-
Want to remove ads? Register an account and login to see fewer ads, and become a Supporting Member to remove almost all ads.
Volkswagen Is Ordered to Recall Nearly 500,000 Vehicles Over Emissions Software
- Thread starter hockeythug
- Start date
-
- Tags
- Energy Environment Policy
NigelM
Recovering Member
Interesting (but not surprising) that Winterkorn kept his other positions after he stepped aside as VW boss:
http://www.welt.de/wirtschaft/article147279496/Martin-Winterkorn-ist-weg-Von-wegen.html
Translation:
"Aufsichtsrat" is the Supervisory Board and "Aufsichtsratschef" is the Chairman.
"Vorstand" is the Executive Board and "Vorstandschef" is equivalent to CEO.
http://www.welt.de/wirtschaft/article147279496/Martin-Winterkorn-ist-weg-Von-wegen.html
Translation:
"Aufsichtsrat" is the Supervisory Board and "Aufsichtsratschef" is the Chairman.
"Vorstand" is the Executive Board and "Vorstandschef" is equivalent to CEO.
lucy
bluehair
mspohr
Well-Known Member
More fallout from the scandal:
VW scandal: staff told all carmaker's investments are under review | Business | The Guardian
The new chief executive of Volkswagen has warned the carmaker’s staff that the fallout from the diesel emissions scandal “won’t be painless” and that the company needs to make “massive savings” as it faces the prospect of a multibillion-euro bill.
“That is why we have initiated a further critical review of all planned investments. Anything that is not absolutely necessary will be cancelled or postponed, and it is why we will be intensifying the efficiency programme. To be perfectly frank: this will not be a painless process.”
Müller refused to rule out the prospect of job cuts at VW, which employs 600,000 staff.
VW scandal: staff told all carmaker's investments are under review | Business | The Guardian
The new chief executive of Volkswagen has warned the carmaker’s staff that the fallout from the diesel emissions scandal “won’t be painless” and that the company needs to make “massive savings” as it faces the prospect of a multibillion-euro bill.
“That is why we have initiated a further critical review of all planned investments. Anything that is not absolutely necessary will be cancelled or postponed, and it is why we will be intensifying the efficiency programme. To be perfectly frank: this will not be a painless process.”
Müller refused to rule out the prospect of job cuts at VW, which employs 600,000 staff.
beeeerock
Active Member
Time for VW to move a few dozen eggs into the EV basket. Everyone knows that's where we're ultimately going... delaying is simply an attempt to maximize profits NOW. Get ahead of the curve, be an industry leader in the technology of the future. Put R&D money into EV's and let the fossil fuel technologies stay as they are today. Spending billions to eke out a fractional percent efficiency improvement is money poorly spent. The PR benefits of going *truly* green as a result of the scandal are huge.
If ever there was a time to make a bold (honest and ethical) decision at VW, this is it.
Mueller won't do it. He doesn't believe in EVs. He will continue the existing EV program at VW but I doubt he will give it additional resources.
beeeerock
Active Member
Yeah, but if it really hits the fan and VW pulls a GM, he may not be a part of the new group. Or not in a position to call the shots. I can't help but think this story has only just begun... and it will have a few twists and turns most don't expect.
mspohr
Well-Known Member
The related story above where the three heads of R&D for VW, Porsche and Audi have all been sacked will have profound implications for the future. I assume that these were all solid "ICE guys". They will need to be replaced. It will be interesting to see if any of the replacements have any EV experience.
RobStark
Well-Known Member
Mueller(VW CEO) says VW will cancel or delay nonessential investments (i.e EVs)
October 6, 2015 - 7:06 am ET
BERLIN (Bloomberg) -- Volkswagen Group CEO Matthias Mueller said the automaker will delay or cancel non-essential projects as pressure mounts to slash spending in the wake of the diesel-emissions scandal.
"We will review all planned investments, and what isn’t absolutely vital will be canceled or delayed," Mueller told some 20,000 employees today at the company's headquarters in Wolfsburg, Germany. "And that's why we will re-adjust our efficiency program. I will be completely clear: this won't be painless."
Fixing some 11 million rigged diesel vehicles is a costly prospect. The 6.5 billion euros ($7.29 billion) Volkswagen already set aside for repairs won’t be enough to cover fines and potential legal damages as well, Mueller said.
Labor leaders are pushing VW to reel in research and development spending to protect jobs, while management wants personnel expenses reduced as well, people familiar with the situation said before Mueller’s statement.
Secure jobs
The government of Lower Saxony, where VW is based, also has an unusually strong position of leadership in the company and owns about one-fifth of its voting shares. The government must “work with all its strength to secure these jobs,” Lower Saxony Prime Minister Stephan Weil wrote employees in an Oct. 5 letter.
Mueller says VW will cancel or delay nonessential investments: 'This won't be painless'
People expecting VW Group to accelerate BEV programs in response to Dieselgate will be sorely disappointed. It sounds good in theory; in order to keep "green car" sales steady increase BEV/PHEV programs,models,and sales as diesel sales fade. But reality of corporate budgets and VW Group leadership's confidence in the growth of the the electric car market will cause retrenchment.
Porsche Mission E,Audi Quatrro E-Tron, and 200 EPA Mile VW eGolf by 2018-19 is now pure fantasy.
'This won't be painless'
October 6, 2015 - 7:06 am ET
BERLIN (Bloomberg) -- Volkswagen Group CEO Matthias Mueller said the automaker will delay or cancel non-essential projects as pressure mounts to slash spending in the wake of the diesel-emissions scandal.
"We will review all planned investments, and what isn’t absolutely vital will be canceled or delayed," Mueller told some 20,000 employees today at the company's headquarters in Wolfsburg, Germany. "And that's why we will re-adjust our efficiency program. I will be completely clear: this won't be painless."
Fixing some 11 million rigged diesel vehicles is a costly prospect. The 6.5 billion euros ($7.29 billion) Volkswagen already set aside for repairs won’t be enough to cover fines and potential legal damages as well, Mueller said.
Labor leaders are pushing VW to reel in research and development spending to protect jobs, while management wants personnel expenses reduced as well, people familiar with the situation said before Mueller’s statement.
Secure jobs
The government of Lower Saxony, where VW is based, also has an unusually strong position of leadership in the company and owns about one-fifth of its voting shares. The government must “work with all its strength to secure these jobs,” Lower Saxony Prime Minister Stephan Weil wrote employees in an Oct. 5 letter.
Mueller says VW will cancel or delay nonessential investments: 'This won't be painless'
People expecting VW Group to accelerate BEV programs in response to Dieselgate will be sorely disappointed. It sounds good in theory; in order to keep "green car" sales steady increase BEV/PHEV programs,models,and sales as diesel sales fade. But reality of corporate budgets and VW Group leadership's confidence in the growth of the the electric car market will cause retrenchment.
Porsche Mission E,Audi Quatrro E-Tron, and 200 EPA Mile VW eGolf by 2018-19 is now pure fantasy.
I would agree that this is bad news for any electric drivetrains out of VW anytime soon, unless they consider doing a JV like Toyota and Mercedes did.
Of course it won't be painless, consider ex-CEO Winterkorn.
His normal pension account is valued at about $32M and it's likely he will receive another $35M in termination payments. Surely this has been and continues to be a very painful process for him, and any talk of prosecution is more akin to persecution isn't it?
He's suffered enough.
His normal pension account is valued at about $32M and it's likely he will receive another $35M in termination payments. Surely this has been and continues to be a very painful process for him, and any talk of prosecution is more akin to persecution isn't it?
He's suffered enough.
Note, related discussions in the 'main' VW 'dieselgate' thread:
Volkswagen Is Ordered to Recall Nearly 500,000 Vehicles Over Emissions Software
Volkswagen Is Ordered to Recall Nearly 500,000 Vehicles Over Emissions Software
If they cut R&D, the company will focus on core competencies and getting the most out the existing technologies--I don't get Meuller is one to bet the future of the company on EVs.
dauger
Member
Good find. I don't see that he as CEO has any other choice. Either:
1. Endure 9-12 months (optimistically) of pain restoring VW's reputation and financial stability ASAP by fixing (where possible) all of the VW group's diesels sold and in production. Only a couple years after that will VW have the cash to begin something new.
2. Endure 4 years of pain shutting down all diesels to begin going all EV now, producing EV alternatives at the end of those 4 years, finally ending the pain.
How can a CEO tell his shareholders and employees 4 years of pain is the right thing to do for them? Their predicament dictates going all-EV today is virtually VW's fiscal suicide. As much as Tesla fans like me would like them to go option 2, their self-interest forces them to option 1 to minimize the pain.
Tesla as disrupter means market contraction among ICE-car makers. Now that we have "dieselgate", I'd guess VW will the first of the major automakers to go the way of Pan Am by 2030 because: VW's time of pain sets them permanently at least three years behind all other automakers in the alternatively-powered car market. I hope VW will spin out Porsche on the way down, so at least Porsche will survive in some form.
1. Endure 9-12 months (optimistically) of pain restoring VW's reputation and financial stability ASAP by fixing (where possible) all of the VW group's diesels sold and in production. Only a couple years after that will VW have the cash to begin something new.
2. Endure 4 years of pain shutting down all diesels to begin going all EV now, producing EV alternatives at the end of those 4 years, finally ending the pain.
How can a CEO tell his shareholders and employees 4 years of pain is the right thing to do for them? Their predicament dictates going all-EV today is virtually VW's fiscal suicide. As much as Tesla fans like me would like them to go option 2, their self-interest forces them to option 1 to minimize the pain.
Tesla as disrupter means market contraction among ICE-car makers. Now that we have "dieselgate", I'd guess VW will the first of the major automakers to go the way of Pan Am by 2030 because: VW's time of pain sets them permanently at least three years behind all other automakers in the alternatively-powered car market. I hope VW will spin out Porsche on the way down, so at least Porsche will survive in some form.
mspohr
Well-Known Member
Unfortunately, I have to agree. They seem to be circling the wagons into a defensive position and that probably excludes any ventures into the new technology of EVs.
As I see it, the only way for Volkswagen to fix its reputation and to salvage the company is to partner with Tesla. I wonder if the German government is trying to pressure VW to do something like this. After all, lower saxony owns 15% of VW.
I've seen someone mention VW could be liable for up to $500 billion in damages. The $18 billion figure mentioned would only be for the EPA. Desperate times call for unconventional measures.
BP ended up having to pay $60 billion for the oil spill. I don't see how VW escapes paying less than this.
I've seen someone mention VW could be liable for up to $500 billion in damages. The $18 billion figure mentioned would only be for the EPA. Desperate times call for unconventional measures.
BP ended up having to pay $60 billion for the oil spill. I don't see how VW escapes paying less than this.
Johan
Ex got M3 in the divorce, waiting for EU Model Y!
They could rise like a Phoenix from the ashes from this scandal. A crisis is a golden opportunity for transformation. WV could become the first big ICE maker to make the transition in to the next generation of car makers.
adiggs
Well-Known Member
This is a good description for how I see things playing out for VW, and for a lot of the same reasons.
The thing I would add is that whether Porsche spins out or soldiers on with VW, Porsche is the company I am watching most closely as the current auto maker I expect to most visibly show the impact of Tesla taking market share (if they are). Porsche world wide sales are in the same order of magnitude in units and revenue as Tesla (significantly larger, but less than 10x larger, unlike all of VW), with vehicles that are clustered in and close to the same markets that Tesla is challenging. Well - in and close to the performance markets they are both in, even if Porsche isn't in the green / EV / environmentally friendly markets.
Independently of this event with VW, Porsche's survivability is something I worry about.
Similar threads
