This paper attempts to summarize development elements in the supply chain modifications in the car manufacturing industry by examining the case of the Volkswagen Group. It provides a general explanation of the stages of modularization and an overview of the development in modularized production that enabled Volkswagen to secure the second most prominent position among global automobile manufacturers. Its methodology is based on empirical analysis to discover the development and system modifications of the supply chain at Volkswagen. The analysis identifies the strategies from modularization (including the development from modular consortium to industrial condominium) that contributed to Volkswagen’s success in catching up with – and potentially overtaking – Toyota, the leader of the automotive industry. Further elaboration should serve to depict of current state of integration as well as localization of services carried out by Volkswagen Logistics.
Copyright: © 2018 The Author(s)
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