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Tag: Volkswagen

  • Volkswagen hires Cadillac boss

    Volkswagen has hired an executive who once ran Cadillac and Infiniti to help oversee its North American operations.

    The German carmaker said that Johan de Nysschen will become Chief Operating Officer of Volkswagen’s North American region.

    Chief Executive Officer of Volkswagen Group of America Scott Keogh, said de Nysschen will help speed up the company’s day-to-day decision making “so we can continue to make this brand matter again.”

    Volkswagen is working to regain consumer trust after its 2015 diesel emissions scandal. U.S. authorities caught the company using software to rig emissions tests.

    The 59-year-old de Nysschen said he is looking forward to rejoining the company where he spent 20 years earlier in his career before leading Nissan’s Infiniti luxury brand and General Motors’ Cadillac.

  • Ford, Volkswagen to build autonomous vehicles

    Two of the world’s biggest car manufacturers are forging an alliance towards developing technologies aimed for the electric and autonomous segments.

    Both Ford Motors and Volkswagen AG confirmed last Thursday that they are expanding their alliance which was revealed in January. The expansion will cover joint development and collaboration on the development of autonomous and electric vehicles.

    The two companies said Volkswagen Chief Executive Officer Herbert Diess and Ford Chief Executive Jim Hackett will both appear at the scheduled press conference.

    Among the expected agenda is a potential investment by Volkswagen towards Argo AI, the autonomous driving system company in which Ford has a majority stake.

    Another matter that is expected to be discussed is Volkswagen’s contribution to the collaboration which is rumoured to be valued around $2 billion.

    Both Volkswagen and Ford declined to comment on the matter. However, a Ford spokesperson did confirm that the two companies are in productive talks regarding a number of areas.

    As for investments geared towards the development of artificial intelligence and self-driving technologies, Ford has pledged to invest $4 billion into the industry by 2023. Ford established its Ford Autonomous Vehicles division in 2018 for this very reason. It most valuable acquisition to date is when it bought Argo AI, a startup based in Pittsburgh that specialises in the development of software for self-driving cars. The two car companies have been in discussion on how to share the burden when it comes to the development of electric and autonomous cars.

  • Volkswagen to spend $50b on electric car, others

    German automaker Volkswagen (VW) has said  it will spend $50 billion refocusing the company on the making of electric cars, autonomous vehicles and new mobility services.

    The Wolfsburg-based manufacturer plans to have some of the new products in the market by 2023.

    Its Chief Executive Officer Herbert Diess described the investment as an “electric offensive,” which  includes an imminent partnership with United States (US) carmaker Ford Motor.

    “German automaker plans to produce electric cars, dive into autonomous driving and provide new mobility services by 2023,” he said.

    Both companies are fine-tuning details on a deal to jointly make a range of light commercial vehicles, and Dess hopes the agreement will be ready before the end of the year.

    Collaboration between the two firms is viewed as a path to significant savings on research and development while at the same time delivering big revenue.

    Ford makes about 40 per cent of all full-size pickups sold in the US, while VW sells almost 15 per cent of the vehicles purchased in China, the world’s largest auto market.

    “Volkswagen must become more efficient, more productive and more profitable in order to finance the high expenditure in the future and in order to stay competitive,” Diess said during a press conference.

    He noted that Volkswagen was also “seriously considering involvement in battery production.”

    Volkswagen has decided to convert its existing plants in Emden and Hanover to “e-locations”. Together with Zwickau, they will become Europe’s largest network for the production of e-vehicles.

    In addition, Volkswagen’s current range of six battery-driven electric models will be expanded by 2025 to encompass more than 60 models, and the share of pure e-cars in the model portfolio will then amount to around one-third.

    As early as 2020, Volkswagen will launch the first model based on the new modular electric toolkit (MEB). That vehicle, the ID, will be the start of a new era in e-mobility. VW said the e-car will be available for the price of today’s Golf Diesel, which will help Volkswagen enable mass-produced e-mobility.

  • VW faces $11 b investor suit over diesel scandal

    Volkswagen faces a trial this week as investors seek 9.2 billion euros ($10.7 billion) in compensation, arguing that the automaker should have informed shareholders about a diesel pollution scandal before regulators did in September 2015.

    The lawsuit bundles 1,670 claims brought mainly by VW’s institutional shareholders who have accused the company of failing to inform investors about the scope of a scandal which has cost the company 27.4 billion euros in penalties and fines.

    Had VW warned investors about the size of the scandal before the U.S. Environmental Protection Agency (EPA) issued a “notice of violation” on September 18, 2015 then institutional investors may have avoided losses on their shareholdings, plaintiffs said.

    VW shares lost up to 37 percent of their value in the days after authorities exposed illegal levels of pollution emitted from VW diesel cars.

    Volkswagen has admitted systematic emissions cheating but denies wrongdoing in matters of regulatory disclosure.

    Presiding Judge Christian Jaede at the higher regional court in Brunswick, Germany, near VW’s headquarters, will make opening remarks at the trial on today.

    VW insists that the U.S. EPA’s issuance of the notice of violation was not in keeping with how U.S. authorities had handled similar cases involving other carmakers.

    Because other carmakers had reached a settlement for emissions cheating without an EPA notice of violation, and because VW was in talks about reaching a settlement, VW’s board did not see the need to inform investors, the carmaker said in a filing with the court.

    VW had already made substantial provisions in late 2015 to cover other vehicle recalls, and because previous fines by U.S. authorities for similar violations were below $200 million, there was no need to issue an ad-hoc disclosure notice under German law, the carmaker said in the filing.

    Volkswagen said board members at the time, including Volkswagen’s Chief Executive Officer Herbert Diess and Chairman Hans Dieter Poetsch, therefore, did not violate disclosure rules, according to the VW defence document filed with the court.

    “Neither the management board nor individual board members caused or were involved with the compliance violation in the United States,” VW’s court filing said.

    However, plaintiffs, including lawyer Andreas Tilp from law firm TILP and fund management firm Deka, argue that managers below management board level, including divisional heads, knew about deliberate and systematic emissions cheating.

    The company as such was therefore aware of severe criminal activity and investors should therefore have been warned earlier, the plaintiffs said.

     

  • Fed Govt, Volkswagen sign MoU on automotive hub

    The Federal Government has signed a Memorandum of Understanding (MoU), with  Volkswagen Group  to develop a joint vision for an automotive hub in Nigeria, the Minister of Industry, Trade and Investment Okechukwu Enalema, has said.

    A statement by the Strategy and Communication Adviser in the ministry, Bisi Daniels, said Volkswagen has undertaken undertake to implement a phased approach in relation to the assembly of vehicles, from assembly kit with the long term view of establishing Nigeria as an automotive hub in the  West African Coast.

    “This will include establishing a training academy in conjunction with the German Government, which will train the initial employees. The academy will also provide broader technical training in automotive skills. It is also intended that a comprehensive Volkswagen vehicle and service network is developed in the country subject to commercial viability, the statement said.

    It added: “In turn the Nigerian Government undertakes to finalise the approval of the Nigerian Automotive Policy, currently under consideration, including the gradual transition from the importation of used cars to the manufacture and distribution of new passenger vehicles.

    It said the government has committed to providing a conducive legislative environment that will encourage the manufacturing of motor vehicles in Nigeria.

    Enalemah said the MoU is a major step in our walk towards the development of a robust automotive industry to achieve its potential contribution to the continuous economic development of the country.

    He said: “We believe in the strategic and catalytic role of the automotive industry in the diversification of the Nigerian economy and we remain committed to encouraging and partnering with relevant stakeholders, especially investors and friends of Nigeria.

    “We will meet our commitments and look forward to welcoming other Original Equipment Manufacturers (OEMs) interested in working with us to increase local production, local procurement, and exports.”

    Also, the Director-General of the National Automotive Design and Development Council (NADDC), Jelani Aliyu, said, as Africa’s largest economy and most populous country, Nigeria offers not only a significant domestic market, but also the opportunity of a gateway to the West African market. We are pleased by the progress we have made in our engagement with Volkswagen, and excited to be partnering with a strong stakeholder with a full understanding of the huge potential Nigeria represents.”

  • Volkswagen hits 3.12m sales

    Volkswagen has announced its sales and financial results for the first half of the year.

    Just in the first six months, Wolfsburg managed to surpass the three-million mark in sales with 3.12 million units sold, making it the best half-year performance for the company.

    As a result, Volkswagen brought home €42.7 billion in sales revenue, an increase of eight per cent over the same period the year before, translating to a 20 per cent increase in operating profit at €2.1 billion.

    However, the company had to make €1.6 billion in one-off expenses due to processes related to the diesel emissions cheating scandal, dropping that figure to €0.5 billion.

    The increase in sales – 6.3 per cent up on the 2.93 million units sold in 2017 – was partly attributed to the company’s strong SUV offensive, which has led to marked growth in all regions.

    The new Touareg went on sale beginning in the second quarter of the year, joining the bestselling Tiguan and the smaller T-Roc, which has received 100,000 orders since it was introduced late last year. An even smaller T-Cross will follow.

    The results are telling, as within just one year, Volkswagen’s share in the global SUV market went up from 13 per cent to 18 per cent, and its piece of the European market pie jumped from 17 per cent to 25 per cent. The biggest gains, however, were made in the United States, where its share almost quadrupled from 10 per cent to per cent.

    Overall, the company recorded mid to high single-digit growth in deliveries both in Germany and in major automotive markets in Western Europe, China and the US. In Russia and Brazil, the figures went up by over 20 per cent. A higher share of sales were made up of high-margin SUVs, improving company earnings; Volkswagen also made productivity improvements and expects a cost saving of around €2.2 billion by the end of the year.

    Even so, Volkswagen is not resting on its laurels, as it said that it will need to make additional funds to be able to transition itself to electric mobility and autonomous driving, as well as for its digital initiatives from its own resources.

    The company’s board of management and its works council will decide on further measures and work together to continue to be sustainable and competitive in the future.

    The company will retain its financial forecast for the full year, despite the impending changeover to the new, more time-consuming Worldwide Harmonised Light Vehicle Test Procedure (WLTP).

    Volkswagen expects sales revenue to increase by up to 10 per cent and an operating return on sales before special items by between four and five percent , resulting in a positive cash flow once again, before special items.

  • Volkswagen opens Rwanda’s first car plant

    Rwanda’s first domestically built car rolled off the assembly line at Volkswagen’s new factory in Kigali on Wednesday as Europe’s biggest carmaker taps into demand for ride-sharing to expand in the region.

    Volkswagen’s South Africa boss Thomas Schaefer said on Wednesday at the launch in Kigali that the company would increase production as demand rose.

    “Deliveries come in and we put them into production as materials come in and as the demand comes in.

    “So if there is a customer who wants a few hundred Passats, we will put them in and build them,” Schaefer said.

    He said that the assembly plant used components shipped from South Africa to Rwanda via Kenya.

    Despite low levels of car ownership in Rwanda, Volkswagen hopes to both sell vehicles and use them in an Uber-like car-sharing system that would allow people to book rides using their smartphones. Some would also be sold into neighbouring nations.

    Volkswagen has started a community car-sharing service mainly aimed at companies in Kigali and plans to launch a ride-hailing offering later in the year.

    The Polo is the first model being made at the site and the German automaker plans to reach annual production of 5,000 cars in the first phase, by also building its Passat, Tiguan, Amarok and Teramont models.

    READ ALSO: Things Nigerian business will find attractive in Rwanda – Radisson Blu GM

    The 20 million dollars investment, which will create up to 1,000 jobs, is as an example of much needed spending by overseas firms in the nation, which receives one billion dollars in foreign aid and development assistance but is making business-friendly reforms.

    President Paul Kagame, who attended the event, said it was an important step for the country.

    “The facility undoubtedly represents a new chapter in Rwanda’s journey of economic transformation.

    “I know some might have found it hard to believe that ‘German cars’, as we are used to call them, could really be built in Rwanda.”

    Car ownership remains low in the nation of 12 million people with just over 200,000 private cars registered since 1997, according to the country’s tax collection body.

    But VW, which already builds in nearby Kenya, is expanding in Sub-Saharan Africa where it hopes it can tap into worldwide growth in demand for using apps to make journeys rather than buying vehicles.

    Global ride-sharing companies such as Uber have not yet moved into Rwanda meaning that Volkswagen will get ahead of the game by launching its service there ahead of major rivals.

    Most of the cars presently on the road are second-hand imports from countries such as Japan.

  • Germany allow class-action lawsuits in wake of VW scandal

    Germany would allow class-action lawsuits to be brought against big corporations, following a vote in the lower house of parliament on Thursday.

    This is seen as a win for consumers in the wake of the Volkswagen emissions scandal.

    The Bundestag passed the legislation to give consumers the option of seeking damages without doing it alone against major corporations.

    The complaints would be led in the courts by specially authorised consumer protection associations.

    As a prerequisite for collective redress, the complaint must affect a minimum number of people.

    Read Also: Germany trains 10,000 youths in vocational education

    The legislation is set to come into effect on Nov. 1, so that the owners of cars fitted with emissions-cheating software by Volkswagen can bring forward a complaint before their right to claim lapses in late 2018.

    Class-action lawsuits are common practice in the United States, where the German car making giant has been forced to pay out billions of dollars in compensation to duped customers.

    The Diesel gate scandal, triggered by revelations in 2015 that Volkswagen had fitted diesel engines with so-called defeat devices to cheat environmental standards, prompted many European car owners to demand compensation often with little success.

    NAN

  • Volkswagen delivers 10.7m vehicles

    Volkswagen delivers 10.7m vehicles

    The Volkswagen Group delivered more vehicles than ever before in the 2017 fiscal year, with 10.74 million customers worldwide chosing a vehicle from the Volkswagen Group.

    As a result, the Group deliveries rose by 4.3 percent compared with the previous year. At almost one million units, deliveries in December were up by  8.5 percent.

    The company’s Volkswagen Group Chief Executive Officer Matthias Müller said: “The all-time record for deliveries is attributable to a strong team performance by all Group brands and employees. We are grateful to our customers for the trust these figures reflect. We will continue to do everything we can in 2018 to meet and exceed the expectations of our customers all over the world.”

    The Group handed over 4.3 million vehicles to customers in Europe in 2017, representing growth of 3.3 percent; 338,700 new vehicles were delivered in December of which 97,500 were handed over to customers in the home market of Germany.

    Read Also: Volkswagen partners Aurora for self-driving cars

    Recovery in the Russian market had a positive impact on the performance in Central and Eastern Europe, and led to growth of 13.2 percent for the full year 2017. 21,000 vehicles were delivered to customers in Russia in December.

    The Group deliveries in the North America region rose by four percent to 976,400 units in 2017, of which 625,100 vehicles were handed over to customers in the United States (U.S.) market. In line with the overall trend on the passenger car market in the U.S., Volkswagen Group deliveries in December were down 2.7 percent to 91,500 units. In Brazil, 24,700 customers took delivery of a new Group vehicle. Driven by the recovery in the Brazilian market, deliveries by the Volkswagen Group in the South America region for the full year 2017 were 23.7 percent higher than 2016.

    Group deliveries in the Asia-Pacific region in 2017 rose by 4.3 percent compared with the previous year to 4.5 million, of which 4.2 million new vehicles were delivered to customers in China during the 12-month period. There was a strong boost in deliveries in the largest single market at the end of the year: 460,100 new vehicles were handed over to customers in China in December – an increase of 17.8 percent.

    “We are making decisive investments in the mobility of tomorrow, using funds from our own resources: in e-mobility, autonomous driving, new mobility services and digitalisation. At the same time, we continue to systematically develop present technologies and vehicles. The excellent delivery figures confirm that this is the right approach,” Müller added.

  • Volkswagen partners Aurora for self-driving cars

    Volkswagen AGVLKAY announced that it has entered into a strategic partnership with Aurora Innovation at the Consumer Electronics Show in Las Vegas, United States.

    The collaboration intends to introduce self-driving electric vehicles as Mobility-as-a-Service (MaaS) fleets in cities.

    Started in 2016, Aurora Innovation is a leading self-driving technology company offering software and hardware for development of autonomous cars.

    Experts from both the companies have been functioning together for the last six months to incorporate Aurora’s sensors, hardware and software such as, machine learning and AI technology in Volkswagen’s vehicles to develop self-driving vehicles.

    This recent development is in sync with Volkswagen’s Together – Strategy 2025 under which, it aims to introduce highly automated self-driving systems in the market by 2021.

    The company’s association with Aurora will provide a significant contribution to its mission of becoming a leading provider of sustainable mobility with self-driving vehicles. The company also aims to develop new MaaS solutions with high safety standards, top user experience and digital intelligence for its customers.

    Last September, Volkswagen announced its plan to unveil a number of autonomous Level five electric cars, vans and trucks by 2021.

    Volkswagen apart, Aurora Innovations has partnered South Korean automaker, Hyundai Motor Company HYMLF.

    Under this partnership, the former will provide its self-driving technologies for the latter’s custom-developed models.