Part of their 2018 strategy
It is an effort standardises the vehicles technology, components and features. It comes under their overall goal to increase profits and eventually overtake Toyota by the year 2018 as the world’s largest car manufacturer. Currently, they are the Europe’s largest supplier of vehicles. Experts claim that worldwide sales will indeed allow Volkswagen to overtake Toyota before the end of the year!
The whole Volkswagen Group set to be overhauled
This won’t just mean a change for Volkswagen models such as the Golf and Polo, according to reports. The standardisation is set to spread across to the whole of the Volkswagen Group including Audi, Bentley, Bugatti, Lamborghini, Porsche, Seat and Skoda.
What will the standardisation process mean?
Reports suggest that Volkswagen want to create a standard axle, steering column and an engine chassis. The changes will mean production costs are cut by 20 per cent, saving the company around $6.5 billion per year. Assembly would also effectively be cut by 30 per cent.
Production would be made a lot more clear and concise. Multiple brands of cars would be able to be produced at the same plant rather than separate factories, which is how the production is currently done.
The Audi A3 is said to be the company’s first vehicle to go under the standardised module.
It must be remembered that Toyota also followed a similar process whereby 8 million vehicles were recalled back in 2009, costing the company it’s strong reputation at the time. It also cost Toyota $48.8 million. Volkswagen will have to be weary not to repeat the mistakes of what Toyota made if they do go ahead with the plan.
A risk too big to big to take?
The plan for standardisation does make sense in creating an effective way to save money. However some experts are concerned that it could reduce the quality of some cars, claiming that the money saving measure is not worth the risk. Plenty of mistakes could occur as Toyota have proved. We believe that if it was to happen to the Volkswagen Group, then their target of 2018 may have be extended somewhat.