A realignment of the Group-wide components business was decided upon as part of the future program TOGETHER – Strategy 2025. The aim is further improvement in competitiveness through cross-brand management of components activities and a value creation strategy coordinated throughout the Group. For traditional technologies and topics of the future, synergies will be leveraged to advance the progressive transition to e-mobility.
The expertise of the components business, which employs some 80,000 people worldwide, lies in the development and manufacture of vehicle components. In order to realign these competencies in a future-oriented way, it was decided as part of the Group strategy to combine components activities around the world into an independent entity, Volkswagen Group Components.
To this end, five new business areas were formed in 2018: Engine and Foundry, Transmissions and Electric Drive Systems, E-Mobility, Chassis and Seats. In each of the five business areas, the different departments such as Development, Procurement and Production will cooperate closely at an early stage to boost innovative power and competitiveness.
To achieve efficiency targets, manufacturing and administration processes will consistently be made leaner; shop floor management, which ensures uniform communication between management, foremen and employees, will be enhanced and savings will be generated by implementing optimization measures at the sites.
For its product portfolio, the components business relies on sustainable economic products. Products that are not competitive will be progressively phased out in the medium to long term. E-mobility components will instead become an integral part of the portfolio.
Employees who take on new responsibilities in this respect will receive appropriate training.