1969 Volkswagen Beetle Base 1.5l on 2040-cars

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VW's Winterkorn to stick around through at least 2018

Volkswagen may yet to have found a new chairman, but it's not about to get rid of its chief executive any time soon. The German automaker has announced its intention to renew Martin Winterkorn's contract through the end of 2018. That is, assuming that the Supervisory Board heeds the recommendation of its own Executive Committee when the full 20-member board meets on September 25. 68-year-old Winterkorn joined the Volkswagen Group back in 1993 after a decade and a half at Bosch. He was named head of Audi in 2002, and chairman of the Board of Management (effectively the chief executive officer) of the entire Volkswagen Group in 2007. Just a few months ago he faced off against Ferdinand Piech – chairman of the company's supervisory board and grandson of Ferdinand Porsche – that resulted in Winterkorn's victory and Piech's resignation. The executive committee's endorsement, then, is effectively a vote of confidence in Winterkorn's leadership. It still leaves unresolved the question of who will ultimately take over as chairman to succeed Piech. Winterkorn was touted for a potential promotion, but if the supervisory board renews his contract – currently set to expire next year – he'll be staying right where he is and a new chairman will need to be found. The chair is currently filled on an interim basis by Berthold Huber, former head of the union that was instrumental in Piech's ousting. Wolfsburg, 02 September 2015 Resolution of the Executive Committee of the Volkswagen AG Supervisory Board The Executive Committee of the Supervisory Board of Volkswagen AG unanimously agreed a resolution for submission to the Supervisory Board at its meeting on September 25, 2015 under which a new contract as Chairman of the Board of Management of Volkswagen AG for a term until December 31, 2018 should be concluded with Professor Dr. Martin Winterkorn. "Together with Professor Martin Winterkorn at the helm we will continue on our successful path of recent years and systematically implement the goals of Strategy 2018", Berthold Huber, Chairman of the Supervisory Board of Volkswagen AG, said.

Automakers not currently promoting EVs are probably doomed

Okay, let's be honest. The sky isn't falling – gas prices are. In fact, some experts say that prices at the pump will remain depressed for the next decade. Consumers have flocked to SUVs and CUVs, reversing the upward trend in US fuel economy seen over the last several years. A sudden push into electric vehicles seems ridiculous when gas guzzlers are selling so well. Make hay while the sun shines, right? A quick glance at some facts and figures provides evidence that the automakers currently doubling down on internal combustion probably have some rocky years ahead of them. Fiat Chrysler Automobiles is a prime example of a volume manufacturer devoted to incremental gains for existing powertrains. Though FCA will kill off some of its more fuel-efficient models, part of its business plan involves replacing four- and five-speed transmissions with eight- and nine-speed units, yielding a fuel efficiency boost in the vicinity of ten percent over the next few years. Recent developments by battery startups have led some to suggest that efficiency and capacity could increase by over 100 percent in the same time. Research and development budgets paint a grim picture for old guard companies like Fiat Chrysler: In 2014, FCA spent about $1,026 per car sold on R&D, compared with about $24,783 per car sold for Tesla. To be fair, FCA can't be expected to match Tesla's efforts when its entry-level cars list for little more than half that much. But even more so than R&D, the area in which newcomers like Tesla have the industry licked is infrastructure. We often forget that our vehicles are mostly useless metal boxes without access to the network of fueling stations that keep them rolling. While EVs can always be plugged in at home, their proliferation depends on a similar network of charging stations that can allow for prolonged travel. Tesla already has 597 of its 480-volt Superchargers installed worldwide, and that figure will continue to rise. Porsche has also proposed a new 800-volt "Turbo Charging Station" to support the production version of its Mission E concept, and perhaps other VW Auto Group vehicles. As EVs grow in popularity, investment in these proprietary networks will pay off — who would buy a Chevy if the gas stations served only Ford owners? If anyone missed the importance of infrastructure, it's Toyota.

VW makes $23K on every Porsche sold, more than Bentley or Lamborghini

It's a good time to be in the luxury car business. In Volkswagen Group's financial report for the 2013 fiscal year, it is revealed that that Porsche enjoyed an operating margin of 18 percent. That means the Stuttgart brand made on average about $23,200 per car sold, according to BusinessWeek. Bentley wasn't far behind, and Audi (which was combined with Lamborghini) posted a 10.1 percent margin. This compares to only around 2.9 percent for the Volkswagen brand.
"Luxury brands are on fire," said Dave Sullivan, an industry analyst at AutoPacific. He said that the average profit margin is between six and eight percent. Brands like Porsche and Bentley have the benefit of competing in rarefied markets. Buyers looking at one their vehicles have fewer models to shop against and don't care as much about price. They can also charge more for options, which further boosts income, according to BusinessWeek.
In a way, we should be more impressed by the continued success from Audi. Its models generally have direct competitors in every segment from the other premium automakers. Plus, their buyers aren't the captains of industry who are shopping for a Bentley. Still, the Four Rings is leading rivals in sales so far this year.