Volkswagen adopts a procurement strategy focusing on China

2022-05-26 0 By

China’s intelligent vehicle market has become a highland of competition among multinational automobile enterprises, new forces of automobile manufacturing and independent brands.Faced with this cake, Volkswagen Group, which has clearly accelerated its transformation into a software-driven mobile travel service provider, announced to adopt a procurement strategy that focuses more on China in order to further promote the software-centered strategic transformation.Volkswagen Group (China) has invited leading Chinese technology companies to participate in its global procurement for the first time to further promote its software-centered strategic transformation, China Business News has learned from Volkswagen Group (China).It is reported that a number of Chinese suppliers have been invited to participate in the global procurement of the first production phase of the group’s models, providing hardware for the pure electric models based on the SSP platform (extensible system Platform) and equipped with the CARIAD E32.0 software platform, which will be put into production in Europe and North America in 2025.In addition, about 20 local Chinese suppliers participated in the CARIAD E32.0 hardware procurement online kick-off held in Beijing recently.”China’s auto industry has developed rapidly in the past few years, especially in electronic technology and cutting-edge technology,” said Bei Mingjie, executive vice president and head of the purchasing department of Volkswagen Group China.Shifting our sourcing strategy to China will allow us to better leverage cutting-edge technology and innovation to power and accelerate the group’s electrification transformation.We will work with Chinese suppliers to create future-oriented digital solutions and reshape the mobility ecosystem.”According to public information, E32.0 is a unified and extensible software platform architecture developed by CARIAD, a software company affiliated to Volkswagen Group, which will be applied to all models of the group in the future.CARIAD E3 2.0 hardware procurement tender focuses on four key areas: digital connectivity, intelligent cockpit, autonomous driving and shared mobility.”We expect our supplier partners to provide innovative and flexible technology solutions to meet complex procurement needs, with superior industrial production advantages, excellent work efficiency and the ability to coordinate supply chain.Suppliers’ technical proposals will be evaluated by a team of engineers at the group headquarters.”Volkswagen group said.Volkswagen group also expressed its hope that its supplier partners will uphold the vision of building a sustainable supply chain and recognize and support the group’s strategic goal of achieving carbon neutrality by 2050.”Suppliers that meet the group’s business requirements and sustainability requirements are expected to have their solutions applied to the SSP-developed models that the group will launch in Europe and North America in 2025,” the company said.In addition, the reporter learned that under the carbon neutral strategy, Volkswagen Group has worked with partners and suppliers in China and around the world to develop a roadmap for the use of renewable electricity — by 2030, 100% of the group’s suppliers will use renewable electricity.In fact, it is not surprising that Volkswagen Group announced to adopt a more china-focused procurement strategy and further promote the strategic transformation of software as the core.Herbert Diess, CEO of Volkswagen Group, has publicly stated that software will be the key differentiating advantage that determines whether Volkswagen Group can achieve success under the NEW AUTO pattern.In July 2021, Volkswagen Group released the NEW AUTO strategy to accelerate its transformation into a software-driven mobile mobility service provider, and made a comprehensive and robust layout in four strategic areas including mechatronic integration, software, battery and charging, and mobile mobility solutions, enabling future technological development and large-scale application.DirkHilgenberg, CEO of CARIAD, said at the launch of the strategy: “software plays a crucial role in the transformation of the Volkswagen group from a traditional car manufacturer to an integrated mobility service provider.By 2030, software based on autonomous driving technology will be a major source of revenue for the entire automotive industry.”In the transformation process of Volkswagen Group, Diess said bluntly: “The Chinese market will play an important role.””China is very, very important to us, not only as one of the important markets, but also as one of the technology centers that will lead the evolution of the automotive industry into the next generation,” he said publicly.We want to be self-sufficient in software in China, and we expect China to become the market leader in online software updates and Internet for cars.Almost every car in China is now connected to one another, and autonomous driving is going to take off more strongly in China, so we’re building up our software capabilities in China.”Li Qingwen, automobile Evaluation Institute of BYD: Intelligent network connection is determining the competitiveness of new cars