Volkswagen Group Components is to become an independent corporate entity under the umbrella of Volkswagen AG with effect from January 2019.
The realignment process which is currently in progress is focusing on aspects such as changes in the structure of the business areas, slimmer management and board systems and a Group-wide added value strategy.
Thomas Schmall, Board Member for Components of the Volkswagen brand and Head of Group Components, says: “The realignment of Group Components will make us even more efficient and competitive. We are preparing ourselves for the approaching new era of mobility. Investments for the new electric components must be borne by our present core business. We are therefore working at full speed on a Group-wide added value strategy based on investment and cost optimisation. This will ensure the future viability of Components and safeguard jobs in the long term.”
The strengths of Group Components, with 56 plants and about 80,000 employees throughout the world, have included the development and production of strategic vehicle components, from engines, transmissions and electric motors through to steering systems and lightweight parts.
In order to realign these competences in a future-oriented way, it was decided as part of Group strategy to group global components activities together in an independent corporate entity “Group Components”. The main objective of the realignment is to improve efficiency and optimise investments with a view to ensuring a coordinated entry to e-mobility.
Components is laying the foundation for achieving these objectives by consistently orienting its operations towards economic viability and efficiency in production plants and offices. Since 2016, the Components team has improved production and administration processes, developed shop floor management for uniform communications between management, foremen and employees and has already consistently implemented all the objectives of Volkswagen’s Pact for the Future.