Volkswagen Navarra and the assembly of prototypes of the new model VW 270

Abstract

The study focuses on the automobile sector and more precisely in Volkswagen Navarra. The main objective is to study the assembly of prototypes, which is an important event inside an automobile company. Volkswagen Navarra is evaluating the possibility of assembling prototypes of the new Polo model VW-270. In order to support the decision of the company with real data, a cost estimation analysis has been performed. The costs involved in the prototype process have been grouped in two categories; prototypes´ exclusive costs and internal costs. The results found highlight that more than half of the costs of the assembly of prototypes are internal costs that already exist in the company. Therefore, the cost of the assembly of prototypes will not suppose entirely an additional monetary disbursement by Volkswagen Navarra. Nevertheless, the final decision of the company takes into account not just costs but other factors consistent with its long-run strategy.