P&A Providers & Administrators
MenuMENU
SearchSEARCH

VW Production Chief Leaves Amid Production Troubles

August 4, 2014
2 min to read


Volkswagen has replaced its production chief Michael Macht, who oversaw the introduction of a manufacturing platform which was designed to cut costs, a day after the company reported a drop in operating profit, reported Reuters.


VW is increasingly relying on its MQB modular platform, a production system introduced two years ago, to save money by using more common parts across its range of brands and models.

Ad Loading...


But the drive to produce a greater variety of cars is proving tricky, particularly at VW's main Wolfsburg factory, leading to costly overtime and delays in production of its top-selling Golf model.


Macht's resignation follows the publication of second-quarter results on Thursday which highlighted the growing troubles at the core VW brand, where operating profit plunged by over a third to 572 million euros.


Macht will leave VW with immediate effect after almost four years in the job, Volkswagen said. Macht, a former Porsche executive, became VW group production chief in October 2010.


"Michael Macht has furthered development of the VW production system," Chief Executive Martin Winterkorn said in a statement. "We thank him for his achievement."


Analysts have hailed MQB as the most important automotive initiative for years. The new platform features a far greater degree of flexibility and parts commonality than at Toyota, General Motors and other competitors.

Ad Loading...


"MQB is the central tool for VW to improve margins," Hanover-based NordLB analyst Frank Schwope said. "They can't allow any slippage here."


VW has enjoyed a period of unprecedented growth, boosted by emerging-market buyers of its upmarket Audi brand. Its sales have risen more than a half to 9.7 million vehicles in 2013 compared with levels before the financial crisis, and it is set to hit a 10-million sales target in 2014 - four years early.


But the rapid expansion has led to a costly proliferation of models, especially at the VW brand. Winterkorn has now ordered a cost-cutting drive at the division with the goal of increasing savings to 5 billion euros per year from 2017.


Last month, Winterkorn had called on managers to step up their game to achieve a universal roll-out of MQB.


VW said Thomas Ulbrich, head of production at the carmaker's main passenger-car brand, would take over duties from Macht on an interim basis until a successor is found.

More Industry

Kia Niro SUV in gold color parked outdoors
Industryby Hannah MitchellSeptember 1, 2026

Kia Closes Out Summer With a Bang

Its U.S. subsidiary broke multiple records in August, in part due to a surge of demand for hybrids models.

Read More →
Outside of Auto Park Ford dealership
Industryby Lauren LawrenceSeptember 1, 2026

Indiana Dealership Changes Hands

A 30-year-old Ford dealership in Indiana has a new owner and will soon be undergoing renovations to meet manufacturer requirements.

Read More →
Three men standing in front of two classic cars handing off gift.
Industryby Hannah MitchellAugust 25, 2026

Texas Dealership No Longer in the Family

The Ford store, a longtime cornerstone of the Houston market, is now part of one of the fastest-growing U.S. auto groups.

Read More →
Ad Loading...
Outside of modern car dealership “Genesis of San Bruno
Industryby Lauren LawrenceAugust 25, 2026

Genesis Grows California Presence

The Cardinale Automotive Group opened its third Genesis rooftop in the Golden State, Genesis of San Bruno, a stand-alone dealership serving the San Francisco Bay Area.

Read More →
Red Honda Civic hybrid sedan on two lane road with green hills in background
Industryby Hannah MitchellAugust 21, 2026

August Auto Sales a Mixed Bag

An early forecast shows strong business despite consumer hurdles, and hybrids are a big piece of their affordability coping strategy.

Read More →
EV charger inserted into dark-colored car port
Industryby Hannah MitchellAugust 18, 2026

EV Market Humming Along

July sales show steady growth as the segment stabilizes from last year’s artificial surge following pullback of federal support.

Read More →
Ad Loading...
car in background with hand giving a thumbs up in front
Industryby Lauren LawrenceAugust 14, 2026

Auto Loan Delinquency Rates Stabilize

Auto loans are a main driver of nonmortgage consumer debt, but delinquency rates stabilized in the second quarter across all credit risk tiers.

Read More →
blue sky, yellow and orange rollercoaster with riders going up an incline
Industryby Lauren LawrenceAugust 12, 2026

EV Sales Recover in Q2

The EV sales roller coaster continues as numbers show improvement, but industry experts predict a year-over-year third-quarter decline and fourth-quarter jump.

Read More →
Photo of blue Toyota Prius parked next to body of water with city skyline in background
Industryby Hannah MitchellAugust 5, 2026

The Cheapest Hybrids to Fuel

The powertrain is increasing in popularity, in no small part due to its fuel economy. A new report lists the most efficient hybrids on the market.

Read More →
Ad Loading...
white SUV parked in front of a body of water with a gray sky background
Industryby Lauren LawrenceAugust 5, 2026

Hybrids and SUVs Gaining Ground

The most recent Kelley Blue Book Brand Watch found that only two nonluxury brands increased in shopper consideration, buoyed by their hybrid and SUV offerings.

Read More →