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.
Coia, A. (2006). Ordering delivery. Automotive Logistics; September-October 2006, p. 48.
Elkin, M. (2008). VW Group Unites To Conquer. Automotive Logistics, January-February 2008, p. 22.
Feitzinger, E. and Lee, H. L. (1997). Mass Customization at Hewlett-Packard: The Power of Postponement. Harvard Business Review, 75 (1), 116-121.
Fisher, M.; Ramdas, K. and Ulrich, K. (1999). Component Sharing in the Management of Product Variety: A Study of Automotive Braking Systems. Management Science, 45 (3), 297-315.
Luquet, M. and Grinbaum,R. (1996). Resende dá o show, Veja, October.
Marx, R.; Zilbovicius, M. and Salerno, M. S. (1997). The “Modular Consortium” In A New VW Truck Plant In Brazil: New Forms Of Assembler And Suppliers Relationship’. Integrated Manufacturing Systems, 8 (5), 292-298.
Miller, M. (2014). Volkswagen China growth slows to 10 pct due to capacity limits. Available at: http://www.reuters.com/article/2014/11/19/china-autoshow-volkswagen-idUSL3N0T853Z20141119, (Accessed on December 7, 2014).
Ramalho, J. R. and Santana, M. A. (2002). VW’s modular system and workers’ organization in Resende, Brazil. International Journal of Urban and Regional Research, 26 (4), 756-766.
Rosemain, M. (2014). Europe Car Sales Set Growth-Streak Record on Price Cuts. Available at: http://www.bloomberg.com/news/2014-09-17/europe-auto-sales-rise-a-12th-month-on-vw-ford-compacts.html, (Accessed on December 7, 2014).
Rugraff, E. (2012). The new competitive advantage of automobile manufacturers. Journal of Strategy and Management, 5 (4), 407-419.
Salerno, M. S. and Dias, A. V. C. (2002). Product design modularity, modular production, modular organization: the evolution of modular concepts. Actes Du Gerpisa, Paris, Volume 33, March, 61-72.
Schmid, S. and Grosche, P. (2008). Glokale Wertschöpfung im Volkswagen-Konzern - Auf dem Weg zu mehr Dezentralisierung bei Produktion und Entwicklung. ESCP-EAP Working Paper, Nr. 41.
Schneider, R. A. and Rieck, K. (2012). Komplexität in der Automobilindustrie am Beispiel Baukastenstrategie. GI-Jahrestagung, Volume 208 von LNI, 863-873.
Sheu, C. and Wacker, J. G. (1997). The Effects of Purchased Parts Commonality on Manufacturing Lead-Time, International Journal of Operations & Production Management, 17 (8), 725-745.
Stoddard, H. (2013). Volkswagen Global Output to Top Toyota in 2016. Ward's Auto World, 49 (9), 3.
Sugiyama, Y. and Fujimoto, T. (2000). Product Development For Country Specific Vehicles In Asia: A Dynamic View In Global Strategy”. In Humphrey, J.; Lecler, Y.; and Salerno, M. S.: Global Strategies and Local Realities: the Auto Industry in Emerging Markets. Macmillan, London.
Toyota (2014). Available at: Annual Report. http://www.toyota-global.com/investors/ir_library/annual/pdf/2014/ar14_e.pdf, (Accessed on December 7, 2014).
van Hoek, R. I. and Weken, H. A. M. (1998). The impact of modular production on the dynamics of supply chains. International Journal of Logistics Management; 9 (2), 35-50.
VW (2014). Facts and Figures Navigator 2014. Available at: http://www.volkswagenag.com/content/vwcorp/info_center/en/publications/2014/03/navigator_2014.bin.html/binarystorageitem/file/NAVIGATOR_ENGL_WEB_01_08_14.pdf, (Accessed on December 7, 2014).
Wildemann, H. (2013). Entwicklungslinien der Produktionssysteme in der Automobilindustrie. In Göpfert, I.; Braun, D. and Schulz, M.: Automobillogistik, (pp. 135-158). Springer Fachmedien, Wiesbaden.
Womack, J. P.; Roos, D. and Jones D. T. (1992). Die zweite Revolution in der Autoindustrie – Konsequenzen aus der weltweiten Studie aus dem Massachusetts Institute of Technology; 5th Edition; Frankfurt a. M.
Copyright: © 2014 The Author(s)
Published by Human Resource Management Academic Research Society (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode
