Volkswagen: 1 Platform For 4 Million Cars

Volkswagen AG brought the concept of the global platform to an unprecedented level in the auto industry, the modular platform presented by them will ultimately become the basis for the collection of small cars, sedans, crossovers and SUVs from the four main brands that make up the VW Group.

While automakers divide common platforms between brands and sometimes even between segments, VW initiated an unprecedented union to the village.

As some analysts estimate, by 2017, the MQB platform, debuting on Audi A3, will become the basis for the production of 4 million cars a year, that is, almost half of VW's annual output. VW expects that this plan will reduce costs, reduce production time and make the company more flexible to adapt to market trends.

The MQB platform standardizes the position of the engine and the distance from the front axle to the pedals. The width, length and wheelbase can be arbitrarily varied, extended or shortened to fit each particular model.

"This is very practical, both in terms of costs and speed of reaction to market demands," says Jeff Schuster, senior vice president of forecasting for the analytical company LMC Automotive.

"But here, too, are hidden pitfalls."

Along with new opportunities, this approach also creates significant risks. This concept has not yet been tested and can become a hindrance in the case of recall of a large number of cars, some analysts say.

As reported by VW, by 2017, the MQB platform will form the basis for more than 40 models of brands Audi, VW, Skoda and Seat. Audi A3 and VW Golf were the first cars assembled at MQB, which have already gone on sale in Europe, and from 2013, shipments will also begin in the US.

All manufacturers are looking for ways to reduce production costs and increase profitability through global scaling. VW Group, which occupies the second place in the world in sales, needs a bold, vigorous and, at the same time, reliable approach, in view of the huge range of models produced , the model range of the group consists of 200 models, the press secretary of VW said.

"To be able to control the naturally growing complexity in development and production, the best thing that can be done for today is to find the best solution once and then use it in the maximum possible number of models, of course, if it is technically possible," says the press- Secretary.

Adjustable size

The modular platform MQB fixes only a few elements, allowing the installation of any engine, from petrol and diesel, to a hybrid or purely electric power unit.

VW began developing the MQB platform in 2007, when Ulrich Hackenberg, the developer of modular car architecture in Audi, became a member of the board of the VW Group responsible for research and development (R & D).

Thanks to the MQB platform (abbreviation for "modular transverse matrix" in German), the width, length and wheelbase can be stretched and shortened to fit a particular model. The base is so flexible that it can be installed as a diesel or gasoline engine, as well as a gasoline-electric hybrid or a purely electric power unit.

Two more global platforms are already being used that provide the rest of the group's models: MLB, a platform for large vehicles with longitudinal engine placement, and MSB sports cars with a rear engine arrangement.

Analyst firm IHS Automotive predicts that by 2017 VW will produce 4 million vehicles per year on the MQB platform. VW, which sold last year 8.3 million cars, took second place after General Motors, does not make its own forecasts and does not report the cost of developing the platform itself.

The platform VW PQ35, which is the basis of small-scale models (compacts), today is the most massive in the world. According to IHS, in 2012 VW plans to produce 3 million cars based on PQ35.

Toyota Motor Corp. , The second largest platform manufacturer, the Japanese MC-M is the base for such world-class models as Corolla and Camry, said Mario Frandicevych, IHS leading forecaster. By 2017, Toyota expects to produce 3.4 million cars a year based on it.

At the annual meeting of VW last month, VW Group CEO Martin Winterkorm characterized the investment in the new platform as "solid" but not special.

It is expected that the return in the long term should be impressive. With the introduction of the MQB platform, VW expects to cut development costs by 20 percent. At the same time, the company believes that the time for assembling cars on a new platform will be reduced by 30 percent.

The company plans to implement the transition to a new platform gradually, transferring every new model to it as they are redesigned, as was reported by VW's press secretary.

Dunks and benefits

This approach has potential pitfalls. The approach has potential pitfalls.

"The plan will not be re-released if there is a need for mass recall of cars," says Wilshwas Shankar, an auto analyst at Frost & Sullivan, which analyzes automotive markets.

The fact that such a number of models share the same parts, any deviation or malfunction is repeated millions of times, which as a result will lead to enormous costs and difficulties for Volkswagen.

But, on the other hand, more standard parts and assemblies facilitate the training of dealer service personnel. It is expected that the costs of training the personnel of the dealer centers will be consistently reduced.

VW spokesman believes that such fears have a basis, but on the other hand, the company also believes that using a single platform, instead of a variety of different designs, will allow engineers to solve problems faster.

Also, VW will potentially be able to shorten the development time of new models to two years, according to Shankar analyst from Frost & Sullivan. Usually, VW and other manufacturers take about four years from the time of the development and until the new model is brought to the market.

As Franchicevych of IHS says, VW is not the only company that uses a modular design. For example, its version has and Mercedes-Benz, but VW is the first who uses it on such a large scale.

Modular Approach
Potential benefits of VW from the MQB platform

• Greater flexibility will allow the production of more than 40 models

• Reduce production time by 30%

• Reduce parts and development costs by 20%

• Greater interchangeability and unification between different models

• Potential reduction in the development time of new models