The Future of VW, BMW Etc

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German carmakers have 50 percent chance of staying ahead, VW says
Reuters 1 hour 6 minutes ago
2018-10-16T063535Z_1_LYNXNPEE9F0HT_RTROPTP_2_VOLKSWAGEN-EMISSIONS.JPG.cf.jpg

New Volkswagen cars are seen at the Berlin Brandenburg international airport Willy Brandt (BER) in Schoenefeld, Germany, August 14, 2018. REUTERS/Hannibal Hanschke?
FRANKFURT (Reuters) - Germany's carmakers only have a 50 percent chance of surviving as leading players in the auto industry unless they transform to meet new regulations and adapt their supply chains, Volkswagen Chief Executive Herbert Diess said on Tuesday.

Some carmakers could be pushed out of business by reforms required to shift production to electric cars from vehicles running on combustion engines and by introducing the changes needed to tackle new geopolitical threats, he said.

"From today's point of view the chances are perhaps 50-50 that the German auto industry will still belong among the global elite in 10 years' time," he said, referring to Volkswagen Group, BMW and Daimler .

The intensifying push to cut carbon dioxide pollution and nitrogen oxide emissions amounted to a campaign against individual mobility and against cars, Diess said.

"We are all used to the fact that we have flourishing industrial metropolises around the central manufacturing plants of German carmakers and their suppliers, places where people like to live and work, but that's not guaranteed for eternity," Diess told an auto supplier conference in Wolfsburg.

"If you look at the former bastions of the auto industry like Detroit, Oxford-Cowley or Turin, you understand what happens to cities when once powerful corporations and leading industries falter," he added.

COST OF TRANSFORMATION

To cut average fleet emissions of carbon dioxide in Europe by 30 percent by 2030, Volkswagen needed to raise its share of electric vehicles to 30 percent of new car sales, Diess said.

Pollution from carbon dioxide, the main greenhouse gas blamed for global warming, would rise in Germany, given the country's dependence on generating electricity from brown coal, he said.

The shift from combustion engines to electric cars would also lead to the loss of 14,000 jobs at VW by 2020, Diess said, and require an overhaul of the carmaker's in-house components business.

VW's in-house components division, which eats up the lions share of the 170 billion euros spent on procurement, develops and builds car parts at 56 sites across the globe, employing around 80,000 people.

"From Jan. 1 onward, Volkswagen components will act as an economically independent entity," Diess said.

Each of the 56 plants would be free to evaluate partnerships and even to build components for other carmakers, Diess said.
 

saveoursouls

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Jul 4, 2018
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German carmakers have 50 percent chance of staying ahead, VW says
Reuters 1 hour 6 minutes ago
2018-10-16T063535Z_1_LYNXNPEE9F0HT_RTROPTP_2_VOLKSWAGEN-EMISSIONS.JPG.cf.jpg

New Volkswagen cars are seen at the Berlin Brandenburg international airport Willy Brandt (BER) in Schoenefeld, Germany, August 14, 2018. REUTERS/Hannibal Hanschke?
FRANKFURT (Reuters) - Germany's carmakers only have a 50 percent chance of surviving as leading players in the auto industry unless they transform to meet new regulations and adapt their supply chains, Volkswagen Chief Executive Herbert Diess said on Tuesday.

Some carmakers could be pushed out of business by reforms required to shift production to electric cars from vehicles running on combustion engines and by introducing the changes needed to tackle new geopolitical threats, he said.

"From today's point of view the chances are perhaps 50-50 that the German auto industry will still belong among the global elite in 10 years' time," he said, referring to Volkswagen Group, BMW and Daimler .

The intensifying push to cut carbon dioxide pollution and nitrogen oxide emissions amounted to a campaign against individual mobility and against cars, Diess said.

"We are all used to the fact that we have flourishing industrial metropolises around the central manufacturing plants of German carmakers and their suppliers, places where people like to live and work, but that's not guaranteed for eternity," Diess told an auto supplier conference in Wolfsburg.

"If you look at the former bastions of the auto industry like Detroit, Oxford-Cowley or Turin, you understand what happens to cities when once powerful corporations and leading industries falter," he added.

COST OF TRANSFORMATION

To cut average fleet emissions of carbon dioxide in Europe by 30 percent by 2030, Volkswagen needed to raise its share of electric vehicles to 30 percent of new car sales, Diess said.

Pollution from carbon dioxide, the main greenhouse gas blamed for global warming, would rise in Germany, given the country's dependence on generating electricity from brown coal, he said.

The shift from combustion engines to electric cars would also lead to the loss of 14,000 jobs at VW by 2020, Diess said, and require an overhaul of the carmaker's in-house components business.

VW's in-house components division, which eats up the lions share of the 170 billion euros spent on procurement, develops and builds car parts at 56 sites across the globe, employing around 80,000 people.

"From Jan. 1 onward, Volkswagen components will act as an economically independent entity," Diess said.

Each of the 56 plants would be free to evaluate partnerships and even to build components for other carmakers, Diess said.

I don’t mind the future being electric cars if we can keep combustion engines for enthusiasts (projects cars, weekend cars) but instead they’ll be heavily taxed and left only for those that can afford it.

I imagine VW will adapt if it’s required for survival as a business.


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Deleted member 103408

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The big problem is that Car Makers are like oil tankers they dont turn round very quickly (as we can see with WLTP Fiasco) and from what I have seen Electric is not the long term solution. VW Have been hit with a huge fine today for the Dieslegate cheat so they are taking a hit.

VW Generaly have lost a lot of talent due to Dieslegate which takes time to replace.

I Agree I think they will survive but as the article states you just have to look at Detroit and The Midlands once the heart of the Car Industry but no more so maybe the cars will be built offshore to keep the price down.

I also think for electric the big issue is battery life (both for a single journey but also how long they last as usable things).

But by the time we are all electric I wont be driving I suspect.
 

Seriously?

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Apr 20, 2018
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Interesting stuff, thanks for sharing.
It's maybe also unwittingly significant that VW store cars at Brandenburg airport, a construction that started in 2006 after years of planning and at last count, wasn't expected to be operational until possibly 2020/2021, thanks to a catalogue of design blunders and financial scandals....
 

Legojon

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Add to that the fact that electricity comes from fossil fuel anyway. If everyone switched to electrics cars tomorrow the country would be stuffed! The grid needs to be able to support everyone charging their car every night. Then what if you get caught out whilst away. Batteries don't charge quick enough to go all electric. There was talk of petrol stations offering charged swap out batteries. But as most people don't even know how to open the bonnet. Plus again, they'd have to keep 1000s of fully charged batteries. Electric cars is a great dream. But I don't see it becoming a reality in my lifetime.
 

Blowski

Cupra 280 DSG
Mar 23, 2018
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That is a good point that is often missed. Everyone going electric is not actually sustainable yet.

The VAG group seem very slow to adapt and change. This ultimately could cost them heavily in terms of reputation and market share.

The Cupra production debacle is a prime example. It happily ticked along at a few thousand a year. A bit of marketing and organic popularity growth and a jump to 10k sold units a year and it all went to s##t.

You’d like to think that the board of VAG group has a strategy but who knows. They wouldn’t be the first big company in the world to have an ineffective board that costs them dearly.


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vikram soni

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Jul 19, 2018
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Look at this future. Cost of transformation to this stuff would be huge.



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Legojon

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Reminds me of these:
latest


But seriously, imagine how much they would cost per corner!!
 

Legojon

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Let alone the captive magnet unit to mount them to the car.............Pinball Wizard springs to mind

Oh yeah, I didn't even think about how they attached, I just thought wow that's low!! I'd like to see how the tyres are going to rotate 180 degrees on the spot all at the same time whilst sitting at traffic lights.
 
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