By Alexandre Bohas
Translation: Anton Stzepourginski
Passage au crible n°90
Pixabay
The Western automotive industry is going through an unprecedented crisis. However, the Volkswagen Group doesn’t seem to be affected judging its growing expansion and its outstanding financial results. This Group shows how powerful German industry really is, but it also benefits from Germany’s reputation. In globalized economies, nation-centered thinking patterns remain and have to be highlighted.
> Historical background
> Theoretical framework
> Analysis
> References
Even though it was funded in 1936, the company really took off after World War 2 thanks to its famous “Beetle” model which was the only produced vehicle for a long time. In the 1970s, the company finally decided to diversify its products with the Volkswagen Golf, Polo and Passat. Today their reputation is well established within their respective segments.
In sixty years, Volkswagen worked its way up to the third position of the largest car manufacturers – behind Toyota and General Motors – with a turnover of €192.7 billions in 2012 and a net profit of 21.7 billions. It holds a portfolio of well-known brands such as Audi, Porsche, Bugatti and Bentley which increase its annual sales to 9 million cars, with 7.4 VWs1. Volkswagen has been operating in South America and in Asia, especially in China where it holds 21%2 of the domestic market share in this sector. The company is also established in America’s automakers private garden: the United States. Volkswagen’s patterns of production have been globalized with 100 manufacturing facilities in 27 countries. Today, its main goal is to sell 10 million cars in 2018 and to become the world leader in this sector.
1. The hysteresis of nation-centered representations. Pierre Bourdieu defined the hysteresis as “the persistence […] of ‘out of phase’ case dispositions, and inappropriate practical applications because the environment they actually encounter is too different from the one to which they are objectively adjusted”3. It refers to the continued existence of a matrix made of national knowledge through which feelings and assessments automatically go. Such knowledge is overwhelmed by transnational forces which undermine the classical approach of self-governing and particular Nations. Considering how frozen consciences are, companies rely on these obsolete approaches whereas they have adopted globalized models of development, production and distribution. Therefore, such “out of phase case dispositions” can lead to paradoxical situations that have to be analyzed.
2. The advent of “artistic capitalism”4. Following the lead of several postmodernist authors, many writers highlighted the integration of economic and artistic interests. Indeed, today, creative and narrative dimensions are part of services and others goods that are being consumed. This phenomenon is a supply for a demand looking for an “every day’s life aestheticization”5. Thus, such new dimension in today’s societies must be taken into account without a negative assessment.
No matter how odd it is, productions processed and crafted at a global scale have national references and there are being highly promoted by multinationals through their marketing policies. For several years now, Volkswagen’s international signature has been referring directly to the prestige of German technology (die deutsche Qualität) with “Das Auto”, as a sign of German quality. Its marketing strategy is a great example of a development of sectoral references. It results from a conservative policy when it comes to designing and naming flagship models. In the meantime Volkswagen keeps distinguishing itself with pure and stylish lines, and an excellent reputation of reliability carefully preserved. As an example, there hasn’t been a lot of changes made to the lines of the legendary Golf model since the 1970s. Yet, this car integrated new technologies and it never forgets its meticulous attention to detail. As a result, the Golf model sits at the top of the range in the Volkswagen family.
At the end of the 18th century, British authorities decided to mark every goods imported from Germany with a label “Made in Germany”. They hoped that such label would encourage the population not to buy those goods and would reduce imports. They were wrong. There was no patriotic enthusiasm, and this benchmark became another reason to buy those goods. Parallel to that, the label “Made in France” is the greatest distinction for the luxury industry, the grande cuisine and the haute couture. In economic terms, such symbols mean money and profits as they play a great role in the mind of the consumer. Therefore, there are cultural competitive advantages.
Today, cultural, social and symbolic dimensions are essential to stand out from the competition in saturated markets. And, in their respective sectors, such national discourses receive worldwide recognition. Paradoxically, Volkswagen’s most famous cars have two criterions: expensive and “very German”. On the other hand, major western automakers – but also Seat and Skoda, recent acquisitions of Volkswagen – are heavily affected by the current financial crisis as they compete with a low-cost production competition coming from Emerging Countries. Indeed, they suffer from a lack of brand-identity because they can’t compete with the great Volkswagen’s marketing policies.
Finally, the persistence of nation-centered arguments, relics of time that are no more, helps explaining contemporary phenomena of anomie. Indeed, such phenomena create inappropriate behaviors for evolving economic and social realities which change lifestyles and production patterns. Therefore, they help understanding why some show reluctance for environmental solutions, why the European Commission fails to ensure that the EU interest prevails over member states interests, but also why there are identity-based tensions between communities “under the unstoppable pressure of a shrinking planet”.
Today, German goods are attractive for everyone thanks to their endurance and the development of representations and symbols resulting from deep schemes of perception, valuation and action inappropriate to the global sphere. Yet, they are proving to be fitted in a changing world.
Bourdieu Pierre, Le Sens pratique, Paris, Éditions de minuit, 1980, pp. 104-105.
DeJean Joan, The Essence of Style. How the French Invented High Fashion, Fine Food, Chic Cafés, Style, Sophistication and Glamour, New York, Free Press, 2006.
Duval Guillaume, Made in Germany. Le modèle allemand au-delà des mythes, Paris, Seuil, 2013.
Featherstone Mike, Consumer Culture and Postmodernism, Londres, Sage, 1991, p. 71.
Laroche Josepha, La Brutalisation du monde. Du retrait des États à la décivilisation, Montréal, Liber, 2012.
« Le Grand Bond en avant de Volkswagen et ses résultats vertigineux », Le Point.fr, 14 mars 2013.
Lipovestky Gilles, Serroy Jean, L’Esthétisation du monde. Vivre à l’âge du capitalisme artiste, Paris, Gallimard, 2013.
Normand Jean-Michel, « Les vaches sacrées se portent bien », Le Monde, 15 fév. 2013.
1Volkswagen A.G., Experience D[r]iversity, Rapport annuel 2012, available on the web site: www.volkswagenag.com, p. 105.
2Ibid., p. 125.
3Cf., Pierre Bourdieu, Le Sens pratique, Paris, Éditions de minuit, 1980, pp. 104-105.
4Cf., Gilles Lipovestky, Jean Serroy, L’Esthétisation du monde. Vivre à l’âge du capitalisme artiste, Paris, Gallimard, 2013, p. 37 sq.
5Mike Featherstone, Consumer Culture and Postmodernism, Londres, Sage, 1991, p. 71.
