According to reports, the share value of Volkswagen has actually risen to about 55 percent. This has given the company the distinction of having the largest market value out of all the carmakers around the world. So how much is Volkswagen worth? Oh, not much, really. Just around the figure of $127.5 billion.
So what did Volkswagen do to help increase its stock value? Well, surprisingly, it had nothing to do with the company experiencing a boost in automotive sales. That actually hasn’t been Volkswagen’s bright spot. Chalk it up to having a good marketing strategy. I was being sarcastic there, just so you know. The company was able to net the largest market value thanks to its hedge-fund trading strategies. Yup, it seems weird but whatever works, right?
But don’t think that Volkswagen will just rely solely on its hedge funds just to stay at the top. The company is slated to come up with various model releases as well as establishing a new assembly plant in Chattanooga, Tennessee worth $1 billion. This plant will work on developing mid-sized sedans and even mid-sized SUVs meant specifically for the U.S. market. The proposed mid-sized sedan is said to be based on Volkswagen’s Passat model and is set to go against the Honda Accord and Toyota Camry.
Well, if this plant and new array of vehicles becomes successful, expect Volkswagen to hold on to the title of the company with the largest market value for a very long time.
Source: Motor Authority
