Michael Hobusch: "We aspire to have a flexible factory that can produce both electric and combustion cars"

Volkswagen Navarra is once again the focus of the updated focus due to the renewal of its product range and the sustainable and efficient adaptation towards upcoming electric models. Michael Hobusch, president of the company, gives us a first-hand account of the current situation at the Navarre plant.

AutoRevista.- What will this model update mean for the plant in terms of contributing to the brand's performance in the coexistence of highly efficient combustion vehicles and the new electric ID. vehicles on the market?

Michael Hobusch.-   The transformation of the Volkswagen brand towards electrification, both in its models and in its plants, entails a very high investment requirement. The basis for financing this investment is efficient products and efficient factories. The T-Cross, Taigo and Polo rank second, third and fifth respectively in sales of Volkswagen brand models in Spain. This excellent positioning, in our country and throughout Europe, of the three vehicles we produce in Volkswagen Navarra, together with the plant's outstanding productivity, are factors that contribute decisively to the brand's performance.

AR.- The plant ranks fourth in the Volkswagen brand in terms of production volume. How will the T-Cross contribute to maintaining this status, bearing in mind that it is exported to markets in different regions of the world?

M.H.- The product segment to which the T-Cross belongs is the urban SUV. This segment is the one that is currently experiencing the best sustained growth and has a bright future worldwide. For this reason, and as it already accounts for more than 50% of the manufacturing volume, its renewal will consolidate the plant's leading position.

AR.- In terms of advances and improvements in the manufacturing process, what technologies or means in the field of digitalisation and Industry 4.0 will be perfected with the arrival of the new T-Cross?

M.H.- The new T-Cross is a car integrated into the UNECE WP.29 R155 and R156 vehicle cybersecurity regulations. For this reason, we have adapted all systems and digital infrastructures of the product and its ecosystems, among others, the reinforcement of security and network segmentation, encryption of communications and IoT devices for updating the vehicle's software.

In addition, AI (artificial intelligence) and machine vision solutions have been designed for production process checks, which will enable us to further improve quality and efficiency.

AR.- How is the factory progressing in terms of preparing for future electric vehicles and their coexistence with the current thermal vehicles? How is the Future Fast Forward strategy shared with the Volkswagen Group's industrial base in Spain being incorporated into day-to-day operations?

M.H.- The physical changes in the factory are already beginning to be visible after more than two years of planning. Over the next two years, we will face more profound transformations in our production process to adapt it to the new models, while we manufacture the cars we have in series. We aim to have a flexible factory that can produce the cars that our customers demand, both electric and combustion, which is a guarantee for the future of our plant. The Future Fast Forward (F3) strategy enables the Volkswagen Group and our partners to meet the technological and investment challenges that are necessary for the transformation of the production process. Thanks to Volkswagen's joint efforts with the SEAT tractor and the F3 strategy, we are in a position to electrify Spain with the launch of four electric cars from 2025.

AR.- In the current evolution and transformation, what role will suppliers play?

especially those closest to you, to ensure a robust supply chain?  How is the interaction with the local supplier base progressing within the framework of the ACAN cluster?

M.H.- Following the experiences during and after the pandemic, supply chains are transforming to become more resilient. With the advent of electric vehicles, the proximity of our suppliers has increased, which has enabled us to reduce investments in containers and minimise space by reducing stocks. Working together with ACAN has certainly contributed to this. It is important to remain a common interest group in order to keep an eye on developments in the automotive sector and to be able to react in time. The transformation towards electrification is a long road that we have to travel together, we as manufacturers, but also in synchronisation with all our suppliers. And for this, an association such as ACAN is fundamental.

AR.- Volkswagen Navarra has been emphasising its Blue profile with a high environmental commitment for many years. Despite being at a high level, it continues to improve, having achieved its best results in 2023 and with new achievements this year, what are the keys to maintaining and improving this level? 

M.H.- Indeed, we continue to occupy the top positions in environmental efficiency among Volkswagen plants in terms of water, energy and CO2 indicators. The main keys in this area are the same as in other areas: team spirit, commitment to digitalisation, leanthinking and discipline. Upcoming projects, some of which are already underway, focus on the fields of energy (installation of photovoltaic panels and electric chargers), decarbonisation and waste (elimination of superfluous and landfill packaging). A new field, which has emerged more recently, focuses on the promotion of biodiversity in the green areas of our plant.

AR.- The company continues to make progress in the use of rail for vehicle dispatch, what possibilities are there for the use of this means of transport to be extended to the supply of components?

M.H.- Volkswagen Navarra's commitment to the train is clear, and it is one of the objectives with which we want to contribute to the goal of being a factory with zero environmental impact. For years we have been pursuing the goal of increasing the number of cars transported by train, and specifically, in the last four years the percentage of cars transported by train has exceeded those sent by lorry. In terms of materials, the awarding of the electric vehicle suppliers creates a number of opportunities for us that we can use in the future, opportunities that we are working on together with our colleagues at SEAT. By sharing suppliers and parts between the four electric cars that will be produced in the Iberian Peninsula, synergies arise that we will be able to take advantage of to increase the volume of goods transported by rail.

AR.- Finally, thinking about the future, Volkswagen Navarra has been very proactive in attracting and retaining talent through the Volkswagen Academy. What are the keys to continuing to have the best qualified personnel to face the coming challenges?

M.H.- Volkswagen Navarra wants to be a pole of attraction for the best Vocational Training (FP) students in specialities related to our activity. With this objective in mind, we are promoting the Apprenticeship Programme, now in its twelfth edition, in which, following the dual model, vocational training graduates combine theory and practice to train in a cutting-edge sector from a technological point of view, which guarantees them a job and real possibilities of development in a multinational that is firmly committed to sustainable mobility.

Our sector is in the midst of a transformation towards electrification. The key to having the best professionals in all areas is to develop greater internal agility that is capable of detecting new needs and new profiles that meet them, in order to attract talent as soon as possible.

Interview published in AutoRevista 2.389

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