Mergers and Economies of Scale: Volkswagen AG 1976 - 2000
The purpose of this paper is to study if the acquisitions of the SEAT and Skoda has lead to increased economic efficiency for Volkswagen AG due to economies of scale. This is achieved by estimation of the VAG cost function, using a translog specification. The results indicate that the merger with SEAT did increase the economies of scale available as production volumes increased due to the merger. No such effects was, however, found for the aquisition of Skoda.
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|Date of creation:||01 Oct 2006|
|Publication status:||Published as Rudholm, Niklas, 'Mergers and Economies of Scale: Volkswagen AG 1976 - 2000' in ICFAI Journal of Mergers and Acquisitions, 2007, pages 79-90.|
|Contact details of provider:|| Postal: HUI Research, Regeringsgatan 60, 103 29 Stockholm, Sweden|
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- Lila Truett & Dale Truett, 2001. "The Spanish automotive industry: scale economies and input relationships," Applied Economics, Taylor & Francis Journals, vol. 33(12), pages 1503-1513.
- Fuss,Melvyn A. & Waverman,Leonard, 1992. "Costs and Productivity in Automobile Production," Cambridge Books, Cambridge University Press, number 9780521341417, January.
- Chambers,Robert G., 1988. "Applied Production Analysis," Cambridge Books, Cambridge University Press, number 9780521314275, January.
- V. Eldon Ball & Robert G. Chambers, 1982. "An Economic Analysis of Technology in the Meat Products Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 64(4), pages 699-709.
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