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As VW electrifies, it questions the role of Lamborghini, Bugatti, Ducati

FRANKFURT — Volkswagen needs to change to stay relevant in the electric and digital vehicle era and will announce "important steps" to that end before the close of the year, Chief Executive Herbert Diess said on Wednesday. "Volkswagen needs to change: From a collection of valuable brands and fascinating combustion-engine products that thrill customers with superb engineering — to a digital company that reliably operates millions of mobility devices worldwide," Diess told shareholders at the company's virtual general meeting. Vehicles need to stay in contact with customers, offer new services and comfort functions on a weekly or even daily basis, he said. "We will take further important steps to set the course for this in the rest of 2020," Diess said. Senior executives told Reuters the company is reviewing what role its high-performance brands Lamborghini, Bugatti and Ducati will play as the company increasingly focuses on electric, digital and autonomous vehicles. Volkswagen, which also owns VW, Audi, Porsche, Seat and Skoda, is looking at whether it has the resources to accelerate development of electric platforms for smaller brands at a time it is investing billions to transform its more mainstream cars. Asked whether Ducati, which is known for making noisy combustion-engined motorbikes, has an electric future, Markus Duesmann, who oversees research and development for the group, said: "It will not take long until we see an electric Ducati." Whether Ducati, which is a medium-sized premium motorbike brand, would offer an electric variant, depends on whether a bike could offer range comparable to a combustion-engined variant, Duesmann said. Advances are being made in battery technology which could make this possible, he added. Separately Frank Witter, the company's chief financial officer, in response to a question about whether a sale of Lamborghini is planned, said Volkswagen does not comment on speculation about potential divestments. Lamborghini's Chief Executive Stefano Domenicali this week announced his departure from the sports car maker to take on a new job as president of Formula One. VW needs cash Volkswagen is reviewing the future of these three high-performance brands as part of broader quest for more economies of scale as it shifts to mass producing electric cars, senior executives told Reuters.

UAW Falls 87 Votes Short Of Major Victory In South

Just 87 votes at the Volkswagen plant in Tennessee separated the United Auto Workers union from what would have been its first successful organization of workers at a foreign automaker in the South. Instead of celebrating a potential watershed moment for labor politics in the region, UAW supporters were left crestfallen by the 712-626 vote against union representation in the election that ended Friday night. The result stunned many labor experts who expected a UAW win because Volkswagen tacitly endorsed the union and even allowed organizers into the Chattanooga factory to make sales pitches. The loss is a major setback for the UAW's effort to make inroads in the growing South, where foreign automakers have 14 assembly plants, eight built in the past decade, said Kristin Dziczek, director of the labor and industry group at the Center for Automotive Research, an industry think tank in Michigan. "If this was going to work anywhere, this is where it was going to work," she said of the Volkswagen vote. Organizing a Southern plant is so crucial to the union that UAW President Bob King told workers in a speech that the union has no long-term future without it. The loss means the union remains largely quarantined with the Detroit Three in the Midwest and Northeast. Many viewed VW as the union's best chance to gain a crucial foothold in the South because other automakers have not been as welcoming as Volkswagen. Labor interests make up half of the supervisory board at VW in Germany, and they questioned why the Chattanooga plant is the company's only major factory worldwide without formal worker representation. VW wanted a German-style "works council" in Chattanooga to give employees a say over working conditions. The company says U.S. law won't allow it without an independent union. In Chattanooga, the union faced stern opposition from Republican politicians who warned that a UAW victory would chase away other automakers who might come to the region. Sen. Bob Corker of Tennessee was the most vocal opponent, saying that he was told that VW would soon announce plans to build a new SUV in Chattanooga if workers rejected the union. That was later denied by a VW executive, who said the union vote had no bearing on expansion decisions. Other state politicians threatened to cut off state incentives for the plant to expand if the union was approved.

Mueller named Audi boss, too

Matthias Muller, chairman of the board for the Volkswagen Group, has officially taken the role of chairman of the supervisory board for subsidiary Audi. Muller takes over the role from the disgraced Martin Winterkorn. This appointment should come as a shock to no one, and not just because we told you about it last week. Since Audi is part of the Volkswagen Group, which Muller leads, he's effectively been the head of the subsidiary brand since his appointment in late September. This news simply formalizes his positioning at the Ingolstadt-based company. This, of course, is not Muller's first go-around at Audi. He previously served as Head of Product Management Audi (along with Lamborghini and Seat), before taking the lead on product planning at the entire VW Group. Check out the official press release from VAG. MATTHIAS MULLER BECOMES CHAIRMAN OF THE AUDI SUPERVISORY BOARD Ingolstadt/Neckarsulm, December 7, 2015 – The Chairman of the Board of Management of Volkswagen AG, Matthias Muller, has joined the Supervisory Board of AUDI AG and becomes its Chairman with immediate effect. Berthold Huber will continue to be Deputy Chairman. Furthermore, the two vacant seats for members representing the shareholders will be newly occupied by Julia Kuhn Piech and Josef Ahorner. Matthias Muller has been a member of the Board of Management of Volkswagen AG since March 1, 2015 and its Chairman since September 25, 2015. After completing high school in Ingolstadt, he did a toolmaker's apprenticeship at Audi. He then studied informatics at the Munich University of Applied Sciences. After graduating in informatics, Muller continued his career at Audi in 1978, progressing to become the Head of Product Management for the Audi, Lamborghini and SEAT brands. From 2007 onwards, Muller was Head of Product Management for the Volkswagen Group and the VW brand as well as Executive Vice President of the Volkswagen Group. From 2010 until September 2015, Matthias Muller was Chairman of the Board of Management of Dr. Ing. h.c. F. Porsche AG. Josef Ahorner (55) is the chairman of the supervisory board and main shareholder of Emarsys AG, and was a member of the shareholder committee of Salzburger Porsche Holding from 1996 until 2008. Julia Kuhn-Piech (34) is a real estate manager and a member of the supervisory boards of MAN SE and the Truck & Bus division of MAN AG.