Replay Video
UP NEXT
1
Cancel
Difference between contracting coronavirus versus the flu
The Gleaner (Henderson, KY)
See more videos
What to watch next
UP NEXT
UP NEXT

Volkswagen’s supply chain appears “very much in triage” as logistics teams scramble to find auto parts needed for future output on the VW Chattanooga assembly line.

Loading...

Load Error

Volkswagen Group of America chief executive Scott Keogh used the triage phrase in a March 3 letter sent to more than 650 VW car dealers explaining the impact of China’s coronavirus outbreak.

With thousands of industrial workers in China under quarantine or just now returning to plants making auto parts, automotive executives in the United States are trying to figure out whether the scarcity of imported parts will become severe in the coming weeks.

Start the day smarter. Get all the news you need in your inbox each morning.

Some industrial experts suggest the 60-day supply of imported parts maintained by many manufacturers in the United States will begin to empty out by mid March.

Keogh’s letter assures dealers a full pipeline of 80,000 new automobiles will reach VW car lots during the next four months, including 18,000 Atlas Cross Sports. VW scheduled a national marketing campaign to begin March 9 for Cross Sport, a new model of sport-utility vehicle assembled at Chattanooga.

a large building with a mountain in the background: An overhead view of Volkswagen's plant in Chattanooga. © Volkswagen US An overhead view of Volkswagen's plant in Chattanooga.

LOGISTICS: FedEx Express adjusts shipping services as coronavirus outbreak spreads

CHURCHES: Amid coronavirus concerns, Memphis Catholics alter communion practice

Keogh described a “monumental achievement” by logistics teams, including Marty Ross and Paulo Monteiro at VW Chattanooga, “working around the clock” to secure auto parts. “Our purchasing team is keeping the pipeline full, and we are on track to hit our production targets for the near term,” the letter says.

Keogh did not explain when the near term will end or predict what could happen next. A VW spokesman could not be reached for an explanation.

Keogh noted North American factories supply 70% of VW auto parts. “The rest, small and easily shipped parts for things like air vents and seals in brake calipers, come from hundreds of suppliers in Asia and Europe,” the letter says. “More than 200 of our (logistics) colleagues have been in near-constant touch with suppliers around the world. We’ve put parts on flights from China and pulled them off trains headed to Detroit to be flown directly to our plants.”

VW’s major vehicle assembly lines in North America are located in Chattanooga and Puebla, Mexico. VW Chattanooga employs about 4,900 workers.

This article originally appeared on Memphis Commercial Appeal: VW Chattanooga stable but supply chain in 'triage' amid China's coronavirus turmoil

Read More
Microsoft may earn an Affiliate Commission if you purchase something through recommended links in this article.
TOPICS FOR YOU
Feedback

Found the story interesting?

Like us on Facebook to see similar stories


Send MSN Feedback

We appreciate your input!

Please give an overall site rating: