Volkswagen AG has faced a cascade of crises – COVID, brittle supply chains, chip shortages, rising raw material prices, now war. They are rethinking globalization to adapt.
Constant shocks cut VW production by 18% in 2020, then 7% more in 2021. A cargo ship fire destroyed 4,000 of VW’s most expensive vehicles. Then the Ukraine war cut access to wiring harnesses, halting German production. VW is now shoring up access to components/raw materials and shortening supply chains, also making uninterrupted delivery of parts a priority over lower prices. They are closely monitoring suppliers and adding dual sourcing on some components. They are diversifying markets to reduce dependence on individual countries such as China.
The world is changing; you have to change with it. Whether it’s supply chains or something else, MOSIMTEC simulation modeling and digital twin consulting services can help. Sometimes getting from Point A to Point B means creating a whole new path. Testing new directions. Embracing twists and turns. At MOSIMTEC, we guide you through the simulation modeling process, so you not only get where you’re going fast, but you get the most out of every step. Our data scientists/industrial engineers guide you through the change process and help future proof your business.
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Find more: https://www.wsj.com/articles/volkswagen-prepares-for-a-deglobalized-world-11648373580