We will be closed on July 4th in Observance of Independence Day!
By John Chauvin, General Manager
By now the entire world knows there are production problems no matter what type of product or “widget” you produce. The blame can be placed in many different areas starting from Covid to micro-chip shortages, global supply chain disruptions, lack of workforce, high labor costs, and maybe even inflation. And that’s just naming a few. The list could go on forever if one were to take a survey of who to blame.
Good companies have adjusted, created “work arounds” so to speak, adapted and continued to move forward. Some have not.
I do have to credit the auto industry and its willingness to adjust. Of course, this does not come without its own set of issues and not all auto manufacturers have done it the same. Let’s talk about Volkswagen for, well, obvious reasons.
The question Volkswagen of America (VWoA) has asked its Nation Dealer Advisory Council (NDAC) is “do we continue building product with a reduced amount of content (options) when we cannot get a particular part or stop production for that model line all together”? Even if it’s only one option they cannot obtain.
This is an issue because trim levels typically come “standard” with a certain set of options and those standard options are what makes us as customers pick that trim level to begin with.
If you’re a loyal VW enthusiast and you’ve upgraded your vehicle three times over the years, say – went from a Jetta to a Tiguan and now to an Atlas, chances are the trim level (S, SE or SEL), whichever one you’ve had, is what you’re accustomed to and want to continue to buy. The standard options may not all be the same on the now SE model as it was one or two vehicles ago. The deleted options that are normally standard are now given a credit (dollar amount removed) on the Monroney Label or window sticker.
While you are not charged for this missing part, it is also not on the vehicle like it may have been in years past.
Surprisingly the response to VWoA’s question is not quite 50/50 it’s more like 60/40 in favor of building the vehicle without a particular option if it cannot be obtained. And that’s what they’re doing. I guess one could argue a vehicle is a necessity but not all the options are a necessity. You could also argue – will this make my trade-in worth less when I’m ready to replace this vehicle? I could see points on both sides but at the end of the day, people need vehicles, VWoA needs to produce them, we need to sell them.
Transportation needs do not come to a halt over a heated seat option that may not be available on production day (just an example).
I’ve seen other auto manufacturers take a different approach and install the button and the wiring and deliver the vehicle without the guts of the “widget” itself. They tell the customer, to come back when it becomes available, and they’ll install it. This approach does require a bit of a “retrofit” process but does not come with a credit or discount on the window sticker.
I guess both ways can and do work, it’s just a matter of choice. Cars are rolling off the assembly line and yes many are sold as they arrive or prior to arrival but I assure you, vehicles are still being produced.
This may not be “business as usual” but then again, what in our life is these days? It’s just a matter of adjusting, adapting, and moving forward and for that, Volkswagen of America has done a tremendous job.
As always, thank you for your business. Wishing you and your family, a safe and happy 4th.
John Chauvin, General Manager
Hewlett Volkswagen, L.P.
