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Found 7 results

  1. 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
  2. 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)
  3. William Maley

    The Big Electric Car Blitz

    Between now and 2022, at least 50 electric vehicles will be launched. They'll be coming from the likes of Volkswagen, Diamler, and General Motors. Heck, even Dyson is getting into the game. But why this rush to get EVs on the road? It comes down to two things, Tesla and upcoming regulations. “Nobody doubts that the future will be electric. The car companies dragged their feet with electric. Now they are being dragged into it by Tesla and by regulations,” said Erich Joachimsthaler, founder and CEO of brand-strategy firm Vivaldi to Bloomberg. Tesla makes sense as they have created a cult of personality with rabid fans and somehow selling vehicles like hotcakes. As for the regulations, various countries such as France and Great Britain have announced bans on internal combustion engines in new vehicles in the near future. Other places such as China and the state of California are considering similar bans. China has also introduced regulations meant to cut emissions and pollution by 2030. One of those is for automakers to sell a certain percentage of "of so-called new-energy vehicles -- which include electric cars" to obtain credits to sell models with internal combustion engines. But there are questions about this move. For one, how is any automaker going to make money with EVs? At the moment GM loses $9,000 for every Chevrolet Bolt EV sold, while Fiat Chrysler Automobiles loses an eye-watering $20,000 on each Fiat 500e sold. Battery tech is one of the key reasons for this, but new technologies and improvements are helping bring the price down. Also, will consumers embrace this onslaught of EVs? Last year, EVs only made up less than one percent of the U.S. market. “Companies are committed to electric cars, but there is little evidence that there is a lot of consumer demand for it,” said Kevin Tynan, senior analyst with Bloomberg Intelligence. Source: Bloomberg
  4. Between now and 2022, at least 50 electric vehicles will be launched. They'll be coming from the likes of Volkswagen, Diamler, and General Motors. Heck, even Dyson is getting into the game. But why this rush to get EVs on the road? It comes down to two things, Tesla and upcoming regulations. “Nobody doubts that the future will be electric. The car companies dragged their feet with electric. Now they are being dragged into it by Tesla and by regulations,” said Erich Joachimsthaler, founder and CEO of brand-strategy firm Vivaldi to Bloomberg. Tesla makes sense as they have created a cult of personality with rabid fans and somehow selling vehicles like hotcakes. As for the regulations, various countries such as France and Great Britain have announced bans on internal combustion engines in new vehicles in the near future. Other places such as China and the state of California are considering similar bans. China has also introduced regulations meant to cut emissions and pollution by 2030. One of those is for automakers to sell a certain percentage of "of so-called new-energy vehicles -- which include electric cars" to obtain credits to sell models with internal combustion engines. But there are questions about this move. For one, how is any automaker going to make money with EVs? At the moment GM loses $9,000 for every Chevrolet Bolt EV sold, while Fiat Chrysler Automobiles loses an eye-watering $20,000 on each Fiat 500e sold. Battery tech is one of the key reasons for this, but new technologies and improvements are helping bring the price down. Also, will consumers embrace this onslaught of EVs? Last year, EVs only made up less than one percent of the U.S. market. “Companies are committed to electric cars, but there is little evidence that there is a lot of consumer demand for it,” said Kevin Tynan, senior analyst with Bloomberg Intelligence. Source: Bloomberg View full article
  5. Toyota Motor Corp (7203.T) and Mazda Motor Corp (7261.T) plan to build a $1.6 billion U.S. assembly plant, the two said on Friday, as part of an alliance that will also see the Japanese automakers jointly develop electric vehicle technologies. The two will take small stakes in each other as part of the tie-up: Toyota, the world's second-largest automaker by vehicle sales last year, will take a 5 percent share of Mazda, extending its dominance in Japan's auto sector. Mazda will take a 0.25 percent share of its larger rival. The plant, something of a surprise at a time of overcapacity in the U.S. market, will be a boost to U.S. President Donald Trump, who campaigned on promises to increase manufacturing and expand employment for American autoworkers. The plant will be capable of producing 300,000 vehicles a year, with production divided between the two automakers, and employ about 4,000 people. It will start operating in 2021. Reuters
  6. William Maley Staff Writer - CheersandGears.com September 3, 2013 In not surprising news, California is the place where most electric vehicles are being sold. New data from Polk says that more than more than 35 percent of electric vehicles registrations come from two California cities: San Francisco and Los Angeles. The California New Car Dealers Association says in the first half of this year, 9,700 electric vehicles were registered and represented 1.1 percent of the state’s auto sales. “A lot of the manufacturers have targeted California for the launch of their electric vehicle product. Our consumers are cutting-edge and early adopters in this area,” said Brian Maas, president of the California dealers association But there is big reason why California has become the largest market for electric vehicles. Regulations. The Detroit News says that California has a mandate for a certain percentage of an automaker's new vehicles sold in the state (15.4 percent) by 2025 to be powered by either electric, hybrid or fuel cells. If not, automakers will face fines. Source: The Detroit News William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster. View full article
  7. William Maley Staff Writer - CheersandGears.com September 3, 2013 In not surprising news, California is the place where most electric vehicles are being sold. New data from Polk says that more than more than 35 percent of electric vehicles registrations come from two California cities: San Francisco and Los Angeles. The California New Car Dealers Association says in the first half of this year, 9,700 electric vehicles were registered and represented 1.1 percent of the state’s auto sales. “A lot of the manufacturers have targeted California for the launch of their electric vehicle product. Our consumers are cutting-edge and early adopters in this area,” said Brian Maas, president of the California dealers association But there is big reason why California has become the largest market for electric vehicles. Regulations. The Detroit News says that California has a mandate for a certain percentage of an automaker's new vehicles sold in the state (15.4 percent) by 2025 to be powered by either electric, hybrid or fuel cells. If not, automakers will face fines. Source: The Detroit News William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.

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