Volkswagen and Its Supply Chains

Supply chains exist so that corporations can acquire necessary materials without holding any responsibility over conditions of labor, environmental management, logistical headaches, or anything else. They exist to protect the parent company from liability. So it’s hardly surprising that Volkswagen would respond to the discovery of their vast mendacious conspiracy to avoid American emission law by trying to push costs down the supply chain. Because VW doesn’t want to lose profit, it’s seeking to limit costs down the line. But there is a limit to how much this can happen. In order to reduce costs, VW and other companies have already often reduced their suppliers of products to one. So when a company that makes car seats and transmission parts for VW told them to jump in a lake, VW had to halt production entirely in some of its German plants, which no doubt will cost the company even more money. Couldn’t happen to a nicer company.