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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: record profit as 'biggest product initiative' in its history gets underway

Audi Group CEO Markus Duesmann   Even as the Audi Group (VOW.DE), VW’s luxury division, is in the midst of a huge EV transformation it still needs to perform where it counts — the bottom line. And so it is doing just that.  On Thursday the Audi Group - which is dominated volume-wise by Audi, but also includes Bentley, Lamborghini, and Ducati - posted record revenue and operating profit in 2022. That shouldnÂ’t be a surprise given what the industry has been seeing at the highest end of the market - record performances despite macroeconomic jitters across the globe. But that it's happening as the group is noteworthy.  “We are on the verge of the biggest product initiative in our history,” Audi Group CEO Markus Duesmann said at a news conference earlier on Thursday. “By 2025, we will have launched around 20 new models, more than 10 of which will be all-electric. We have set the course to go 100% electric. By 2027, we seek to offer an all-electric vehicle in each core segment.”   This is all part of Audi GroupÂ’s Vorsprung 2030 plan, which seeks to have all of the groupÂ’s new models be electric by 2026 — and to end traditional gas-powered engine production by 2033. To that end, the group saw EV deliveries jump 44% (in 2022) compared to 2021 to over 118,000 vehicles, with the share of EVs rising to 7.2% from 4.8% in the prior year. Audi is also launching its first EV using the PPE (premium platform electric), which was developed together with Porsche. That EV, the Audi Q6 e-tron, will be unveiled later this year. (Past Audi EVs shared corporate parent VWÂ’s electric platform.) “With the Audi Q6 e-tron, e-mobility is coming from Ingolstadt (Audi HQ) for the first time,” Duesmann said in a statement. “To this end, weÂ’re also building a dedicated battery assembly facility on site. This will enable us to retain important know-how here in Germany and train our employees in future fields.” AudiÂ’s German rivals of course are also leaning in hard on their EV transformations. That makes it all the more important that Audi get its EV strategy right—and launched in a timely manner.

Lamborghini SC18 Alston is a ferocious first from Squadra Corse

Lamborghini has worked up a number of limited-editions and one-offs over the past decade, from the run-of-20 Veneno to the one-of-one Egoista and Aventador J. The standard production-car division worked up those previous efforts. Now, Lamborghini's racing division, Squadra Corse, has dreamed up a one-off for the first time as a commission for a client. Called the SC18 Alston, the Aventador-based coupe starts at the marker laid down by the SVJ and takes a few barbarous steps beyond. The point, apparently, was a road-going car with maximum track performance. Squadra Corse designers, working with the customer and Lamborghini Centro Stile, penned an aero package that borrows elements from Huracan race cars. The front hood air intakes were derived from the Huracan GT3 EVO, while the side and rear fenders, the fins and the scoops take inspiration from the Huracan Super Trofeo EVO. The three-stanchion wing hearkens to the Veneno, the rear taillight pattern and valance curve reference the Centenario, and the way the rear wing endplates rise from the fenders suggests the Bugatti Vision GT. The power unit comes untouched from the Aventador SVJ, meaning a 6.5-liter V12 with 759 horsepower and 531 pound-feet of torque, shifting through the seven-speed ISR gearbox. An engine cover with 12 vents, also derived from the racing programs, keeps the fury cool, and a new exhaust design produces a new sound. Lighter carbon fiber bodywork drenched in Grigio Daytona hides the internals and reduces weight. Screenprinted red accents on the body panels coordinate with accents on the center-lock wheels — 20 inches in front, 20 in back — and specially developed Pirelli P Zero tires. The cabin's been dressed in Nero Ade Alcantara with red cross-stitching, and a pair of carbon fiber buckets. There's nothing not to like here, and we suspect this won't be the last unique effort we see from the Squadra Corse brand. Related Video: