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SupplierBusiness, May 2009, Pages: 43
Porsche might soon lose its status of world's smallest independent car maker as it becomes clear it will soon be object of a merger with VW, Europe's largest car maker. The operation will entail a redefinition of the role of Porsche within the VW galaxy, which already contains nine brands. The ties between the two car makers are long–standing. In fact, VW already represents a key supplier and production partner of Porsche, with which it already shares two platforms for the Cayenne and the brand new Panamera.
The creation of a new merged group will entail no major changes on the über–outsourcing strategy which characterises Porsche's approach to sourcing, at least in the short run, and changes at management level might imply an overhaul of the Purchasing division. In the longer term, more platform sharing and content transfer from VW is seen highly likely with the inevitable consequences on supplier selection. Contract manufacturing could also be reduced in the future and more operations could be brought back in house.
The low level of vertical integration requires a Japanese–style management of relations and involvement with suppliers. This might be at risk when more purchasing activities are carried out together by the two car makers. Therefore a shift towards more adversarial relations is likely to occur, mainly because of an increased pressure on suppliers for price reductions.
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- Approach To Quality
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OEM Survey Results For Porsche
SWOT Analysis Of Supplying Porsche
Porsche Global Footprint
Major Suppliers By Component Sector