Volkswagen shifts to modular-platform strategy
VW could decide to manufacture some components rather than buy them
Paul Teague -- Purchasing, 11/13/2009 11:29:36 AM
A new manufacturing strategy could reshape Volkswagen's supply base, according to a new study.
Supplier Business, an IHS Global Insight company, researched VW's production and purchasing strategies, including supplier selection, and reported that the company plans to shift from a platform strategy to a modular-platform strategy similar to that pioneered by its sister company Audi. The shift could have the effect of boosting VW's vertical-integration efforts. Automotive writer John Day reported on the study in his blog (http://johndayautomotive electronics.com).
According to Day, the shift could result in a policy by VW to reduce outsourcing to some external partners and increase its in-house operations. Day says the research concludes that VW could save 40% of its development costs under the modular-platform strategy.
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