VW focuses on supplier quality

Jason Stein | Automotive News Europe

Munich, Germany -- Volkswagen is meeting with 24 teams of selected suppliers to stress that it wants better parts for its next generation of VW group products.

The closed-door sessions are part of VW brand Chairman Wolfgang Bernhard's drive to improve quality and lower costs at Europe's largest carmaker.

"We are trying to identify and find quality solutions together," said a VW spokeswoman.

This is the second time in the last six months VW has gathered its suppliers for in-depth talks.

Last October, VW and 38 teams of its suppliers identified and approved millions in potential cost savings at the company's first conference with suppliers. VW also agreed to form more stable partnerships with a smaller group of suppliers during that session.

VW's next session with suppliers takes place in May and will focus on innovation.

Meet the target

One high-ranking supplier executive who attended one of the quality sessions last week said the meeting was led by Bernhard and was attended by VW's board member for purchasing, Francisco Javier Garcia Sanz, and Falko Schling, VW's director of group quality assurance.

The executive, who requested anonymity, said VW's "quality targets were not set higher than before -- but they were emphasised."

Bernhard has declared that product quality is his top priority. Within less than three years, Bernhard wants VW to be in the top one-third of quality rankings such as

J.D. Power and Associates' vehicle dependability survey.

In Germany, VW ranked 20th out of 27 nameplates in last year's J.D. Power and Associates' Customer Satisfaction Index Study. The study measures overall ownership satisfaction of two-year-old vehicles in Germany. VW also ranked 34th out of 37 brands in both of last year's J.D. Power and Associates Vehicle Dependability and Initial Quality studies in the US.

Bernhard recently delayed the launch of the Eos coupe cabriolet because of quality issues with the car's retractable hardtop.

VW group Chairman Bernd Pischetsrieder has set a target of achieving E1 billion in material cost savings this year.

Separately, VW announced it will sell Bordnetze, an automotive electronics supplier it founded jointly with Siemens VDO Automotive. Bordnetze supplies wire harnesses and energy supply systems for VW group vehicles.

The sale of Bordnetze to Sumitomo Group of Japan follows VW's recent of sale of Europcar, a car rental company, and Gedas, an IT service provider.

All three sales have occurred in less than six months.

- Jens Meiners contributed

From Automotive News (A Crain publication)