Volkswagen Stops Passat Production

Bertel Schmitt
by Bertel Schmitt

Last Friday, production of the Volkswagen Passat was stopped in Emden, Germany. Not because there aren’t enough customers for the car. There are too many.

Lines were stopped, and both shifts were sent home. 1,000 Passats remained unmade that day. The reason: Missing parts. The surging demand for automobiles worldwide leads to capacity constraints at suppliers. Many had closed their doors during carmageddon, the surviving ones had cut down on capacities. Now they are swamped.

The local paper Emder Zeitung says a supplier had problems with cockpit parts. Not an isolated occurrence. A week ago, Dr. Jürgen Geissinger, VP of the German industry organization Verband der Autoindustrie (VDA) reported “shortages from raw materials all the way to electronic components.”

Over in the UK, GM’s Vauxhall grouches that they can’t find enough British parts. The Society of Motor Manufacturers and Traders sees shortages everywhere: The industry is running out of “alloy wheels, alternators and starter motors, brake components, castings and forgings, fasteners, nuts and bolts, plastic mouldings in general, large stampings, sheet steel and aluminium, transmission components and wiring harnesses.” Sounds like the only item that is available in quantity are wiper blades.

Back in Emden, VW spokesman Georg Göricke promised to Das Autohaus that normal Passat production will resume Monday, and that the missing 1,000 units will be built before the year is over.

Just-in-time is great. As long as the parts arrive just-in-time. Stock levels are depleted. The only stocks that are up: Those of the formerly down and out parts suppliers. Morningstar says that “auto-parts stocks have been one of the best-performing industries in 2010, with such prominent names as Magna International, BorgWarner, and TRW all up more than 75 percent for the year to date.”

Bertel Schmitt
Bertel Schmitt

Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.

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  • SCE to AUX The fix sounds like a bandaid. Kia's not going to address the defective shaft assemblies because it's hard and expensive - not cool.
  • Analoggrotto I am sick and tired of every little Hyundai Kia Genesis flaw being blown out of proportion. Why doesn't TTAC talk about the Tundra iForce Max problems, Toyota V35A engine problems or the Lexus 500H Hybrid problems? Here's why: education. Most of America is illiterate, as are the people who bash Hyundai Kia Genesis. Surveys conducted by credible sources have observed a high concentration of Hyundai Kia Genesis models at elite ivy league universities, you know those places where students earn degrees which earn more than $100K per year? Get with the program TTAC.
  • Analoggrotto NoooooooO!
  • Ted “the model is going to be almost 4 inches longer and 2 inches wider than its predecessor”Size matters. In this case there is 6” too much.
  • JMII Despite our past experience with Volvo my wife wants an EX30 badly. Small, upscale, minimalist EV hatch is basically her perfect vehicle.
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