The change aims to improve the group’s efficiency and flexibility ©Volkswagen AG
The change aims to improve the group’s efficiency and flexibility ©Volkswagen AG

Volkswagen shakes up components supply

9 July 2018

Volkswagen is reorganising its component supply chain across the group as part of its electrification roadmap.

The automotive manufacturer has announced its group components division, which manufactures and supplies both consumer and commercial vehicle brands within the group, will be reorganised into an independent business, called Volkswagen Components, under the group umbrella.

The change, which will come into effect in January 2019, aims to improve the group’s efficiency and flexibility. Volkswagen also hopes to optimise investment in the development of components as the firm plans to increase its focus on electric and autonomous vehicles to ensure “a coordinated entry to e-mobility”.

The Volkswagen group has previously announced plans introduce 30 new electric vehicle models by 2025.

Thomas Schmall, head of group components, said: “We are preparing ourselves for the approaching new era of mobility. Investments for the new electric components must be borne by our present core business.

“We are therefore working at full speed on a group-wide added-value strategy based on investment and cost optimisation. This will ensure the future viability of [Volkswagen] Components and safeguard jobs in the long term.”

Volkswagen Components will have a more streamlined management team compared to group components.

Group components as it exists today was established by Volkswagen in 2016 and has been involved in the development and production of strategic vehicle components including engines, transmissions and electric motors. It has 56 plants and employs 80,000 people worldwide.

Separately, it has been reported Stefan Sommer, former CEO of German parts manufacturer ZF Group, will join Volkswagen as its new procurement chief in January 2019. He will be the seventh new board member appointed since the firm was caught cheating on diesel emissions tests in September 2015.

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