Volkswagen proposes invited as many ay ten of its German suppliers to build their manufacturing units in India near its Pune plant. VW relies heavily on its original suppliers for some of the major components and spare parts of its cars. It shall enable the company to source same quality of components easily and the same can be used in the overseas markets as well.
Nearly 10 major global auto parts makers have expressed their keen interest in Volkswagen car utility vehicle making project. Most of these suppliers supply internationally to the company.
"We are in the final process of selecting component manufacturing companies, which will supply auto components to our plant. We have issued over 10 tenders to various companies so far. The response has been great from them. We will finalise the plan in the next few weeks," said Thomas Dahlem, director, manufacturing engineering, Volkswagen India. However, he refused to divulge the names of suppliers who have shown interest.
All the companies shall be located at the 240 hectares of land owned by VW. If the current plans go through, it shall help Volkswagen to curb the costs drastically and negate the time lapse in delivery of components as well. Currently, VW utilises only 140 hectares of land from the total 240. The company also plans to facilitate shops to its component suppliers in its premises.
