Text from Volkswagen AG. Wolfsburg, 17 October 2005 - The Volkswagen Group and its key partners identified and approved triple-digit million savings potential at the first Suppliers’ Convention. The individual measures are to be implemented in ongoing projects immediately. At the same time, Volkswagen AG agreed long-term strategic partnerships with suppliers at the week-long event. The Suppliers’ Convention was attended by Francisco Javier Sanz, Group Board of Management member responsible for procurement, and Dr. Wolfgang Bernhard, Chairman of the Volkswagen brand Board of Management. Volkswagen selected 38 suppliers to participate in the Convention. These suppliers, together with 38 cross-departmental teams of experts from the Volkswagen Group, formed tandems which identified and assessed the cost-cutting ideas put forward at the Convention. Volkswagen contributed its know-how in cost optimization methods to this process. The Board of Management and top managers subsequently decided on the proposals to be implemented. The logistics of processes were analysed, optimized and decided.
These new process definitions bring significant cost reductions. There is also to be even more consistent use of vehicle modules. Innovative materials and new design solutions in module architecture, for example, bring improvements in the key areas of quality and vehicle weight. At the same time, these decisions make a contribution to reducing costs, sometimes substantially. Initiator Francisco Javier Garcia Sanz said after the event: “We are delighted it has been possible to identify and decide on such significant additional savings potential for ongoing projects. The successful suppliers will become our premium partners and will have special standing when we come to deliberate on new vehicle projects at future product conventions. This forms the basis for our further cooperation. Dr. Wolfgang Bernhard emphasized: “The only way we can continue to prove Volkswagen’s competitiveness in future is through innovative ideas and the commitment of every individual. This is precisely what the Suppliers’ Convention has confirmed. We have given special scope to our suppliers’ contributions and ideas. Success is also attributable to the frankness of our exchange. The initiative met with a very positive response from suppliers, particularly as Volkswagen provided vital support in the form of sufficient know-how. The Volkswagen Group already launched the novel Suppliers’ Convention to optimize product costs at the end of August. The initiative continues the “product costs” building block of the ForMotion program, and focuses on material costs. Continuation of the ForMotion program is expected to bring gross savings totalling seven billion Euro.
Likewise, Volkswagen intends to move production of a currently imported model to its plant in Puebla, Mexico. Daimler, Honda, Nissan and Mazda also plan to build additional models on North American soil for the first time. Around two-thirds of the new North American manufacturing will take place in Mexico, helping the country soak up a full 20 percent of the content's automotive production for the first time. You can head over to the Wards Auto site for the full report. The seventh-generation Volkswagen Golf just went on sale in Europe, but it is already off to a promising start. Announced as the Geneva Motor Show kicked off, the newest Golf was named European Car of the Year for 2013 in dominating style over cars like the Subaru BRZ/Toyota GT86 twins, Volvo V40, Ford B-Max and Mercedes-Benz A-Class. According to Automotive News Europe, the MkVII Golf won handily over its rivals with a total of 414 votes.
The Subaru BRZ and Toyota GT86 received 202 votes finishing in a distant second, while the Volvo V40 (189 votes), Ford B-Max (148 votes) and Mercedes-Benz A-Class (138 votes) round out the top five. The new Golf marks the third Volkswagen product to receive the prestigious award with previous cars including the MkIII Golf and the most recent iteration of the Polo. The Japanese automaker turned out 9.75 million vehicles last year, putting it just ahead of General Motors, with 9.29 million vehicles. Still, Toyota numbers fell just below projections the automaker made earlier in the year, due largely to a fierce territorial dispute between Japan and China that has seen mainland buyers shun Japanese goods. But the news marks a substantial comeback for Toyota. The company fell to third place in the global production race in 2011 after tragic earthquake and tsunami caused several plant closures. In Japan, Toyota enjoyed a sales increase of 35 percent over the previous year, while the company's worldwide sales jumped by 23 percent thanks in part to new additions to the Prius line. The automaker is forecasting yet another increase for 2013, with the company projecting to reach 9.91 million units this year. Neither Volkswagen nor GM have released their own projections just yet.
