vw final pres-3
TRANSCRIPT
Kevin StraightAndrew Monroe
Brent HopkinsBret Butcher
Barbara Cheng
Volkswage
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VW in Brief
•3rd Largest Automaker in the World•Based in Wolfsburg, Germany•Largest Automaker in Europe•Largest Automaker in China •Stated goal: Become the World’s Largest Automaker by 2018
Key Financial Statistics
VW GM Ford Toyota
447
166 202
377
Total Assets $ Billion
VW GM Ford Toyota
2.34% 2.55% 1.85%4.21%ROA
VW Toyota GM Ford
$474,209
$702,520 $709,712 $811,696
Revenue / Employee
Key Financial Statistics
VW Toyota GM Ford
558,745
338,875 219,000 181,000
Full Time Employees
Recommendation 1Sales Consolidation – Dealerships
Recommendation 1Sales Consolidation – Dealerships
Recommendation 1Sales Consolidation – Dealerships
Recommendation 1Sales Consolidation – Corporate Offices
Regional Brand Management
Recommendation 1Sales Consolidation – Summary
• Dealerships consolidated and grouped by price point when possible• Grouped together vertically when necessary
• Corporate offices organized by region and would be responsible for all brands within the region
• 25% estimated reduction in number of dealerships and dealership staff
~ 5 Years
VW’s Lead Time
(Critical Path)
Recommendation 2Shorten Product Lead Times
• Group R&D tries to predict trends up to 10 years in
advance
• Up to 5 years to produce a new model
• Up to 3 years to allocate production capacity
• Even a small delay can push model to next model
year
• In the US, VW representatives cite “product
availability” as their biggest weakness
Recommendation 2Shorten Product Lead Times`
• Centralize project management for each model
• Find new ways to leverage modular technology. Use
more “off the shelf” parts and subassemblies
• Use more post-modern project management
• Leverage flexible manufacturing
• “Skunk works” approach for key projects
In other words, think more like software company
Recommendation 2Shorten Product Lead Times
Walking a Fine Line:
VW must learn to balance Teutonic perfectionism against the strategic advantage of getting their designs to market on time.
Recommendation 2Shorten Product Lead Times
Recommendation 3VW Electrification Strategy
The Volkswagen Group has been working on e-mobility since the 1970s. ◦ The Volkswagen Group has been working on e-mobility
since the 1970s. ◦ it’s a different story today – interest in e-mobility has
grown substantially steadily improving battery technology falling prices for battery cells, national support programs higher expectations of sustainable vehicle concepts in the
marketplace. Volkswagen Group anticipates that by 2020 electrified
vehicles will make up around 3% of total vehicle production
Recommendation 3 Focus on Plug-In Hybrid
The Volkswagen Group is focusing particularly on the plug-in hybrid concept ◦ combines the benefits of two technologies and
hence offers a majority of customers exactly what they are looking for: attractive electric-drive unit for day-to-day urban use unlimited range thanks to its combustion engine no restrictions on speed or its ability to climb hills or
pull trailer loads substantial potential for reducing CO2 emissions
Recommendation 3 Overcoming Obstacles
Must work intensively on developing electric motors and battery systems◦ build up the necessary manufacturing skills at our
plants in Kassel (electric drives) and Braunschweig (battery systems)
Over two-thirds of the Automotive Division’s €84.2 billion investment program between 2014 and 2018 is earmarked for: ◦ developing more efficient vehicles ◦ drives and technologies ◦ environmentally friendly production processes
Recommendation 3 E-Mobility Campus
Set to open this year within the research and development site at the Wolfsburg headquarters
The Group has already hired additional skilled workers and experts to strengthen its expertise in the area of electric traction ◦ This campus is where the Group will concentrate
its expertise ◦ A total of some 1,100 people will under- take
research and work on this technology there.
Recommendation 3 Delivering Value
Volkswagen’s ideal electric vehicles◦ Are dynamic, highly emotional automobiles that
are fun to drive ◦ they express the driver’s modern attitude to life
and appreciation of advanced technology Our aim is to offer safe, affordable electric
vehicles suitable for everyday use, to almost all customer groups
Recommendation 3 Going Forward
Partner with other major Automakers to share expense of laying foundation for E-mobility◦ Standardized plugs/outlets◦ Build intelligent networks that enable
communications between other vehicles, passers by etc.
◦ Charging strategy◦ Garner support from politicians, local authorities,
energy companies and telecommunications sectors
Questions?