness/high-tech competition offering a prize forOutstanding vocational training and systematic the best product or business idea. The Companysupervisor training are crucial to our HR devel- also organises the “ProTalent” and “Pro-opment strategy. The Volkswagen brand is in- Mechaniker” competitions, which offer appren-troducing a global supervisory qualification to a tices and students within the Volkswagen Groupcommon standard, so that we can employ highly an opportunity to combine their technical talentskilled supervisors at all our locations. The aim with their passion for motor sport.is to make the supervisor grade a key position inall locations, and training and skills develop- It’s not all about work on the factory floor or Volkswagen apprentices’ commit-ment programmes are currently being designed in the back office, though. For 20 years, Volks- ment to the Auschwitz Memorialto achieve this. wagen apprentices have been involved in the is recognised worldwide. Auschwitz Memorial and Museum. Since 1990,Volkswagen sets great store by its vocational Volkswagen has been sending four groups oftraining, and the majority of its highly skilled apprentices to Auschwitz each year to spend twoworkers join the Company via this route. The weeks with young Poles learning, helping andCompany’s locations in Germany have long-es- engaging with concentration camp survivors.tablished, top-quality vocational training facili- The groups are briefed and supervised by the In-ties, which are to be the model for all Volkswa- ternational Auschwitz Council and our subsidi-gen locations in future. This will also enable the ary, Volkswagen Coaching GmbH. Over 1,400 31

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