Watch: VW's Dr Susanne Lehmann on the group's strategy for growth in South-East Asia
Dr Susanne Lehmann, managing director of VW Group Malaysia, discusses VW Group's goals in South-East Asia and how it is collaborating with suppliers, logistics service providers and government agencies to achieve these goals.
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2 min
With a huge presence already in Europe and China, a key region VW Group is keen to expand within is South-East Asia. Speaking on the Red Sofa at Automotive Logistics & Supply Chain ASEAN, Dr Susanne Lehmann, managing director of VW Group Malaysia, discussed localisation, collaboration, regulatory barriers and 'Asia-for-Asia' supply chains.
Working with local partners
Lehmann highlighted the importance of partnerships and collaboration, not just with suppliers but also with government agencies and logistics companies. Working in a more integrated way with these parties will be key as VW Group manages growth in the ASEAN region.
She referred to 'Asia-for-Asia' logistics in her keynote session, and shared more about this concept on the Red Sofa, explaining that shipping parts from Panang in the north of Malaysia –for example – to Germany, then back to Pekan on Malaysia's east coast is simply inefficient.
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Localising the supply chain to ensure parts don't need to leave the region delivers benefits in terms of simplifying customs and reducing emissions, but also, Lehmann said, gives VW Group a chance to "give back to the local societies and industries".
"For me, it's important not only to talk about the multinationals... but also to bring technology to local companies to really [support] the technology transfer," she said.
Touching on Malaysia's industrial strengths, Lehmann added: "We have a huge industry, we have very well-educated people, and we have the infrastructure we need."
When it comes to supply chain and logistics partners, VW Group is looking for more technology and more efficiency in processes. She explained that the group has a Logistics Efficiency Council in the country, and noted that technology and forecasting can be vital in addressing supply chain issues from geographical constraints and natural disasters.
ASEAN's fragmented regulation
One significant challenge for automakers in South-East Asia that Lehmann drew attention to was the region's regulatory complexity, with fragmented regulations and tax structures requiring additional consideration to ensure compliance with local regulations in every country the company operates in.
She said that often efforts have to be doubled when factory operations are scrutinised by the governments of two different countries. Lehmann emphasised the need for standardisation in the ASEAN region, urging policymakers to "please work on facilitating these processes and make them as easy as possible".
