Volkswagen (VOW3.DE) Stock Price

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BUY - rate is expected to increase, i.e. the first currency gains value against the second currency.
SELL - rate is expected to go down, i.e. the first currency is expected to lose value against the second currency.

In several ways, Volkswagen AG (also known as VW or Volkswagen Group), is indeed the world’s top car maker. It certainly is that if we look at the sales it generates over the multitude of brands that it owns. In this regard, it has recently topped Toyota. In 2018, the Group sold some 10.8 million vehicles world over.

While Volkswagen is popularly best known for its passenger vehicles, it is also a major commercial vehicle manufacturer. It apparently also makes motorcycles.

Volkswagen’s success does not mean that the company has always been a straight shooter however. Recently, it has been rocked by a major scandal regarding the way its engineers decided to “solve” the issue of emission standards. Apparently, software was installed in vehicles with the aim of deceiving pollution tests.

As mentioned, Volkswagen owns several other car brands as well as other companies. Most of its subsidiaries are extremely well known themselves, which is without a doubt a factor in the Group’s success recipe.

Audi is a Volkswagen brand. It is in fact one of its oldest acquisitions. While VW acquired Audi in 1966, Audi itself had acquired a number of other companies before. The roots of some of its constituent companies reach back all the way to the 1800s.

Given the popularity of Audi, it is hardly surprising that the brand is one of the most profitable in the VW fold.

Bentley, Lamborghini and Bugatti also belong in this fold. The luxury card brands were added to the VW portfolio in 1998. Of the three brands, Bentley presented the best opportunity to target the luxury market. Although an integral part of Bentley’s history, racing has long been all but erased from the agenda of the operation.

Bugatti and Lamborghini presented a path into the supercar market.

Porsche and Ducati were added in 2012. With Skoda and Seat, VW tightened its grip on the mass consumer market. While none of the two brands enjoyed the prestige and notoriety of Bentley for example, since they were acquired by VW, they have made major progress on that front too.

What do Volkswagen and Uber have in common?

In addition to buying up most of the prestigious European vehicle manufacturing companies, VW sought to expand its operation in other directions as well.

This is where MOIA came into the picture. Much like Uber, MOIA is a ride sharing and ride pooling service, which has made its ambitions known in the driverless vehicle vertical as well.

MOIA is a sort of natural direction for VW’s future expansion. After all, the number of car makers the company can acquire is limited and it has just about run out of expansion-room in that direction.

In addition to revenue diversification, MOIA has introduced a few other factors likely to move the needle on VW stock. It has also given the company a much better defined vision for the future.

Since “Dieselgate”, the company has mostly redeemed its sins in the eyes of investors. Its record-breaking EVs have added a completely new flavor to VW stock.

BUY - rate is expected to increase, i.e. the first currency gains value against the second currency.
SELL - rate is expected to go down, i.e. the first currency is expected to lose value against the second currency.

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