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Skoda plans big investment into electric cars as part of rebound effort

PRAGUE — Czech carmaker Skoda, part of the Volkswagen Group, said on Wednesday it would invest around 2.5 billion euros over the next five years on future technologies, with more than half going to electric vehicle investment. The Czech Republic's largest exporter is hoping for a rebound in 2021 from a global car sales drop but faces uncertainty over the coronavirus pandemic and a semiconductor shortage rattling the industry. "This year is likely to be another big challenge," finance director Klaus-Dieter Schuermann said. "We expect Skoda Auto's group performance to improve, with sales revenue significantly above the level of last year." Skoda reported on Wednesday a 54.5% drop in 2020 operating to 756 million euros ($894 million). Sales revenue dropped 13.8% to 17.1 billion euros. Global deliveries remained above 1 million cars for a seventh straight year despite a 19% drop after production outages at the outset of the pandemic and a fall in China, its biggest single market. Chief Executive Thomas Shaefer said the car company was managing the semiconductor shortage "but it will follow us for awhile" and the impact was not visible yet. Skoda's core market in Europe would be electric in the future, Shaefer said, although it was still not time to completely switch away from traditional models, which include the launch last year of a new generation of its flagship Octavia model. It has also started production of the all-electric Enyaq iV model, which is a version of Volkswagen's ID.4. Skoda plans investments of 1.4 billion euros into electromobility development as part of its five-year investment plan. Investments will also go into digitalization activities and plant modernization. Related video: Green Volkswagen Skoda Electric

Everyone but VW and Tesla has recalled their Takata airbags

Takata's massive airbag inflator recall affected over 32 million vehicles from 11 automakers in the US, but two companies buying the supplier's parts haven't been affected so far: Volkswagen and Tesla. There are 887,055 VWs and 184,926 Teslas using Takata's inflators with ammonium-nitrate propellant, a new accounting shows, according to Automotive News. That doesn't necessarily mean the models need to be recalled. These figures came from a report that Takata prepared for the National Highway Traffic Safety Administration, which listed all of the vehicles it supplied with ammonium nitrate-fueled inflators. The substance is believed to be linked with the components' rupturing, along with manufacturing defects and humidity. "We're not asking because we've got reports of problems; we just need to figure out what the universe is," NHTSA spokesman Gordon Trowbridge said to Automotive News. Takata reportedly told Tesla that the inflators in its EVs are not affected with these problems, and VW is investigating a case in June where a side airbag allegedly burst in a 2015 Tiguan, Automotive News reports. The government is also still researching the precise cause of the parts' ruptures. If the investigation finds ammonium nitrate to be a factor, the vehicles could need recalled. During a Congressional hearing Takata vice president Kevin Kennedy admitted that ammonium nitrate could be among the factors of the ruptures, but the company has continued to use the chemical in its inflators. Takata is now working to transition to a different propellant. Related Video:

Volkswagen officially grants access to UAW in Tennessee

An audit at the Volkswagen factory in Chattanooga, TN has revealed that at least 45 percent of the facility's workers support unionization, leading the German company to grant access rights to the United Auto Workers. This is a tremendous step in the UAW's long-running and at times contentious pursuit of the workforce at Chattanooga. With this latest move, "local leadership is ready to move forward with additional conversations with the company," the union said in a statement obtained by The Detroit News. "As a starting point, UAW Local 42 will take advantage of the company's offer to establish bi-weekly meetings with Volkswagen Human Resources and the Volkswagen Chattanooga Executive Committee." The News reports that UAW Secretary-Treasurer Gary Casteel, shown above speaking at the Chattanooga plant last summer, claimed these meetings "will remind Human Resources and the Chattanooga Executive Committee of the mutually agreed-upon commitments that were made by Volkswagen and the UAW last spring in Germany. Among those commitments: Volkswagen will recognize the UAW as the representative of our members. We believe Volkswagen made this commitment in good faith and we believe the company will honor this commitment." It's important to note that despite Casteel's remarks, this is not a collective-bargaining agreement, Harley Shaiken, a labor professor at University of California, Berkeley, told The News. "But it is a step in the direction of recognition, which ultimately could lead to collective bargaining. This is not the end point," Shaiken said. "We don't know what's next. We're in unchartered territory."