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Found 4 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. The State Fair of Texas began last week and truck manufacturers were out in force with new models to tempt consumers in the largest truck market in the U.S. Both Ford and Ram Trucks rolled out new luxury trims of their pickups - Ford with the Limited and Ram with the Longhorn Southfork. Both trims can easily reach $100,000 which to some is pushing it. But marketers at the truck manufacturers tell Automotive News they don't know where the ceiling is on how much consumers are willing to spend. "It's hard to guess how big the market is. I don't think trucks have found a ceiling yet. You get customers who want every bell and whistle," said Todd Eckert, Ford's truck group marketing manager. "For us, it is not about the dollar amount. It's about meeting the needs of the customers. We see an opportunity in the marketplace to bring the Limited trim to Super Duty. We know customers will demand it." Luxury models are in demand and truck manufacturers are having a difficult time keeping them in stock. For example, more than half of Ford's F-Series Super Duty trucks sold are the high-end models - Lariat, King Ranch, and Limited. As there is no ceiling yet, manufacturers are considering going even further. Sandor Piszar, Chevrolet truck marketing director said they have found a group of customers that are willing to pay "for a bigger, more luxurious and more capable truck." Source: Automotive News (Subscription Required) View full article
  4. The State Fair of Texas began last week and truck manufacturers were out in force with new models to tempt consumers in the largest truck market in the U.S. Both Ford and Ram Trucks rolled out new luxury trims of their pickups - Ford with the Limited and Ram with the Longhorn Southfork. Both trims can easily reach $100,000 which to some is pushing it. But marketers at the truck manufacturers tell Automotive News they don't know where the ceiling is on how much consumers are willing to spend. "It's hard to guess how big the market is. I don't think trucks have found a ceiling yet. You get customers who want every bell and whistle," said Todd Eckert, Ford's truck group marketing manager. "For us, it is not about the dollar amount. It's about meeting the needs of the customers. We see an opportunity in the marketplace to bring the Limited trim to Super Duty. We know customers will demand it." Luxury models are in demand and truck manufacturers are having a difficult time keeping them in stock. For example, more than half of Ford's F-Series Super Duty trucks sold are the high-end models - Lariat, King Ranch, and Limited. As there is no ceiling yet, manufacturers are considering going even further. Sandor Piszar, Chevrolet truck marketing director said they have found a group of customers that are willing to pay "for a bigger, more luxurious and more capable truck." Source: Automotive News (Subscription Required)

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