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Tag: Volkswagen

  • Volkswagen Teases Electric SUV

    Volkswagen Teases Electric SUV

    Volkswagen is all set to bring in the ID. ROOMZZ1 concept at the Auto Shanghai 2019. The ID. ROOMMZZ1 is the next member of the ID family and gives us a glimpse into the company’s upcoming version of a zero emission SUV.

    The production version based on the ID ROOMMZZ1 will first make its debut in the Chinese market in 2021 after which the model will be brought into other global markets. Just like the compact I.D.1, the I.D. CROZZ1, the I.D. BUZZ1, the I.D. VIZZION1 and the I.D. BUGGY1 before it, the sixth member of the fully electric family is based on the modular electric drive matrix and comes laden with innovations.

    The I.D. ROOMZZ1 gets variability in terms of vehicle interior, boasting of new seat configurations, high-quality materials and customizable light. It also gets the IQ.DRIVE systems which will drive the I.D ROOMZZ1. There’s a I.D. Pilot mode too in which the vehicle can be driven autonomously without an active driver which basically hints at a level 4 autonomous vehicle.

    There’s not much information yet about the what powers the ID ROOMZZ1, and what user experience will be like. We will know more about this, once the company showcases the car at the 2019 Auto Shanghai.

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  • Volkswagen Polo, Ameo And Vento Get Black And White Edition

    Volkswagen Polo, Ameo And Vento Get Black And White Edition

    Volkswagen India has introduced Black and White special editions for its Polo, Ameo and Vento in India. The engine options and the specifications remain the same, although the Black and White edition cars get a bunch of cosmetic upgrades. The Black and White editions get body graphics, leatherette seat covers, roof edge spoiler, 16-inch Portago alloy wheels, black roof and ORVMs and a Black and White Badge on the front fenders. Volkswagen also re-introduced the ‘Deep Black’ colour on the Polo and the Vento but not on the Ameo. The good news is that the Black and White edition for the Polo, Ameo and Vento is available at no extra cost and will be available at all Volkswagen dealerships.

    Steffen Knapp, Director, Volkswagen Passenger Cars said, “It is our constant endeavor to enhance our product offerings that are in-line with evolving consumer aspirations. The Polo & Vento have been strong contenders within their segments. Adding a dash of style, these enhanced

    Also, camouflaged test mules of the new Vento and Polo have been spied testing in India which suggests that the new models could be just around the corner. Since an all-new Vento which will be developed on an Indianised version of the MQB A0 platform has been scheduled for 2021 in India, the 2019 model will receive minor tweaking, most of which is likely to be done to the front end.

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  • Volkswagen To Improve Production With Amazon Cloud

    Volkswagen To Improve Production With Amazon Cloud

    Volkswagen on Wednesday said it has teamed up with Amazon Web Services to link up and integrate the data from 122 VW Group plants, machines and systems, as a way to improve its production systems and processes. Amazon will help Volkswagen join up its plants and supply chain with over 30,000 locations and 1,500 suppliers using a data platform known as the “Volkswagen Industrial Cloud”, the company said in a joint press release with Amazon.

    The cloud platform could be made available to other car manufacturers and specific negotiations with major industrial companies interested in migrating to the Volkswagen Industrial Cloud are already underway, VW and Amazon said.

    The cloud helps VW to detect supply bottlenecks and process disruptions early as well as to optimize the operation of machinery and equipment.

    Amazon’s machine learning analytics and production know-how will be extended to the requirements of the auto industry, VW and Amazon Web services said.

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  • VW new sedan model launched

    VW new sedan model launched

    Volkswagen launched its sleek new midsize Arteon sedan in Korea on Wednesday with high hopes that the car will overshadow consumers’ memories of the company’s emissions rigging scandal, which was first revealed three years ago. The sedan is the last of the five cars the German automaker promised to roll out in the local market in April, when it opened up a press event to show it was back in Korea after suspending sales in 2016.

    Stefan Krapp, the managing director of Volkswagen Korea, said he is “convinced the new Volkswagen Arteon will be another best seller in the Korean market, alongside the Tiguan, Tiguan Allspace and Passat,” during the launch event. He introduced the new sedan as its “new flagship model that opens a new chapter of Volkswagen’s design language.”

    The latest sedan is positioned at the top of the carmaker’s sedan line up, even above the Passat GT, according to Krapp.

    Under its sporty-looking exterior lies a spacious interior, thanks to the Arteon’s 28.40 centimeters (11.18 inches) wheelbase, which the carmaker says is the longest among its competition. The storage space can be as large as 1,557 liters (55 cubic feet) when the backseats are folded down.

    All Arteons come with a whole package of driving assistance programs, including adaptive cruise control and parking assist as basic features, in line with the digital trend sweeping the auto market. The cars come in two trims – Arteon Elegance Premium and Arteon Elegance Prestige. The most distinct feature of the Arteon is its quality assurance program.

    Krapp said the carmaker’s utmost priority is regaining consumer trust and reaffirmed the company will not compromise on quality.

    Volkswagen’s Triple Trust Program, exclusive to the Arteon, offers a bumper-to-bumper warranty for five years or 150,000 kilometers (93,205 miles), whichever comes earlier. The program also guarantees up to 1.5 million won ($1,347) in maintenance costs when metal plating or painting is necessary after an accident. For windshield glass, side mirrors and tires, which often need to be replaced, the company will guarantee up to 2 million won in repair cost.

    “This package is the best available in the market, I would say,” Krapp said. He added that in the import car market, where consumers usually sacrifice either style or value for money, the Arteon offers both.

    “This is how we will challenge our competitors,” he added.

    Though Volkswagen had no sales at all last year, it has gradually been coming back to life thanks to the popularity of the four models it launched earlier this year: the Passat GT, Tiguan, Tiguan Allspace and Passat TSI. The automaker’s market share in the local market is still in the single digits, low compared to good days when its shares were in the double digits, but it managed to reach 5.65 percent market share this year through October and sell a total of 12,294 cars.

    Whether the Arteon will help sales is another question, as it’s a pricey product. The more affordable Arteon Elegance Premium carries 52.2 million won price tag, while the Prestige model sells for 57.1 million won.

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  • SK unit to supply batteries to VW

    SK unit to supply batteries to VW

    SK Innovation is supplying electric car batteries to Volkswagen Group along with existing suppliers LG Chem and Samsung SDI, the Korean battery maker said Wednesday. The Volkswagen Group brands plan to launch 50 new fully electric models by 2025, and the group said it needs more battery supplies in a statement Tuesday. SK Innovation was the last of the four battery suppliers selected by the carmaker.

    SK Innovation will start supplying batteries to Volkswagen cars in Europe from 2019. LG Chem and Samsung SDI are also strategic partners in the auto company’s European operations.

    From 2022, SK Innovation will also supply batteries for the North American market.

    The group’s electric car production in China will source batteries from Chinese partner Contemporary Amperex Technology (CATL) from 2019.

    SK Group’s battery arm is planning on covering Volkswagen orders by setting up new facilities in Europe and the United States. Currently, the company is mulling three locations in the United States, it said, without giving details about the production capacity or the amount of investment. As for its newly-planned European plant, the company said it is considering multiple locations including Hungary, where it is already building a plant.

    When all planned factories are in place, SK Innovation’s battery production capacity will increase to 20 gigawatt-hours per year by 2022, the company said. Despite being a latecomer to the market, SK Innovation has been rapidly expanding its battery business. Daimler and Kia Motors are also using SK batteries.

    Its share of this year’s global battery market, excluding China, was 2.2 percent based on accumulated battery sales through the end of September, according to data from market tracker SNE Research, growing from 1.4 percent the same period last year.

    LG Chem is still the largest local player, with a 17.5 percent market share, followed by Samsung SDI, with an 8.2 percent market share.

    “With SK Innovation, LG Chem, Samsung and CATL, we have found strong partners for the long-term supply of cells for our electric vehicles,” said Stefan Sommer, a Volkswagen board member responsible for components and procurement.

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  • Nissan Leaf approved for vehicle-to-grid use in Germany

    Nissan Leaf approved for vehicle-to-grid use in Germany

    Nissan’s Leaf is the first electric vehicle to secure regulatory approval as an energy backstop for Germany’s electricity grid. So-called vehicle-to-grid (V2G) technology is a connection between the EV and the grid through which power can flow from the grid to the vehicle and vice-versa, potentially enabling car owners to sell energy to the network. This would allow utilities to use EVs as a backstop if demand rises.

    Nissan said it would initially target corporate clients with fleets of more than 60 electric vehicles, adding that services based on V2G technology would be offered in Germany starting next year.

    “We strongly believe in an emission-free future,” said Guillaume Pelletreau, Vice President and Managing Director, Nissan Center Europe. “Leaf batteries could make an important contribution to energy transition in Germany and a sustainable future.”

    The initiative was also supported by Daimler-backed The Mobility House, local utility Enervie and German transmission system operator Amprion, which is co-owned by RWE and infrastructure investors including Munich Re, Swiss Life and Talanx.

    Nissan is relying on the CHAdeMO charging standard, which has been jointly developed by several Japanese companies as a competitor to Tesla’s supercharger system and the European-backed Combined Charging System (CCS).

    That puts Nissan at odds with European automakers, including BMW and Volkswagen, who are pushing to have the CCS, which is also capable of V2G services, established.

    “Nissan is ahead for now but other technologies, including Tesla’s supercharger can theoretically do the same thing,” said Thomas Raffeiner, chief executive and founder of The Mobility House.

    Nissan has so far sold about 370,000 electric vehicles and, along with top shareholder Renault, has been very active in exploring how car batteries can be integrated into the wider power system.

    While a mass uptake of EVs is expected to put a major strain on the power grid and require billions of euros in infrastructure investments, car batteries have already proven that they can become part of the network.

  • Audi To Pay 800 Million Euros Fine Over Dieselgate Scandal

    Audi To Pay 800 Million Euros Fine Over Dieselgate Scandal

    Volkswagen said on Tuesday that its subsidiary Audi would not contest an 800-million-euro (USD 927 million) fine issued by German prosecutors over “deviations from regulatory requirements” in diesel engines.
    “Audi AG has accepted the fine” investigators levied for “deviations from regulatory requirements in certain V6 and V8 diesel aggregates and diesel vehicles”, the group said in a statement, adding that “the fine will directly affectVolkswagen AG’s financial earnings” for 2018
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  • Volkswagen, Toyota lead a surge in imports

    Volkswagen, Toyota lead a surge in imports

    Audi and Volkswagen have roared back to the Korean imported car market after a two-year absence.

    After launching in May, Volkswagen’s flagship midsize Tiguan SUV became the best-selling imported car model in Korea in June.

    The Tiguan 2.0 TDI sold 1,076 units in June, according to the Korea Automobile Importers & Distributors Association on Thursday. It was the only imported model that sold over 1,000 units last month.

    In its launch month, Volkswagen Korea sold 1,561 Tiguans.

    “Although Volkswagen’s brand image was dented due to the emissions scandal, the Tiguan SUV is widely known to be well-made and it seems like Korean consumers have been waiting specifically for the model,” said Kim Pil-soo, an automotive engineering professor at Daelim University.

    “At the moment, there are no substitutes for the Tiguan SUV that satisfy those who want to buy an imported car in a medium price range. Due to its relatively low price, Tiguan is able to appeal to consumers who were thinking about buying domestic brands.”

    On the back of those strong sales, Volkswagen Korea was ranked third in sales of imported cars in June with only two models on offer, the Tiguan and the Passat sedan.

    As for specific imported models, BMW’s 5-series sedan 520d came in second in June sales with 963 units, followed by Audi’s A6 35 TDI with 891 units.

    Korea’s imported car sales continued to grow in the first half of this year.

    According to KAIDA statistics, a total of 140,109 imports were sold between January and June, which was an 18.6 percent year-on-year jump.

    Mercedes-Benz Korea managed to maintain its top spot for six consecutive months. It sold 41,069 units in the Jan.-June period, an 8.9 percent year-on-year increase. BMW Korea followed, selling 34,568 units, a 19.2 percent year-on-year jump.

    Japanese brands are expanding their presence in Korea. In the past, Japanese brands were largely neglected here because they were considered overly expensive.

    Toyota Korea came in third spot in the Jan.-June period. It sold 8,350 units, recording a whopping 60.8 percent year-on-year increase. A hybrid version of its new Camry sold 3,051 units in the first half, followed by the gasoline-powered Camry, which sold 2,104 units.

    Toyota’s luxury arm Lexus tumbled two steps from last year’s third spot to fifth, but its sales still recorded solid growth. It sold 6,276 units in the first half, a 7.2 percent year-on-year jump.

    “With the rising interest in imported cars, people who would have bought domestic brands are now turning to import brands. Japanese brands are benefiting from that shift in consumption patterns,” Kim added.

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  • Volkswagen launches SOL electric brand in China

    Volkswagen launches SOL electric brand in China

    Volkswagen has just launched the SOL brand for electric vehicles and the first product born out of the collaboration is an SUV called the E20X. VW has collaborated with China’s Anhui Jianghuai Automobile Group Corp (JAC). In fact, the E20X is almost identical to another JAC product.

    Volkswagen has provided any specific details on the car yet but it has been mentioned that the car will travel almost 300km on a single charge. The SOL E20X also will include artificial intelligence and intelligent connectivity, according to VW. In the future, VW, JAC, and Zhejiang Tmall Technology Company will collaborate to create a new retail model as well.

    VW did not provide specific details on the SOL brand’s launch, but Chinese consumers should first see the brand and its E20X later this year.

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  • Global Electric Vehicle Market to Reach 10.8 Million Units by 2026

    Global Electric Vehicle Market to Reach 10.8 Million Units by 2026

    Increasing global concerns regarding the negative effect of climate change along with alarming pollution levels recorded in the major cities have created a demand for electric vehicles. A major factor behind the growth of electric vehicles is the support provided by various governmental agencies to encourage the sale of these vehicles.

    Furthermore, the well-established road infrastructure network has further aided the market for these vehicles, with charging points available more frequently on the civilian roads. Today, electric vehicles have transformed from an experimental mode of vehicle to a necessity, with automakers worldwide putting in efforts to make EVs available in all the economic ranges. This is evident from the meteoric rise in its sales over the last five years, with over 2 million electric vehicles on the road at present, as compared to a few thousands back in 2012.

    With number of initiatives and product developments taking place, it won’t be long before EVs occupy a significant share of the global automotive market. The market in terms of volume is estimated to witness growth at a CAGR of 28.3% over the period of 2017 to 2026. The report is a compilation of various segmentations including market breakdown by propulsion type, component type, vehicle type, and different geographical regions.

    The report provides a detailed market analysis and forecast with respect to different propulsion types in the electric vehicles market which are Battery Electric Vehicle and Plug-in Hybrid Electric Vehicle (PHEV). On the basis of component, the electric vehicles market is segmented into battery, motor, and regenerative brake. While highlighting the key driving and restraining forces for this market, the report also provides a detailed study of the different vehicles that are analyzed, which include passenger and commercial vehicles.

    The report addresses the following key questions about the global electric vehicles market:
    • What is the global electric vehicles market size in terms of volume in the period 2017-2026?
    • Which is the dominant propulsion type by volume for the global electric vehicles market?
    • Which is the dominant vehicle by propulsion type in terms of volume in 2016?
    • What is the revenue generated by the different components in the global electric vehicles market in the period 2017-2026?
    • What is the revenue generated by the different components for different propulsion type in the global electric vehicles market in the period 2017-2026?
    • Which vehicle type will lead by volume in the global electric vehicles market by the end of the forecast period?
    • What are the different factors driving the market forward in the forecast period?
    • What are the major factors challenging the growth of global electric vehicles market?
    • Which type of new strategies are being adopted by the existing market players to make a mark in the industry?
    • Which region will lead the global electric vehicles market by the end of the forecast period?

    The report includes an exhaustive analysis of the geographical split into North America (the U.S and Canada), Europe (Germany, the U.K, France, Netherlands, and Norway), and Asia-Pacific (China, Japan, and South Korea). Analysis of each of the geographical regions details the individual push and pull forces in addition to the key players from that particular region.

    The report examines the role of the leading market players involved in the industry. The company profiles section includes highlights of significant information about the key companies involved, along with their financial positions, key strategies & developmental activities of recent years (2014-2017).

    Some of the key players are Tesla Inc. (U.S.), BYD Company Limited (China), Volkswagen AG (Germany), Nissan Motor Corporation (Japan), and Mitsubishi Motors Corporation (Japan). EV components manufacturers such as Samsung SDI (South Korea), Automotive Energy Supply Corporation (Japan), LG Chem. (South Korea), Panasonic Corporation (Japan), and Continental AG (Germany).

    Executive Summary
    The automobile industry is one of the fastest-growing industries in the manufacturing sector. Intense global competition along with consumer preference driven innovation have been crucial factors driving the industry.

    However, the growing demand of and subsequent increase in the number of vehicles have contributed majorly to the depletion of non-renewable resources and deterioration of the earth’s atmosphere. A steep rise in the conventional fuel vehicle sales along with global population and urbanization has brought with it some serious concerns such as global warming and alarming pollution levels. There are innumerable issues that are plaguing the planet and the natural resources (especially fossil fuels) are declining at a rapid pace.

    This has consequently led the governments, environmental agencies, and automobile manufacturers to develop modes of transport that run on alternate means. Electric vehicles are considered the most desirable option of all the alternative forms of vehicles. The support of the governments of various nations and revolutionary developments by the automakers can be credited for the growing prominence of Electric Vehicles in the automobile industry.

    Several countries have pledged to ban the sale of gasoline-powered vehicles within the next two decades, with many others to follow. The Electric Vehicle Initiative launched in 2010 by some of the major countries across the globe is one of the many initiatives undertaken that are accelerating the growth rate of the market for EVs on a global scale.

    The report defines and estimates the market size in terms of volume and the section on electric vehicle components market size has been provided in terms of value. The global electric vehicles market is estimated to reach 10,761.42 thousand units by 2026. The market is driven by a number of factors such as stringent governmental regulations in terms of emissions and fuel economy, growing demand for fuel efficient vehicles, and governmental initiatives such as tax benefits and subsidies to promote the sales of electric vehicles. However, there are certain challenges which are inhibiting the overall growth for the global electric vehicles market such as high initial cost and time required to charge the electric vehicles.

    The global electric vehicles market has been fundamentally benefiting from the changing paradigms in governmental regulations and increasing environmental awareness among the consumers. BEVs held the highest market share in 2016 in terms of volume and is expected to grow at a higher growth rate as compared to PHEV.

    BEVs produce no pollution when being driven, as there is no gasoline interaction which means tailpipe pollution is zero. Factors such as improved charging infrastructure, governmental initiatives, and increased range are expected to propel the market growth for BEVs.

    Battery held the maximum share in the market and accounted for 68.8% share in 2016. Battery is the most important component of an electric vehicle and is used to power the main propulsion system.

    While a battery serves as the primary source of power in Battery Electric Vehicles (BEVs), it works in tandem with a combustion engine in PHEVs and other conventional hybrids. The battery makes up substantial cost of an electric vehicle owing to its high price.

    The electric passenger cars held the highest share in the market in 2016 in terms of volume and is also expected to grow at a higher rate as compared to commercial vehicles. Factors such as governmental initiatives, urbanization, and increasing disposable income is responsible for such a gigantic share of electric passenger cars. A major factor expected to play the key role in the development of passenger electric vehicles is the development of adequate road infrastructure for easing the adoption of these vehicles.

    This report also covers the global electric vehicles market, by geography and consequently provides the volume of the key regions which include North America, Europe, and Asia-Pacific (APAC). APAC dominated the global electric vehicles market by volume in 2016.

    The APAC automotive electric vehicles market is mainly dominated by the South Asian countries comprising of some of the biggest automotive producers in the world. The automotive market in the APAC region is growing rapidly, and the development of electric vehicles is gaining attention due to a collective effort from the government and manufacturers to initiate reforms and develop technologies which will promote the sale of these vehicles and make them economically efficient to use.

    Some of the key players in the electric vehicles market are Tesla Inc. (U.S.), BYD Company Limited (China), Volkswagen AG (Germany), Nissan Motor Corporation (Japan), and Mitsubishi Motors Corporation (Japan). EV components manufacturers such as Samsung SDI (South Korea), Automotive Energy Supply Corporation (Japan), LG Chem.

    (South Korea), Panasonic Corporation (Japan), and Continental AG (Germany). These companies are aiming for an increased number of product launches and collaborations to expand their operations and prevent new companies from becoming potential future competitors.

  • Volkswagen to invest Rs 7,600 crore to launch new models

    Volkswagen to invest Rs 7,600 crore to launch new models

    The Volkswagen Group plans to invest 1billion euros more in India, several people in the know said, as the world’s largest carmaker seeks to launch a flurry of vehicles and expand capacity to shrug off its underperformance in one of the fastest-growing markets.

    The group will spend the money to set up a new manufacturing line at its existing facility at Chakan in Pune, build an engineering centre and develop products, these people said, speaking on the condition of anonymity. Developing electric vehicles is also under consideration, they said.

    The German auto major is reworking its India plan after an aborted attempt for a partnership with Tata Motors to make products for emerging markets, where the most crucial factor that sells a vehicle is its affordability. Despite the group being present in India for more than a decade and half, it could garner only a less than 2% market share between the Volkswagen and Skoda brands.

    Positioning as a premium brand that sits above the likes of market leaders Maruti Suzuki and Hyundai Motor has hurt its performance. The group has now decided to come out with an affordable portfolio on its own for emerging markets, based on the MQB-A0 platform. The new models will be heavily localised to keep the cost low.

    Czech unit Skoda Auto is driving this India and emerging market strategy for the group. Skoda chairman Bernhard Maier visited India towards the end of October, followed by a contingent of 40 senior engineers who came to understand the critical issues here before executing the plan. The group has also conducted one-on-one workshops with over a dozen-and-half vendors to put finishing touches to its emerging market strategy, the people said.

    The Volkswagen board discussed the progress of the plan on December 19 and is hopeful of finalising a blueprint within a quarter, they said. About half a dozen cars are planned with the new MQB-A0 underpinning, including a hatchback each from Skoda and Volkswagen positioned in the Maruti Baleno and Hyundai Elite segment, a mid-size sedan that will replace the Rapid and Vento, and a B-segment SUV that will be benchmarked against the Volkswagen T Cross to take on the Hyundai Creta. Discussions are currently ongoing on the SUV project, codenamed VW216.

    “We believe we are in a good position to tackle new segments in the Indian market now,” Skoda chairman Maier told ET in a statement. “We will invest a substantial amount into the Indian market. We are in the process of ascertaining the total investment,” he said, but declined to get into the specifics. The company is studying volume scenarios of 1,80,000, 2,50,000 and 3,20,000 units for capacity expansion. A chunk of the production will go towards exports.

    Till the time the MQB-A0 car project goes fully on stream by 2022-2023, an existing platform is being upgraded to meet requirements in overseas markets.

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  • VW in talks to buy stake in Russia’s GAZ

    VW in talks to buy stake in Russia’s GAZ

    German carmaker Volkswagen is in talks to buy a stake in GAZ, a Russian manufacturer of light commercial vehicles (LCV), five sources familiar with the talks told.

    It was not immediately clear how big a stake is being discussed or the value of the deal.

    GAZ is a part of the Basic Element group that holds the assets of Russian businessman Oleg Deripaska. Both GAZ and Basic Element declined to comment, while a spokesman at VW headquarters said he does not comment on market speculation.

    “There are talks, they are trying to reach an agreement. Deripaska has long been looking for a partner and VW does not have a Russian partner,” one well-placed industry source said.

    Another well-connected car industry source, two financial market sources and another person familiar with the matter also said talks were under way.

    One of the sources said that a decision on the size of the proposed stake sale has yet to be made.

    A source close to VW also confirmed that talks were in progress but said the possibility of the German group taking a stake in GAZ is not the only mater under consideration.

  • VW brand forecasts record sales of over 6 million models

    VW brand forecasts record sales of over 6 million models

    The Volkswagen car brand expects deliveries to hit a record this year and raised its midterm profitability forecast on Thursday, citing cost cuts and expanding ranges of higher-margin models.

    While the emissions scandal of September 2015 has cost Volkswagen (VW) billions of euros in fines and penalties, it doesn’t seem to have had a lasting effect on the carmaker’s popularity with motorists.

    The world’s largest automaker said it expects to significantly exceed last year’s record 5.99 million VW brand auto sales in 2017, counting on strong momentum in China, Europe and the United States.

    The operating profit margin at the VW brand may climb to between 4 and 5 percent by 2020, the carmaker said, still lagging rivals such as PSA Group and Toyota  but higher than the 4 percent or more VW has previously been indicating.

    The increase brings the VW group’s largest division by sales into line with a more upbeat outlook for overall VW group profit announced earlier in November.

    “We have completed the first five kilometers of a marathon,” VW brand chief executive Herbert Diess said. “We are all aware of the challenges that lie ahead of us.”

    The maker of VW’s top-selling Golf hatchback expects to significantly improve underlying earnings this year from the 1.9 billion euros in 2016, which would mark the brand’s first profit gain year-on-year since 2011, Diess said at a news conference.

    Profit will be driven by a growing number of more lucrative sport-utility vehicles (SUVs), whose share of overall brand sales may triple to about 40 percent by 2020 from currently 14 percent, the CEO said, citing the redesigned Touareg and an all-new T-Cross due to hit dealerships in 2018.

    “With SUVs, we are earnings the money we need to fund the shift towards electric mobility,” Diess said, referring to the brand’s accelerating push into zero-emission vehicles.

    The VW brand, which has been undergoing heavy restructuring for about a year, said it has kept fixed costs broadly stable this year despite growing spending on model launches.

    The carmaker said it will achieve 3,800 job cuts in Germany by the end of 2017, a year after it agreed with unions to slash 23,000 positions via natural attrition by 2020.

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  • German automakers set for record output expect further growth in 2018

    German automakers set for record output expect further growth in 2018

    German automakers, on course for record production this year, expect further output growth in 2018 powered by strong demand in Asia, the VDA carmakers’ lobby said.

    Producers including Volkswagen, Daimler and BMW may increase output “significantly” this year from 2016 levels to between 5.6-5.7 million units in Germany and about 10.8 million in the rest of the world, VDA President Matthias Wissmann said.

    “The automotive sector is and will remain a growth market,” Wissmann told an industry conference on Tuesday, citing momentum in China and India.

    “Current projections indicate that 2018 will also be a stable year,” he said, without being more specific.

    Separately, Wissmann said he expects demand in Germany for electric cars to show “a further significant gain” over the next three years as German carmakers plan to more than triple their offerings of purely battery-powered vehicles and plug-in hybrids to nearly 100 models from about 30 at present.

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  • Volkswagen to invest $27 billion in core brand until 2022

    Volkswagen to invest $27 billion in core brand until 2022

    Volkswagen will invest 22.8 billion euros ($26.9 billion) in its main car brand over the next five years, it said on Saturday, a day after it announced a spending program aimed at bolstering its position as a maker of electric cars.

    Most of that sum, around 14 billion euros, will be spent in Germany, Volkswagen said, adding that one of the key measures included a 1 billion euro injection to transform the carmaker’s Zwickau plant into a pure e-mobility facility.

    “The investment package which has now been adopted will give a decisive boost to the largest product and technology offensive in the history of the brand,” Herbert Diess, Chief Executive of the Volkswagen brand and a VW management board member, said.

    Analysts see reviving the VW brand, which has long suffered from high staff and development costs, as crucial to the group’s ability to recover from a diesel emissions scandal that has gripped the carmaker. [nL8N1N51ST]

    The investments unveiled on Saturday are part of Volkswagen’s 72 billion euro spending plan for the 2018-2022 period that was announced on Friday.

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