It's Official...Nobody Can Agree on How To Run a Global Car Company
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Here we have two of the largest car companies in the World: Ford and the Volkswagen group.
Both sell cars all over the world.
And both have had definite ideas about how to be successful.
Volkswagen's strategy has been to build one basic car like the Golf or the Audi A6 or even a Bentley and sell them basically unchanged everywhere from China to the States.
Ford's strategy has been to build many different cars, each tailored to fit a specific market, such as big cars for the States, small cars for Europe, even particular cars for single markets such as India.
Volkswagen's strategy has been successful (mostly) because it costs a lot less to build a few basic cars and sell a bucket full.
Ford's strategy has been successful (mostly) because each kind of car can better fit local tastes and needs.
So what do these two companies do?
Ford launches the 2012 Focus and bills it as a single car built for all markets. Only very minor changes will be made to accommodate local laws governing cars or things like extra ground clearance for Russia's abominable rural roads.
Then Volkswagen makes an announcement that when VW opens their new manufacturing plant in the States, it will build a vehicle especially designed for the local market.
Zig?
Zag?
Or is the business plan always greener on the other side of the fence?
Guess it just goes to show that any strategy has its strengths and weaknesses and sometimes you just have to change the plan to reach a goal. For Volkswagen their goal was to offer a car that would be more successful in the States than its stablemates. And Ford's goal was to make their smaller market footprint more profitable.
So just when you think you have it all figured out...
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By hrearden Posted: 1/14/2010 10:26am PST
Volkswagen's move into modularized components, in lieu of "platforms" is allowing it to enjoy the fruits of standardization along with the flexibility of having those components fit into different models. Ergo, an HVAC system built for a Polo will work in a Golf, Jetta, A3, Seat Leon, etc.
Not that tricky to understand why they're doing what they're doing, actually.
By John Posted: 1/14/2010 11:37am PST
By Bostan Octavian Posted: 1/14/2010 12:23pm PST
By Kinder Posted: 1/16/2010 7:16am PST
You're sure right about the exchange issue as well as VW's advanced use of modularization. VW's strategy of putting different "Huts" (Hats) on existing stuff is well along. However the point remains that this plant will build a car for the North American market that VW will sell nowhere else. Something about the size of a Fusion I imagine. Oh yes, we also read that another vehicle will be built at that plant. Perhaps a crossover version of the sedan, again for local consumption.
And back to your point, it would make no sense at all to build this thing in Europe.
Thanks for your response
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