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      04-23-2012, 03:59 PM   #184
Casey 5
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Drives: E90 335i,SPG,ZSP,ZPP,Step
Join Date: Jun 2005
Location: Chapel Hill, NC

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Audi Supply Chain vs BMW

Those who "knock" Audi's relationship with VW, Porsche, Lambo, do not understand the concept of supply chain.

When the VW Group goes out to an automotive supplier their VOLUME dictates price across components both shared and unshared...by VW, Audi, Porsche, etc.

For example....if VW, Porsche, Audi, all use a common fuse for the dash lighting....they get a much better price than independent BMW because of Volume. Their volume gets the VW Group the same part as BMW but for much less.

But it does not end there...if that supplier also sells a part unique to Audi...an LED assembly....Audi can get that for lower cost than if they were independant based on the volume buys of the VW group.

The savings across the VW Group have a rippling effect across the ENTIRE supply chain.

The savings can then go to:

R&D
Higher quality materials in the cabins--why the Audi materials always seem better.
Shareholder value

So I think we all know that to compete...BMW will have to start forming alliances...with Nissan or some other manufacturer to increase volumes across their supply chain to compete.

The result if they do not--

You will get LESS for paying MORE for a BMW.

Its just that simple.

So do not knock the VW connection....it allows Audi to build quality at lower cost!!

That is the true reason the fit, finish, and LEDs are so good at Audi.
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