Koenigsegg

By Fergus M
Business Introduction
• Koenigsegg is a supercar company
which was founded in Sweden by
Christian von Koenigsegg in 1994.
After 8 years of testing and
development they released their first
ever production car the CC8S which
won the Guinness World Record for
The Most Powerful Production Engine
as well as multiple design awards. The
company has only grown from there
by expanding their market to 19
countries and continuing to break
records and win awards. Their cars
that they produce today are the
Gemera, Jesko, and Regera.
 • 1. Legal requirement or government regulation: Being
able to make a high horsepower engine is not hard,
however when that car must meet emission standards
around the world this makes that task incredibly
difficult making what Koenigsegg have achieved in the
‘Jesko’ an engineering marvel. 1600 hp street legal
Macro hyper car capable of going 0-100km/h in 2.5s. Some
methods they have used to keep the emissions as low
Environment as possible is their twin turbocharged 5.0L V8 engine.
Turbocharged engines are able to be more fuel
Factors efficient because they utilize the exhaust gases to add
more power to the car without adding more fuel
which would be less efficient. It also minimizes drag to
improve fuel economy. If these regulations were not
met Koenigsegg would not be able to hold this record
and their reputation would suffer and impact the
companies value.
 • 2. Technological issue: To keep their technology competitive in
the supercar market Koenigsegg have remained one of the
most cutting-edge companies with most of their parts
developed and manufactured in house. This has led to some
astonishing advances such as the active rear wing which was
Macro first used on the Koenigsegg One:1 and involves varying the
angle of the rear wing to create downforce when required and
being able to minimize drag depending on the needs of the
Environment driver. This technology has been adopted by many other
supercar companies and is just one of the many innovations
Factors that have been made by this company. It is important for
Koenigsegg to remain on top of current technologies as well as
(cont.) developing their own. This is because their place in the market
depends on them making some of the best and most
technologically advanced cars in the world. Ceasing to do this
would cause their image to be impacted and they would lose
their niche in the market to a more advanced company.
 • One societal trend, belief or value: As the environment
continues to be one of the main issues in todays society,
companies need to take steps to improve their image by
showing their commitment to the environment, this
commitment to moving away from traditional fuel engines
improves the companies image and valuation. Although
Macro Koenigsegg’ small production numbers do not greatly contribute
to carbon emissions, a commitment to creating new ways in
Environment which they can be environmentally friendly improves their
image and helps the company be known for their advances in
Factors carbon neutral propulsion techniques other than electric cars
which the technology is still too heavy and doesn’t fit the super
(cont.) light, track car which Koenigsegg currently makes. An example of
this carbon neutral fuel which Koenigsegg showed interest in is
from Carbon Recycling International which uses CO2 from
geothermic vents which otherwise would have been emitted
into the atmosphere to create methanol which has historically
been used in racing fuels before. This fuel is called Vulcanol and
is carbon neutral because of the renewable energy which is
combined with the CO2 gases that are removed from going into
the atmosphere and have a net carbon reduction in emissions.
 CSR practice
• Koenigsegg developed the CCXR which was the worlds first
hyper car that could run on E100 biofuel. E100 is 100%
ethanol which can be produced from a variety of crops
such as hemp, corn and sugarcane making it renewable.
No other supercar companies had even considered
building a ‘green’ car. This encourages competitors to
develop new green fuels and raises environmental
awareness. The advantage of building this car is it shows
their commitment to being a ‘green’ company. This is an
investment in their image which means that it will stay
relevant as there is an increase in environmental
awareness. A disadvantage of this practice is the financial
costs associated with the development of this technology.
These include materials, staff, and labour costs.
 Operating
Environment
Factors
• One customer expectation or need:
Customers who buy a multi-million dollar
car expect the absolute highest level of
craftmanship, quality, and performance.
Koenigsegg takes these needs very seriously
and accounts for them by keeping
production numbers low and sparing no
expense on materials so that they can
guarantee the quality of the car. Low
production numbers also keep the brand
very exclusive furthering the appeal for
their customers and also meaning that their
cars keep their value exceptionally well.
 Operating Environment
Factors (cont.)

• One action or decision by a special interest

group: National Electric Vehicles Sweden
(NEVS) invested 150 million euros for a 65%
stake in a joint venture to produce an electric
hyper car. This investment led to Koenigsegg
developing the hybrid Gemera which takes
into consideration the investment which NEVS
has made by using their assets to help produce
the car which uses three electric motors as
well as a 3 cylinder fuel engine. Although
Koenigsegg eventually bought NEVS stake in
the venture the partnership still produced an
incredible electric vehicle and hopefully laid
the groundwork for future electric projects.
References
• [Link]
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Yvkoff, Liane
• [Link]

• Hanlon,Mike
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