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      04-23-2012, 05:23 PM   #190
micknugget
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Drives: 2012 F30 328 Red
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Quote:
Originally Posted by Casey 5 View Post
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.
I fully understand the concept of supply chain but when you link a less expensive brand to a more expensive brand, you are either going to bring one brand up in prestige or one brand down. In this case I think it brings Audi down more than it brings VW up.
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