Tuesday, December 26, 2006

Porsche helps Volkswagen attack Toyota efficiency

With Porsche being Volkswagen's largest shareholder, its no surprise that the premium brand wants to see Volkswagen succeed. And compounded by the fact that Porsche sees a parts bin in Volkswagen, surely Porsche will do everything to drive Volkswagen into success. The first step to a successful Volkswagen? Going for Toyota.

Porsche has announced that they will be sending in their own consultants in an effort to streamline Volkswagen's Wolfburg facility. The goal is to improve materials handling and improve work flow to improve efficiency. And after Wolfsburg? Porsche CEO Wendelin Wiedeking says that other factories will be looked at as well, with the under performing Spanish factory as one of the first.

This is all in an effort to go after Toyota, who by 2007, will be the largest car company in the world. And while Volkswagen unseating Toyota for the title seems a little farfetched, Wiedeking says that it will require hard work and it won't happen overnight.

As an example of irony, it was Toyota who was responsible for Porsche's turnaround in the early '90s and has since become one of the most profitable car companies today.


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