Volkswagen gets ready to make 1 million cars in 2012
Valor Econômico
Volkswagen is getting ready to produce one million cars a year in Brazil in 2012. That is equivalent practically to one third of the production of the entire Brazilian car industry foreseen for this year. And this number will also represent a 39% jump in the rhythm of the German maker compared to the volume of last year.
For this year, the goal of the company is to reach 800 thousand units, which means growth of 21% compared to two years ago. In order to reach its goals, Volkswagen started monitoring the suppliers so as to stimulate them to invest in the increase of capacity of their installations. Otherwise, the greatest manufacturer of car of Brazil runs the risk of getting to 2015 with a shortfall of 20% between the capacity and necessity of production in the country, according to the procurement vice-president of the maker, Alexander Seitz.
Volskwagen's growth plans go beyond the rhythm of the whole car industry. It is worth to remember that, despite the euphoria in the domestic market, the association that represents the car makers, the Anfavea, foresees a fall of 5% in the production of the entire industry for this year compared to last year. But it is the strength it has in the domestic market that gives Volkswagen the perspective of being able to grow more. The company currently has 26.3% of the Brazilian market and has disputed the sales, month by month, with the Italian Fiat, which up to 2008 was the leader in Brazil.
While the management of the maker organizes the strategies to sell more, the procurement team needs to prepare the supply chain of auto parts, components and materials to prevent future bottlenecks. This year, Volkswagen do Brasil will increase its volume of the purchases to RS$ 11 billion (US$ 5.95 million), 10% more than last year. The maker currently spends in purchases two times it spent in 2002.
One universe of 500 companies supplies the Volkswagen units in the country with productive material. Each car made by the company in Brazil uses 85% of parts purchased in the local market. But the company wants to increase the national content even more. This way, the volume of purchases for the newest cars will increase.