You’re likely familiar with Volkswagen’s renowned vehicles, but you might be unaware of the vast empire behind this automotive giant. The Volkswagen Group isn’t just about VW cars; it encompasses some of the most prestigious and sought-after brands in the automotive world.
As the second-largest automaker globally, trailing only Toyota, the Volkswagen Auto Group (VAG) has strategically acquired a diverse collection of desirable and prestigious car companies over the years. This expansive portfolio allows VAG to cater to a wide spectrum of customers, from budget-conscious families to luxury car enthusiasts.
So, what car brands does Volkswagen own? The Volkswagen Auto Group (VAG) boasts ownership of twelve prominent automotive brands. These include Volkswagen itself, alongside SEAT, Audi, Škoda, Bugatti, Bentley, Lamborghini, Ducati, Porsche, Scania, MAN, and Volkswagen Commercial Vehicles. This impressive lineup positions Volkswagen as a dominant force in the global automotive industry.
Just how significant is Volkswagen’s financial standing? In 2019, VAG’s net worth surpassed a staggering $100 billion USD and employed over 670,000 individuals worldwide. To put this wealth into perspective, if the Volkswagen Group were a country, its economy would rank among the top 100 globally.
But how did Volkswagen achieve such immense success and become a global automotive powerhouse? To truly understand the Volkswagen Group, we need to delve into its fascinating origins and trace its journey to becoming the conglomerate it is today.
A Brief History of Volkswagen: From “People’s Car” to Global Giant
The story of Volkswagen begins in 1937, in Germany, under rather unusual circumstances. It was established by the German Labour Front, not as a typical commercial venture, but as a propaganda tool for the National Socialist German Workers’ Party. Ironically, from these politically charged beginnings emerged an automotive icon.
While Germany had a rich history of automotive engineering, passenger cars were largely luxury items, inaccessible to the average German citizen. In the 1930s, car ownership in Germany was a mere 1 in 50. Recognizing this gap, established automakers like Mercedes and BMW saw an opportunity to develop a more affordable “people’s car.”
Around the same time, Ferdinand Porsche, already a respected name in racing car design, envisioned his own “people’s car.” By 1933, he had developed the “Volksauto” (people’s car), a Beetle-shaped vehicle with a rear-mounted, air-cooled engine. In 1934, Adolf Hitler embraced this concept, recognizing the propaganda potential of a family car affordable to the masses and capable of cruising at 100 km/h (62 mph) on the newly constructed Autobahn highway network.
Porsche received government backing to create this “people’s car,” funded by a citizen savings scheme. The iconic Beetle was slated for production at a brand-new factory and town, Wolfsburg. However, the outbreak of World War II in 1939 dramatically altered these plans. Volkswagen had only produced a limited number of Beetles, none of which reached German citizens, and the factory was repurposed for war production. The Volkswagen Beetle project seemed destined to fail.
Yet, post-war, Volkswagen rose from the ashes of a failed Nazi initiative. It transformed into a major employer and became a powerful symbol of West Germany’s economic recovery. A British Army officer, Major Ivan Hirst, REME, played a pivotal role in Volkswagen’s remarkable post-war resurgence.
Throughout the 1950s and 1960s, Volkswagen launched a series of successful models built upon the foundation of Ferdinand Porsche’s air-cooled, rear-engine Beetle (Type 1) platform. These included the Type 2 (Transporter), Type 3 (Notchback, Fastback, Squareback), Type 4 (411, 412), the stylish VW Karmann Ghia, and the off-road-capable Type 181 (known as the VW Thing in the US).
In 1960, Volkswagen went public on the German stock market, becoming Volkswagenwerk Aktiengesellschaft (later shortened to Volkswagenwerk AG). This public listing paved the way for expansion, and Volkswagenwerk acquired Auto Union GmbH from Daimler-Benz, marking the genesis of the Volkswagen Group as we know it today. This acquisition was the first step in building the diverse portfolio of brands that define the Volkswagen Group.
The Expansive Portfolio: Brands Under the Volkswagen Group Umbrella
Volkswagen’s growth strategy has heavily relied on strategic acquisitions, bringing a range of prestigious and diverse brands under its corporate umbrella. Let’s explore some of the key brands that make up the Volkswagen Group:
Audi
Is Audi owned by Volkswagen? Yes, Audi became part of the Volkswagen Group through the acquisition of Auto Union GmbH. The Audi brand itself has a rich history, dating back to 1909. It was formed from the merger of four independent companies: Horch, Audiwerke, DKW, and Wanderer. This partnership was formalized as Auto Union in 1932, before being acquired by Volkswagen in 1965.
The first vehicle to bear the Audi name under Volkswagen’s ownership was the Audi F103. This saloon car, powered by a four-stroke engine, was produced in West Germany from 1965 to 1972. Interestingly, the F103’s design was derived from the DKW F102, previously marketed with a less sophisticated two-stroke engine. The Audi F103 marked the return of the iconic Audi badge to vehicles for the first time since World War II.
In 1969, Volkswagen further solidified the Audi brand by merging Auto Union with NSU Motorenwerke, creating Audi AG. This merger also brought valuable technology and designs into the Volkswagen Group, including the original design for the first-generation Volkswagen Polo (Mk1), which was initially developed by NSU.
SEAT
Does Volkswagen own SEAT? Yes, SEAT (Sociedad Española de Automóviles de Turismo) is part of the Volkswagen Group. Venturing beyond its German origins, Volkswagen began its expansion into international markets by acquiring an interest in SEAT in 1982. This marked Volkswagen’s first foray into owning a non-German car brand. The collaboration deepened over time, and in 1986, Volkswagen AG achieved a majority stake, eventually taking full ownership of the Spanish automaker.
Prior to Volkswagen’s involvement, SEAT, established in 1950, was known for producing affordable and practical compact cars, such as the popular SEAT 600. Based in Barcelona, in the Catalonia region of Spain, SEAT brought a strong presence in the Spanish market and a reputation for value-oriented vehicles to the Volkswagen Group. In 1982, even before full acquisition, Volkswagen AG began utilizing SEAT’s Zona Franca and Landaben factories to produce Volkswagen Passat-Santana and Polo-Derby models, showcasing the early stages of integration.
Škoda
Is Škoda owned by Volkswagen? Yes, Škoda Auto is a wholly-owned subsidiary of the Volkswagen Group. Building on the success of the SEAT partnership, Volkswagen looked eastward and acquired an interest in a Czech Republic automaker, Škoda. The partnership between Volkswagen and Škoda commenced in 1991, with Volkswagen gradually increasing its stake before achieving complete ownership of Škoda in 2000.
Before joining forces with VAG, Škoda, under state ownership in Czechoslovakia, had unfortunately gained a reputation for producing cars that were perceived as outdated and lacking in quality. This was a common challenge for many automakers operating under state control in the Soviet Union and Eastern Bloc countries. However, Volkswagen recognized the underlying potential of the Škoda brand, which had a history dating back to 1895, founded by Laurin & Klement. Under Volkswagen’s guidance and investment, Škoda underwent a remarkable transformation, becoming a highly successful brand known for its practicality, reliability, and value for money within the Volkswagen Group portfolio.
Bentley
Does Volkswagen own Bentley? Yes, Bentley Motors is part of the Volkswagen Group. Volkswagen acquired Bentley in 1998, following a complex legal battle with BMW over the ownership of Rolls-Royce and Bentley.
In 1997, the Rolls-Royce Motors brand became available for purchase. As a quintessential British marque, Rolls-Royce represented the pinnacle of luxury and craftsmanship. BMW, already a partner with Vickers (then-owner of Rolls-Royce Motors), supplying engines and components for Bentley and Rolls-Royce models, seemed like the natural buyer. However, Volkswagen AG had different ambitions.
Volkswagen strategically positioned itself to acquire Rolls-Royce Motors, outbidding BMW with a GBP £430 million offer for the designs, property, and trademarks, including the iconic Spirit of Ecstasy and Rolls-Royce grille. However, the deal did not include the rights to the Rolls-Royce name or logo itself.
Through further negotiations with BMW, Volkswagen ultimately secured full rights to the Bentley marque in 2003, while BMW retained the Rolls-Royce name and established a new Rolls-Royce Motor Cars Limited company. Bentley, under Volkswagen’s ownership, has continued to flourish as a purveyor of ultra-luxury automobiles, benefiting from VAG’s resources and technology.
Lamborghini
Is Lamborghini owned by Volkswagen? Yes, Automobili Lamborghini S.p.A. is part of the Volkswagen Group, specifically under the Audi division. Demonstrating its appetite for exotic and high-performance luxury brands, Volkswagen seized the opportunity to acquire Lamborghini in 1998 when Indonesian conglomerate SEDTCO Pty Ltd decided to sell the Italian sports car manufacturer.
Lamborghini, founded in 1963 by Ferruccio Lamborghini, is synonymous with passion, performance, and striking design. Established to compete with established marques like Ferrari, Lamborghini quickly gained global recognition for its groundbreaking supercars, such as the legendary Lamborghini Countach and Diablo. Under Volkswagen’s ownership, Lamborghini has continued to push the boundaries of automotive engineering and design, producing some of the most exhilarating and desirable sports cars in the world.
Bugatti
Does Volkswagen own Bugatti? Yes, Bugatti Automobiles S.A.S. is part of the Volkswagen Group. In 1998, Volkswagen acquired the rights to the prestigious Bugatti name, establishing Bugatti Automobiles company in 1998. Bugatti’s history dates back to 1909, founded in France by Ettore Bugatti as a manufacturer of high-performance and exquisitely engineered automobiles. The company later moved to Italy in 1987 before being acquired by the Volkswagen Group.
Volkswagen resurrected the Bugatti name to create the groundbreaking Bugatti Veyron. Launched in 2005, the Veyron was a technological marvel, claiming the title of the fastest and most expensive production car in the world upon its release. Bugatti, under Volkswagen’s stewardship, continues to represent the pinnacle of automotive engineering and luxury, pushing the limits of performance and exclusivity.
Ducati
Is Ducati owned by Volkswagen? Yes, Ducati Motor Holding S.p.A. is part of the Volkswagen Group, operating under Audi AG. The acquisition of a motorcycle manufacturer, particularly one specializing in sportbikes like Ducati, might seem like an unusual move for a car company. However, Volkswagen’s then-chairman, Ferdinand Piëch, was a known motorcycle enthusiast with a proven track record of revitalizing struggling luxury brands. Through its Audi subsidiary, Volkswagen acquired the coveted Ducati motorcycle maker for approximately USD 909 million in 2012.
The Ducati acquisition wasn’t without its critics. Some analysts questioned the strategic rationale, suggesting it was driven more by “passion for nameplates” than sound financial logic. Nevertheless, under Audi’s management, Ducati has continued to thrive, maintaining its reputation for high-performance motorcycles and Italian design flair within the Volkswagen Group family.
Porsche
Does Volkswagen own Porsche? Yes, Porsche AG is effectively part of the Volkswagen Group. While initially, Volkswagen acquired a 49.9% share stake in Porsche AG in 2009, the plan for a full merger to create an “integrated automotive group” was initially stalled due to legal complexities. However, in 2012, Volkswagen completed the acquisition of Porsche AG, making it a wholly-owned subsidiary.
The relationship between Porsche and Volkswagen is deeply rooted. Ferdinand Porsche, the founder of Porsche, was also instrumental in designing the original Volkswagen Beetle. This historical connection led to numerous collaborations over the years, including models like the Porsche 914, 912, 924, and 944, which shared components with Audi and NSU vehicles. Even the iconic Porsche 911 bears some engineering similarities to the rear-engine, air-cooled Beetle. The full integration of Porsche into the Volkswagen Group solidified a long-standing partnership and brought another iconic sports car brand into the fold.
Scania and MAN
Does Volkswagen own Scania and MAN? Yes, both Scania and MAN are part of the Volkswagen Group’s commercial vehicles division, TRATON SE (formerly Volkswagen Truck & Bus GmbH). Expanding beyond passenger cars, Volkswagen ventured into the commercial vehicle sector, acquiring Swedish manufacturer Scania and German manufacturer MAN.
Volkswagen Group initially acquired a stake in Scania in 2000, through the purchase of Volvo’s shares in the company. This was followed by a gradual increase in ownership, culminating in full control of Scania finalized in 2014. Similarly, Volkswagen also acquired a significant stake in MAN SE, another major player in the commercial vehicle industry. By bringing Scania and MAN under the TRATON SE umbrella, Volkswagen established a strong presence in the global market for trucks, buses, and other commercial vehicles.
Volkswagen Commercial Vehicles
Volkswagen Commercial Vehicles (VWCV) operates as an independent brand within the Volkswagen Group since 1995, with its headquarters in Hannover, Germany. This division was specifically established to produce the iconic Volkswagen Type 2 van, also known as the Transporter, Bus, or Bulli. The Type 2 has a fascinating history, originating from the same platform as the original Volkswagen Beetle.
In 1947, Dutch Volkswagen importer Ben Pon presented Volkswagen with sketches for a commercial van based on the Beetle’s (Type 1) platform. Inspired by the Beetle-based Plattenwagen (a simple flatbed vehicle used within the Wolfsburg factory), Pon recognized the potential for a lightweight commercial van. Volkswagen General Director Heinrich Nordhoff embraced Ben Pon’s concept, and in 1950, the first “Bulli” (short for Bus-Lieferwagen – Bus-Delivery van) went into production. By 1954, Volkswagen had produced 100,000 Type 2 Transporters at the Wolfsburg plant, later moving production to a dedicated plant in Hannover in 1956.
The Volkswagen Transporter has become an indispensable part of the VW lineup and a cultural icon. The VW Bus, in particular, became a symbol of freedom and adventure, developing a devoted cult following and contributing significantly to the overall Volkswagen brand image.
Frequently Asked Questions
Does Volkswagen own BMW? No, Volkswagen and BMW are separate and competing automotive groups. BMW Group owns brands such as Rolls-Royce, Mini, and BMW Motorrad (motorcycles).
How many brands does VW own? The Volkswagen Auto Group (VAG) currently owns twelve major automotive brands: Volkswagen, Audi, SEAT, Škoda, Bentley, Bugatti, Lamborghini, Porsche, Ducati, Scania, MAN, and Volkswagen Commercial Vehicles.
What brands does Audi own? Audi itself is a subsidiary of the VAG. Under the Audi umbrella are the brands Lamborghini and Ducati. Italdesign, an automotive design and engineering company, is also part of the Audi Group.
What is Volkswagen’s net worth? As of 2019, the Volkswagen Group’s net worth exceeded $100 billion USD, reflecting its immense scale and global operations.
