A Continental employee checks the circuit board for a vehicle control unit in electronics production. The supplier group is reviewing its return target for this year.
(Photo: dpa)
Stuttgart, Dusseldorf The savings plans announced by Volkswagen are causing unrest among automotive suppliers. Europe’s largest carmaker wants to reduce costs by ten billion euros by 2026. The suppliers already know where VW boss Oliver Blume will start first: especially in purchasing. When Europe’s largest automaker announces such austerity measures, it doesn’t take long before suppliers like Bosch, Continental, ZF and the many medium-sized and small suppliers in Germany are hit.
“The car manufacturers are now welcome to demand lower prices from us. But that doesn’t change the fact that the suppliers are still exposed to increased costs,” says the head of a large German automotive supplier, under the impression of the last price negotiations. “You can’t pick a naked man’s pocket.”
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