Porsche 2012 Annual Report Download - page 133

the rapidly expanding markets of Asia and Eastern
Europe, risks arise due to government intervention
in the form of tax increases, for example, which
could reduce private consumption.
Dependence on fleet customer business
In the fiscal year 2012, the percentage of total
registrations in Germany accounted for by busi-
ness fleet customers increased to 12.7 percent
(12.4 percent). The Volkswagen group’s share of
this segment rose to 47.7 percent (46.8 percent).
In Europe, Volkswagen’s extensive product range
and target group-specific customer care enabled it
to extend its successful position in this segment:
although registrations by business fleet customers
fell by 4.3 percent in a declining market, the
group’s share increased to 29.3 percent (28.7
percent). The fleet customer business continues to
be marked by increasing concentration and inter-
nationalization. Thanks to its broad product portfo-
lio, however, the Volkswagen group is well posi-
tioned to face the growing importance of the issue
of CO2 and the trend towards downsizing. No
default risk concentrations exist for individual
corporate customers.
Quality risk
Sustained high demand in the Volkswagen group’s
key markets poses particular challenges for quality
assurance. Quality assurance is of fundamental
importance especially in the growing automotive
markets of Brazil, Russia, India and China, for which
dedicated vehicles are developed and where local
manufacturing operations and suppliers have been
established. The Volkswagen group analyzes the
conditions specific to each market and thus ensures
growth in these regions. In cooperation with the
central quality assurance function, Volkswagen
continuously develops effective measures to coun-
ter identified local risks and then implements those
measures locally, thus minimizing quality defects
from the outset.
The Volkswagen group’s need for high-grade
supplier components of impeccable quality is rising
due to growing production volumes, increasing
complexity and the use of the group’s toolkit sys-
tem. To ensure production and hence meet custom-
er expectations, it is extremely important that the
Volkswagen group’s own plants and suppliers deliv-
er on time. The introduction of an internally-tested
risk management system at suppliers is an im-
portant step towards ensuring long-term quality and
supply capability early on in the supply chain. Quali-
ty assurance thus helps to fulfill customer expecta-
tions and consequently boost the reputation, sales
figures and earnings of the company.
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