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Supplying the Volkswagen Group

Supplying the Volkswagen Group

Publication Date: 27/11/2017

This report is available now to OEM Strategy Service subscribers

Access an OEM’s purchasing strategy, production forecasts, global footprint, supplier relations experiences, and SWOT (strength, weakness, opportunity, and threat) analysis

OEMs’ sourcing, investment, and production strategies are molded by a complex mix of interdependent factors, ranging from the outlook of local demand, trade tariffs, and supply base availability to OEMs’ technological and platform strategies. As the supply base becomes increasingly global, new opportunities are emerging for OEMs to optimize their sourcing cost structure by tapping suppliers in cost-competitive countries. In addition, the deployment of new modular vehicle platforms creates significant economies of scale for OEMs. This affects current sourcing structures, raising the risks for suppliers to win big or lose big, and even threatens the very existence of some component manufacturers.

IHS Automotive’s OEM Strategy Service provides insight, context, data, and analytics on OEM sourcing and production strategies and analysis of local supply base development in various regions and countries.

OEM strategists and planners use the service to:

  • Benchmark their sourcing strategies
  • Understand their sourcing potential in emerging countrie

Supplier strategists and planners use the service to:

  • Monitor the sourcing and platform outlook of their current customers
  • Decipher key sourcing patterns and strategies of new ones

About this report

Volkswagen and the group brands have benefitted from being at the right point at the right time in their respective development cycles – in other words, luck has been on their side. This is evident in such cases as the launch of the Beetle after World War II, the introduction of the Golf in advance of the 1970s oil crisis, and the timely move into the China market, where the OEM remains the top-selling brand. But while circumstances have played a major role in the on-going success of the group, Volkswagen has also created its own good fortune by supporting a culture of continuous technology and vehicle improvement.

The carmaker had originally targeted selling 10 million units per annum worldwide by 2018, but that date has now been moved forward to where final sales figures for 2014 exceeded this target. Yet while Volkswagen looks set to take over from Toyota as the top global carmaker, it remains to be seen whether record output levels will again prove to be a poisoned chalice, as they did with both GM and Toyota, ultimately highlighting that sustainable finished vehicle quality is more important than pure volumes.

Overview

Global light vehicle sales
Financial data
Financial overview

 

Product strategy

Company history and strategy review

 

 

Major model programmes

Volkswagen Group - Top 10 best-selling models
Volkswagen Golf
Volkswagen Jetta
Volkswagen Passat
Volkswagen Tiguan
Volkswagen Polo
Volkswagen Lavida
Audi A4
Volkswagen Gol
Audi A6

 

Vehicle platforms

Platform strategy
Volkswagen Group - Top 10 most used platforms
PQ35
PQ25
MQB A/B
MLB B/C
PQ34
PL/PQ46-47
PQ22
PQ24
PL71-72
PQ12
Component sharing
Volume planning

Production strategy

Production strategy overview
Volkswagen Group - Top 10 production plants
Germany
China
Brazil
Mexico
United States
Czech Republic
Spain and Portugal
Russia
Slovakia
Poland
India
Future plants
Internal supply network
Modularisation strategy
Supplier parks
Cluster of reference
Strategies for manufacturing efficiency

 

Purchasing strategy

Purchasing strategy overview
Levels of vertical integration and outsourcing
Purchasing organization
Purchasing offices
Key purchasing personnel
Purchasing budget

 

Supplier selection

Supply base development
Major and strategic suppliers
Supplier evaluation criteria
Working with the Volkswagen Group

 

Global sourcing

Policy and plans
EMEA
APAC
NAFTA
LATAM

 

Pricing policy

Cost reduction strategies
Raw material price management
Payment terms

 

Quality management

Quality level
Quality management systems
Supplier integration into product development
Management of suppliers and sub-suppliers
Supplier awards

 

Technology

Technological positioning
Areas of focus
R&D organization
R&D spending
Access to supplier technology
Approach to alternative fuels, electrification and fuel cells
Special vehicle development
Forward model programmes

Interviews

Klaus Ziegler, SEAT
Alexander Kocher, Elektrobit
Matt Smith, Falken

 

Supplier Relationship survey

Introduction to the SuRe index
Methodology
Executive summary
Performance review - Volkswagen Group
2014 SuRe survey results
Profit potential
Organization
Trust
Pursuit of excellence
Outlook
SuRe by region
SuRe by company size

 

SWOT analysis

SWOT analysis - Volkswagen Group
Global footprint - Volkswagen Group

 

Major suppliers (by vehicle programme, model year)

2018 Volkswagen Tiguan              
2017 Volkswagen Arteon             
2017 Seat Ibiza
2017 Skoda Kodiaq         
2017 Volkswagen Atlas
2017 Volkswagen Tiguan              
2017 Porsche Cayman
2017 Audi A5    
2017 Audi Q7    
2017 Skoda Superb         
2017 Seat Ateca               
2017 Porsche Panamera               
2016 Volkswagen Magotan         
2016 Bentley Bentayga
2016 Audi A4    
2016 Audi Q5    
2016 Volkswagen Touran             
2015 Skoda Superb         
2015 Lamborghini Huracan

From key trends affecting today’s business environment to forward-looking forecasts of future output, AutoTechInsight provides the information you need to develop strategy for each of its services.

Staying abreast of automotive sector/topic-specific developments, trends, and competitive activity can be time-consuming. With many sources available, it is often difficult to find critical and reliable market information that stakeholders of the automotive industry need. Conducting business analysis, product, or market strategy assessments without validated market data is risky.

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