Because unit sales figures in the automotive industry have been rising worldwide, there has been a significant recovery overall in the economic situation of suppliers. Thanks to the above-average increases in unit sales recorded by the Group brands, the Volkswagen Group’s suppliers have also benefited from this trend. Nevertheless, procurement risk management focuses its work on prevention. In addition, we continuously monitor suppliers’ economic stability. If there is evidence of negative developments, we take appropriate measures to reduce risks and ensure supplies. To date, this has enabled us to effectively avoid supply risks due to supplier defaults.
Not only the high demand for Group vehicles presented challenges in the reporting period, but also the trend towards models with higher-quality equipment features in combination with sometimes significant changes in installation rates. Many suppliers increased volumes above and beyond what was originally agreed and worked to the limit of their capacity in order to meet the Volkswagen Group’s requirements. Increased and changing material requirements were met and we were able to supply procured components to all component and vehicle plants.