Economy

We have never experienced supply chain shortages as severe as today by Stocksak


© Stocksak. FILE PHOTO – The Volkswagen logo was pictured at the 2022 New York International Auto Show. It was held in Manhattan, New York City U.S.A., April 13, 2022. REUTERS/Brendan McDermid

BERLIN (Stocksak), -Volkswagen has entered into direct purchase agreements in unprecedented locations to address the worst supply chain shortages it has seen, Murat Askel, its purchasing chief, said at a conference held in Berlin on Tuesday.

Aksel explained that the carmaker was also developing a database to help forecast geopolitical, natural, and supply chain risks ahead. This was similar to what it did for financial risks following the 2008 financial crises.

Aksel stated, “We never used talk to mining operators – now we know their business model.” “We can’t rely on Tier 1 suppliers anymore – we have to look behind the curtain ourselves.”

Volkswagen (ETR 🙂 was experiencing a shift from a buyer’s marketplace to one where the automaker was increasingly a smaller, less powerful customer for suppliers of new important areas like software. Aksel spoke at the Automobilwoche Kongress conference.

Other companies would order one million chips per day or week, while the carmaker was seeking one million per year, he said. This would reduce its negotiation power.

He stated, “For the software providers we’re not the big player.”

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