VOLKSWAGEN GROUP COMPONENTS

A realignment of the Group-wide components business was decided on as part of the enhanced Group strategy TOGETHER 2025+ and implemented as of January 1, 2019. The aim is further improvement of future viability and competitiveness through cross-brand management of component activities and a value creation strategy coordinated throughout the Group. Synergies will be leveraged across both traditional technologies and topics of the future to advance the progressive transition to e-mobility. The components business manages some 75 thousand people worldwide. The focus of their expertise is the development and manufacture of vehicle components. In order to realign these competencies in a future-oriented way, it was decided as part of the Group strategy to combine components activities around the world into an independent entity, Volkswagen Group Components, under the umbrella of Volkswagen AG. The entity has been re-organized into new business areas: Engine and Foundry, Gearbox and Electric Drive, Chassis and Battery System, Battery Cell and Seats. In each of the business areas, innovative power and competitiveness will be increased through an economical product portfolio that is viable for the future with a continuously optimized product range and economies of scale exploited across all business areas. Group Components in the Volkswagen Group will be responsible for the development and production of battery systems and electric drives for new electric vehicles as well as for the development and pilot production of battery cells and the management of production partners. There are also plans to reuse the battery cells in innovative reutilization concepts such as the flexible fast charging station and then recycle them in a climate-friendly manner. Moreover, further strategic initiatives will be implemented in Group Components’ central strategy program “ONE MISSION 2025”. Using innovative digitalization strategies such as robot-controlled process optimization, the transition process to new topics of future relevance will be accelerated.