Jump to content
William Maley

VW News: Volkswagen's Electric Car Dreams Are Going To Be A Bit More Expensive

Recommended Posts

Volkswagen put forth an ambitious plan to offer an electric version of each model it sells. The automaker set aside about 20 billion euros ($23 billion), but that will not be enough according CEO Herbert Diess.

“The burden for our company, such as the cost of bringing to market electric cars, will be higher than expected,” Diess said in a interview with Volkswagen's internal newsletter, obtained by Bloomberg.

“This is particularly so since some of our competitors have been making more progress.”

Diess didn't give a new figure in the interview, but did say the company needs to "reduce expenses more to be able to invest in future technology and weather crises".

Volkswagen has been working on improving its profitability since a 2016 labor pact and massive reorganization of its 12 brands. The Volkswagen brand has seen its profitability increase from 1.8 to 4.1 percent last year. But Diess said they need higher profits.

“We need higher profits to finance our future. Four percent is a minimum, 5 percent to 6 percent allow for some future investments and with 7 percent to 8 percent we’re crisis-ready.”

Source: Bloomberg (Subscription Required)


View full article

Share this post


Link to post
Share on other sites

To be expected and now they confirm what I had always suspected about VW, low profits even though they have Porsche.

Share this post


Link to post
Share on other sites
51 minutes ago, dfelt said:

To be expected and now they confirm what I had always suspected about VW, low profits even though they have Porsche.

Porsche and Audi and a few other luxury marques that DO NOT SELL in the same volumes as VW and Skoda.  Of course VW could just build all of their cars outside of Germany, but given that part of VW is owned by Lower Saxony, that probably will not happen.  Ever.

Share this post


Link to post
Share on other sites

It makes little sense to spend so much money on something that people have shown only a modicum of interest in.

Edited by ocnblu

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Who's Online   0 Members, 0 Anonymous, 40 Guests (See full list)

    There are no registered users currently online



  • Similar Content

    • By William Maley
      Chris Chapman, senior chief designer at Hyundai's Design Center has an ambitious plan for the coming years. He wants each Hyundai model to have their own visual identity.
      "We're going for more of this chess-piece rather than the family look. We're using consistently shared elements … but we're going to avoid this sort of Russian-doll approach to our vehicles in the future," Chapman told reporters at the media launch of the Kona EV.
      Designers will be tasked to give each model "a look that matches its intended use and customer." Take for example the Kona crossover which has a funky look that should appeal to a younger audience than the new Santa Fe. Another example is the Kona and Kona EV that have different design touches to set them apart.
      "Both kind of have extroverted design, but they're dressed differently for different demographic purposes," Chapman said.
      Part of Chapman's motivation for this comes from his past. As Roadshow notes, he worked as a designer at BMW during the Chris Bangle era which brought forth the problem of telling the difference between the 3, 5, and 7-Series. He said BMW referred to this as "Eine Wurst, drei Grosse" -- one sausage, three sizes. While he may not say it outright, reading between the lines reveals he would like to avoid this.
      Source: Roadshow

      View full article
    • By William Maley
      Chris Chapman, senior chief designer at Hyundai's Design Center has an ambitious plan for the coming years. He wants each Hyundai model to have their own visual identity.
      "We're going for more of this chess-piece rather than the family look. We're using consistently shared elements … but we're going to avoid this sort of Russian-doll approach to our vehicles in the future," Chapman told reporters at the media launch of the Kona EV.
      Designers will be tasked to give each model "a look that matches its intended use and customer." Take for example the Kona crossover which has a funky look that should appeal to a younger audience than the new Santa Fe. Another example is the Kona and Kona EV that have different design touches to set them apart.
      "Both kind of have extroverted design, but they're dressed differently for different demographic purposes," Chapman said.
      Part of Chapman's motivation for this comes from his past. As Roadshow notes, he worked as a designer at BMW during the Chris Bangle era which brought forth the problem of telling the difference between the 3, 5, and 7-Series. He said BMW referred to this as "Eine Wurst, drei Grosse" -- one sausage, three sizes. While he may not say it outright, reading between the lines reveals he would like to avoid this.
      Source: Roadshow
    • By William Maley
      Jaguar Land Rover has already announced plans to begin electrifying their lineups beginning in 2020, but Jaguar could be going one step further. Autocar reports that the management is considering making Jaguar an EV-only brand within the next decade.
      Plans have already been drawn up for a strategy that would see Jaguar phase out its conventional lineup with fully electric models over the next five to seven years. Here is the gist of the strategy,
      A fully-electric sedan would replace the XJ sedan in two-years time. This model will take on the likes of the Tesla Model S and Porsche's upcoming Taycan. The XE and XF will be replaced by a new electric crossover that will be similar in size to Audi's e-tron crossover (possibly taking the place of the F-Pace) by 2023. 2025 would see the E-Pace replaced by the next-generation I-Pace. The upcoming large J-Pace crossover will be the sole conventional model until 2027 when an electric replacement debuts. There is talk about an electric sports car taking the place of the F-Type. It is quite the gamble that JLR is considering for the brand. But it one the brand is seriously considering for two reasons. One is that Jaguar sales have been floundering due partly to lineup having more sedans than crossovers, along with being heavily dependent on diesel. The other is that it would allow Jaguar to jump ahead of the likes of Audi and Mercedes-Benz with electric vehicles. Remember, Jaguar already has their EV on sale, while Audi and Mercedes-Benz are in the process of launching theirs.
      Source: Autocar

      View full article
    • By William Maley
      Jaguar Land Rover has already announced plans to begin electrifying their lineups beginning in 2020, but Jaguar could be going one step further. Autocar reports that the management is considering making Jaguar an EV-only brand within the next decade.
      Plans have already been drawn up for a strategy that would see Jaguar phase out its conventional lineup with fully electric models over the next five to seven years. Here is the gist of the strategy,
      A fully-electric sedan would replace the XJ sedan in two-years time. This model will take on the likes of the Tesla Model S and Porsche's upcoming Taycan. The XE and XF will be replaced by a new electric crossover that will be similar in size to Audi's e-tron crossover (possibly taking the place of the F-Pace) by 2023. 2025 would see the E-Pace replaced by the next-generation I-Pace. The upcoming large J-Pace crossover will be the sole conventional model until 2027 when an electric replacement debuts. There is talk about an electric sports car taking the place of the F-Type. It is quite the gamble that JLR is considering for the brand. But it one the brand is seriously considering for two reasons. One is that Jaguar sales have been floundering due partly to lineup having more sedans than crossovers, along with being heavily dependent on diesel. The other is that it would allow Jaguar to jump ahead of the likes of Audi and Mercedes-Benz with electric vehicles. Remember, Jaguar already has their EV on sale, while Audi and Mercedes-Benz are in the process of launching theirs.
      Source: Autocar
    • By William Maley
      Scott Keogh, Audi of America's president will soon have a new job come November 1st. He will become CEO of Volkswagen Group's North American operations, taking over Hinrich Woebcken who held the position since April 2016. This is a big deal since Keogh will be the first American to hold the top position for Volkswagen's North America branch in 25 years.
      Keogh has an impressive track record at Audi when he joined in 2006 as their chief marking officer. He would play a key role in boosting the awareness of the brand. In 2012, he was named president and would preside over one of the longest sales streaks that continues to this day.
      His new assignment is going to be tough. As Automotive News points out, Volkswagen dealers have the " lowest profit margins of any brand in the U.S." A number of Volkswagen dealers also struggle with customer service. Keogh has worked on both at Audi, helping dealers improve profits and boosting customer satisfaction - vaulting itself into the top three. 
      “Hinrich J. Woebcken has brought the Volkswagen brand back on track for success in the U.S. and the North American region. Considering the challenging conditions, these achievements deserve my dedicated recognition. After the successful comeback of the Volkswagen brand, Scott Keogh, who led Audi to excellence in the U.S., will build upon the momentum and implement the next stage in the growth strategy as we continue to develop Volkswagen into a more relevant player in North America,“ said Dr. Herbert Diess, CEO of Volkswagen AG in a statement.
      Woebcken will be sticking around Volkswagen as an adviser. Keogh's replacement at Audi will be Mark Del Rosso, currently the head of Bentley's Aamerican division.
      Source: Volkswagen, Automotive News (Subscription Required)


      SCOTT KEOGH NAMED HEAD OF VOLKSWAGEN GROUP OF AMERICA
      Hinrich J. Woebcken remains available to the company as an adviser Mark Del Rosso, head of Bentley Motors Inc., Americas, named president of Audi of America HERNDON, Va. (October 10, 2018) – Scott Keogh, head of Audi of America, was named president and CEO of Volkswagen Group of America as well as head of the Volkswagen brand for the North American region.
      Keogh, who joined Audi in 2006, will succeed Hinrich J. Woebcken, who led the successful transformation of Volkswagen in North America. Woebcken will remain with the company as an adviser. Keogh’s successor is Mark Del Rosso, president and CEO of Bentley Motors, Inc., Americas, and former chief operating officer of Audi of America. Keogh and Woebcken's new roles are effective Nov. 1. Del Rosso joins Audi Dec. 1. A replacement for Del Rosso will be named later.
      Keogh, 49, joined Audi as chief marketing officer, where he led the revival of the Audi brand with innovative marketing tactics that lead to record awareness and brand strength. In 2012, he was appointed president, building on the momentum to help reach record customer satisfaction levels and double sales from 2010 to 2015.
      Woebcken, 58, an industrial engineer by training, was named CEO of the newly created North America region of the Volkswagen brand in January 2016 and then president and CEO of Volkswagen Group of America. He began his career with Krauss-Maffei in 1985. After holding positions in sales and marketing, he became managing director responsible for sales, marketing and after-sales with Dürr AG in 1997, before joining BMW as head of technical purchasing in 2004. Before joining VW, he was BMW's senior vice president, driving dynamics, and a member of the board of management at Knorr-Bremse AG. He will continue to be available to the company in the North American region as senior executive strategy adviser.
      “Hinrich J. Woebcken has brought the Volkswagen brand back on track for success in the U.S. and the North American region. Considering the challenging conditions, these achievements deserve my dedicated recognition," said Dr. Herbert Diess, CEO of Volkswagen AG. "After the successful comeback of the Volkswagen brand, Scott Keogh, who led Audi to excellence in the U.S., will build upon the momentum and implement the next stage in the growth strategy as we continue to develop Volkswagen into a more relevant player in North America.“
      Del Rosso, 54, is a graduate of the University of Southern California and an experienced marketing and sales executive with extensive expertise in the premium sector. He started his career with Toyota Motor Sales in 1991, holding various senior corporate and regional positions throughout the U.S. for Lexus and Toyota. In 2008, he became executive vice president, COO of Audi of America and was appointed president and CEO of Bentley Motors, Inc., Americas in 2017.

      View full article
  • My Clubs

  • Recently Browsing

    No registered users viewing this page.

  • Reader Rides

About us

CheersandGears.com - Founded 2001

We ♥ Cars

Get in touch

Follow us

Recent tweets

facebook

×