From being an automotive almost-ran in the early 1990s, Volkswagen has rebounded to become one of the world’s leading automotive manufacturers. The success the company is currently enjoying has its foundation in the idea that its cars must be good looking, technologically advanced and fun to drive, but while Volkswagen continues to produce models that generally combine these traits, it is the changes made beyond such fundamentals that have resulted in the inexorable growth of Volkswagen and its group partners.
One of the key strengths of Volkswagen can be traced back to the judicious selection of those companies which now make up the Volkswagen Group. With few exceptions, the various brands represent the group’s only offering in that segment, meaning that there is little crossover and little repetition. Yet despite this, the brands within the VW Group have managed to achieve considerable crossover in terms of part-sharing which has helped to drive down overall costs. Although in the past Volkswagen was content to take advantage of such part-sharing as the opportunities arose, this policy has now become the norm across the group as it further looks to reduce costs with the roll-out of a new platform strategy.
With the introduction of the New Small Family (NSF), MLB, MSB and the MQB platforms, Volkswagen has launched a series of chassis solutions which, teamed with a series of matched powertrain designs, the various group companies can use to produce more than 80% of their total global model mix. While the capital investment behind such a move is considerable, the advantages in terms of production efficiency, finished vehicle quality and overall cost reduction can be expected to improve margins and substantially increase the already prodigious cash liquidity controlled by the Volkswagen Group.
About this report
The specifics of how the VW Group has planned the introduction of these various platforms, the models that will be produced using the architectures and how the group is anticipated to move forward in terms of production and the effect this will have on suppliers delivering components across single or multiple regions are covered in Supplying the VW Group 2013.
UPDATE - March 2013: Now includes a new interview with Tom Loafman, Director of Purchasing, Volkswagen of North America
Table Of Contents
Supplying the Volkswagen Group OVERVIEW
Introduction Overall sales Financials
PRODUCT AND PLATFORM STRATEGY
Strategy overview Major model programmes Platform strategy Major platforms Component sharing Volume planning
Production strategy overview Manufacturing network Internal supply network Modularisation strategy Supplier parks Cluster of reference Strategies for manufacturing efficiency
Purchasing strategy overview Levels of vertical integration and outsourcing Purchasing organisation Purchasing offices Key offices Key purchasing personnel Purchasing spending
Supply base development Major and strategic suppliers Supplier selection criteria Working with Volkswagen
Policy and plans
Cost reduction programmes and strategies Payment terms Raw material price management
Quality level Quality management systems Integration into product development Management of sub-suppliers Supplier awards
Technological positioning Areas of focus RandD spending RandD organisation Access to supplier technology Approach to alternative fuels, electrification and fuel cells Special vehicle development
Tom Loafman, Director of Purchasing, Volkswagen of North America Rob Rickell, GKN Driveline
OEM-SUPPLIER SURVEY RESULTS
Introduction to the SuRe Index Methodology Executive summary Profit potential Organization Trust Pursuit of excellence Outlook
SWOT ANALYSIS - SUPPLYING VW
FORWARD MODEL PROGRAMME
MAJOR SUPPLIERS - VOLKSWAGEN GROUP
LIST OF FIGURES AND TABLES
Figure 1: Global light vehicle sales, 2006-2011 (Source: IHS Automotive) Figure 2: Comparison of global, European and Greater Chinese sales for 2009-2018.xlsx Figure 3: The Volkswagen Taigun concept, unveiled at the 2011 Sao Paulo Auto Salon, uses the same platform as the Up city car Figure 4: Volkswagen Global platform usage 2012 and 2018 Figure 5: A Volkswagen Up on the New Small Family assembly line at the plant in Bratislava, Slovakia Figure 6: Dr. Francisco Javier Garcia Sanz, Volkswagen Group Figure 7: The CrossBlue concept could serve as the basis for a new mid-size VW SUV in North America Figure 8: Projected CO2 emissions from light vehicles in Brazil Figure 9: J.D. Power and Associates 2013 U.S. Vehicle Dependability StudySM (VDS) [Source: J.D. Power and Associates] Figure 10: The Volkswagen XL1 concept vehicle Figure 11: SuRe Index 2010-2011 Figure 12: Volkswagen - Global assembly plant locations (Europe) Figure 13: Volkswagen - Global assembly plant locations (Global) Table 1: Volkswagen financial data overview (Source: Volkswagen AG, Reuters, Moody's, Fitch, Standard and Poor's) Table 2: Total Golf sales (by Mark) [Source: Volkswagen UK] Table 3: Global VW plant locations (January 2013) Table 4: 2011 Volkswagen Group purchasing volumes (by brand and market) Table 5: Supplier Requirements for Sustainable Development Table 6: Research and development costs, VW Group Table 7: Volkswagen plant locations with production forecast for 2013 Table 8: Volkswagen Global Sourcing Footprint Table 9: Volkswagen - Forward Model Programme - by Global Nameplate Table 10: Major suppliers - Volkswagen Group