I've just read an article in todays' Auto Express (page 21), that the booming Chinese market is partly to blame for a shortage in diesel engines in the VAG group affecting Audis, VW's as well as Skodas................so now we know who to blame!

I've just read an article in todays' Auto Express (page 21), that the booming Chinese market is partly to blame for a shortage in diesel engines in the VAG group affecting Audis, VW's as well as Skodas................so now we know who to blame!

Thats what my dealer told me ages ago...

Mike

Doesn't account for delivery times on the continent being so much shorter than those in the UK.

What side of the road do the Chinese drive on?

Doesn't account for delivery times on the continent being so much shorter than those in the UK.

What side of the road do the Chinese drive on?

what does it matter, they are built in china.

if the engines aren't there, there will be less capacity on a production line (RHD Line) that runs at a reduced capacity to the other one (LHD)

Having been to China recently its certainly true that Skodas are popular, especially around Shanghai (where they are built by Shanghai-VW-FAW). However, all of the ones that I saw were petrol engine models and the engines are a different spec to European models and made in China. I have never seen a Diesel Octavia in China. I don't see why rising demand of Octavias in China should have any impact on supply of Diesel engines in Europe.

Yep, the Cinese aren't into diesels, so it shouldn't have any real effect.

I was told the problem was because VAG downsized their production plans based on the recession, so did all their suppliers, and the unexpected demand has caught them all out. No-one keeps stock these days, it's all just-in-time production.

I'm not sure why it's taking them so long to ramp production back up again, though.

They are not ramping up production as VAG are trying to control their prices using supply and demand techniques during last 12-24 mths. They cut production to protect both new and second hand prices particularly as they have a high number of people on these PCP deals. They seem to be currently doing very well from this strategy and seem reluctant to increase supply sufficiently. Also, dealers seem to have done very well from the second hand car market over the last 12-24 months due to this reduction of cars in the system. I maybe wrong but I am very suspicious of the whole situation and think that VAG along with others are deliberately trying to control prices and increase demand for their products so they can make more from each unit.