The automotive industry is in transition. Growing environmental concerns and ever increasing oil prices are accelerating a shift from gasoline to electric vehicles. Volkswagen AG will be ready to meet the surge in demand for these “green” vehicles (hybrid, electric, biofuel cars) and for the components that are used to make them. Development of small, inexpensive environmentally-friendly vehicles and continued expansion of manufacturing and selling these vehicles in emerging markets are keys to the company’s success. These two mutually-reinforcing activities give VW advantageous positioning in the intensely competitive automotive industry and will propel it to achieve its ambitious goal to become the largest automobile manufacturer in the world by 2018.