Massive Changes Coming to VW Group in Next Decade

It & rsquo; s also a decade away, while it & rsquo; s true that 2030 is more than a decade away. And given the accelerated speed of change in the car industry, there are only a few stones which will be left unturned during the next eleven years. On the edge of a massive transformation procedure, the VW Group has announced it will release 70 new EVs by 2028, up from the 50. Because of this, production of zero-emission vehicles is set to soar from 15 million to 22 million units, and by 2025, the team will have spent more than €30 billion ($33.6 billion) in electrification alone. By 2030, the EV penetration across all VW brands is scheduled to exceed 40 percent, and by 2050, VW wants to be a fully CO2-neutral carmaker both in terms of its products and the processes used to produce them. Ambitious targets, Substantial numbers advanced priorities–according to aides and advisers to CEO Herbert Diess, a daring new strategy will have to be implemented to make this game strategy work.

The Background

In late March, the first details of Vision 2030 began filtering to selected managers out of the board level. Apparently, the projected rethink is based on four cornerstones: the restructuring of the global manufacturing system; the streamlining of important technologies; the focus on core brands; and the obvious emphasis on EVs, autonomous driving, other types of mobility, and digitalization. The unions have begun to fight this coverage, which will entail. The VW Group is desperately short, under-efficient, and overstaffed of forward thinkers that are pragmatic. While electrical-architecture specialists, software specialists, and digital marketing experts are in short supply, VW’s glut of mechanical engineers and assembly-line workers is about to evolve into a huge financial burden–particularly when compared to efficient start-ups who, being devoid of inherited liabilities, are free to farm out almost the whole value-creation chain. Despite early attempts to mitigate uncontrolled mushrooming of componentry sets, products, and assembly networks, German press assert that VW’s chairman has recently come under fire from three members of the supervisory board, namely Wolfgang Porsche, Hans Dieter Pötsch, and Stephan Weil.

the ID model range, VW is about to demonstrate the benefits of fusing diversification and standardization. ”

The Platforms

At a first step, the team will work with three brand-new EV architectures: MEB (compact to mid-size, masterminded by VW), PPE (mid- to full-size, jointly developed by Audi and Porsche), and J1 (Porsche Taycan, Audi e-tron GT). The SPE architecture, the projected electric sports-car platform to be defined by Porsche, is dead, and the electrified Boxster/Cayman (983, out by 2023) will rather use a converted mid-motor MMB structure. If the 911 goes entirely electric, the T-shaped battery pack used by those cars would be rotated by 180 degrees in an adapted cradle. Still pending is the subcompact EV matrix destined to underpin Up! -sized cars, although whispers indicate such a platform could be conceived and built with a Chinese partner. While the MQB (Polo, Golf) and MEB households can happily live side by side, the future of the bigger MLB component set (Audi A4, A6) looks shaky. Comments Hans-Joachim Rothenpieler, Ingolstadt´s new CTO: “We need to find a sustainable solution for the indefinite transition period until EVs finally take over. ” There is a great chance that the brand will campaign for its modular convergence platform not unlike BMW’s CLAR setup and the MX-2 layout developed by Mercedes. So much for streamlining.

The Brands

According to our source in the Wolfsburg control tower, just VW, Audi, and Porsche are most likely to live long-term in their current forms. While some or all of the remaining brands may eventually be merged, reinvented, or just sold off, insiders insist there are also plans afoot to create one extra marque that would, like Tesla, sell only EVs. Michael Mauer, who oversees the group’s layout plan, was politely told to put a stop to cookie-cutter lookalikes (think of the same-ish VW/Škoda/SEAT/Cupra crossovers) and instead push for much more diverse visual brand identities. Ideally, his efforts would be backed up with a heavyweight board member in charge of sales and marketing–but this place is strangely empty on the group level. While Oliver Blume principles Sport & Luxury and Bram Schot controls Premium, Herbert Diess himself calls the shots at VW, which in turn oversees SEAT and Škoda.

its stillborn 960 Ferrari fighter, and then, had the business case worked, use it in the new Aventador. The current leadership favors a trimmed lawn to a wildflower meadow, but rare and exotic species can only survive with loads of passion in the equation.

Vision 2030 can still fork in different directions. Since return on investment is still the undisputed top priority, quantity and growth is able to take a controlled hit here or there–but persistent underperformance will lead to uncertainty for the nice to have but by no means indispensable affiliates like Bentley and Lamborghini. Oddly enough, the various VW brands are plagued by different issues. Volkswagen, for instance, faces massive software problems, unresolved issues with regard to advanced connectivity, teething troubles with its next-generation infotainment architecture, stillborn partnerships, and impromptu parts shortages. Because of this, the launch of the super-important Golf MkVIII–that may not make it to America in its normal form—was pushed back to early 2020, while the ID hatchback, still plagued by thousands of electronic bugs as you read this, is now almost six months behind schedule.

Arteon Shooting Brake (fine!) , Up! facelift, ID hatchback, ID Crozz.

2021: Commercial T7; new Golf SportWagen/Variant, GTI, and R; ID Buzz, ID Roomzz, ID sedan, ID Buggy.

2022: Touran replacement (the Sharan and Golf Sportsvan will be phased out), Euro Passat replacement.

All ID versions are based on the MEB components set, which includes two wheelbase options and four equipment levels now dubbed Pure, Range, Range S, and GTX. There are rear- and all-wheel-drive configurations, three battery sizes (60/80/111 kWh), and three different power levels (125/148/220 kW, which translate to 168/198/295 hp). VW is expected to roll out Phase II of the ID family starting in 2022. A source from design tells us that we’ll see an ID roadster concept in the Geneva show, and an electrical pickup concept during Monterey Car Week in August. Late in the year, a five-door ID SUV inspired by the New Beetle may follow suit. Also under discussion are zero-emission reincarnations of the Karmann Ghia and the VW 181 Kübelwagen/The Thing, an electrical four-door coupe, and a brawny production version of the ID R. Looking deeper one can spot a full size sedan badged as the ID8 or ID9. This environmentally friendly although overdue successor to the slow-selling Phaeton will use a MEB platform and widened subframes for a stance and superior proportions. It won’t use the PPE platform simply because of territorial issues–those bones weren’t developed by VW proper.

A Standalone EV Brand?

Asked whether VW is considering starting a fully electrical and mobility-focused brand aimed primarily at younger consumers residing in metropolitan areas, Herbert Diess nodded and said: “It would be a mistake not to address the increasingly volatile marketplace with potentially game-changing new offerings. Trouble is, we have a full plate, and there is a limit to our spending power. ” The VW Group is now worth between €75 and €80 billion ($84 to $89.5 billion), but Diess thinks he could more than double the value by taking bold decisions like changing the emphasis from antique brands to brand new fully connected ventures. According to those in the know, the footprint of the proposed urban-vehicle architecture ranges from “somewhat shorter than the Up! To a little longer than the Polo. ”

Ingolstadt’s future product program is made up almost entirely of MEB- and PPE-based vehicles. The solution would be to accelerate cross-fertilization of thoughts, components, and architectures. Here are some proposals for jointly developed EVs that are currently making the rounds:

Derivatives of the next Boxster/Cayman (983): Audi TTE coupe/roadster, Porsche Cayman/Boxster, Lamborghini Urraco.

Added J1 derivatives for Audi by Porsche: 2 high-end CUV.

J1 derivative for Bentley by Porsche: Hyper-luxury five-door that unites a GT coupe with an SUV.

J1 derivative for Lamborghini by Porsche: Sporty, Espada-style 2+2 coupe.

Porsche/Lamborghini 1000kW/1500Nm (1341 hp/1106 lb-ft) hypercar: A world first for HP solid-state batteries.

Proliferation schemes are mapped out for MEB- and PPE-derived products. While MEB involves VW, Audi, SEAT, and Škoda, PPE is earmarked for the premium and sport/luxury divisions. “These days, dangers and opportunities live next door to one another,” states Diess. “Smart timing can make a big difference as far as EVs are concerned. We can give great products at competitive prices to the customer, but without a functioning infrastructure, the most pretty kite won & rsquo; t. ” If this is true, early adopters could become the first to drop out, highlighting the importance of a holistic strategy.

The post Massive Changes Coming to VW Group in Next Decade appeared on Automobile Magazine.

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