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Posts Tagged ‘Volkswagen AG’

Mexico Levies Penalties on Volkswagen

Automaker failed to obtain environmental certification for vehicles.

by on Feb.18, 2016

Volkswagen was fined by Mexico for failing to obtain proper environmental certifications for its vehicles equipped with diesel engines.

Mexican authorities have cracked down on Volkswagen AG, dishing out nearly $9 million in fines for VW’s failure to obtain the proper environmental certificates for 2016 vehicles equipped with diesel engines.

VW failed to verify emissions standards compliance for almost 46,000 vehicles for the 2016 model year it sold in the country, Mexican officials said.

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The Mexican Attorney General’s Office for Environmental Protection said federal inspectors found that 45,494 Audi, Bentley, Porsche, Seat and VW vehicles for 2016 lacked the environmental compliance certificates required for sale when they visited the automaker’s offices this past December, which was three months after VW admitted it had installed defeat devices on more than 11 million vehicles sold around the world. (more…)

Major Reorganization Planned for Volkswagen Group

German maker to split its 12 brands into four holding companies.

by on Jun.16, 2015

Rupert Stadler, shown with an etron concept, reportedly will head the new group pairing Audi, Lamborghini and Ducati.

Already wracked by turmoil in its executive suite, the Volkswagen Group is about to shake up its corporate structure. A new, decentralized approach reportedly will split VW’s 12 different brands into four holding companies.

The approach appears to be modeled after the approach VW has taken with luxury brand Audi, which has long operated as a semi-autonomous group. The Lamborghini and Ducati brands were directly owned by Audi, and the trio will continue to be run by Audi CEO Rupert Stadler.

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The approach appears to be a significant shift in direction from the centrally controlled management structure put in place by Ferdinand Piech, the Volkswagen chairman who was ousted earlier this year in a split with the VW management board. The new structure is aimed at streamlining operations and speeding up Volkswagen’s ability to respond to the marketplace.

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VW, Toyota Go to War

German and Japanese makers set for major production increases.

by on Apr.07, 2015

VW will build a version of its CrossBlue Concept when it completes the Chattanooga plant expansion.

The fight for leadership in the global auto industry is about to turn into a gun-blazing battle.

After announcing a new global strategy last week, reports from Japan indicate Toyota Motor Co., currently the world’s largest maker, is finalizing plans to add at least two new assembly plants. But its close rival, Volkswagen AG, is also adding new plants while boosting capacity at others, including its facility in Chattanooga, Tennessee.

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“It’s going to be a tough battle because you have two competitors with a broad portfolio of products targeting every market in the world,” says Joe Phillippi, chief analyst at AutoTrends Consulting. (more…)

VW Pushes to Top 10 Mil Global Sales – Despite U.S. Struggles

New U.S. plans could prove critical to catching Toyota.

by on Jul.14, 2014

Despite strong sales in China, VW isn't on pace to make its global sales target of more than 10 million vehicles this year, in part because U.S. sales are down.

Volkswagen AG fell a bit short of its ambitious push for global dominance during the first half of 2014, despite its strong and growing presence in China – and its weakness in the U.S. market is largely to blame.

VW reported its deliveries worldwide increased by 5.9%, to 4.97 million vehicles, though if it hadn’t suffered another decline in the American market it almost certainly would have broken the 5 million barrier, putting it well on its way to move 10 million cars, trucks and crossovers for all of 2014.

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But VW is taking steps to rectify its problem in the U.S., the maker on Monday announcing it will spend about $900 million to double the size of its current assembly plant in Chattanooga, Tennessee, to handle production of the long-awaited midsize crossover based on its well-received CrossBlue Concept. (more…)

Volkswagen Investing $2.7 Billion in China

Two new plants add to plans for $27 billion investment.

by on Jul.07, 2014

VW will launch the e-Golf and an assortment of other battery-based vehicles in China.

Volkswagen stoked the competitive fires today in the race to become the top auto brand in China by announcing plans to invest $2.7 billion to build two plants in the country.

The investment is in addition to the previously announced plans to plow about $27 billion into the country by 2018. VW last year nudged past archrival General Motors to become the largest automaker in China.

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“China has become our largest and most important market,” said Prof. Dr. Martin Winterkorn, chairman of VW’s board of management. “To satisfy the demands of our customers in the country, we are engaging in a further substantial expansion of our capacities in China together with our Chinese partner FAW Volkswagen.” (more…)

Volkswagen Reports Jump in Q1 Profitability

Group rides Audi, Porsche, heavy trucks to increase.

by on Apr.29, 2014

VW CEO Martin Winterkorn announced the automaker saw operating profit rise 21.8 percent during the first quarter.

Volkswagen AG enjoyed a strong first quarter reporting a 26.8% increase in net income as well as a 21.8% rise in operating profit on just a 2.7% jump in revenue. Most of the company’s brands saw an increase in operating profit, except its namesake brand, Volkswagen.

VW’s operating profit was about $610 million for the quarter compared with about $815.2 million a year ago. The company said, “it was negatively impacted by lower sales volumes, negative exchange rate trends especially in South America and Russia and higher upfront investments in new technologies, while lower material costs and improvements in the mix had a positive effect.”

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Porsche recorded an operating profit of $957.6 million in the first three months compared with $791.7 million for the same period last year. (more…)

On Track for 10 Mil. Could VW Top Toyota This Year?

German maker cautiously optimistic even as profits tumble.

by on Mar.13, 2014

VW is looking to beat 10 million units in worldwide sales with vehicles like the Golf GTD this year.

Trying to get a clear sense of how to read Volkswagen’s latest numbers might leave you scratching your head and, indeed, a quick look at the ways the results are being reported – and the comments made by the company’s top leaders – might only add to the confusion. The interpretation might depend on whether you look at the half-full or half-empty side.

What’s indisputable is that VW’s net income took a sharp, 58% drop for 2013. The German maker made €9 billion, or $12.5 billion last year, down from €21.7 billion in 2012. But if you leave out taxes and one-time charges, operating earnings rose ever so slightly to €11.7 billion euros, or $16.3 billion, from 11.5 billion euros the year before. And sales rose 2.2% to €197 billion.

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Now, jump ahead slightly, the Volkswagen assemblage of vehicle brands scoring a 4% increase in unit volume for January and February and CEO Martin Winterkorn is predicting, “There is a good chance that we will already exceed the 10 million deliveries mark this year.” (more…)

VW Boosts Investment in Green R&D to $14 Billion

Maker plans “world’s largest low-CO2 fleet.”

by on Mar.04, 2014

The new VW Golf GTE is the more enviro-friendly sibling of the sporty GTI hot hatch. VW is investing $14 billion in green research and development.

With automakers around the world under increasing pressure to go “green,” by lowering emissions and raising mileage, Volkswagen plans to invest more than ever in eco-friendly products, the maker’s CEO announced during a news conference leading up to the opening of the 2014 Geneva Motor Show.

Promising to build “the world’s largest low-CO2 fleet” of vehicles, Volkswagen AG Chairman Martin Winterkorn said the maker will boost its R&D budget to more than 10 billion Euros, or approximately $14 billion, for the first time.

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Overall, VW’s R&D budget rose 15% last year, “the lion’s share,” Winterkorn told reporters, “going to green technologies.” The shift in focus is more than “just talk,” the executive stressed, noting that the average vehicle VW sold in the European Union last year produced just 128 grams of CO2 per kilometer, or well below the continent’s statutory guidelines. (more…)

UAW Files Appeal over Chattanooga Vote

National Labor Relations Board will investigate election.

by on Feb.21, 2014

Workers at the new VW plant in Tennessee may get another chance to vote for a union, if the UAW's appeal of the recent election results is successful.

When UAW President Bob King said the union had no plans to leave Volkswagen’s plant in Chattanooga, Tenn., he apparently meant it as it filed an appeal today contesting the recent election with the National Labor Relations Board.

After weeks of bitter back and forth about the potential impact of the UAW on the plant, workers and the region, the workers voted against UAW representation 712 to 626. The union is claiming politicians and special interest groups interfered with its efforts to organize the plant. The NLRB is investigating the complaint, an official told TheDetroitBureau.com.

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“It’s an outrage that politically motivated third parties threatened the economic future of this facility and the opportunity for workers to create a successful operating model that that would grow jobs in Tennessee,” King said in a statement. (more…)

UAW, Outside Groups Battle as Critical Vote at VW Plant is Set to Begin

Vote could determine fate of auto union.

by on Feb.10, 2014

Workers at Volkwagen's plant in Chattanooga, Tenn., will vote this week to determine if the UAW will represent them.

Pro-union workers from Volkswagen of America’s assembly plant in Chattanooga, Tenn., have called for an end to the interference in their election by outside special interest groups and politicians.

Workers at the big plant will vote this week in an election conducted by the National Labor Relations Board (NLRB) that could prove critical to the long-term viability of the United Auto Workers Union which has long struggled to organize employees at the growing number of foreign-owned “transplant” assembly lines.

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Following the announcement of the election, conservative-leaning groups like the National Right to Work Committee, and Grover Norquist’s Americans for Tax Reform launched an intense campaign in Chattanooga aimed at swaying the outcome of the vote. Among other things, they have posted a billboard featuring pictures of the Detroit’s Packard Plant, which closed more than half a century ago, and blamed the union for the Motor City’s woes. (more…)