Porsche 2010 Annual Report Download - page 69

components and new electric-mobility technologies
with regular series features.
The start of series development for a further
model series in the sporty off-roader segment (under
the working title of “Cajun”) has set the stage for
continuous, successful growth. As with the Cayenne,
procurement for the new model makes extensive use
of the structures and processes of the Volkswagen
group’s procurement organization. The deployment of
specific platform components, complemented by
specially developed new elements, have effectively
contained the costs of materials, investments and
development costs for the new vehicle, while ensu-
ring its design and features meet Porsche’s typical
standards.
To tailor the standard features of the Panam-
era to customers’ individual needs, a customization
offer has been introduced for this model series.
Purchasing of non-production materials
in the Porsche group
Our group procurement activities have cen-
tralized the procurement of non-production materials
within the Porsche group. Thanks to early identifica-
tion and pooling of requirements, and professional
procurement support, it was possible to exploit po-
tential for savings. In addition to requirements pooling
within the Porsche group, joint procurement activities
with the Volkswagen group have led to a tangible
improvement in the terms of contracts concluded for
non-production materials. The second construction
phase of the central spare parts warehouse in Sach-
senheim, with a total volume of 100 million euro, was
completed and went into operation in the short fiscal
year 2010.
Increased raw materials prices
The raw materials sectors saw significant
price increases in the second half of 2010. This was
due not only to industrial demand, but also to the
sharp increase in investor demand for commodity and
hedge funds. As a result, the automotive industry not
only faces a tighter supply situation, but is also in a
similar situation to 2008, before the beginning of the
global financial crisis. Porsche AG was able to contain
the effects on the company by means of targeted
hedging measures and compensatory measures in
other cost components of production materials.
The Volkswagen group also developed stra-
tegies to offset the higher prices of raw materials. It
was also necessary to align supplier and procured
component management to the new situation in com-
pliance with the sustainability principles of the Volks-
wagen group. As in prior years, procurement activities
concentrated on the development of new markets and
the continuous optimization of processes.
Supply situation for procured components and
raw materials in the Volkswagen group
Whereas in 2009 the government subsidy
programs in many countries triggered an increase in
unit sales of compact cars, 2010 saw increased
demand for vehicles from the premium segments
with luxury equipment features. Procurement suc-
ceeded in managing increases and changes in mate-
rial requirements that this shift in demand entailed,
supplying procured components to all component
and vehicle plants. This was especially the case at
the Volkswagen group’s production facilities in China,
which had to contend with a sharp rise in demand.
Key factors contributing to this smooth alignment
were the systematic improvements in processes,
especially in capacity, requirements, and procured
component management, and the increasingly close
integration with all divisions involved.
During 2010, the commodity markets devel-
oped in step with the global economy. The spot
markets registered substantial price increases
sparked by rising demand, speculation on listed
commodities and a changed pricing system for iron
ore. As a result, the price situation on the interna-
tional steel markets remained strained, with large
fluctuations in the prices of all commodities.
Volkswagen was quick to take steps to coun-
ter this trend and continued in the same vein in 2010.
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