UPSC Prelims 2009 Q120: Current Affairs – Business & Economy
Consider the following pairs :
Automobile Manufacturer : Headquarters
1. BMW AG : USA
2. Daimler AG : Sweden
3. Renault S.A.: France
4. Volkswagen AG: Germany
Which of the pairs given above is/are correctly matched ?
- (a) 1, 2 and 3
- (b) 3 and 4
- (c) 4 only
- (d) 1, 2 and 4
Answer: (b) 3 and 4
Explanation
Checking four automobile manufacturer headquarters pairs
Major global automakers are matched here to their countries of headquarters, with some pairings mismatched.
| Pair | Verdict | Reason |
|---|---|---|
| 1. BMW AG : USA | Incorrect | BMW is headquartered in Germany, not the USA |
| 2. Daimler AG : Sweden | Incorrect | Daimler is headquartered in Germany, not Sweden (Sweden is home to Volvo/Saab, not Daimler) |
| 3. Renault S.A. : France | Correct | Renault is indeed headquartered in France |
| 4. Volkswagen AG : Germany | Correct | Volkswagen is indeed headquartered in Germany |
Correct automaker-headquarters pairs:
| Automaker | Actual headquarters |
|---|---|
| BMW AG | Germany (NOT USA) |
| Daimler AG | Germany (NOT Sweden) |
| Renault S.A. | France |
| Volkswagen AG | Germany |
Answer: (b) 3 and 4.
Why each option is right or wrong
- (a) Incorrect. Pairs 1 and 2 (BMW-USA, Daimler-Sweden) are both wrong, so '1, 2 and 3' is wrong.
- (b) CORRECT. Only pairs 3 and 4 — Renault-France and Volkswagen-Germany — are correctly matched.
- (c) Incorrect. Pair 4 alone (Volkswagen-Germany) is also correct, so '4 only' is incomplete.
- (d) Incorrect. Pairs 1 and 2 are both wrong, so '1, 2 and 4' is wrong.
Key point
Renault S.A.-France and Volkswagen AG-Germany are correctly matched — but BMW AG is actually headquartered in Germany (not USA), and Daimler AG is also headquartered in Germany (not Sweden).
Remember
Only Renault-France and Volkswagen-Germany are correctly matched; BMW and Daimler are both actually headquartered in Germany, not USA/Sweden.
Common mistakes
- Confusing BMW's and Daimler's actual German headquarters with the USA or Sweden.
- Assuming all four listed automaker-headquarters pairs are automatically correct without individual verification.
- Mixing up different European countries' major automobile manufacturers.
Exam tip
BMW and Daimler = Germany (not USA/Sweden). Renault = France. Volkswagen = Germany. Three of these four major automakers are actually German-headquartered.
Sources
- Bayerische Motoren Werke AG — Annual Report 2008 (headquarters: Munich, Germany)
- Renault S.A. — Annual Report 2008 (headquarters: Boulogne-Billancourt, France)
- Volkswagen AG — Annual Report 2008 (headquarters: Wolfsburg, Germany)