Wolfsburg AG

Wolfsburg AG is a German economic-development and operating company headquartered in Wolfsburg, Lower Saxony. It was established by the City of Wolfsburg and Volkswagen Group to implement the AutoVision concept, a broad program intended to improve the city’s attractiveness, diversify its economic base, create employment and reinforce Wolfsburg’s position as an automotive center. The company is jointly owned, with the city and Volkswagen each holding half of its shares. The company emerged from the structural difficulties Wolfsburg faced during the 1990s. The local economy was unusually dependent on Volkswagen, while the service sector and regional supplier network were less developed than those of other German automotive locations. The downturn affecting Volkswagen between 1991 and 1994 contributed to declining municipal tax revenues, reduced purchasing power and rising concern about the city’s long-term resilience. The AutoVision concept was developed with support from McKinsey & Company and sought to address these issues through an automotive cluster, new business formation, supplier attraction, employment services, leisure infrastructure and improvements to the quality of life. Wolfsburg AG initially organized its activities around four principal areas: the InnovationsCampus, the Supplier Park, the Adventure World and the PersonnelServiceAgency. The InnovationsCampus supported innovation and the formation of new companies. The Supplier Park helped attract automotive and related suppliers to the region. The Adventure World concept focused on leisure, tourism and urban attractiveness, while the PersonnelServiceAgency provided recruitment, temporary staffing and qualification services. Over time, Wolfsburg AG expanded beyond conventional automotive-related economic development. Its activities have included education, health, energy, mobility, leisure, business networking and regional project development. The company has been involved in entities and initiatives such as the Gewerbeakademie Wolfsburg, Neue Schule Wolfsburg and Wolfsburger Energieagentur. It also supports intercultural business services, preventive healthcare and energy-efficiency advice for households, companies and municipalities. Leisure and destination development are important parts of its portfolio. Wolfsburg AG built the Volkswagen Arena in Allerpark in 2002 and remains proprietor of the stadium. It also manages Allerpark, supports project development and works to attract operators and investors to the wider leisure district, which includes sports and aquatic facilities. In the automotive sector, the company promotes supplier settlement, industry networking, mobility research and business events. Its International Suppliers Fair, known by the German abbreviation IZB, is a major supplier-industry gathering. The company is structured as an Aktiengesellschaft under German law. Its capital is divided into registered no-par-value shares that are not publicly traded and whose transfer requires approval by the annual general meeting. Wolfsburg AG operates from the AutoVision Forum in Wolfsburg’s Hageberg district, a complex of approximately 27,000 square metres containing offices, conference and event facilities, catering areas, the Center for Simultaneous Engineering and the InnovationsCampus. Its operating model combines public-sector development objectives with commercial activities, particularly staffing services. The company is widely regarded as an example of place-based economic development and has been associated with a substantial reduction in Wolfsburg’s unemployment rate.

Wolfsburg AG was created against the backdrop of a serious structural challenge in Wolfsburg during the 1990s. The city’s economy was heavily concentrated around Volkswagen, with roughly 85 percent of employees belonging to the Volkswagen Group in 1995. Compared with the German average, the local service sector was underdeveloped, and competing automotive regions had a stronger concentration of suppliers. The resulting dependence made Wolfsburg vulnerable to changes in Volkswagen’s performance. During the Volkswagen crisis from 1991 to 1994, municipal tax revenues fell by almost one-third, while the city was estimated to be losing between 200 million and 300 million euros of purchasing power annually. The City of Wolfsburg and Volkswagen therefore began working on a joint response. With support from McKinsey & Company, Volkswagen developed the AutoVision concept. Its purpose was not only to reinforce the automotive industry but also to create an automotive cluster, encourage new businesses, expand the service economy and improve the city’s attractiveness as a place to live, work and visit. The concept included the idea of an urban adventure world, supplier-development measures, innovation support, employment services and initiatives to improve the broader quality of life. Wolfsburg AG was founded in 1997 to put AutoVision into practice. The company was formed through the conversion of GIZ Gründungs- und Innovationszentrum GmbH into a stock corporation. The City of Wolfsburg and Volkswagen each received a 50 percent stake. Its first operating structure covered four areas: InnovationsCampus, Supplier Park, Adventure World and PersonnelServiceAgency. Together, these areas were designed to attract businesses, support entrepreneurs, increase the number of regional automotive suppliers, develop leisure infrastructure and improve recruitment and qualification services. The company subsequently broadened its work beyond the initial program. It became active in education, health, energy, mobility, leisure, business development and international business support. The Wolfsburger Energieagentur, developed with the city’s public utilities, advises residents, companies and municipalities on energy matters and efficiency. Other activities have included the Gewerbeakademie Wolfsburg, Neue Schule Wolfsburg and an agency serving companies that need to prepare employees for assignments abroad. Health-related projects have combined staff education and supervision with the development and commercialization of preventive services. A major part of Wolfsburg AG’s place-making role has been the development and management of Allerpark. The company built the Volkswagen Arena in 2002 and has remained its proprietor. It also manages the wider park, which contains sports, ice-hockey and swimming facilities, and works on project development and the recruitment of operators and investors. These activities reflect the original Adventure World objective: to strengthen Wolfsburg’s leisure offer, increase tourism and make the city more attractive to residents and businesses. Automotive development remains central. Wolfsburg AG encourages suppliers and related companies to establish operations in the region, supports networking and mobility research, and organizes conventions and exhibitions. The International Suppliers Fair, or IZB, became one of the company’s most visible automotive-sector activities and a forum for suppliers and industry participants. The company’s staffing operations have also become an important source of financing. In 2013, Wolfsburg AG established AutoVision Zeitarbeit with a Volkswagen subsidiary. The enterprise supplies temporary and specialized personnel for periods of high demand, including production peaks and holiday coverage, while also contributing to recruitment and qualification functions. Wolfsburg AG operates from the AutoVision Forum in the Hageberg district. The approximately 27,000-square-metre complex includes the Center for Simultaneous Engineering, the InnovationsCampus and a central Arena containing offices, catering, conference and event facilities. The company is an unlisted German Aktiengesellschaft with registered shares that cannot be freely transferred without approval from the annual general meeting. Its supervisory board has 18 members appointed equally by the city and Volkswagen, while executive representation is provided by its management board. Wolfsburg AG is generally cited as a notable German example of public-private economic development and has been credited with helping reduce the city’s unemployment and dependence on a single industrial employer.

• 2013

  AutoVision Zeitarbeit established

  [1]Wolfsburg AGen.wikipedia.org

  Wolfsburg AG and a Volkswagen subsidiary formed a staffing joint venture to serve temporary and specialized labor needs.

• 2002

  Volkswagen Arena opened in Allerpark

  [1]Wolfsburg AGen.wikipedia.org

  Wolfsburg AG built the Volkswagen Arena as part of its leisure, tourism and city-attractiveness program.

• 1997

  Wolfsburg AG founded

  [1]Wolfsburg AGen.wikipedia.org

  The City of Wolfsburg and Volkswagen Group established Wolfsburg AG to implement the AutoVision economic-development concept.

• 1990

  Wolfsburg faces structural economic dependence

  [1]Wolfsburg AGen.wikipedia.org

  During the 1990s, Wolfsburg’s economy was dominated by Volkswagen, while its service sector and regional supplier base lagged behind other German automotive locations.

A public-private economic-development platform linking Wolfsburg’s municipal government with Volkswagen Group. Wolfsburg AG combines regional diversification, automotive-cluster development, employment services, innovation support and leisure infrastructure rather than operating as a conventional consumer-facing product brand.

• Economic-development program · 1997

  AutoVision

  The AutoVision concept is Wolfsburg AG’s foundational development framework. It combines automotive-cluster development with business formation, supplier attraction, employment services, leisure infrastructure and quality-of-life measures. Rather than being a single commercial product, it is a coordinated regional strategy intended to diversify Wolfsburg’s economy while retaining the automotive sector as a core strength.

• Innovation and business development · 1997

  InnovationsCampus

  The InnovationsCampus supports entrepreneurs, innovation projects and the creation or settlement of businesses in the Wolfsburg region. It is located within the AutoVision Forum and forms part of the company’s effort to expand the local economic base beyond direct Volkswagen employment.

• Staffing and employment services · 2013

  AutoVision Zeitarbeit

  AutoVision Zeitarbeit provides temporary, specialized and supporting personnel for production peaks, seasonal demand and holiday periods. Established as a joint venture involving Wolfsburg AG and a Volkswagen subsidiary, the staffing activity also supports the company’s recruitment, qualification and financing functions.

• Automotive industry exhibition

  International Suppliers Fair (IZB)

  The International Suppliers Fair is an automotive-industry event organized by Wolfsburg AG. It provides a meeting place for vehicle manufacturers, component suppliers, technology companies and other mobility-sector participants, supporting regional networking and Wolfsburg’s role as an automotive business location.

• Leisure and destination development

  Allerpark

  Allerpark is a leisure district whose development and management form part of Wolfsburg AG’s city-attractiveness strategy. Wolfsburg AG is responsible for park management, project development and the acquisition of operators and investors. The area includes the Volkswagen Arena and other sports, ice-hockey and swimming facilities.

• 2013

  Expanded into joint-venture staffing servicesStrategy

  Background

  Automotive production and related operations require flexible access to specialized and supporting labor during seasonal and operational peaks.

  Action taken

  Wolfsburg AG formed AutoVision Zeitarbeit with a Volkswagen subsidiary to provide temporary personnel and support recruitment and qualification activities.

  Aftermath

  Staffing became an important operating and financing activity within Wolfsburg AG’s broader development model.

  Source

• 2002

  Developed the Volkswagen Arena in AllerparkOther

  Background

  The AutoVision concept treated leisure infrastructure and urban attractiveness as tools for strengthening Wolfsburg’s service economy and appeal as a destination.

  Action taken

  Wolfsburg AG built the Volkswagen Arena and retained ownership while continuing to develop and manage the surrounding Allerpark district.

  Aftermath

  The arena became a major component of the city’s leisure and sports infrastructure and of Wolfsburg AG’s destination-development portfolio.

  Source

• 1997

  Adopted the AutoVision public-private development modelStrategy

  Background

  Wolfsburg faced high dependence on Volkswagen, a weak service sector, declining purchasing power and reduced municipal revenues. The city and Volkswagen sought a coordinated way to create jobs and improve the location’s attractiveness.

  Action taken

  The city and Volkswagen created Wolfsburg AG with equal ownership to implement initiatives covering innovation, supplier development, leisure, employment and qualification.

  Aftermath

  The company became a long-term platform for regional economic development and was later associated with a substantial reduction in Wolfsburg’s unemployment rate.

  Source

1. 1Wolfsburg AGen.wikipedia.org