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Volkswagen feuds with thriving stablemate Skoda

BERLIN, Oct 4 (Reuters) - Volkswagen managers and unions are seeking to curb competition from lower-cost stablemate Skoda, move some of its production to Germany and make the Czech brand pay more for shared technology, company sources told Reuters. As VW struggles to cut jobs and spending at German factories and turn the page on dieselgate, Skoda's superior car reviews and profitability have intensified the brands' rivalry within the Volkswagen empire. VW now wants to reduce what it sees as Skoda's unfair advantages - combining German technology with cheaper labor - and reaffirm the top-selling brand's primacy ahead of a wave of new electric car launches, the sources said. The tussle between VW and Skoda is reviving tensions at the heart of the Volkswagen group between profits and jobs, and between central control and autonomy for its 12 vehicle brands. "Instead of devoting our efforts to beating Tesla, we may just be setting up a futile internal conflict," said one manager. Once the butt of jokes, Skoda has blossomed under 26 years of VW group ownership into a successful mid-market carmaker, steadily winning business from rivals - including VW - and surpassing even Audi's operating profit margin last year. At the same time, VW is facing thousands of job cuts as management moves to trim excess capacity at German factories. Its powerful domestic unions see Skoda's success as both a threat and a potential lifeline. VW workers' representatives are now demanding the transfer of some Skoda production to their underused German plants, a source close to the supervisory board told Reuters. The proposal aims to offset declining output of the VW Passat and aging Golf that could otherwise threaten more jobs. They are also making the case that Skoda should pay higher royalties to use VW's main common vehicle platform. The so-called MQB architecture also underpins mid-sized models from the group's Audi and SEAT brands. Responding to the news, Czech Prime Minister Bohuslav Sobotka said he would meet Skoda management and unions to ask for clarification. The government will seek to ensure that VW investment plans are followed through and that "production is not moved outside the country," a statement released by Sobotka's office said. Skoda's main union warned that a production shift could cost as many as 2,000 jobs. VW's works council declined to comment.

Recharge Wrap-up: Mercedes gets F1 efficiency, EV charging in Vermont, VW e-Golf to use Bosch

Efficiency equals performance, especially in the case of Formula 1 racing. The Mercedes AMC Petronas team points to several key efficiency technologies it uses to get the most out of its cars. And if their utter dominance so far this season is testament to this relationship, perhaps we should pay attention. Mercedes highlights hybrid tech, turbocharging, aerodynamics, lightweight construction, tribology (both in making internal components and lubricants more slippery) and simulation as crucial to getting around the track faster than anyone else. These just happen to be some of the same things that make the cars we drive on public roads more fuel-efficient. Learn more in the press release below. It's a good read. Brammo, maker of sweet electric motorcycles, is teaming up with TEAM Industries to make drivetrains for electric vehicles. TEAM, which specializes in drivetrain technology, will also become an investor in Brammo as part of the partnership. "The electric vehicle market is a growth market," says TEAM CEO and President David Ricke, "and TEAM and Brammo will be providing a wide range of solutions for OEM manufacturers." Read more over at EV World. Vermont celebrated the installation of a new EV charging station as part of a Green Energy Corridor between Boston and Montreal. When finished, drivers will be able to make the whole trip in an EV with access to charging along the way. For $5, customers can charge their vehicle in about 30 minutes at the Red Hen Baking Company in Middlesex. There are currently only about 700 EVs on the road in Vermont. The state has a goal to get 90 percent of its energy from renewable sources by 2050, and getting more EVs on the road is crucial to that mission. Vermont hopes that expanding the charging infrastructure will convince more people to go electric. Read more at Vermont Public Radio's website. For it's new e-Golf, Volkswagen will use Bosch chargers for home installation and ChargePoint stations at its dealerships. Bosch will have various 240-volt options for the home, and will also provide installation. e-Golf customers will also get a free ChargePoint membership, and will have access to the company's network of charging stations worldwide. The 2015 e-Golf goes on sale in the US later this year. Read more in the press release below. Synergies between F1 and Road Car Development: Efficiency equals performance In Formula 1 Racing, performance is everything.

Leaked Audi product roadmap may confirm R8 with V6 engine

About a year ago, we reported that Audi was considering downsized engines for the new R8, which launched in V10 form. This is partially due to the Chinese market's desire for smaller displacement engines, and partially due to R8 technical lead Roland Schala's statement that a "V6 is a perfect engine for this car." This leaked upcoming product schedule, passed on by our friends at Autobahn.eu, seems to confirm these rumors. Based on the information in the image above, the R8 V6 is due in 2018. The rest of the product map seems to square with vehicles we know are in the pipeline. We spied the SQ7, A5, and R8 Spyder about a year ago, and the TT RS a few months ago. We told you in December a new Q5 is on the way, too. We just heard a credible rumor that the RS3 is on the way in 2017 as a 2018 model, and may even come to America, which squares with what we're seeing here. And we drove the Q7 E-Tron in 2015 – it's going on sale in Europe soon. This graphic puts the on-sale date as October 2017; that could be for the US market. Puzzlingly, this graphic doesn't discuss the Q2, which Audi just teased today. We're not sure what to make of that. Now onto the fun stuff. 2018 should be when Audi reveals a new A8 (featuring, most likely, a version of the futuristic Virtual Dashboard seen at CES) and A7, an RS 5 Coupe launching a few months after the A5/S5, a new A6, and the already-confirmed Q8 SUV. All expected or already confirmed. What about the cryptically-named "C-BEV?" If we extrapolate that to mean C-segment EV, if could be the Audi version of the stand-alone EV that VW is reportedly developing, and no, it's not the next E-Golf. We expected this MEB-based vehicle to debut in 2018, before the next-generation Golf, so again our rumors square nicely with what this roadmap tells us. Let's leave it at this: if you're an Audi fan, the next few years are going to be quite exciting. Expect some of these rumors to be confirmed in Geneva, so keep your eyes here for more Audi and VW info. Related Video: