New MQB platform adds problems for Volkswagen

Article by Christian A., on August 2, 2014

Volkswagen's decision to add extra production shifts in Germany for the Golf hatchback is not only attributable to strong demand, but also to problems adjusting to its new MQB platform, sources told Reuters. The MQB modular platform is expected to result to big savings as it uses more common parts across its increasing number of models.

According to a worker at Volkswagen's Wolfsburg site, the carmaker’s push to build more models has proven to be tricky on some assembly lines, leading to delays and overtime. He said that VW is having many “self-inflicted troubles.”

He added that this has forced some workers to work overtime, which has become totally unnecessary in some cases. Volkswagen has seen its sales – including those from it premium brands – surged significantly in recent years. Its sales have soared more than a half to around 9.7 million vehicles in 2013 and is expected to top 10 million units in sales this year.

That growth was supported by huge investments and costs to increase its model lineup. For instance, VW brand saw its sales rise by almost a third over three years with the Golf expanding to 14 models, but profit margins still remained low.

VW brand is aiming to post a profit margin of 6 percent in the medium term, but its 2.9 margin in 2013 shows it still has more work to do. In contrast, profit margin at Toyota was 8.8 percent and at Hyundai was 9.5 percent. [source: automotive news - sub. required]

If you liked the article, share on:

Topics: volkswagen, platform

Comments

Recommended

It has been nearly eight years since Toyota entered a new era of sports cars when it officially unveiled the production version of the Toyota 86 – also known as...
by - February 27, 2019
The new Audi TT RS – yes, the top version of the German carmaker’s facelifted TT model series – is now officially here. If you could remember, the range-topping TT...
by - February 18, 2019
Nearly half a year ago when McLaren Automotive unveiled the McLaren 600LT Coupe, the British carmaker is now introducing a version that lets its passengers enjoy the thrill of an...
by - January 25, 2019
German carmaker Volkswagen is now making the latest evolution of the new Volkswagen Golf GTI -- the new Golf GTI TCR. First unveiled as a concept at the annual GTI...
by - January 24, 2019
It has been three and a half years since BMW unveiled the sixth generation of the BMW 7 Series. Thus, it is really about to give the 7 Series a...
by - January 17, 2019