VW emissions scandal – VW confirms extra €100m of investment in electric tech
Source : VW emissions scandal – VW confirms extra €100m of investment in electric tech
Volkswagen plans to boost its investment in alternative drive technologies by €100 million in 2016 as the item seeks to recover via the emissions scandal
Volkswagen says the item will spend an extra €100 million on alternative drive technologies – including electric in addition to hydrogen fuel cell powertrains – in 2016 as part of a realigned investment programme.
The group’s investment plans next year will also see the item decrease spending on capitalized development costs by €1 billion to around €12 billion. The announcement was made by brand-new VW Group boss Matthias Müller at the group’s Wolfsburg headquarters.
The vast majority of VW’s expenditure inside the next year will go on core products in addition to development, in addition to include the next-generation Audi Q5 in addition to Volkswagen Golf, as well as the firm’s Crafter plant in Poland in addition to the development of its brand-new modular electric toolkit, announced last month. Around 50% of the planned expenditure will be spent in Germany, where VW has 28 sites.
Müller also went into more detail about which planned investments will either be delayed, scaled back or cancelled as the group recovers via the ongoing emissions scandal. He said in which constructon of a paint shop in Mexico will be reviewed, while a brand-new design center in Wolfsburg will be being put on hold. In addition, the brand-new all-electric Volkswagen Phaeton – initially marked for Discharge in 2020 – will be delayed.
“We will review in addition to potentially cancel further expenditures or spread them out to a greater extent inside the next few weeks, nevertheless without putting our future viability at risk”, said Müller “together with the Works Council representatives we will make every effort to keep our core workforce on board.”
VW’s joint ventures in China – which together are planning expediture of around €4.4 billion in 2016 – are safe via any cost cutting measures.
“We are operating in uncertain in addition to volatile times in addition to are responding to This specific. We will strictly prioritize all planned investments in addition to expenditures. As announced, anything in which will be not absolutely necessary will be cancelled or postponed.”
This specific latest announcement comes just weeks after Müller said the company will emerge via its current emissions scandal “stronger than before”, in addition to set out several priorities for turning the fortunes of the German any around.
Unsurprisingly, Müller says his top two priorities are to rectify those cars affected by the emissions scandal in addition to to investigate how the installation of the so-called ‘defeat device’ became so widespread. In a statement, he said: “Our customers are at the core of everything in which our 0,000 employees worldwide do.
“We must uncover the truth in addition to learn via the item.”
As well as investigating the matter internally, Volkswagen has also engaged an independent auditor to assess its findings. Müller has stressed in which those responsible will face severe consequences.
Beyond the immediate investigation, Müller says in which another of the VW Group’s top priorities will be to realign itself which has a more decentralised structure. In addition to the personnel moves in addition to group realignments already announced, Müller says in which “the key point will be in which Group management will be decentralised to a greater extent inside the future” – something designed to give the different brands inside the group more independence in their own regions.
Hinting at a possible radical realignment of the brand’s future type portfolio – already known to be affected thanks to £750m in reduced spending per year – Müller said: “We will review in detail our current portfolio of more than 300 designs in addition to examine the contribution in which each one makes to our earnings.”
Müller’s fourth priority will be described as being ‘a realignment of the Group’s culture in addition to management behaviour’ – with Müller noting in which alterations are necessary in how Volkswagen “communicates in addition to how the item handles its mistakes”. Many have been critical of how slowly VW has appeared to communicate with an apologise to its customers, nevertheless Müller has stressed in which “we need a culture of openness in addition to cooperation.”
Beyond those priorities, VW will be working on a brand-new plan dubbed the brand-new Group Strategy 2025. An evolution of the current Strategy 2018 plan, the brand-new initiative will be unveiled in full towards the middle of next year.
Müller said: “Many people outside of Volkswagen, nevertheless also some of us, did not understand in which our Strategy 2018 will be about much more than production numbers. A lot of things were subordinated to the desire to be “Faster, Higher, Larger”, especially return on sales.” Instead of sheer volume, says Müller, the focus of the plan will instead be on qualitative growth.
All-electric VW Phaeton delayed
The brand-new Volkswagen Phaeton – development of which will be right now being delayed – will “be the flagship of the brand’s profile over the next decade”, the company says.
Volkswagen said the vehicle will feature “a pure-electric drive with long-distance capability, connectivity in addition to next-generation assistance systems”.
Wolfsburg insiders with knowledge of Volkswagen’s future type plans say the electric Phaeton will share its platform architecture, drive system in addition to battery technology with the upcoming Audi Q6 e-tron – as previewed by the e-tron Quattro concept at the Frankfurt motor show.
Reduced spending at Volkswagen
Volkswagen will reduce spending by €1 billion (£750m) per year inside the wake of the dieselgate emissions scandal, as well as refocusing its development plans as the firm seeks cut costs in addition to reaffirm its environmental credentials among car buyers. VW traditionally invests around €10bn (£7.5bn) per year on research in addition to development alone.
Among the most radical decisions will be an overhaul of the VW Group’s approach to diesel engines. via right now on, the group will only use modern diesel engines with selective catalytic reduction in addition to AdBlue injection in Europe in addition to the United States – the two regions most heavily affected by its emissions scandal.
Development in addition to modification of the group’s standardised MQB platform will also be accelerated, which has a focus on bringing a brand-new generation of plug-in hybrid vehicles to market. VW says the item wants to produce hybrids with greater range, as well as developing brand-new mass-market electric vehicles which has a range of more than 186 miles. Alongside the brand-new designs, VW will also develop a brand-new 48V mild hybrid system in addition to create more efficient petrol, diesel in addition to CNG engines.
Volkswagen will also create a brand-new modular electric toolkit – dubbed MEB – which will be used across the VW Group brands. The toolkit be used for both passenger cars in addition to LCVs in addition to will be designed for all vehicle in addition to Centeng types. VW says the MEB toolkit will allow for “particularly emotional vehicle concepts”, in addition to will enable an all-electric range of 250-500km (155-310 miles).
Hinting in which the Group will be also well on the way to developing purely autonomous vehicles, the statement also says: “A brand-new standard with regard to connectivity in addition to driver assistance systems will be to be defined.”
Additionally, Volkswagen will accelerate its current efficiency programme. Company chairman Dr. Herbert Diess said: “The Volkswagen brand will be repositioning itself for the future. We are becoming more efficient, we are giving our product range in addition to our core technologies a brand-new focus in addition to we are creating room for forward-looking technologies by speeding up the efficiency program.
“We are very aware in which we can only implement these innovations for the future of the Volkswagen brand effectively if we succeed with our efficiency program in addition to in giving our product range a brand-new focus.
“We are working at top speed on these issues. The Volkswagen team has proved the item stands united in addition to will be fully focused on shaping the future. We have right now laid the further foundations for in which.”
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