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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 confirms all-electric SUV on the way

The electric crossover segment might become a hot market in just a few years. In addition to the rumors of an electric Jaguar F-Pace and obviously the Tesla Model X, Audi is now confirming an EV "sports activity vehicle" for early 2018. The Germany luxury brand even showed off a rendering (pictured above) of it during the company's annual press conference. Audi technical development boss Dr. Ulrich Hackenberg made the announcement during his portion of the conference but largely avoided hard details. What he said was tantalizing, though. The still un-named model was claimed to offer over 311 miles of driving range and ride on the brand's upcoming MLB 2 platform. Although, Auto Express suggests that it could be called the Q6 E-Tron. Dr. Hackenberg also promised a "new, very attractive design, which we are developing especially for the E-Tron range and for battery-electric vehicles." The rendering showcased a fairly squat crossover design with bold fender flares dominating the styling in profile. The images also suggested almost coupe-like proportions. Thankfully, the wait for more details about the model might not be too long. Dr. Hackenberg told Auto Express that Audi would have a presentation soon about the new model. He also hinted at a little of its tech by suggesting next-gen batteries offering 50 amp-hours and 90 kWh could be enough for sufficient range even in such a large model. With recent unveilings like the R8 E-Tron and Q7 E-Tron, Audi is rapidly moving towards offering more plugins and electric models. With this latest announcement, that expansion only appears to be accelerating. Prof. Dr.-Ing. Ulrich Hackenberg, Member of the Board of Management at AUDI AG for Technical Development Speech to the Annual Press Conference 2015 Ladies and Gentlemen, 2014 was the year of technical milestones, tests and records. Think of the sportiest piloted car in the world, the Audi RS 7 concept, which lapped the Hockenheimring racetrack extremely dynamically without a driver – at up to 240 km/h. Another mega-success was our 13th victory in the world's most important endurance race. The Audi R18 e-tron quattro with diesel-hybrid drive triumphed in the 24 Hours of Le Mans. 2014 – that was also 25 years of TDI technology. As strong evidence of the future viability of combustion engines, we showed the Audi RS 5 TDI concept – the fastest diesel ever timed on the Hockenheimring.

Volkswagen finds CO2 'irregularities' for 800k vehicles

The latest issue for Volkswagen affects another 800,000 vehicles, and this time its for irregularities in CO2 emissions certifications. VW estimates this issue could cost the company $2.2 billion to fix. The company officially makes no specific mention of which engines are covered, the models they are in, or even where they are located. VW discovered the situation during its ongoing internal investigation, and, according to the automaker, "it was established that the CO2 levels and thus the fuel consumption figures for some models were set too low during the CO2 certification process." Most of the affected vehicles are diesels, and the company is now reaching out to "the responsible type approval agencies" to figure out the next step. While VW isn't officially confirming which models and engines are involved, Automotive News reports that it affects some 2012 and later VW, Audi, Seat, and Skoda models with the company's 1.4-, 1.6-, and 2.0-liter diesel engines, as well as the 1.4-liter ACT gasoline engine. The issue mainly affects vehicles sold in Europe. "The Board of Management of Volkswagen AG deeply regrets this situation and wishes to underscore its determination to systematically continue along the present path of clarification and transparency," CEO Matthias Muller said in the announcement. Volkswagen Group of America spokesperson Jeannine Ginivan was able to provide some further clarification to Autoblog. "This is not related to US-certified vehicles," she said. Clarification moving forward: internal investigations at Volkswagen identify irregularities in CO2 levels Matthias Muller: "Relentless and comprehensive clarification is our only alternative." Around 800,000 Group vehicles could be affected Initial estimate puts economic risks at approximately 2 billion euros The Volkswagen Group is moving forward with the clarification of the diesel issue: during the course of internal investigations irregularities were found when determining type approval CO2 levels. Based on present knowledge around 800,000 vehicles from the Volkswagen Group could be affected. An initial estimate puts the economic risks at approximately two billion euros. The Board of Management of Volkswagen AG will immediately start a dialog with the responsible type approval agencies regarding the consequences of these findings. This should lead to a reliable assessment of the legal, and the subsequent economic consequences of this not yet fully explained issue.