VW emissions scandal – VW confirms extra investment in electric tech, yet delays brand new Phaeton

Monday, October 3rd, 2016 - autos, cars, motoring, news

Source : VW emissions scandal – VW confirms extra investment in electric tech, yet delays brand new Phaeton

Volkswagen to invest extra £70 million in 2016, yet delays launch of brand new, all-electric Phaeton beyond 2020

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The Volkswagen Group will spend an extra €100 million (£70m) on alternative drive technologies – including electric in addition to hydrogen fuel cell powertrains – in 2016, in which has announced.

in which was also revealed in which the Group will decrease spending on capitalized development costs by €1 billion (£700m) to around €12bn (£8.4bn). 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 next year will go on core products in addition to development, including 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 through 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 is actually being put on hold. In addition, the brand new all-electric Volkswagen Phaeton – initially marked for Discharge in 2020 – will be delayed. Müller also stressed in which he hoped to avoid cutting the workforce if he could.

“We will review in addition to potentially cancel further expenditures or spread them out to a greater extent inside next few weeks, yet 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 €4.4bn (£3.3bn) in 2016 – are safe through any cost cutting measures.

“We are operating in uncertain in addition to volatile times in addition to are responding to in which”, said Müller. “We will strictly prioritise all planned investments in addition to expenditures. As announced, anything in which is actually not absolutely necessary will be cancelled or postponed.”

Müller’s 5-point recovery plan

in which latest announcement comes just weeks after Müller said the company will emerge through its current emissions scandal “stronger than before”, in addition to set out 5 priorities for turning the fortunes of the German the 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 through in which.”

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 having a more decentralised structure. In addition to the personnel moves in addition to group realignments already announced, Müller says in which “the key point is actually in which Group management will be decentralised to a greater extent inside future” – something designed to give the different brands inside group more independence in their own regions.

Hinting at a possible radical realignment of the brand’s future product 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 types in addition to examine the contribution in which each one makes to our earnings.”

Müller’s fourth priority is actually 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 in which handles its mistakes”. Many have been critical of how slowly VW has appeared to communicate with an apology to its customers, yet Müller has stressed in which “we need a culture of openness in addition to cooperation.”

Beyond those priorities, VW is actually 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, yet also some of us, did not understand in which our Strategy 2018 is actually 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 is actually today being delayed – will “be the flagship of the brand’s profile over the next decade”, the company says.

Volkswagen said your 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 product 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 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 is actually an overhaul of the VW Group’s approach to diesel engines. through today 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, having a focus on bringing a brand new generation of plug-in hybrid vehicles to market. VW says in which wants to produce hybrids with greater range, as well as developing brand new mass-market electric vehicles having a range of more than 186 miles. Alongside the brand new types, 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 is actually 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 is actually to be defined.”

Additionally, Volkswagen will accelerate its current efficiency programme. Company chairman Dr. Herbert Diess said: “The Volkswagen brand is actually 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 in which stands united in addition to is actually fully focused on shaping the future. We have today laid the further foundations for in which.”

Read more on the Volkswagen emissions scandal:

Six things the firm could cut

Bugatti under threat as boss warns of ‘painful’ cuts

EA288 engine given all-clear

Blog – navel gazing at Volkswagen

Blog – Keeping up with pollution laws is actually not always easy for car makers

Blog – How Volkswagen can survive its emissions scandal

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