5 Companies Owned by Volkswagen

Luxury automobiles, sports cars, budget and commercial vehicles

Reviewed by Margaret James

Volkswagen Group is the world’s largest car manufacturer. It significantly strengthened and broadened its product line through a long list of acquisitions, including manufacturers of luxury sedans, sports cars, budget vehicles, and heavy trucks and buses. The company owns five major auto brands: Audi, Porsche, Škoda, Scania, and Lamborghini. Before we review these brands, we take a look at how Volkswagen came to be.

Key Takeaways

• Volkswagen is the world’s largest car manufacturer by revenue.
• The company has used acquisitions to broaden its product line.
• Volkswagen owns popular auto brands Porsche, Škoda, Scania, and Lamborghini, which help boost its annual revenue.

History of Volkswagen

Volkswagen is the world’s largest automobile manufacturer by revenue. As of Dec. 31, 2023, the company reported annual revenue of $356.13 billion (€322.3 billion), edging out Toyota for the lead. The company posted earnings of $19.4 billion on total revenue of $347.9 billion in 2023 and had a market capitalization of $58 billion.

The automaker, whose name means people’s car, was founded in 1937 by the German government, which at the time was ruled by the Nazi Party. Despite Volkswagen’s origins, the company has grown into a prosperous global auto manufacturer with a reputation for producing high-quality vehicles.

The original Volkswagen factory was repurposed to produce military equipment and vehicles when World War II broke out in 1939. Despite lying in ruins at the war’s end due to Allied bombing, the factory was rebuilt and began mass-producing cars. Volkswagen was mostly denationalized with the sale of 60% of its stock in 1960. The company now produces a broad range of cars, vans, and commercial vehicles.

While Volkswagen has a strong reputation for quality, it suffered a setback in 2015 after it was discovered that the company installed software in the diesel engines of its vehicles that artificially boosted emissions test results. The scandal resulted in the recall of millions of cars worldwide and the company’s first quarterly loss in 15 years.

Audi

• Type of Business: Luxury Auto Manufacturer
• Acquisition Price: Not Available
• Acquisition Date: 1965
• Annual Revenue (2023): $75.46 billion
• Annual Profit (2023): $6.8 billion

Luxury vehicle manufacturer Audi has a complex history that goes back to the late 19th century. In 1899, August Horch founded a car company in Germany. Ten years later, Horch started a new automobile company named Audi, marking the origination of the modern company’s name.

In 1932, four separate German automobile manufacturers—Audi, DKW, Horch, and Wanderer—which are symbolized by the four rings in the company’s current logo, merged to form Auto Union AG. Auto Union was subsequently acquired by Volkswagen from Daimler-Benz and later merged with another company to form a resurrected Audi. The acquisition, which was Volkswagen’s first of many, gave the company one of the world’s premium luxury auto brands.

Porsche

• Type of Business: Sports Car Manufacturer
• Acquisition Price: €4.5 billion, plus one VW common share (50.1% stake)
• Acquisition Date: Aug. 1, 2012 
• Annual Sales Revenue (2023): $43.7 billion
• Annual Net Profit (2023): $1.6 billion

The Porsche brand of sports cars was born in 1948 when the first vehicle was made with the Porsche name. Co-founder Ferdinand Porsche, who established an independent design and engineering firm, originally was responsible for the design of the Volkswagen Beetle.

Porsche has become a premium sports car brand, designing classic models such as the 911, 964 Turbo, and Carrera GT. The acquisition has enriched Volkswagen’s portfolio with one of the world’s legendary sports car brands.

Škoda

• Type of Business: Budget Automobile Manufacturer
• Acquisition Price: DM 620 million (initial 31% stake); price of remaining stake: NA
• Acquisition Date: 1991 (initial 31% stake); May 30, 2000 (remaining stake)
• Annual Sales Revenue (2023): $25.9 billion
• Annual Profit (2023): $1.4 billion

Škoda is one of the oldest car manufacturers in the world. Its origins go back to a bicycle factory set up in the Czech city of Mladá Boleslav in 1895. Ten years later, the factory began producing a new form of transport called the car. The company merged in 1925 with engineering and manufacturing firm Škoda from Pilsen.

Following Czechoslovakia’s Sovietization after WWII, the company was brought under state control and produced cheap cars. But, it wasn’t until the collapse of the communist bloc in 1989 that Škoda gradually became privatized.

Volkswagen acquired an initial 31% stake in the company in 1991 and would become Škoda’s sole owner in May 2000. The acquisition adds a budget brand to Volkswagen’s lineup.

Important

Volkswagen breaks out revenue and profit for some acquisitions, but not for others.

Scania

• Type of Business: Commercial Vehicle Manufacturer
• Acquisition Price: $1.6 billion (initial 18.7% stake of capital and 34% of voting rights); approx. $9.6 billion (remaining stake)
• Acquisition Date: March 27, 2000; June 5, 2014 (remaining stake)
• Annual Sales (2023): $19.2 billion 
• Annual Profit (2023): $1.6 billion (SEK/USD = 0.0942 on Oct. 27, 2024)

Scania was founded in Sweden in 1891 and was one of the first companies in the world to begin manufacturing commercial vehicles. It has since become one of the world’s leading producers of heavy trucks and buses.

Volkswagen acquired its initial stake in Scania in 2000 and gradually increased its ownership with subsequent share purchases. By 2014, Volkswagen had fully acquired Scania. The acquisition of a commercial vehicle manufacturer Scania significantly diversified Volkswagen’s sales base in the global vehicle market.

Lamborghini

• Type of Business: Luxury Sports Car Manufacturer
• Acquisition Price: $111 million (estimated)
• Acquisition Date: 1998

Volkswagen went on a sports car company buying spree in 1998, first scooping up Lamborghini. During that year, it also paid $790 million for Bentley and an estimated $50 million for Bugatti. All three were bought as the automaker was making a big push into both the luxury and premium sports car market.

How Can I Invest in Volkswagen?

Volkswagen stock trades on exchanges in Germany in the following locations: Berlin, Düsseldorf, Frankfurt, Hamburg, Hanover, Munich, and Stuttgart. The best way to buy and sell shares in the company is to open and make trades through an online brokerage account.

Is the Porsche Brand Publicly Traded?

Yes, Porsche is a publicly traded company. Volkswagen decided to take it public when its initial public offering (IPO) opened on Sept. 29, 2022. It was the largest IPO in Europe by capitalization, raising about $9.2 billion. The company’s shares trade on the Frankfurt Stock Exchange.

Which Regions Represent the Largest Market for Volkswagen?

Volkswagen is the world’s largest car manufacturer. But, it’s largest markets are Europe and China. According to the company, about 75% of its vehicles are delivered to these two regions. Volkswagen also stated that the North and South American markets reached sustainable levels of profit as of 2021.

The Bottom Line

Volkswagen is the world’s largest automaker by revenue. So, it should come as no surprise that the company has used acquisitions to gain a stronghold in the market. Major global brands like Audi and Porsche help drive in the company’s revenue. As an investor, you may wonder how you can cash in on the company’s success. If you want to buy shares of Volkswagen, which trade on various exchanges in Germany, consider doing so through an online brokerage account. But before you do, do some research to ensure the company’s profile aligns with your investment goals. As always, speak to a financial professional if you’re unsure of whether the company is a good fit for your financial portfolio.