VW Production Chief Leaves Amid Production Troubles
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.
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.
"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

Ownership Priorities are Shifting
A new survey shows that in the U.S. vehicle quality for generation Z is largely defined by advanced safety features, intuitive technology and premium sound systems.
Read More →
Pump Price Jump Calculated
ISeeCars.com examined fuel costs for different power trains, finding which ones have experienced the biggest hits since the war in Iran commenced.
Read More →
Black Book: Weekly Market Update
Wholesale values fell last week despite the spring season still being in the traditional full-gear mode, analysts said.
Read More →
Arkansas Auto Group Acquires First Indiana Rooftop
Performance Brokerage Services represented both the buyer and seller in the sale of Carver Toyota of Columbus by Carlock Automotive Group.
Read More →
Stellantis to Dive Into U.S. Lending
The multinational maker of Chrysler, Dodge, Jeep, Ram and multiple other brands received conditional approvals for a Utah-based industrial bank.
Read More →
New-Vehicle Prices Rise
With April sales down, higher prices on in-demand large vehicles helped inflate the overall ATP, though increases were under long-term averages, Cox Automotive reported.
Read More →
Black Book: Weekly Market Update
Last week in the wholesale automotive market proved to be a mixed bag, analysts reported.
Read More →
Black Book: Weekly Market Update
Conversion rates were flat last week at 63%, Black Book analysts calculated, as low-mileage and almost-near units outpaced the overall market.
Read More →
EU Auto Association Urges Action
Trade relations between the European Union and the U.S. are at risk, causing the European Automobile Manufacturers Association to push lawmakers to make a decision.
Read More →
Driving into the Super CFC Era
Understanding the risks and benefits of retail accounting and Super CFCs can help you better present options to your dealer partners.
Read More →