Abstract
The Supplying VW Group Report provides detailed analysis of this automaker's
procurement strategies. The report assesses the financials of the company and
goes on to provide a thorough analysis of its product, platform manufacturing
and purchasing strategies. Furthermore the report provides an ind-depth
examination of VW Group's methods and practices with regard to supplier
selection, global sourcing, pricing policy, quality management and technology.
Results from the recent SupplierBusiness OEM Supplier Relations Survey are
included along with a SWOT analysis and a rendering of the VW Group's forward
model program and its major suppliers by component sector.
Background to this research
The Volkswagen group has set clear objectives in its attempt to sustain the
global leadership it is set to gain at the end of this year. The company is
working towards a 2018 target, while bearing in mind the lessons taught by
GM's recent troubles and Toyota headaches with global recalls. If on one side
the carmaker - which boasts control over a galaxy of brands - targets 10
million deliveries by 2018, it also wants to remain faithful to its
sustainable profitability credo and ring fence its margins even in a period in
which it is working on increasing its overall volumes and gain a more
substantial foothold outside its traditional comfort zones, such as North
America and the ASEAN region. At the same time, Volkswagen needs to maintain a
strong focus on quality and technology to achieve its objective to become a
leader in quality and customer satisfaction.
The Purchasing function at Volkswagen, in charge of a procurement budget
slated to reach the 100 billion euro mark this year, is expected to deliver
its contribution towards the achievement of the corporate targets the company
as a whole is geared towards at a group level. The volumes per part created by
the carmaker's well-established cross-brand and cross-platform part
standardisation strategy have given more negotiation leverage to the
purchasing department with some sizeable contracts which suppliers are eager
to win. As the carmaker production base becomes more global, the supply base
is expected to follow suit, which will require the purchasing department to
scout more suppliers closer to final assembly lines. This radical localisation
plan does not rule out a good chunk of business coming from cheap sources in
low-cost countries.
However, some alarm bells are ringing with regards to the state of the
carmaker's relationship with its supply base, as some suppliers complain the
group has undertaken a less supplier-friendly stance in recent years - as
shown in SupplierBusiness' annual supplier-OEM relations surveys. This applies
to a varying extent to all group's brands, from premium brand Audi to more
value-oriented Skoda. An unabated pressure to deliver best product technology
and world-class quality, while maintaining substantial productivity gains
seems to be a recurring theme of all group brands, particularly when compared
to direct competitors.
About SupplierBusiness
SupplierBusiness is a business research company focused on automotive supply
base issues. We provide the most comprehensive coverage of the global
automotive supplier community, adding between twenty and thirty original
stories to our archives on developments every week. All editorial coverage is
originally researched by SupplierBusiness, and most appears exclusively in
SupplierBusiness' weekly Insight or monthly Analysis newsletters, both of
which are published both on this website and in PDF format. In addition to
these subscription products, we also publish and compile reports and databases
on the global supply base.
Table of Contents
- PRODUCT AND PLATFORM STRATEGY
- PRODUCT STRATEGY OVERVIEW
- MAJOR PROGRAMS
- PLATFORM STRATEGY
- MAJOR PLATFORMS
- COMPONENT SHARING, STANDARDISATION AND CARRYOVER
- VOLUME PLANNING
- MANUFACTURING NETWORK & FOOTPRINT
- PRODUCTION STRATEGY OVERVIEW
- Western Europe
- Eastern Europe
- Middle East and Africa
- Asia
- ASEAN
- South America
- North America
- INTERNAL SUPPLY NETWORK
- MODULARISATION STRATEGY
- SUPPLIER PARKS
- CLUSTER OF REFERENCE
- MANUFACTURING STRATEGY AND EFFICIENCY PLANS
- PURCHASING STRATEGY OVERVIEW
- LEVEL OF VERTICAL INTEGRATION AND OUTSOURCING
- PURCHASING ORGANISATION
- PURCHASING OFFICES
- KEY PURCHASING PERSONNEL
- PURCHASING SPENDING
- CURRENT SUPPLY BASE AND DEVELOPMENTS
- MAJOR AND STRATEGIC SUPPLIERS
- OPENNESS TO NEW SUPPLIERS
- SUPPLIER SELECTION CRITERIA AND BIASES
- APPROACH
- MAJOR AREAS
- Eastern Europe
- Asia
- ASEAN
- North America
- PRICE REDUCTION PLANS AND PRACTICES
- PAYMENT TERMS
- COST REDUCTION PROGRAMS
- RAW MATERIAL PRICES
- QUALITY LEVEL
- INTEGRATION IN PRODUCT DEVELOPMENT
- QUALITY MANAGEMENT SYSTEM
- MANAGEMENT OF SUB-SUPPLIERS
- QUALITY AWARDS
- TECHNOLOGICAL POSITIONING
- R&D SPENDING
- R&D ORGANISATION
- ACCESS TO SUPPLIERS' TECHNOLOGY
- AREAS OF FOCUS
- APPROACH TO ELECTRIFICATION AND FUEL-CELLS
- MANAGEMENT OF VEHICLE DEVELOPMENT
- QUALITY MANAGEMENT SYSTEM
- SURE INDEX 2006 TO 2010
- PSA SURE INDEX BY SECTOR
- NEGOTIATIONS
- QUALITY
- TECHNOLOGY
- ORGANISATION
- TRUST
- ATTRACTIVENESS
- SWOT ANALYSIS OF SUPPLYING THE VW GROUP
- MAJOR SUPPLIERS BY COMPONENT SECTOR
- CHASSIS/UNDERBODY
- ELECTRICAL/ELECTRONIC
- EXTERIOR
- INTERIOR
- POWERTRAIN
