Volkswagen Group history and brand evolution into global alliance

Volkswagen Group’s journey from origins to becoming a global brand empire with Audi, Skoda, Porsche, Bentley and more

The history of Volkswagen is more than just the story of a carmaker. It is the evolution of an idea that began with the “people’s car” and grew into one of the largest automotive groups in the world, home to brands with very different identities.

The company’s roots go back to 1937, when Volkswagenwerk GmbH was founded in Germany to build an affordable car for the masses. After World War II, the plant came under British administration. This marked a second beginning: the factory not only survived but became a symbol of Germany’s economic recovery. In 1960, Volkswagen was transformed into a joint-stock company, Volkswagenwerk AG, and the so-called “Volkswagen Act” established a special ownership structure, giving the state of Lower Saxony a lasting influence.

The transformation into a multi-brand group started in 1964, when Volkswagen acquired Auto Union from Daimler-Benz, and five years later merged it with NSU. This move revived the Audi brand and signaled the beginning of Volkswagen’s long-term expansion strategy.

In the 1980s, the company turned to Southern Europe: in 1986, Volkswagen acquired a majority stake in SEAT, taking full control by 1990. In the early 1990s, Škoda entered the picture. Initially a joint venture, it became fully owned by Volkswagen by 2000, a case often cited as a successful integration of a Central European brand into a global corporate structure.

The year 1998 was pivotal. Bentley, Lamborghini, and the reborn Bugatti joined the portfolio, securing Volkswagen Group’s entry into the luxury and supercar markets. A decade later, in 2009, Volkswagen purchased 49.9% of Porsche, completing the full integration in 2012. Another milestone followed in the same year when Audi, part of the Group, acquired Ducati, bringing motorcycles into the mix.

Today, Volkswagen Group is a diversified ecosystem. It stretches from the volume brands Volkswagen, SEAT, and Škoda, to the premium and luxury world of Audi, Bentley, Lamborghini, and Porsche, as well as Ducati in the motorcycle segment. It also includes the heavy-truck division TRATON. The current corporate design divides these into “Brand Groups” — Core, Progressive, Sport Luxury, and Trucks — reflecting a strategy where each brand has its own role within the whole.

Looking back at this history of acquisitions and integrations, one clear pattern emerges: Volkswagen built its empire step by step, expanding its reach, diversifying its technology, and broadening its audiences. What started as a single “car for the people” has turned into a layered global alliance. Judging by the present-day structure, the Group is set to continue balancing mass-market production with luxury exclusivity, maintaining its status as one of the key forces in the global automotive industry.