Volkswagen Child Parts Strategy Explained
Highlights
- Volkswagen's Child Parts Strategy aims to reduce spare parts costs
- The idea is also to reduce the service turnaround times for customers
- Volkswagen has three Parts Distribution Centres (PDCs) in India
Volkswagen has always been a customer centric brand. The company has always worked towards the benefit of the customer and along with his or her peace of mind by offering the best of products, services and experiences as well. This is where the Volkswagen's Child Parts strategy comes in! It is one of the key ideas on which Volkswagen's SUVW strategy is placed. It aims to reduce the ownership cost of a Volkswagen car. The basic idea is to replace certain parts and not change the entire module. This in turn results in quicker turnaround times and after-sales which is much more affordable. Plus, it helps elongate the life of your Volkswagen car!
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In layman's terms, child parts basically refer to the sub-parts of an assembly or a bigger component. In case of damage, with the help of child parts strategy, the company can pin-point the particular part or component. The whole assembly or the bigger component need not be replaced completely. A widely used technique in the automotive industry, the child parts strategy aims to reduce service time and keep costs to a minimum.
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The focus of Volkswagen here is to reduce the total cost of ownership or TCO for the customer. With three Parts Distribution Centres or PDCs in India, Volkswagen has been able to quicken up the process for parts delivery and improve the availability of spare parts. Volkswagen's TCO approach is based on four pillars, which are Reach, Cost, Products and Information, all of it easily accessible for the discerning VW customer. A recent initiative of the company is the Service Cost Estimator, which allows a customer to get an estimated cost of service for his/her car, including the labour charges.
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Another point of focus for Volkswagen is to increase the localisation content in VW's upcoming cars. For example, the upcoming Volkswagen Taigun SUV will have up to 95 per cent localisation! This is going to help the company in offering aggressive prices for its new models in the country as well. In the last few years, Volkswagen has been meticulously working to bring down the cost of spare parts and the total cost of ownership. The company says it will bring down the cost of spare parts by 3 to 13 per cent, which is a significant step in reducing TCO.
Plus, the company now have a variety of warranty and service packages which takes away all the worries from a Volkswagen owner. More smiles per mile, that's precisely what the company aims to offer to its customers.
Last Updated on April 1, 2021
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