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VW Group plan puts Porsche in charge of a 'super-premium' division

An Automobile report looks into what's happening on the organizational and technical sides of the Volkswagen Group, and what those changes could mean for the premium brands. The wide-angle view is that Porsche appears to have been anointed to "coordinate the future activities" at Audi, Bentley, Bugatti and Lamborghini. Audi would cede Lamborghini guardianship to Stuttgart, and Ducati — via a new concern called Ducati Enterprises — would become the shepherd for VW's other Italian investments. Executives target Jan. 1, 2019, to complete the reshuffle. VW wants to save a boodle by tying up four of its five top-tier brands, and putting the one with the highest ROI in charge. Porsche, within its own house, wants to reduce expenditures by $2.3 billion per year over for four years, the savings already earmarked for improving internal processes like R&D and production. Having Porsche share those gains as well as lead development of platforms, components and future-tech strategies for the sister sports car brands could benefit everyone. In the near-term, the brands have their own plans: Bugatti CEO Stephan Winkelmann is said to want a Chiron Superleggera, a roofless and "completely reskinned" Chiron Aperta, and a track-only Chiron SS. The Superleggera could take the Chiron Sport's and Divo's Jenny Craig routines even further. The Aperta seems a natural successor to the Veyron Grand Sport, a natural evolution of the recently introduced Sky View roof, and a reskin might include numerous Divo cues. It's also said Bugatti's considering "an all-electric high-end model" in conjunction with Porsche, Rimac, and Dallara, but name one supercar or hypercar manufacturer that isn't considering a lightning-fast EV. Lamborghini, deep into work on follow-ups for the Huracan and Aventador, might get a bit of a bump with the new plan. The carbon "monofuselage" for the next V12 flagship is said to be too far developed and too complex to scrap. It puts two electric motors on the front axle, batteries in the middle, and a naturally aspirated V12 with around 770 horsepower plus another e-motor with 402 horsepower in back. The Huracan is said to get a version of the same carbon architecture at the moment, but the corporate reorganization might press pause on it. Automobile says options include continuing the Huracan/ Audi R8 twinning, but that depends on Audi saying "Ja" to a third-gen R8 with Lamborghini bones.

Mercedes-Benz, Volkswagen, and Audi announce Takata recalls

Daimler, Volkswagen, and Audi will recall nearly 1.7 million total vehicles in the US to replace their Takata airbag inflators. The Japanese parts supplier and the National Highway Traffic Safety Administration announced in late January that several automakers would need to fix around five million more vehicles, and the various companies have been releasing the details since then. Daimler has a recall for 841,000 vehicles in the US, including 705,000 from Mercedes-Benz and 136,000 from the company's van division. Reuters reports the affected models consist of 2005-2014 examples of the SLK-Class, C-Class, E-Class, M-Class, GL-Class, R-Class, and SLS-Class. The vans comprise the 2007-2014 models of the Dodge, Freightliner, and Mercedes Sprinter. Autoblog reached out to Mercedes USA to confirm these details, and we're awaiting a reply. Daimler expects the repair campaign to cost 340 million euros ($382 million at current rates). The company will book the costs as part of its financial year 2015 results, and net profit for that year will fall to 8.7 billion euros ($9.8 billion). Volkswagen's recall covers 680,000 vehicles in the US to replace their driver side airbags. The affected models have Takata's SDI and PSDI-5 inflators, which could rupture in an crash, but the automaker isn't aware of any explosions for these parts in its products. This campaign includes: 2006-2010 Passat Sedan and Wagon (German Production) 2012-2014 Eos 2010-2014 Golf 2010-2014 Jetta SportWagen 2012-2014 Passat (U.S. Production) 2009-2014 CC There are also 170,000 Audi vehicles with the SDI and PSDI-5 inflators in the US, but there are no reports of the parts rupturing in the company's models. The affected products are: 2005-2013 A3 2006-2009 A4 Cabrio 2009-2012 Q5 2010-2011 A5 Cabrio VW and Audi are still working to identify the specific VINs for these vehicles. Afterwards, they will notify affected owners. Ford, Mazda, and Honda already announced details for their new round of Takata repairs. VW and Audi also recalled a small number of Tiguans and Q5s to replace their side airbag inflators from the Japanese company. NHTSA still expects BMW and Saab to detail expanded safety campaigns.

Russian auto boomtown grinds to halt over Ukraine sanctions

Thousands of auto workers have been furloughed and food prices are soaring as Western sanctions pummel the small Russian city of Kaluga and its flagship foreign carmakers, with more sanctions likely to come. The Kaluga region, 190 kilometers (120 miles) southwest of Moscow, says it has attracted more than 1.3 trillion roubles ($15 billion) in investment, mostly foreign, since 2006. But Western sanctions imposed in recent weeks after Russia sent tens of thousands of troops into Ukraine have exacerbated lingering component shortages and halted production at two flagship car plants, Germany's Volkswagen and Sweden's Volvo. A third, the PSMA Rus plant that is a joint venture between Stellantis and Mitsubishi and employs 2,000, may halt production soon due to a lack of parts, Stellantis' chief executive said last Thursday. "It is not clear what will happen. They don't give us any concrete information," said Pavel Terpugov, a welder at the PSMA Rus plant. Terpugov said he needs twice as much money to buy groceries than before the sanctions. Analysts have forecast Russian inflation could soar to 24% this year, while the economy may shrink to 2009 levels. The United States and Europe are weighing more sanctions against Russia after Ukraine accused Russian forces of civilian killings in northern Ukraine, where a mass grave was found in Bucha, outside Kyiv. Russia calls its actions in Ukraine a "special operation" and the Kremlin categorically denied any accusations related to the murder of civilians, including in Bucha. One source of hope for some in Kaluga, with its 325,000 residents, is the West may be reluctant to hurt its own companies. "Does it make sense to impose sanctions on its own plant and lose money?" said Valery Uglov, an auto mechanic at the Volkswagen plant. "Does it make sense to lose the Russian market?" "We hope to return to work as soon as possible and everyone will have confidence in the future again," Uglov said. Volkswagen, whose factory employs 4,200 people, in early March suspended operations. A spokeswoman said production remained frozen. Volvo Group, which employs over 600 people to build trucks, also suspended production. Even before the sanctions, Russian car sales had contracted from 2.8 million units from when the Volkswagen factory opened in 2007 to 1.67 million units last year, damaged by both sanctions after the 2014 annexation of Crimea and the COVID-19 pandemic.