CREATING EXCELLENCE ON ALL FRONTS

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Alcedo Noor 0606159863

 • Tantangan bagi VW (pada periode 90-an)

• Mengatasi negative return on sales

• Mampu bersaing dengan produsen mobil lain
• Mengelola portfolio merek
• Menekan biaya operasional pabrik

Kendala:
 Weak model line-up (Harga mobil VW dianggap tidak
reasonable oleh konsumen)
 Lack of value (reputasi buruk dalam sistem elektrikal dan
mesin)
 Inefficiency (Produsen mobil lain mampu berproduksi dengan
lebih efisien)
 High cost base (Biaya operasional pabrik terlalu tinggi)
 Kurangnya integrasi antara merek-merek yang dikelola
sehingga terjadi duplikasi biaya yang tidak perlu.
 Tren Industri Otomotif di periode 90-an

3. Perubahan revolusioner dalam proses manufaktur (system based on a

network of suppliers, JIT, lean system, outsourcing, kanban dll)
4. Perubahan dalam persepsi dan gaya hidup konsumen (ditandai munculnya
beragam niche segment)
5. Isu lingkungan dan efisiensi bahan bakar.
6. Perkembangan pesat bisnis penunjang industri manufaktur mobil (finance,
asuransi dll)
7. Aliansi strategis antar produsen mobil dalam R&D
 Volkswagen Financial performance era 1993-2001

VW's successful
implementation of a platform
manufacturing system, its
globalization strategy, the
move up-market, cost-cutting
programs and many
innovations along the
business system had led the
group's net income increased
to a record-breaking
 VOLKSWAGEN :
great turnaround strategy

Piëch and his management team

succeeded in integrating where
it made sense, while
differentiating where it
mattered to customers.

VW was therefore able to reap

economies of scale over models,
brands and regions.
 A GEN MANAGING PRODUCTS PORTFOLIO:
L K SW tory:
VO ess s ands ..trough the heart and soul of the brand
succ the br
ep ing nct
Ke disti

Gradual change in perception of the company's line of products:

• Audi having elevated into premium luxurious cars
• Volkswagen moved upmarket to fill the void left by Audi (the
fifth-generation Passat launched)
• Seat and Skoda now occupying what was once VW's core
market
• In 1994, start the development of new bettle.
• This (VW) move upmarket was continued with the Mark 4 Golf,
introduced at the end of 1997.
 A G EN
O LKSW tory:
V s ss
suc c e
t r a t egy
t f or ms
Pla

Modular
manufacturing
system
“PLATFORM D”

(wiring-
steering-
braking
diagrams)
AUDI A8
VW PHAETON
4.2
 Global manufacturing system, modular production
and platform strategy

• Integrate VW plants within the same region.

• Similarity of the platform allowed for short set up times in factory,
underutilized plants receive parts from other plants.
• Flexible production schedule, improve the flexibility and efficiency of
production.
• Foreign employment level had increased from 41% (1993) to 51%
(2001)
• Worker in Wolfsburg had their work time reduced by 20% and
received 16% less salary (in 4-day workweek).
• In all modular production facilities, wages are dramatically lower and
unions are much weaker* than in traditional auto plants.

*At a modular Volkswagen production facility, there is not a single VW assembly worker in the plant. A network of independent 
contractors provides all the components and performs the assembly.  A small group of Volkswagen employees are on hand only to inspect 
the vehicles once they are finished.
1993-2002 - PIECH transform VW into big cash machine

• Piech is a car-obsessed engineer and

perfectionist.
• Piech has claimed that the three great
loves of his life are: Volkswagen, family, Ferdinand Piech,
and money. “the driven man of VW”
• Breaking the old traditions: arranged new
product portfolio and new manufacturing
strategy
• Strict management policy. Many speak
that he uses dictatorial management style.
• Piech is known for his determination and
ambition.
• His aggressive style moves VW groups
into new market segments (Bugatti,
Lambo, Bentley, etc)

Piech said: "You don't win battles by being friendly."

 VOLKSWAGEN FUTURE
CHALLENGE

• Keep the competitive

advantage sustainable.
• Evaluate intangible value in
structure, people, system and
stakeholder management.
• Maintaining economies of
scale from global
manufacturing and sales
worldwide
• Environmental issues:
Volkswagen has the worst
global warming scores (2007)
• Aware the role of new
technologies (efficient Diesel
engine, hybrid electric
drivetrains or flexible-fuel
vehicles)