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VW modular platform strategy goes all-in on EVs

The Volkswagen Group has already revealed or put on sale a broad slate of new electric vehicles: the E-up, the E-Golf (shown above), the Porsche 918 Spyder, the Panamera S E-Hybrid and the XL1. In 2014, there will be at least six more models, including the A3 Sportback E-Tron. And after that? Well, to hear Rudolf Krebs, Group Commissioner For Electric Vehicle Drive Systems, tell it, VW's future is full of plug-in goodness. "With our platform strategy, it is quite easy to bring a lot of electrified vehicles to the market for the different brands in a very short time," he said. "We try, with a minimum of those components, to produce a maximum number of variants of cars" That strategy starts with three platforms: MQB for small cars, MLB for midsize models and MSB for sporty and premium products (there's also the NSF for cars like the E-up). Speaking to AutoblogGreen, Krebs said VW has designed modules, things like engines and electric components (think: AC compressor, on-board chargers and battery management systems), to be used across all three platforms and across all brands all. "We try, with a minimum of those components, to produce a maximum number of variants of cars," he said. "This is only possible if, at an early stage of the design of new vehicles, we implement the idea that these cars are not only designed for gasoline and diesel powertrains but that we can also include CNG concepts, flex-fuel concepts, pure electric vehicles or plug-in hybrid vehicles. With minor changes in the body in white, we can produce those vehicles, bumper-to-bumper, in one factory." "VW wants to be the leader in the electrification of vehicles" In this way, customers can choose the powertrain that they want, or whatever powertrain their local regulations demand. Politicians have already put a lot of pressure on the automotive industry, with ever-stricter CO2 regulations coming into effect in all of the major markets. In the US, the fuel economy regulation numbers require the equivalent of 101 grams of CO2 emissions per kilometer by 2025. Europe, it's 95 grams by 2020. And China, which is asking for 118 grams by 2020, will be a tough scenario, Krebs said. Today, by optimizing conventional technologies and supporting things like CNG and biofuels, more than 300 VW Group models emit less than 120 g/km. A hundred of those are even under 100 g/km. But this is not sufficient, and VW admits that conventional powertrains will not be not enough.

Volkswagen is not cool with a Fiat Chrysler merger

Volkswagen CEO Matthias Mueller shot down Fiat Chrysler CEO Sergio Marchionne's overtures for a merger in blunt fashion this week. Mueller told Reuters at the Geneva Motor Show, "We are not ready for talks about anything ... we have other problems. I haven't seen Marchionne for months." The unusually candid – and icy – response from one chief executive to another comes after Marchionne similarly pursued General Motors (again) this week. The FCA boss suggested GM might be looking for a new European partner as it prepares to unload its troubled Opel and Vauxhall divisions to PSA. A GM spokesman told USA Today that the company is not interested. Marchionne has been openly suggesting a GM merger since at least 2015, despite GM never reciprocating interest. VW's "other problems," as Mueller notes, include legal proceedings, fines, recalls, and other issues related to its long-running diesel scandal. Marchionne has long sought industry consolidation, arguing that automakers don't get a proper return on their investments in technologies, some of which are relatively similar. He's suggested sharing chassis and powertrain components could be a benefit to the collective auto sector. Skeptics argue FCA, which is smaller than GM, VW, Toyota, and others, needs a partner to survive, while its rivals already have the necessary scale to remain competitive. Related Video:

VW has received several tentative bids for Ducati

Italy's Benetton family is vying with motorbike firms and buyout funds for control of Italian motorcycle brand Ducati, which is being sold by Germany's Volkswagen, sources involved in the process told Reuters. Volkswagen, whose Audi division controls Ducati, has received several tentative bids with the Benetton family's investment vehicle Edizione Holding valuing the Monster motorbike maker at $1.2 billion, one of the sources said. As well as Edizione Holding, U.S. buyout fund Bain Capital, which owns a stake in Ski-Doo snowmobiles maker BRB, and two Indian motorbike firms, Eicher Motors and Bajaj Auto, have also bid for Ducati, the sources said. Indian carmaker Eicher controls Royal Enfield, a motorcycle brand established in 1893 which ranks as one of the oldest. Strategic bidders also include U.S. automotive firm Polaris Industries, which earlier this year said it would wind down its struggling Victory Motorcycle brand. A shortlist of bidders for a second stage of the auction could be selected as soon as Saturday, two of the sources said. Volkswagen adviser Evercore has a long list of bidders including private equity funds such as Ducati's previous owner Investindustrial, CVC Capital Partners, Advent and PAI, all hoping to outbid industry players, the sources said. If it gets to the second round, Edizione Holding could seek to form a consortium with a financial investor, two of the sources said, in a bid to secure control of Ducati, whose racers have won the Superbike world championship 14 times, with Carl Fogarty and Troy Bayliss its most successful riders. Audi, Edizione Holding, Investindustrial, Advent and PAI declined to comment, while the other interested groups were not immediately available for comment. PRICING CHALLENGES For some buyout funds, Ducati's valuation of up to $1.4 billion – which sources said is based on a multiple of more than 10 times its core earnings of roughly 100 million euros – is a tall order as they lack the synergies that some motorbike makers could achieve. But Investindustrial founder Andrea Bonomi, who sold Ducati to Audi for about 860 million euros in 2012, is serious about a comeback, one of the sources said. China's Loncin Motor was among a group of industry players that initially showed interest in Ducati, alongside Harley-Davidson. The latter has, however, decided against making a bid due to Ducati's price tag, while it could not be established if Loncin Motor had carried on bidding.