How Volkswagen makes old plants fit for new models

The future of existing plants is more topical than ever in the Volkswagen Group. Not only, but especially in Europe and Germany, where utilisation, capacity reductions and possible plant closures have been discussed for months, the question also always arises in parallel of how existing factories can be further developed in such a way that they can accommodate different models, platforms and drive types as flexibly as possible. For the world's second-largest car manufacturer by sales, this is not only about individual conversion projects, but about the future structure of its entire production network.

New vehicles, model relocations and platform changes must increasingly be integrated into established production structures without jeopardising quality, delivery capability and ongoing production. At the same time, the requirements for resource efficiency and more sustainable production concepts are increasing. The Group has explained exclusively to this editorial team the strategies and principles according to which Volkswagen decides between modernisation, reuse and replacement of existing systems. According to the company, brownfield retooling is one of the most demanding tasks in production planning.

Retooling on the move at BMW Spartanburg

Plant Spartanburg's $1.7 billion retool now runs petrol, diesel, hybrid and electric X5 variants down a single line, while Plant Woodruff strips a step out of battery assembly entirely. Equipment renewal, not just new buildings, is doing the heavy lifting.

When is the reuse of equipment worthwhile?

Whether equipment is modernised, expanded, relocated to another site or completely replaced is decided in Wolfsburg on a project-specific basis. Technical, economic, regulatory and scheduling requirements are incorporated into the assessment. Equipment that is still mechanically suitable may, for example, require modernisation in control technology, data interfaces or safety standards. Spare parts supply, software and available specialist knowledge must also be secured for the planned remaining service life.

Reuse can reduce procurement effort and project duration because proven technology does not have to be completely redeveloped and built anew. At the same time, the need for new robots, steel structures and electronic components decreases. This can reduce a project's CO₂ footprint. However, retooling is not automatically cheaper or more sustainable, because dismantling, transport, conversion, programming and recommissioning also involve considerable effort.

It is therefore crucial whether equipment can still be operated reliably, flexibly and economically for long enough after its adaptation. How far Volkswagen can go with such a transfer is shown by the preparation of the Puebla plant for the Golf. There, the group is bringing together production technology from several European sites.

Why is bodyshop particularly demanding?

In bodyshop, robots, welding guns, clamping devices, conveyor technology and control systems are closely interlinked. Changes at one station can therefore have effects on numerous upstream and downstream processes. At the same time, Volkswagen sees great potential for reuse precisely there. Basic plant concepts often remain stable across several vehicle generations, so that industrial robots, welding controls and parts of the conveyor technology can often continue to be used.

Model-specific components such as grippers, fixtures or programmes, on the other hand, usually have to be adapted or replaced. In retuning, therefore, it is often not a matter of taking over a complete line unchanged. Instead, suitable components are selectively extracted from existing structures, technically modernised and then integrated into a new production context that is tailored to the future vehicle and the processes of the respective plant.

Porsche plant manager compares his plant with Formula 1

Porsche has extensively converted the existing production in Leipzig for the all-electric Macan. Site manager Gerd Rupp explains how the plant integrates new drive technologies into established structures.

What distinguishes assembly from bodyshop?

In assembly, variant diversity, ergonomics, cycle-time coupling and modular operating equipment are at the centre. With a new model, not only tools and systems change, but also material provision, screw sequences, inspection processes and the activities of the employees. Integration becomes particularly complex when electric vehicles and combustion-engine models are to be manufactured on one line, as they sometimes require different components, inspections and safety precautions.

At the same time, the additional variety must not destabilise the production flow. Adaptable tools and modular systems make later model changes easier, but initially increase the planning effort and require more complex logistics and control systems. They pay off above all when a plant actually has to adapt its production to changing demand and manufacture different vehicle concepts in parallel without major structural interventions.

How can conversions be carried out during ongoing production?

The deeper a conversion intervenes in the ongoing production flow, the greater the planning effort and safeguarding requirements become. Volkswagen therefore plans such interventions on a risk-based basis. The decisive factors are the technical complexity, the depth of intervention and the possible effects on series production. During ongoing operations, the teams focus as much as possible on preparatory work that does not yet directly affect the actual production process.

System components can, for example, be pre-assembled outside the line, lines prepared or software versions tested. Production-relevant interventions, on the other hand, are carried out specifically in production-free time windows, for example at weekends or during a shutdown. In these short phases, numerous trades often have to work in parallel. Delays can jeopardise the restart and thus the plant's ability to deliver.

Production planning, plant engineering, maintenance, logistics and quality assurance must therefore be closely coordinated with one another. The more precisely individual work steps can be prepared and decoupled from one another, the lower the risk that unexpected technical problems will delay the restart. Brownfield retooling therefore requires not only suitable technology, but above all very precise scheduling and organisational planning.

Electric C-Class and small G-Class enhance Kecskemét

Mercedes-Benz has expanded its Kecskemét plant with an investment of around €1 billion. With the electric C-Class, the Hungarian site is moving into the core segment, while the electric GLC and, exclusively, the smaller G-Class will follow. At full utilisation, the plant could quadruple its 2024 output to as many as 400,000 vehicles a year.

How is the restart safeguarded?

The project is not completed with the end of the conversion work. Under real series-production conditions, mechanics, software, material provision and work processes must interact at the intended cycle. According to its own statements, Volkswagen closely supports the restart and monitors the plant technology closely. Disruptions are to be detected at an early stage before they lead to longer outages, quality problems or delays in delivery.

Particular attention is paid to modernised systems and components that were taken over from other production areas or plants. The maintenance teams and employees must also be prepared for changed processes, software versions and safety requirements.

Only in actual series operation does it become clear whether the individual technical and organisational measures interact reliably and whether production permanently achieves the required unit numbers and quality standards.

Where is Volkswagen already using retooling?

The strategy is evident at several sites. In Palmela, Portugal, according to the Group, more than 80 per cent of the existing production facilities were able to be reused for production of the new VW T-Roc. In Bratislava, the OEM modernised existing structures for the Passat and Skoda Superb. In addition, the site is being prepared for the electric Porsche Cayenne and is thus once again being upgraded for an additional vehicle concept.

The Wolfsburg main plant is also receiving a new model allocation. For the planned integration of the ID.3 from 2027, existing facilities are being modernised in a targeted manner. In Pamplona, the Volkswagen ID. Cross and the Skoda Epiq are to be integrated into the ongoing production of the Taigo and T-Cross. This will allow the plant to manufacture electric vehicles and combustion models in parallel and respond more flexibly to demand.

“Our production network must be able to breathe”

In the interview, project manager Patrick Walz explains how digital twins, flexible production lines, AI and local battery assembly are changing Kecskemét.

Will flexibility become the most important characteristic of a plant?

For a long time, production lines were tailored as precisely as possible to a specific model and high volumes. This is efficient as long as demand remains stable for years. However, fluctuating markets and differing developments in powertrain types are increasingly requiring more adaptable plants. Sites that can handle several models or powertrain concepts can more easily reallocate their capacities and respond to changing customer requirements.

This requires modular installations, flexible material flows and employees who master different processes. Brownfield retooling thus changes from a single project task into a permanent capability. Plants must not only be upgraded for the next model, but ideally also be prepared for later changes. The limit is reached when existing structures can only meet new requirements with a disproportionately high level of effort.

The decisive factor therefore remains the weighing up of industrial substance worth preserving against necessary technological renewal. If this decision succeeds, Volkswagen can use existing plants and installations for longer, limit investments and reduce resource consumption. Retooling thus becomes a central instrument for the transformation of the production network, without the Group having to create completely new production structures for every new vehicle.