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Volkswagen's next game for supply chains

Updated: Nov 17, 2022

Today’s The Wall Street Journal reports on ways Volkswagen AG is reinventing their supply chain to secure access to components, raw materials, shorten and regionalize supply chains. Volkswagen’s exposure to supply chain disruptions resulted in 18% less production in 2020 and additional drop of 7% in 2021. Remember the cargo ship that recently caught fire and sank. That’s 4,000 Volkswagen exotic cars at the bottom of the Atlantic. No more wiring harnesses from the Ukraine.

What is changing?

- Monitoring suppliers and their suppliers.

- Focus on uninterrupted delivery over competitive pricing.

- Dual sourcing.

- A $7 billion investment in US manufacturing aimed at doubling electric vehicle production (currently second to Tesla).

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