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Leaders and outsiders of the Russian car market in the 1st half of 2020

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Russian dealers of Ford began sales of updated Mondeo

Ford Mondeo sedan has received a technological upgrade aimed at the safety improving of the car and improving of the intelligent driver assistance systems. People can order updated Ford Mondeo at all official Ford dealers in Russia.

05 julymore info

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AVTOVAZ spoke about its plans to localize new LADA models 2.08.21 - 12:54 AVTOVAZ spoke about its plans to localize new LADA models

The localization level of LADA cars currently ranges from 50 to 90%, depending on the model

Supplier Business

Supplying VW Group

Supplying VW Group

Date of issue: 26.10.11

Format: A4, 111 pages

Price: 1 750 €

 

 

 

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The Volkswagen group has set clear objectives in its attempt to sustain the global leadership it is set to gain at the end of this year. The company is working towards a 2018 target, while bearing in mind the lessons taught by GM’s recent troubles and Toyota headaches with global recalls. If on one side the carmaker—which boasts control over a galaxy of brands—targets 10 million deliveries by 2018, it also wants to remain faithful to its sustainable profitability credo and ring fence its margins even in a period in which it is working on increasing its overall volumes and gain a more substantial foothold outside its traditional comfort zones, such as North America and the ASEAN region. At the same time, Volkswagen needs to maintain a strong focus on quality and technology to achieve its objective to become a leader in quality and customer satisfaction.

The Purchasing function at Volkswagen, in charge of a procurement budget slated to reach the 100 billion euro mark this year, is expected to deliver its contribution towards the achievement of the corporate targets the company as a whole is geared towards at a group level. The volumes per part created by the carmaker’s well-established cross-brand and cross-platform part standardisation strategy have given more negotiation leverage to the purchasing department with some sizeable contracts which suppliers are eager to win. As the carmaker production base becomes more global, the supply base is expected to follow suit, which will require the purchasing department to scout more suppliers closer to final assembly lines. This radical localisation plan does not rule out a good chunk of business coming from cheap sources in low-cost countries.

However, some alarm bells are ringing with regards to the state of the carmaker’s relationship with its supply base, as some suppliers complain the group has undertaken a less supplier-friendly stance in recent years—as shown in SupplierBusiness’ annual supplier-OEM relations surveys. This applies to a varying extent to all group’s brands, from premium brand Audi to more value-oriented Skoda. An unabated pressure to deliver best product technology and world-class quality, while maintaining substantial productivity gains seems to be a recurring theme of all group brands, particularly when compared to direct competitors.

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News on this topic

  • 25 june 2021 Volkswagen resumed the production in Nizhny Novgorod after downtime

    Volkswagen Group Rus production site in Nizhny Novgorod resumed its work after a forced downtime due to a shortage of electronic components, which took place at the enterprise from June 17th to 22nd, 2021. The agency "AUTOSTAT" was informed about it in the press service of "Volkswagen Group Rus".

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  • 23 june 2021 New van Volkswagen Transporter Kasten DoKa is available for order in Russia

    Volkswagen Commercial Vehicles has begun the accepting of orders for a new version of the Transporter KastenDoKa double cab van. The cost of new items is from 3 million 388 thousand 100 rubles, according to the press service of the German brand. 

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  • 15 june 2021 Volkswagen Group Rus produced the 700,000th engine at a plant in Kaluga

    Kaluga Engine Plant Volkswagen Group Rus has produced the 700,000th 1.6 MPI EA211 series gasoline engine since its opening in September of 2015. The engines are assembled from localized components - the cylinder block, cylinder head and crankshaft are made in Russia, according to the press service of the automaker. 

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