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Falling short

Suppliers are having a job meeting the demands set by manufacturers as VW announces a closure in its main Wolfsburg plant due to part shortages. The German car industry is going great guns in China, and Porsche and BMW have also announced shortfalls.

The closure to a plant that can produce well over 3000 vehicles per day will, according to VW, ‘have no major impact’ on the company but will help ‘stabilise the situation’. The halt to production will give the manufacturer and breather in order to install new production equipment.

Lars Holmqvist, chief executive of European suppliers association Clepa, claimed that suppliers stopped production during the recession and that the supply of electronic parts has been affected worse.

According to one commentator, component manufacturers account for 75 percent of the value of an average car, which is a ten percent rise from 10 to 15 years ago.

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