The Volkswagen Group nominated the first 44 suppliers who will be collaborating with the Group on a new common strategic level under the joint FAST initiative. Among the 44 is LG Electronics for the supply of high-voltage batteries. (Earlier post.)
Volkswagen Group Procurement is responding to the challenges currently facing the automotive industry by working together with its suppliers under the “Future Automotive Supply Tracks” initiative (or FAST for short) and will implement technical innovations even faster. Volkswagen AG said it chose the first tranche of suppliers for “their outstanding performance in their respective field of competence based on a systematic selection process.”
Volkswagen FAST is a fundamental element of the Group’s “Future Tracks” program and is designed to equip Volkswagen AG’s automotive network to meet future challenges.
In future, it will not be the corporation with the best negotiating skills that has the advantage, but the one that has also successfully established an optimal supplier network. The nominated FAST suppliers are important beacons in our network and I am looking forward to even closer and more intensive collaboration.—Dr. Francisco Javier Garcia Sanz, member of the Volkswagen AG Board of Management responsible for Procurement
Volkswagen launched the FAST program in February 2015. Extensive performance evaluations conducted over the last few months resulted in the selection of the first 44 suppliers; these companies are considered by Volkswagen to be outstanding partners in their respective sectors.
In the next step, the Group will be deepening top management level discussions with the nominated partner companies. Going forward, the respective strategies and technological orientation in the individual categories will be even more closely coordinated and aligned. The aim is to successfully implement joint technological innovations ever faster than in the past and to realize vehicle projects worldwide even more efficiently and effectively.
The first nomination phase will come to an end in spring 2016. Suppliers not yet nominated still have the opportunity to qualify for the FAST program. Volkswagen continually reviews supplier performance for this exclusive partnership and adjusts the circle of FAST suppliers as required. The “FAST Summit”, the first exclusive strategy conference with all partners, will take place in spring 2016.
With the FAST initiative, the Volkswagen Group is working together with its suppliers to respond to current challenges and the digital transformation taking place in the automotive industry. There is to be a sustained increase in the number of product and process innovations and in the speed with which these innovations are turned into real experiences for customers. In future, suppliers are to be involved in the relevant product innovation cycles within the Group at an even earlier stage than previously. In addition, the production networks will be harmonized even more closely in order to generate further synergy effects and derive the optimal benefit.
The first group of nominated FAST partners and their respective fields of competence are listed below: