Volkswagen Group nominates 44 suppliers under its FAST global strategic initiative

The Volkswagen Group has nominated the first 44 suppliers who will be collaborating with the Group on a new common strategic level under the joint ‘Future Automotive Supply Tracks’ initiative (or FAST) initiative. These suppliers were chosen for their outstanding performance in their respective field of competence based on a systematic selection process.

Volkswagen Group Procurement says it is responding to the challenges currently facing the automotive industry by working together with its suppliers under the FAST program and will implement technical innovations even faster.

"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," said Dr Francisco Javier Garcia Sanz, member of the Volkswagen Aktiengesellschaft Board of Management responsible for procurement. "The nominated FAST suppliers are important beacons in our network and I am looking forward to even closer and more intensive collaboration."

Volkswagen FAST, which was launched in February 2015, 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. 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, VW says 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 harmonised even more closely in order to generate further synergy effects and derive the optimal benefit.

Samvardhana Motherson Peguform in first 44 suppliers
Extensive performance evaluations conducted over the last few months resulted in the selection of the first 44 suppliers. The list includes India’s Samvardhana Motherson Group’s German subsidiary Samvardhana Motherson Peguform for supplies of door trim panels and bumpers.

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 realise vehicle projects worldwide even more efficiently and effectively.

The first nomination phase will come to an end in mid-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 mid- 2016.

The first group of nominated FAST partners and their respective fields of competence are listed below: