Volkswagen Changing its Manufacturing Approaches

For many years, Volkswagen AG has prospered as a global company, manufacturing and selling cars all around the world. But as wars, health problems and trade conflicts drive decades of globalisation, the German giant is changing its manufacturing approaches to adapt to the situation.

VW's resilience efforts include strategies to improve access to components and raw materials, shorten the supply chain, and reduce reliance on distant suppliers for local businesses, the company's senior executives said.

The suspension of production due to Russia's invasion of Ukraine and the loss of Chinese components during a pandemic prevented VW from concentrating on procuring the cheapest parts, no matter how far or scattered the manufacturers were. 

The company is also investing in electric vehicles more than other legacy car makers in the US. An engine factory is also being transformed into a battery plant as the German company looks to change its image and become a rival to Tesla. 

It has also faced criticism in China for operating a factory in Xinjiang. According to Human-rights advocates, China operates re-education camps for members of the local Muslim population. Volkswagen says it employs Muslim Uyghurs at the plant but does not use force on them.

According to Dies, VW is currently the second-largest seller of electric vehicles in the United States after Tesla, with an electric vehicle market share of 8%, twice the overall market share of VW in the United States. VW is targeting a 10% market share across the United States, VW officials said.