The Development of Volkswagen’s Industrial Model, 1967-1995

Abstract

Abstract Analysis of the trajectory of Volkswagen1 (VW) between the late 1960s and the mid- l 990s reveals two prominent events: the crisis of 1973/4 and the crisis of 1993/4. Both years mark the end-points of periods of internal crisis, indecision, trial-and-error approaches, and accompanying internal controversies and uncertainty, which were of extended length: from around 1968 until 1974 in the first case, and from around 1988 until 1994 in the second. Both of these periods were basically related to issues of product strategy, that is, to ‘market uncertainty’. These, in tum, affected the firm’s governance structure.

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