Volkswagen Shuts Down Wolfsburg
Volkswagen workers in Wolfsburg are looking forward to a long weekend. No work on Monday, come back Tuesday. Are people not buying enough cars? Im Gegenteil. They are buying too many. Volkswagen is seriously running out of parts.
The parts shortage is on a large scale, reports Automobilwoche [sub]. Both external suppliers as well as internal parts production can’t keep up. From the smallest part to engines: Shortages everywhere.
A Volkswagen spokesperson confirmed a “stutter in the production pipeline.” Volkswagen had to stop the lines elsewhere before because parts were missing, but closing down all of the monstrous 3000 units per day plant in Wolfsburg because of parts shortages is unprecedented.
Others makers, such as Daimler or BMW, are grappling with strained supply lines, but see no reason to stop work.
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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OTOH there be those who maintain we've entered the age of commodity shortages. So material used to make VW parts is possibly fetching a higher price elsewhere. (Hmmmm, where, oh, where, might that be?) Read a little Adam Smith. It's hard to think of a consumer item that requires more commodities in manufacture than automobiles. That's good when commodities are plentiful and cheap. Scary to contemplate, otherwise.
the picture reminds me of the old Buick powerhouse at the once massive GM complex in Flint, now not much more than an historical marker. thanks Rick.
Nothing cheers Trollhatten & China more.
I was just reading about how the Chrysler Van plant in Ontario will have to close down for a week because of a parts shortage as well, something to do with the Holidays in China (presumably part of the same festivities that have driven Bertel to Hong Kong?)