Supplying the Volkswagen Group - SAE InternationalSupplying the Volkswagen Group – 2013 Edition ©...
Transcript of Supplying the Volkswagen Group - SAE InternationalSupplying the Volkswagen Group – 2013 Edition ©...
Supplying theVolkswagen Group
SupplierBusiness
2013 Edition
Supplying the Volkswagen Group – 2013 Edition
© 2013 IHS Global Limited 3
CONTENTS OVERVIEW ....................................................................................................................................................... 6
Introduction ............................................................................................................................... 6 Overall sales ............................................................................................................................... 7 Financials .................................................................................................................................. 7
PRODUCT AND PLATFORM STRATEGY ............................................................................................................. 9
Strategy overview ........................................................................................................................ 9 Major model programmes ...........................................................................................................10 Platform strategy .......................................................................................................................15 Major platforms .........................................................................................................................18 Component sharing ....................................................................................................................22 Volume planning .......................................................................................................................24
PRODUCTION STRATEGY ................................................................................................................................ 26
Production strategy overview .......................................................................................................26 Manufacturing network..............................................................................................................27 EUROPE .................................................................................................................................29 CHINA ....................................................................................................................................32 SOUTH AMERICA .................................................................................................................34 NORTH AMERICA .................................................................................................................36 INDIA .....................................................................................................................................38 RUSSIA ...................................................................................................................................39 SOUTH AFRICA .....................................................................................................................41 Internal supply network .............................................................................................................44 Modularisation strategy .............................................................................................................45 Supplier parks ...........................................................................................................................46 Cluster of reference .....................................................................................................................47 Strategies for manufacturing efficiency .........................................................................................49
PURCHASING STRATEGY ................................................................................................................................ 50
Purchasing strategy overview ......................................................................................................50 Levels of vertical integration and outsourcing................................................................................50 Purchasing organisation .............................................................................................................51 Purchasing offices ......................................................................................................................52 Key offices .................................................................................................................................53 Key purchasing personnel ...........................................................................................................55 Purchasing spending ..................................................................................................................56
SUPPLIER SELECTION...................................................................................................................................... 57
Supply base development ............................................................................................................57 Major and strategic suppliers ......................................................................................................58 Supplier selection criteria ............................................................................................................59 Working with Volkswagen .........................................................................................................59
GLOBAL SOURCING ........................................................................................................................................ 60
Policy and plans ........................................................................................................................60 EUROPE .................................................................................................................................61 CHINA ....................................................................................................................................62 NORTH AMERICA .................................................................................................................62 SOUTH AMERICA .................................................................................................................64 INDIA .....................................................................................................................................65
Supplying the Volkswagen Group – 2013 Edition
© 2013 IHS Global Limited 4
PRICING POLICY ............................................................................................................................................. 67
Cost reduction programmes and strategies ....................................................................................67 Payment terms ..........................................................................................................................68 Raw material price management .................................................................................................68
QUALITY MANAGEMENT ............................................................................................................................... 70
Quality level ..............................................................................................................................70 Quality management systems......................................................................................................70 Integration into product development ...........................................................................................72 Management of sub-suppliers ......................................................................................................73 Supplier awards.........................................................................................................................75
TECHNOLOGY................................................................................................................................................. 77
Technological positioning ...........................................................................................................77 Areas of focus ............................................................................................................................77 R&D spending ..........................................................................................................................78 R&D organisation .....................................................................................................................78 Access to supplier technology .......................................................................................................80 Approach to alternative fuels, electrification and fuel cells ..............................................................81 Special vehicle development ........................................................................................................82
INTERVIEW .................................................................................................................................................... 84
Tom Loafman, Director of Purchasing, Volkswagen of North America ...........................................84 Rob Rickell, GKN Driveline .......................................................................................................94
OEM-SUPPLIER SURVEY RESULTS ................................................................................................................. 100
Introduction to the SuRe Index ................................................................................................. 100 Methodology ........................................................................................................................... 100 Executive summary.................................................................................................................. 100 Profit potential ........................................................................................................................ 103 Organization ........................................................................................................................... 104 Trust ...................................................................................................................................... 105 Pursuit of excellence ................................................................................................................. 106 Outlook .................................................................................................................................. 107
SWOT ANALYSIS - SUPPLYING VW ............................................................................................................... 109
GLOBAL FOOTPRINT..................................................................................................................................... 110
FORWARD MODEL PROGRAMME ................................................................................................................ 115
MAJOR SUPPLIERS – VOLKSWAGEN GROUP ................................................................................................. 126
LIST OF FIGURES AND TABLES Figure 1: Global light vehicle sales, 2006-2012 (Source: IHS Automotive)................................. 6 Figure 2: Comparison of global, European and Greater Chinese sales for 2009-2018 ............... 10 Figure 3: The Volkswagen Taigun concept, unveiled at the 2011 Sao Paulo Auto Salon, uses the same platform as the Up city car ........................................................................................... 13 Figure 4: Volkswagen Global platform usage 2012 and 2018 .................................................. 18 Figure 5: A Volkswagen Up on the New Small Family assembly line at the plant in Bratislava, Slovakia ............................................................................................................................... 28 Figure 6: Dr. Francisco Javier Garcia Sanz, Volkswagen Group ............................................. 55 Figure 7: The CrossBlue concept could serve as the basis for a new mid-size VW SUV in North America ............................................................................................................................... 63
Supplying the Volkswagen Group – 2013 Edition
© 2013 IHS Global Limited 5
Figure 8: Projected CO2 emissions from light vehicles in Brazil .............................................. 65 Figure 9: J.D. Power and Associates 2013 U.S. Vehicle Dependability StudySM (VDS) [Source: J.D. Power and Associates] .................................................................................................. 71 Figure 10: The Volkswagen XL1 concept vehicle ................................................................... 82 Figure 11: SuRe Index 2010-2011......................................................................................... 101 Figure 12: Volkswagen - Global assembly plant locations (Europe) ........................................ 110 Figure 13: Volkswagen - Global assembly plant locations (Global) ........................................ 111
Table 1: Volkswagen financial data overview (Source: Volkswagen AG, Reuters, Moody's, Fitch, Standard & Poor’s) ................................................................................................................. 7 Table 2: Total Golf sales (by Mark) [Source: Volkswagen UK] ............................................... 11 Table 3: Global VW plant locations (January 2013) ............................................................... 41 Table 4: 2011 Volkswagen Group purchasing volumes (by brand and market) ......................... 56 Table 5: Supplier Requirements for Sustainable Development ................................................ 59 Table 6: Research and development costs, VW Group ........................................................... 78 Table 7: Volkswagen plant locations with production forecast for 2013 .................................. 112 Table 8: Volkswagen Global Sourcing Footprint ................................................................... 114 Table 9: Volkswagen - Forward Model Programme - by Global Nameplate ........................... 116 Table 10: Major suppliers - Volkswagen Group..................................................................... 126