Volkswagen has commenced opera-tions at its greenfield Chakan plant near Pune. Inaugurated by theGovernor of Maharashtra, S C Jamir, and Prof Dr Jochem Heizmann, Member of the Board of Management of Volkswagen Aktiengesellschaft, with responsibility for 'Group Production', in the presence of other dignitaries, the Chakan plant's first product would be the Skoda Fabia. Currently assembled at Skoda's Aurangabad plant, the production of the Fabia will shift to Chakan in a phased manner and at the same time increasing the local content. The Volkswagen Polo would join the Fabia at Chakan in 2010. The pre-production of Polo has already started. The go-ahead for the first welded body of the car was given by the new Minister for economics, labour and transportation of the German federal state of Lower Saxony, Dr Philipp Rosler. Market oriented production of the Polo is expected to commence by the end of this year. 

Speaking to the media at the inauguration, Prof. Heizmann said, "Starting with the Fabia we will begin manufacturing the Polo hatch early next year, followed by the notchback. India holds a very strategic position for Volkswagen." Jörg Müller, President and Managing Director of Volkswagen Group India, underscored the significance of the new factory in the Chakan industrial park in Pune district: "Volkswagen and its cars are already visible testimony to 'mobility - made in India'. So I am all the more delighted that our new plant in Pune sends a clear signal for the further development of our brands in India and for the people in this region." With a total financial commitment in India amounting to Euro 580 million, the Pune plant represents the largest investment to date by a German company in the country. One of the most modern in the Volkswagen Group, the facility has a maximum annual production capacity of 110,000 vehicles destined for delivery to the Indian market. Basis for high volume cars, starting with the Fabia and two Volkswagen cars, according to Heizmann, the Chakan plant makes it the second and a more strategic investment in terms of manufacturing sites in India after Aurangabad where the Volkswagen Group builds almost the whole of Skoda range, Audi A4 and A6 and the Jetta and Passat. 

The Chakan plant occupies a total area of over 575 acres, with buildings covering over 115,000 sq.m. The plant was built in a record time of 17 months and uses futuristically designed state-of-the-art equipment. Built under the supervision and guidance of Dr John Chako, the technical (managing) director of Volkswagen India, the expansive Chakan plant resembles a designer plant from the outside, having a high level of vertical integration and a large share of local suppliers. The facility is the only production plant operated by a German automaker in India that covers the entire production process from press shop through body shop and paint shop to final assembly. Following Volkswagen's manufacturing systems, the plant could be roughly divided into a body shop, paint booth, final assembly and a logistics area. 

Planning to employ some 2,500 people at the Pune plant by the end of 2010, the company hopes to reach full capacity in the next two to three years. The body shop, where the Fabia essentially starts to take shape, employs a combination of manual and robotised manufacturing operations. Kuka robots are seen at work in the weld shop. The highlight of the body shop is the diode laser brazing technology. Interestingly, the roof and side framer laser technology is used for welding the roof to the body of the car. 

While industry sources claim that the press shop is being set up and a powertrain facility would be built here in the near future, the powertrain and mechanicals of the Fabia are currently sourced from Skoda (Aurangabad) and the Czech Republic. Some four variants of the car would be manufactured here, the main difference being petrol and diesel. 

Fabia's body-in-white is transported to the paint booth. Painted bodies are transported to the final assembly through an overhead conveyor. One of the few environment friendly manufacturing plants around the area, the exhaust of the paint shop is re-burnt and the resultant heat and energy is reused. Once the painted body enters the final assembly, the doors are separated and sent to the door sub-assembly. Various peripherals are added. 

A seemingly complex layout of the final assembly, measuring 46,080 sq.m or an equivalent of six-football fields, has the Fabia body being fitted with the trim, cockpit, etc., followed by the marriage of the powertrain, which essentially consists of the engine-gearbox, exhaust, suspension and axles. The wheels are also fitted as the car travels over flexible conveyors. The car is then transported to the finish line where the doors are attached and the final bits added. Further on, the Fabia is subjected to final tests, including the shower test. 

Part of the final assembly is a 'Profi-room', which according to a Volkswagen official is the place to provide field training to the technical staff. The final assembly hall also has enclosed logistics area between the lines that holds inventory and parts, which are readily supplied to the line. There's also a 'wailing wall' where everybody assembles in case of a problem and the line shutting down. Discussion on the further course of action and the following decisions are taken here. 

As volume builds up and the Polo joins the Fabia next year, the company plans to build a good deal of local content. According to Heizmann, the company intends to have a high local content in India - 50 per cent with the Polo. 

Speaking at Chakan, Heizmann announced: "We will rely on local sources in India, using not just components but materials like steel and plastics." The company, which held its second supplier meet recently in Pune, is said to be working with a number of suppliers for the Polo. Interestingly, Volkswagen is also looking at marketing its light commercial vehicles in India. Donating a T5 ambulance to the Pune Red Cross, the company reiterated its commitment to enter the commercial vehicle market. 

Answering a media query, Heizmann said, "Commercial vehicles will start with the T5. We are preparing to roll out light commercial vehicles in India, and step-by-step we will build the volumes". About the UP! Small car concept shown at the 2008 Auto Expo, Heizmann opined that the UP! would fit very well with the Indian market. He declined to confirm the launch date and instead said that the company is developing it. Aiming for an 8 to 10 per cent market share in the long term, the company is engaged in the development of its dealer network. "Our big growth will start next year with the launch of the Polo," revealed Prof Heizmann. 

With an interesting synergy between the three group brands, Skoda, Audi and Volkswagen, the Volkswagen Group is all set to weave its magic in the Indian auto market. With two manufacturing sites and a healthy image to start with, the future for the German giant looks bright.