Volkswagen Group ties Technical Development and Procurement closer to speed up sourcing decisions
Volkswagen Group is pulling its engineers and buyers together at the earliest stages of product development and using the IZB supplier fair to find partners for the technologies it does not build alone.
- 365
- 5
- 30 October
What Happened
Volkswagen Group's approach to engineering and developing technology is not one-size-fits-all. Depending on the technology and its strategic relevance, the Group builds on its own capabilities, develops solutions together with partners or uses established external expertise. The stated aim is to make the right technology and sourcing decisions early, accelerate development and scale successful solutions across the Group.
“Our transformation is about becoming faster, less complex and more competitive. This means focusing our resources, shortening development times and making the right technology choices early to build better products and create real value for our customers. Strong partnerships are an important part of this approach. As a European company with a global footprint, Volkswagen Group combines its technological and industrial capabilities with a global partner network - accessing new expertise, sharing development and investment to accelerate innovation, and scaling successful solutions across our markets. With one clear goal: to be the Global Automotive Tech Driver.”
To make that work, Technical Development and Procurement are increasingly working together from the early stages of product development, when product concepts are being shaped. Engineering and procurement assess technologies, determine the most effective development and sourcing approach and align on implementation. Volkswagen Group says bringing engineering and commercial perspectives together early can help avoid additional costs later in the process and create more room for innovations and features that deliver the highest value for customers. At IZB, the Group is putting this approach into practice through five Group Hubs, each with specific challenges and relevant future technology areas for which suppliers, technology companies and startups were invited to submit projects and expertise.
365
Projects and expertise submitted to the Volkswagen Group Call for Proposals for IZB 2026, channelled through five Group Hubs.
“IZB is an important platform for the region, for the city of Wolfsburg and for the Volkswagen Group. Bringing international companies and start-ups together here, close to our development and procurement teams, creates the conditions for concrete cooperation. The fair attracts a strong and diverse range of suppliers, with growing interest from technology companies. This reflects the increasing importance of closer cooperation between our industry and the technology sector, with clear opportunities for both sides. Our goal is to use this industry platform to exchange with industry leaders, discover new opportunities and turn promising ideas into strong business cases.”
“The Volkswagen Group Hubs reflect how we approach technology and innovation across the vehicle. We focus on a broad portfolio of concrete technical and industrial areas – from circular materials and the future cockpit to software and AI. For us, innovation is not about technology for its own sake. It is about finding solutions that create real value, developing and implementing them quickly, and making them scalable across our vehicle platforms.”
Technical Development engineers and Procurement experts use the Hubs to explore potential applications and pathways to industrialization together with participating companies. Volkswagen Group points to its new partnership with NXP Semiconductors, announced at IZB, as an example of how targeted technology collaborations can strengthen key capabilities. The dialogue continues after the supplier fair: the German-Chinese Automotive Congress takes place at Autostadt on 30 October, with Volkswagen Group providing the setting. The conference brings together the Group, politicians, suppliers and Chinese companies to discuss innovation, competitiveness and opportunities in the automotive industry.
Previously from Volkswagen Group
Our earlier coverage reported that Volkswagen Group named NXP Semiconductors a strategic chip partner for its future zonal vehicle architecture. NXP's S32K5 microcontrollers are intended to become the core processors of that zonal architecture, which the Group is developing with Rivian. Today's release cites a new partnership with NXP, announced at IZB, as an example of targeted technology collaboration strengthening key capabilities.
Background drawn from MotorClaw's earlier coverage of Volkswagen Group's official releases.
Why this matters
Suppliers, technology companies and startups get an earlier, more structured route into Volkswagen Group decisions on what it builds, co-develops, partners on or sources — 365 projects were submitted for IZB 2026. The Group says aligning engineering and commercial views early can help avoid extra costs later and leave more room for features customers value. Buyers ultimately depend on those technology and sourcing choices.
Terms in This Story
- IZB
- An international supplier fair where suppliers, technology companies and startups present their projects and expertise to the Volkswagen Group and its teams.
- Group Hubs
- Five themed areas set up by Volkswagen Group at IZB, each built around specific challenges and future technology areas, where suppliers and startups can submit projects for joint exploration.
- Call for Proposals
- An open request in which a company invites outside suppliers, technology companies and startups to submit projects and expertise on defined topics.
Summarised from the linked release; details can be imperfect — always verify against the original source.