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Coronavirus prompts VW to stop production throughout Europe

FRANKFURT — Volkswagen Group, the world's biggest carmaker, is suspending production at factories across Europe as the coronavirus pandemic hits sales and disrupts supply chains, the company said on Tuesday. The German carmaker, which owns the Audi, Bentley, Bugatti, Ducati, Lamborghini, Porsche, Seat and Skoda brands, also said that uncertainty about the fallout from coronavirus meant it was impossible to give forecasts for its performance this year. "Given the present significant deterioration in the sales situation and the heightened uncertainty regarding parts supplies to our plants, production is to be suspended in the near future at factories operated by group brands," Chief Executive Herbert Diess said on Tuesday. Volkswagen's powerful works council concluded it was not possible for workers to maintain a safe distance from each other to prevent contagion and recommended a suspension of production at its factories from Friday. Production will be halted at VW's Spanish plants, in Setubal in Portugal, Bratislava in Slovakia and at the Lamborghini and Ducati plants in Italy before the end of this week, Diess said. Most of its other German and European factories will prepare to suspend production, probably for two to three weeks, while Audi said separately it would halt output at its plants in Belgium, Germany, Hungary and Mexico. Volkswagen's vast factories in Chattanooga, Tennessee, in Puebla, Mexico, and plants in Brazil were not affected, but that would depend on how the coronavirus spreads, VW said. Volkswagen has 124 production sites worldwide of which 72 are in Europe, with 28 in Germany alone. "2020 will be a very difficult year. The coronavirus pandemic presents us with unknown operational and financial challenges. At the same time, there are concerns about sustained economic impacts," Diess said.   Production in China resumes Volkswagen Group sold 10.96 million vehicles last year, putting it ahead of Toyota based on the latest figures from the Japanese carmaker. Globally, VW employs 671,000 people and it delivered 4.86 million vehicles to European customers in 2019. Only last month the car and truck maker based in Wolfsburg, Germany, predicted that vehicle deliveries this year would match 2019 sales and forecast an operating return on sales in the range of 6.5% to 7.5%. "The spread of coronavirus is currently impacting the global economy. It is uncertain how severely or for how long this will also affect the Volkswagen Group.

Audi H-Tron Concept is a familiar face now with hydrogen power

Audi shows its green side at the 2016 Detroit Auto Show with the H-Tron Concept, a hydrogen-fueled version of the recent E-Tron Quattro concept. The new fuel-cell powertrain gives the futuristic crossover an estimated range of 372.8 miles on the European cycle, and the company claims that the solar panel that spans the roof could let drivers recoup 621 miles of range each year from the sun's rays. The H-Tron's powertrain benefits from both the fuel cell and a lithium-ion battery for an extra boost. The hydrogen system alone can produce 148 horsepower, and three tanks under the passenger compartment carry the fuel. The battery can also provide enough energy for an extra 134 hp for short periods. Its combined torque rating of 406 pound-feet is impressive. The Audi puts the power down through electric motors at the front and rear axle to allow for an electrified version of Quattro all-wheel drive, and the automaker claims the concept could accelerate to 62 miles per hour in less than 7 seconds. Other than the new coat of eye-catching yellow paint for Detroit, the H-Tron looks largely the same as the E-Tron Quattro, and both of them also ride on the Volkswagen Group's second-generation modular longitudinal platform. The most notable tweaks to the outside are the smoother hood and larger openings in the lower fascia of the latest concept. The two vehicles are also twins on the inside, and they both feature cabins with Audi's latest virtual cockpit with OLED screens. Zero emissions: the Audi h-tron quattro concept Audi h-tron quattro concept High range, swift refueling, sporty road performance: The Audi h-tron quattro concept car can boast all these virtues. It combines a highly efficient fuel cell achieving an output of up to 110 kW with a powerful battery that can provide a temporary boost of 100 kW. The car can be fully refueled with hydrogen in around four minutes, and is then ready to drive for up to 600 kilometers (372.8 mi). In another major step, Audi will go into production with its new technologies for piloted driving and parking in 2017 along with the next generation of the A8 luxury sedan. The technology study already provides a glimpse of things to come. The Audi h-tron quattro concept is another milestone along the path towards future mobility.

China probing German automakers over spare parts

The Chinese market has proven to be a boon to German luxury automakers. However, the way that the companies have allegedly been controlling their supply of spare parts has begun to draw the ire of the nation's government. According to insiders speaking to Bloomberg, officials from the country's economic planning organization have opened a probe into Audi, BMW, Mercedes-Benz and some Japanese carmakers over claimed price inflation and limiting supply.
Specifically, the investigation centers around two aspects of how the companies do business, according to Bloomberg. Investigators want to know whether the original equipment component makers are able to sell spare parts only to automaker-authorized dealers or if they are also available to independent shops. There is also the issue of whether the price markup on replacement pieces is too high. The tight controls could be partially explained by China's reputation for producing counterfeit parts.
Evidently, the investigators haven't checked parts prices at car dealers elsewhere in the world. At least in the US, paying more at the dealer for factory components just goes along with owning a vehicle. If evidence of price fixing is found, the companies could face fines the equivalent of millions of dollars, according to Bloomberg.