Manufacturers are racing to enter the largely non-existent market of electric cars in China. After Nissan, Daimler, GM, and possibly Ford, Volkswagen has been caught doing it with SAIC. Reuters found that an electric car called Tantus, “which will be produced by Shanghai Volkswagen, is already on a list of approved new vehicles, according to China’s Ministry of Industry and Information Technology.”
This is not Volkswagen’s first Chinese EV-to-be. And it’s not surprising. (Read More…)
At the Frankfurt Auto Show, when all the festivities and pageantry are over, it is customary to stroll through the booths, stands and halls of the competition to find out what they have. The real research is done by faceless drones that pose as journalists or customers. The drones must have brought back alarming intell to Halle 3, where Volkswagen holds court: “Ach du mein Lieber, Hyundai fielded a fearsome adversary to the Golf with the new i30.”
The whole white-haired Volkswagen board dropped their coffee cups and invaded the Hyundai display, led by Prof. Dr. Winterkorn, CEO of Volkswagen. Winterkorn himself sat behind the wheel of the i30. The former head of Quality Assurance was shocked: (Read More…)
Suzuki today sent a letter to Volkswagen, demanding a retraction of the allegation that Suzuki breached its contract with Volkswagen. Reuters calls the letter an escalation of “a war of words as it tries to break off equity ties with its estranged partner.” And the tone of the letter definitely sounds belligerent: (Read More…)
Will they or won’t they? That’s currently the talk amongst Germany’s auto execs. “They” are Volkswagen and Suzuki. And “will” refers to taking over Suzuki against its will. Yesterday, Der Spiegel, reported that Volkswagen is no longer barred from taking over Suzuki if Suzuki cancels its contract. Der Spiegel, of course, heard that from an interested party that telegraphs to Hamamatsu. “Be careful what you wish for.” Nonetheless, the rumor mill is at high revs. Let’s investigate. (Read More…)
Interesting twist in the Volkswagen-Suzuki sopu opera (see, Japanese is easy!): Suzuki could be doing Volkswagen a favor by filing for divorce. This way, Volkswagen can swallow Suzuki whole. (Read More…)
One of the reasons why Volkswagen is hitting on all cylinders (don’t be U.S. myopic – always measure a car company by global success) is that they did not stop investing in the wake of the 2008 crash. They did not have to: Sales in the U.S. were low, and where you don’t have a lot, you can’t lose a lot. At the same time, VW had the big luck of being a major player in China. While U.S. and Japanese car companies stopped or severely dialed back their investments into R&D and capacities, Volkswagen kept on spending. This has a delayed effect of 3 to 5 years, and what we are seeing now is just the beginning of this effect. It is also the beginning of an even greater spending spree. (Read More…)
Despite saber-rattling, legal threats and affirmations that Volkswagen does not intend to give up its share in Suzuki, Volkswagen started its climbdown. Ferdinand Piech himself signaled that Volkswagen can go it alone. At the Frankfurt Auto Show, Piech said that Volkswagen is “big enough.” His man Winterkorn quickly fell in step and told Reuters today: “”Suzuki was one option. But we can do it on our own.”
That should be signals enough for everybody at Volkswagen to put the Suzuki saga behind themselves and to concentrate on other pressing business, such as the messy Porsche merger.
Back in Tokyo, The Nikkei [sub] wrote what seems to be Suzuki’s version of the story. (Read More…)
I once had a Phaeton with a W12 engine – that was fun! Thank God I didn’t have to pay for it. Think of a W12 engine like two VR6 engines engaged in a hot mating ritual. In a Kamasutra-busting position, the two imaginary VR6 engines are mated together at an angle that looks like a W. V – W, get it? (Read More…)
Some car companies would kill if they would have as many new cars in one year as Volkswagen shows concept cars at the Frankfurt International Auto show. Here is a quick overview. Most of them are offshoots of the new Volkswagen up!, which seems to be Volkswagen’s carmeleon. (Read More…)
„It is like being married and getting a divorce. Instead of criticizing each other, it is better to go through it with a smile,” Suzuki’s patriarch chairman Osamu Suzuki told reporters at a hurriedly arranged press conference in Tokyo today. And a divorce it is: Suzuki announced it will terminate its relationship with Volkswagen after a nearly 2 year unhappy and childless marriage.
In a news release, Suzuki announced that “its board of directors has officially determined today dissolution of the comprehensive partnership and the cross-shareholding relationship with Volkswagen AG. “ Here is a short version of the long list of reasons given in the divorce papers (known as the “green form” in Japanese matrimonial matters): (Read More…)
In the long simmering conflict between Suzuki and Volkswagen, the gloves are coming off and we are having a bit of domestic violence. Volkswagen just said in an emailed statement:
“The review of the partnership with Suzuki Motor Corp announced by Volkswagen Aktiengesellschaft has brought its first results. Volkswagen stated in Wolfsburg on Sunday that the company is serving notice of an infringement by Suzuki of the cooperation agreement concluded in December 2009. (Read More…)
Volkswagen and Porsche will need to live in concubinage for a while longer. They will live and work together, they will be seen at parties such as the upcoming IAA in Frankfurt together, they share beds and platforms, but they won’t be officially married. Volkswagen announced today ”that the planned merger with Porsche SE cannot be implemented within the time frame provided for in the Comprehensive Agreement. Nevertheless, all parties remain committed to the goal of creating an integrated automotive group with Porsche and are convinced that this will take place.”
And why are the nuptials delayed? Says Volkswagen: (Read More…)
Yesterday, Bloomberg poured gasoline into the smoldering embers that used to be a Volkswagen-Suzuki relationship. Bloomberg said that Suzuki doesn’t want to talk to Volkswagen. The trouble is: Bloomberg most likely is wrong. Bloomberg and the world at large became a victim of Lost in Translation. (Read More…)
After a mere six decades of testing the waters, Volkswagen decided to get serious about the American car market. For the second time. To avoid a repeat of the Westmoreland debacle, this time they’ve designed a pair of sedans specifically for American tastes. They’re also building the larger of the two, intended to lure Americans away from their Camcords, in an entirely new, non-unionized American plant. And so, with the new 2012 Volkwagen Passat, tested here in V6 SE form (earlier, briefer drives sampled the other two engines), we learn what Americans really want—as seen through a German company’s eyes.
GM China always had a comfortable lead over Volkswagen in China – at least on paper. More than half of GM China’s volume comes from small delivery vans, made by a three-way joint venture with SAIC and Wuling, in which GM held 34 percent. This share had been recently raised to 44 percent. The joint venture agreement allows GM to claim 100 percent of the small cars as theirs. “Whatever turns them on” (or Chinese word to that effect) say the other JV partners who happily count the cars again in their annual reports. There is one big problem with that. The “breadvan segment” (so called because the cars looks like loafs on wheels) has been shrinking and is ruining GM’s otherwise good Chinese numbers. Now, GM can’t take it anymore, and is using a familiar tactic: “GM is sacrificing profit margins to maintain market share in China, cutting prices of low-cost minivans by as much as 15 percent to offset slowing sales in the world’s largest vehicle market,” Bloomberg reports.
(Read More…)
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