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VW chair says component cost decrease keeps him confident of EV success

Volkswagen AG is in the middle of implementing a comprehensive electric vehicle strategy, one that we've been documenting for a long time. The Group stands ready to offer dozens of plug-in vehicles in the coming years if it feels there is sufficient demand and believes that selling a million EVs in Germany by 2020 is reasonable. That would be a solid number, but remember that VW sold over 5,923,000 passenger cars around the world last year, and the group as a whole sold over 9.7 million. At the company's annual Media Conference and Investor Conference in Berlin recently, the chairman of the board of VW AG - surrounded by some decidedly non-green examples of the VW Group's vehicles (some absurd new Bugatti, for example) - took some time to put the company's EV plans into focus. The upshot is that Dr. Martin Winterkorn is still guiding his electromobility ship into new waters, saying that "many more [plug-in] models will follow." Winterkorn said there are three main reasons he is confident in the ability of VW (and Audi and Porsche, at the very least) to push EV sales upward. Batteries are getting better, he said, and if the ranges can be extended, then customers are happy. But the real secret lies in reducing component costs. He said (as translated): It is important to look at the cost of the components: the battery technology, the electric motor and the electric components. Whenever you go into volume production, you of course have economies of scale. In two to three years' time, if we are able to achieve the goals we are setting for ourselves with cost and reach sufficient volume, I do believe that we can achieve two to three percent [market share] within VW Group. So, hitting a million EVs by 2020 is reachable. With the e-Golf and the e-Up off to excellent sales starts, we're willing to be confident as well.

Lamborghini could be sold or spun off from the Volkswagen Group

Volkswagen is reportedly considering a sale or stock listing for its high-end Lamborghini brand. The German automaker is looking to fold the Italian supercar brand into a separate legal entity, reports Bloomberg, which cites "people familiar with the matter" who don't want to be identified "because the deliberations are confidential and no decisions have been made." Any of this sound familiar? The goal of spinning off Lamborghini would be to stockpile more cash and other resources for VW's massive planned push into electric vehicles. Back in March, reports circulated that Volkswagen's "Vision 2030" corporate plan might include plans to focus on the brand's core brands — VW, Audi and Porsche. That means the futures of fringe players like Lamborghini, Bentley, Bugatti, motorcycle brand Ducati and design firm Italdesign (and note this isn't a comprehensive list of brand's under the expansive VW Group umbrella) are up in the air. VW, according to the report, is targeting a market value of $220 billion, which is a big jump from the brand's current $89 billion valuation. Bloomberg pegged Lamborghini's valuation at around $11 billion back in August, buoyed by sales and profits generated by the introduction of the Urus sport utility vehicle. On the flip side, Lamborghini is currently grappling with how best to update its supercar lineup in the face of ever-increasing emissions regulations.

Volkswagen Group recalls 281,505 VWs and Audis for fuel leaks

The Basics: Volkswagen Group is recalling 281,505 total Volkswagen and Audi brand products in the United States for potential fuel leaks. Certain versions of the Audi A3, A6, A7, Q5, and Q7 are affected. In addition, some versions of the Volkswagen Golf, Golf SportWagen, and Golf GTI fall under the recall. It's unclear if vehicles outside of the United States will be recalled as well. The Problem: There are actually three separate recalls for three separate issues that all pertain to leaky fuel. All three recalls were issued simultaneously. The risk of unintended ignition is the main concern here. First off, 2012-2013 Audi A6 and Audi A7 models [28,249 cars] are being recalled because of a degrading fuel hose in the engine compartment. Secondly, 143,214 gas-powered 2009-2012 Audi Q5s and 2007-2012 Audi Q7s are being recalled. The fuel cap may crack on these vehicles, leaking fuel. Finally, 110,042 total units of the 2015-2016 Volkswagen Golf, Golf SportWagen, GTI, Audi A3 sedan, and A3 Cabriolet will be recalled because of fuel leaking from the evaporative emissions system. Injuries/Deaths: According to Reuters, Volkswagen has reported no injuries or deaths related to the fuel leaks. In addition, the company has said there have been no fires started due to the leaks. The Fix: Three separate issues means three separate fixes. Volkswagen and Audi will be reaching out to customers soon, though the parts aren't yet available. For the A6 and A7, Audi will simply replace the under hood hose. For the Q5 and Q7, dealers will clean the pump flange and install a butyl rubber band to protect the pump. Finally, the affected Golf and A3 models will have the suction cup in the emissions system replaced. If you own one: Volkswagen and Audi will begin contacting owners starting next month regarding a fix. Related Video: News Source: NHTSA, Reuters Recalls Audi Volkswagen