European vehicle makers navigate the challenging US tariffs The European vehicle manufacturing sector faces a multitude of challenges including tariffs imposed by President Trump. OEMs are now reviewing their export strategies and manufacturing networks. Ian Henry
How flexibility, digitalisation and workforce agility are reshaping auto manufacturing From multi-powertrain assembly lines and digital twin-enabled operations to agile supply networks and adaptive workforce models, OEMs and suppliers are redesigning the production floor for a future that rewards flexibility and responsiveness. Anushka Dixit
UK vehicle production slips behind global leaders as China and North America accelerate EV manufacturing, trade alignment and industrial policy AMS explores why the structural forces behind Britain’s vehicle production are in decline, contrasting it with the strategic clarity and industrial momentum driving EV investment across North America, and preeminently. Ilkhan Ozsevim
Automotive expert Tunç Kip: Human-machine interfaces essential in boosting flexibility, quality, and performance in global manufacturing From the factory floor to upstream design, digital human-machine interfaces are enabling smarter, leaner, and more flexible vehicle production - but humans need to be at the centre of gravity for it to work. Ilkhan Ozsevim
Volkswagen appoints Dr. Werner Tietz as new head of Group Research and Development Volkswagen Group has announced that Dr. Werner Tietz, currently the Executive Board Member for Research and Development at SEAT S.A., will take on the additional role of Head of Group Research and Development at Volkswagen Group, effective July 1, 2025. AMS
China’s rare earth magnet export ban threatens global EV and automotive manufacturing, as US, European and Asian carmakers scramble to secure critical materials The global automotive sector is facing renewed disruption as China tightens control over exports of heavy rare earths and magnets. With EV powertrains and chips at risk, OEMs are now racing to diversify supply. Ilkhan Ozsevim
Will exports drive production growth across India? Building on the rising value of vehicle exports and components, the Indian government wants 50% of vehicles made in India to be exported by 2030 but there is some way to go before this ambition can be realised. Ian Henry
As VW cuts back in Germany, Slovakia and Spain emerge as new pillars of cost-effective and future-focused production across Europe As VW’s traditional German plants face uncertainty, its long-established facilities in Bratislava and Pamplona are stepping into the spotlight—producing top-selling models and gearing up for a new era of electric vehicles. Timo Gilgen
How digital twins, hybrid clouds and predictive AI are enabling connected manufacturing in the automotive industry Automotive manufacturers are racing to connect systems, optimise production and secure supply chains through digital twins, hybrid clouds and AI. But legacy systems and organisational inertia remain major obstacles. By Ilkhan Ozsevim. Ilkhan Ozsevim
Software-defined vehicles are transforming value creation, customer models, and strategies across the automotive industry, from BMW to Stellantis and NXP It’s now time to take a more holistic view of software-defined vehicles (SDVs). After all, they involve completely new business models. Who is pursuing which strategy? By Andrea Hoffmann-Topp
Ambitious targets and big investments for India’s carmakers After a period of downsizing or complete withdrawal by some foreign OEMs, investment in Indian production is on the rise again with the domestic vehicle makers leading the way. Ian Henry
UK competition regulator fines 10 carmakers and trade bodies over collusion in green advertising and recycling disclosures The UK’s competition watchdog has fined major carmakers and two trade bodies over £77m for colluding on green advertising. A whistle-blower tip from Mercedes-Benz exposed years of consortium activity that limited consumer choice. Ilkhan Ozsevim
EU allows automakers flexibility for 2025 emissions targets to be averaged over 2025-2027, easing regulatory pressure The European Commission has eased 2025 CO2 targets, averaging them over 2025-2027. While this relieves short-term pressure, it raises concerns over Europe’s ability to stay competitive with China in the EV race. Ilkhan Ozsevim
Accelerating EV innovation transforms design and manufacturing processes as Toyota and Volkswagen lead cross-functional integration and digital twin adoption for future production Industry experts at the AMS Evolution panel examine the accelerating EV shift and its impact on design and manufacturing. Toyota and Volkswagen share insights on engineering flexibility and digital twin simulation to streamline production Ilkhan Ozsevim
Why global automotive innovators must embrace Design For Manufacture to power production in an environment of increasing complexity and fierce foreign competition Automotive manufacturers are streamlining production with Design for Manufacture (DFM), cutting complexity, reducing costs and driving EV innovation. In In this article, experts reveal the key strategies and digital tools that are reshaping vehicle production. Ilkhan Ozsevim
Will Volkswagen’s surplus German plants become Chinese production operations? As European vehicle makers continue to face challenging global markets and increased costs, many are having to make difficult decisions around underutilised production operations. Ian Henry looks at how Chinese OEMs could potentially buy or utilise some of Volkswagen’s production sites. Ian Henry
Volkswagen partners with Dassault Systèmes to accelerate software-defined vehicle development with the AI-powered 3DEXPERIENCE cloud platform Volkswagen has selected Dassault Systèmes’ AI-powered 3DEXPERIENCE platform as its primary engineering and manufacturing system. The move aims to drive software-defined vehicle innovation, enhance efficiency and unify fragmented processes across the group. Ilkhan Ozsevim
US tariffs on Mexico and Canada threaten North American auto production and supply chains, raising costs for manufacturers The US is threatening to impose tariffs on automotive imports from Canada and Mexico, testing the resilience of North American manufacturing. The move could drive up costs, disrupt supply chains, and challenge the stability of the US-Mexico-Canada Agreement (USMCA), just as the industry navigates nearshoring, investment shifts, and electrification. Ilkhan Ozsevim
Volkswagen de México opens world’s 1st fully electric paintshop at Puebla plant Volkswagen de México has launched the first fully electric paint shop in the automotive industry, eliminating natural gas use and improving sustainability. The Puebla plant’s advanced automation, AI-driven quality control, and renewable energy integration is a step toward carbon-neutral vehicle production. AMS
The automotive industry weighs the challenges of geopolitics and market factors in 2025 Trade wars, geopolitical tensions, mergers, increasing competition are all considerations that need to be addressed and navigated by vehicle makers and suppliers. Ian Henry highlights some of the key factors to look out for in 2025. Ian Henry
Volkswagen to cut 35,000 jobs and shift Golf production to Mexico amid huge German manufacturing overhaul Volkswagen announces a significant restructuring of its German manufacturing operations, including 35,000 job cuts by 2030 and the relocation of Golf production to Mexico. The plan aims to reduce production capacity by 734,000 units and save €15 billion ($15.45 billion) annually, addressing overcapacity and high labour costs to ‘enhance competitiveness’ in automotive production crisis. Ilkhan Ozsevim
China: Fierce domestic competition sees international brands suffer lower sales and a contraction of output As China’s domestic brands consolidate and grow both at home and internationally, the international brands, which have benefited from growth in the Chinese market over the years, now face serious headwinds. Ian Henry
VW Wolfsburg plant kicks-off Tayron production with precision and digital innovation The VW main plant is once again producing four different models. After the Seat Tarraco is phased out, the VW Tayron is taking its place. Read how the start-up worked here. Timo Gilgen
Skoda’s Andreas Dick on driving flexible manufacturing, digitisation and the role of AI in transforming automotive production for future competitiveness Two measures are at the top of Skoda’s new production boss, Andreas Dick’s, to-do list: digitalisation and flexibility. In the interview, he also reveals what impact the weak demand for electric cars has on his area of responsibility. Yannick Tiedemann
PowerCo partners with Alterric and EnviTec to power Salzgitter Gigafactory with 3 Terawatt Hours of green energy over the next decade PowerCo SE has secured 3 terawatt hours of green electricity for its Salzgitter gigafactory through long-term agreements with Alterric and EnviTec Biogas. These partnerships will cut 115,000 tonnes of CO2 emissions annually and support Europe’s renewable energy goals. Ilkhan Ozsevim
Volkswagen Chattanooga and Christopher Glover: a masterclass in flexible manufacturing in North America As Volkswagen celebrates its 75th year in the US, its Chattanooga plant exemplifies a flexible manufacturing model that integrates electrification, workforce innovation, and supply chain resilience. With Chris glover as EVP, the plant has become a benchmark for industry transformation. Ilkhan Ozsevim
The declaration of Martial Law in South Korea raises challenges for automotive production and global supply chains amid political upheaval The declaration of Martial Law in South Korea has thrown its critical automotive production and logisitics into uncertainty. As political tensions mount, automotive manufacturers and supply chains brace for potential major disruptions in operations and logistics Ilkhan Ozsevim
Scaling agility in auto manufacturing: Volkswagen and Toyota on flexibility, digitalisation, and workforce innovation Through a series of insights shared by Chris Glover, executive vice-president of Volkswagen Group of America, Chattanooga Plant, and Jaime Moore, senior principal engineer at Toyota North America, the discussion called for a vital need for flexibility, collaboration, and technological innovation in navigating constant change. Anushka Dixit
Henning Habicht appointed Head of Volkswagen Chattanooga Operations Habicht takes over from Chris Glover, who will retire in January 2025 after more than three decades with Volkswagen, including a three-year stint at Chattanooga. Nick Holt
Rivian and Volkswagen Group JV to create electric architectures and software The new joint venture (JV), with a potential investment of up to $5.8 billion, will see engineers from both partners developing software and electronics architectures and scale the electric vehicle platforms and architectures. Nick Holt
AMS Automotive Evolution: Reducing costs, fast-tracking development, embracing change The AMS Automotive Evolution conference in Detroit brought together leading car makers and tier suppliers to discuss managing production operations as the EV transition continues. AMS Editor Nick Holt shares some takeaways from the event. Nick Holt
Volkswagen grapples with high costs in Germany to address “decades of structural problems” says CEO Oliver Blume Volkswagen Group CEO Oliver Blume is pushing for aggressive cost reductions as the automaker confronts “decades of structural problems.” Rising German labour costs and sluggish market demand have intensified pressures on VW to overhaul its strategy. Ilkhan Ozsevim
Renault, Volkswagen, Stellantis and Geely pursue entry into Korea’s growing auto market as consumer demand rises As Korean consumers increasingly favour imported vehicles, global auto giants including Renault, Volkswagen, Stellantis and Geely plan new market entries with brand launches and expansions, reflecting shifting local preferences and competitive pricing against domestic cars. Ilkhan Ozsevim
Change is the only constant for Volkswagen Chattanooga EVP Christopher Glover The head of Volkswagen’s US plant operations is managing market and technology complexity through flexible facility design, practical digitalisation, training and engagement with workers. He speaks to AMS ahead of a keynote presentation at AMS Evolution North America in Michigan. Christopher Ludwig
How VW’s Palmela plant excels with lean production, in-house 3d printing, and 90% automation to produce the T-Roc while preparing for the next generation of vehicles While the continued existence of German VW plants is being questioned, Volkswagen Autoeuropa in the middle of Portugal is operating at a good capacity. Here’s a look at the lean principles that ensure that the T-Roc plant is running so well. Timo Gilgen
Volkswagen faces manufacturing challenges amid financial troubles Volkswagen is grappling with mounting financial troubles, signalling a worsening situation in its global manufacturing operations. With two profit warnings in three months, the automotive giant faces falling EV sales, factory underutilisation, and tariff threats from China. Ian Henry
“We cannot afford to make any mistakes” - Volkswagen’s Portugal boss Thomas Hegel Gunther It’s not easy being the manager of a VW plant these days. In an interview, Volkswagen’s Portugal boss Thomas Hegel Gunther explains what makes the home of the T-Roc so special and how his team is continually increasing effectiveness through various lean principles. Timo Gilgen
With the hope of exponential problem-solving on the horizon, are quantum computers the future of the automotive industry? Quantum computers promise to give industry and science a boost when it comes to solving complex tasks in the future. But how exactly do quantum computers work and which model currently has the highest computing power? Götz Fuchslocher
Mexico’s automotive industry is a balancing act between foreign investment and domestic concerns While the US government encourages domestic production, Mexico continues to attract foreign automotive investment. The trend is particularly evident in the arrival of Chinese manufacturers, poised to have a significant impact on regional production. Ian Henry
Volkswagen’s plan to close two German assembly plants is an existential crisis for legacy auto – but only part of the solution VW’s announcement marks a pivotal moment for Europe’s legacy OEMs with huge repercussions for German production and broader European supply chains. Daniel Harrison, automotive analyst at Ultima Media assesses the causes, potential remedies, and opportunities. Daniel Harrison
Audi’s electric hopes rest on Györ Györ plays a special role in Audi’s production network. Just as important as the approximately 176,000 vehicles produced each year are the almost 1.7 million drives produced. Now Györ must make the transition to electromobility. Werner Beutnagel
VW in cooperation to develop sustainable materials for vehicle interiors Volkswagen will work with Revoltech to develop sustainable bio-based leather alternative made from industrial hemp. Nick Holt
Volkswagen warns of German plant closures and the end of job security amid EV struggles Volkswagen is considering closing key German plants and ending a long-standing job security scheme. This move comes as the automaker struggles with insufficient electric vehicle demand, reduced government subsidies, and the push for substantial cost savings. The decision could lead to significant job losses and marks a turning point in the company’s 87-year history. Ilkhan Ozsevim
Skoda builds updated Octavia at Kvasiny Skoda shuffles production to add Octavia to Kvasiny and free up capacity at Mlada Bolslav for Enyaq and Elroq models. Nick Holt
Despite industry fears, global EV sales reach record highs in 2024 and remain on an upward trajectory How will slowing growth in EVs impact auto industry investment strategies? As the industry navigates challenges from rising costs and charging infrastructure gaps, to consumer range anxiety and rising competition, Daniel Harrison explodes some EV myths. Daniel Harrison
Volkswagen’s Traton eyes third European battery plant to meet Electric Vehicle demand Traton Group, Volkswagen’s commercial vehicle arm, considers a third battery assembly plant in Europe to support rising electric truck demand. Potential locations include Germany, Poland, and the Netherlands. This move aligns with the EU’s carbon reduction roadmap and Traton’s goal of 50% zero-emission vehicle sales by 2030. Ilkhan Ozsevim
In Emden, Volkswagen wants to leave the Passat behind Volkswagen’s Emden plant has existed in northwest Lower Saxony for decades. Nowhere else is the change to electric drives so noticeable. With new logistics, new assembly and the new ID.7, a new era begins. Timo Gilgen
Volkswagen invests $5B in Rivian to establish 50/50 EV and software focussed Joint Venture Volkswagen Group’s $5 billion investment in Rivian forms a joint venture to develop cutting-edge EV architecture and software. The judicious move strengthens both companies’ market positions, both helping Rivian advance its R2 and R3 models while addressing Volkswagen’s software challenges. Ilkhan Ozsevim
The future may be all electric, but not just yet With demand for battery electric vehicles lower than expected, OEMs are boosting hybrid output and extending ICE production. Ian Henry
Volkswagen announces new affordable European EV Volkswagen Group has announced that it will make all-electric entry-level mobility widespread across Europe, with affordable EVs made in the continent, for the European market. Megan Kelly
Weak demand dims electric future Consumer resistance and trade disputes mean the future may not be so electric after all as vehicle makers express caution on zero emission vehicle targets. Ian Henry
Danny Auerswald to lead Volkswagen Saxony, bringing global production expertise Danny Auerswald will assume the position of managing director at VW Saxony starting July, overseeing technology and logistics at the Zwickau, Chemnitz, and Dresden plants. His leadership will guide a fully electric production network. Auerswald succeeds Robert Janssen, who transitions to executive vice-president, overseeing production and product management at SAIC Volkswagen in Shanghai. Ilkhan Ozsevim
Ford Otosan manufacturing for an economy in transition Ford Otosan has upgraded its manufacturing facilities in Turkey to ensure the Transit is ready for an electrified future Mark Smyth
Bentley prepares electric future with groundbreaking for new paintshop as part of £2.5 bn investment program As part of Bentley’s ambitious Beyond100 strategy, a state-of-the-art paintshop breaks ground in Crewe, signifying a leap towards Battery-Powered Electric Vehicle (BEV) production and a commitment to sustainability, innovation and digital manufacturing Ilkhan Ozsevim
VW focuses on Chinese market boosting cost competitiveness and local partnerships VW seeks to strengthen its position in the Chinese automotive market through achieving cost reductions in production and boosting local partnerships Nick Holt
VW Chattanooga votes union: A turning point for southern autoworkers? Nearly three-quarters (73%) of the VW Chattanooga workers voted in favour of joining the union, making VW’s Chattanooga’s plant the first unionised foreign car factory in the southern US since the 1940s. It’s a major win for the UAW, which has struggled to expand its influence beyond its Detroit base in recent years. Anushka Dixit
Impacts of global geopolitics on European production Geopolitical influences on the automotive manufacturing sector are intensifying and becoming ever more powerful. European trends cannot be looked at in isolation; their impact on the ground in Europe have their roots in wider global factors… Ian Henry
The changing shape of Europe’s automotive production operations European vehicle manufacturing is having to adapt to weakening EV demand and increasing competition. This means revising production volumes and rethinking the ICE-EV balance in the short term. Ian Henry
Europe: OEMs face multiple challenges ahead With global geopolitics in increasing turmoil and ongoing economic uncertainty, Ian Henry shares his thoughts on the notable challenges facing the European vehicle manufacturing sector. Ian Henry
From Wolfsburg to Zwickau: Volkswagen shifts and consolidates ID.3 production amidst wavering demand Volkswagen shifts ID.3 production from Wolfsburg to Zwickau in an effort to optimise resources amidst changing market demand Ilkhan Ozsevim
Challenges looming for US vehicle production EV production in the US is facing headwinds from both weakening demand and foreign competition. Ian Henry
Antolin expands its production footprint in Asia with a new plant in India The new plant will produce lighting, HMI systems and electronics for leading automotive manufacturers in the Indian market. Nick Holt
Is cost-cutting the newest trend among OEMs in Europe 2024? Watch this space… As Renault and VW move towards major and comprehensive cost-cutting projects, with the squeeze of uncertainties and inefficiencies, is this liable to spread? Ilkhan Ozsevim
The state and stipulation of automotive production: Retrospect 2023 to prospect 2024 Using 2023 as a launchpad into the coming trends of 2024, we take a dive into the coming automotive production trends set to shape the industry Ilkhan Ozsevim
AMS Winter 2023/24 – BMW’s battery boost Our Winter digital edition takes an in-depth look at how OEMs are getting to grips with developing and manufacturing new electric vehicles and powertrains AMS
How battery and electric motors and EVs are reshaping the European automotive supply chain The automotive industry is in a major shift with EVs reshaping the supply chain. Challenges and opportunities include replacing traditional components tied to combustion engines, new players in the battery market, disruptors facing tariffs, and the looming influence of China in Europe; all adding new layers of complexity. Ian Henry
How Europe’s Big 3 (Volkswagen, Stellantis, Renault) are evolving their manufacturing arrangements and production strategies in the European automotive industry as electrification takes hold As the automotive industry in Europe undergoes a seismic shift from internal combustion engines (ICE) to electric vehicles (EV), major players like Volkswagen, Stellantis and Renault are navigating complex changes in their production strategies. Ian Henry
Skoda auto unveils next chapter with production launch of fourth-generation superb at Bratislava plant, alignment with visionary Beta+ project marks a transformative milestone Efficiency meets innovation as Skoda’s flagship Superb starts production in Bratislava with goals to set new standards in automotive excellence and sustainability. Ilkhan Ozsevim
New materials drive electric motor development Original equipment manufacturers need electric motors that are more energy-efficient and power-dense than those currently available. How composites and resin materials could support developments on this area was discussed by industry experts at a recent conference organised by Sumitomo Bakelite Europe (Ghent) NV (Sumitomo Bakelite Ghent). James Bakewell
A natural fit: how and why the automotive production industry is turning to bio-materials for sustainable solutions in pursuit of zero emissions and enhanced performance Bio-based materials like flax, hemp, kenaf, and jute are reshaping automotive production for sustainability. These natural fibres offer durable, lightweight alternatives for several vehicle components, from dashboards to electric vehicle batteries. Martin Kahl
New world order: How the US is boosting EV production with new technologies and investment The US is leading the way in the transition to EVs, with significant government support to increase domestic battery production and new technologies. Ian Henry explores how the US is becoming competition to China, and what it means for the rest of the world. Ian Henry
AMS Autumn 2023 – Continental Shift In this latest AMS digital edition we have a special focus on the North American automotive industry as the region’s OEMs make big investments in electric vehicle and battery production AMS
Ionway: Volkswagen Group’s PowerCo and Umicore establish new European battery materials JV in Nysa, Poland JV a tactical convergence between the OEM with major battery materials player effectively pooling resources and expertise to capitalise on European market as demand booms Ilkhan Ozsevim
Floods affect manufacturing facilities in Slovenia Major flooding in Slovenia throughout the last month has affected manufacturing facilities in Slovenia and across Europe, hitting the production of carmakers including Volkswagen. Megan Kelly
VW and Audi strengthen partnership with SAIC and Xpeng to expand EV production and development in China for China strategy Volkswagen invests $700m in Xpeng and will partner on tech and platform, while Audi expands partnership with SAIC and will produce vehicles on one of its platforms. Ilkhan Ozsevim
VW to make Spain an electric vehicle hub The VW Group is building new battery production capacities in Valencia and at the Seat headquarters in Martorell to support further electric vehicle production in the region Werner Beutnagel Nick Holt
India’s light vehicle demand is rising again, and so is manufacturing investment India has long been seen as the next big thing in automotive manufacturing, due to its growing middle class and high demand for vehicles, but it has struggled to get there. Will new investment help it realise its potential? Ian Henry
AMS Summer 2023 – JLR goes electric In our AMS Summer digital edition, we have features on JLR’s plans to transform its end-to-end industrial system, ready for new electric models, Seat’s technical upgrades to production operations and upskilling the workforce and insights into developments at Audi’s Neckarsulm plant, and more. AMS