Volkswagen Going All Out On Sharing Components

William Maley

Editor/Reporter - CheersandGears.com

December 21, 2011

Volkswagen's plan for world domination is now entering it's next stage. Starting with the next Audi A3, Volkswagen will begin to standardize components and technologies across forty different models.

Volkswagen says the plan will help it lower production costs by 20%, cut assembly times by 30%, and save the company up to $6.5 billion per year. The plan will also let Volkswagen to build cars from different brands at the same plant.

However, not everyone likes the idea of standardization.

“If something goes wrong, then one may get hit by an epidemic plague. The more connected the structures, the higher the threat of contagion,” said Christoph Stuermer, an analyst with IHS Automotive.

Toyota is a good example of "contagion". More than 8 million Toyotas were recalled in the US in 2009 at a cost of over $48.8 million as a result of the “unintended acceleration” mess.

Volkswagen believes they will avoid these pitfalls.

"Risks exist when you undertake far-reaching improvements, but the implementation process is manageable," said Volkswagen production chief, Hubert Waltl.

Source: Automotive News (Subscription Required)