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Volkswagen is taking yet another page from Tesla's book, with the launch of direct leasing and the planned start of online sales in Germany. The automaker is offering the ID.4 and the ID.5 to lessees, with plans to add the ID.3 hatchback to the menu and begin direct sales in Germany and other European countries.
With this step, which is limited to electric models for now, Wolfsburg does not intend to do away with the dealership model in Germany and elsewhere, planning to use dealers for test drives, technical service, and vehicle delivery. But the ordering process is certainly shifting to an online interface, at least for electric models.
"Surveys show that around two-thirds of our customers also want to be able to purchase our vehicles online. Were now addressing that wish," said Klaus Zellmer, member of the Volkswagen Brand Board of Management responsible for sales, marketing and after sales. "Our mission is to give our customers an excellent offering and buying experience both at dealerships and online. As a result, well also strengthen our competitiveness lastingly."
Volkswagen begins its experiment at a time when EV production and sales are finally surging for the automaker, with the VW Group having seen deliveries of battery-electric vehicles grow 65% in the first quarter, compared to 2021. The tally from the start of the year through the end of March came out to 99,100 battery-electric vehicles spanning several brands, including Audi, Porsche, and Skoda. Almost 60% of those sales, or 58,400 battery-electric vehicles, were delivered in Europe, and VW is betting those shopping for EVs will also be open to leasing or buying vehicles online from the automaker, rather than from a dealer.
"Online sales will not replace the brick-and-mortar dealership," Zellmer added. "We need a good online presence coupled with a strong and powerful local presence provided by our dealers. Dealers are and will remain the face to our customers. They are indispensable when it comes to providing personal, competent advice."
While dealerships themselves are not going away in Volkswagen's case, this does appear to launch a dual sales model, at least in Europe. With VW planning for EVs to dominate its lineup by the end of the decade, it follows that most of its offerings will also be available to buy online soon, perhaps even sight unseen, as is now the norm for some EV buyers who place deposits on cars that aren't even in production yet. VW dealers will handle the delivery and the service, but those comfortable with ordering other large and expensive items online could take the step to leasing or buying an EV as well.
VW has no plans at the moment to adopt this leasing and sales model in the US, but other automakers like Volvo are heading in the same direction with subscription services.
Volkswagen's car sales in the US further weakened, after an already weak first quarter, which most likely is related to some serious supply challenges and limited availability of new vehicles.
The company reports 78,281 vehicle deliveries in Q2, which is 34% less than a year ago. At the same time, Volkswagen ID.4 deliveries decreased 71% year-over-year to 1,660 or 1.2% of the total volume.
Nonetheless, even with limited availability, the cumulative number of the Volkswagen ID.4 sold in the U.S. is now above 20,000 (21,157 as of the end of June to be precise).
Volkswagen Group's Scout brand for electric crossovers and pickups has its first leader. Scott Keogh, currently the President and CEO of Volkswagen Group of America, will take over the role as Scout's president and CEO starting September 1. Pablo Di Si, the Executive Chairman of Volkswagen South American Region, will take over Keogh's previous role of running VW Group in North America.
VW Group intends for Scout to operate as an independent company from its other automotive operations. The new brand will focus on appealing to the United States. This will include developing and manufacturing the marque's products in the US.
VW Group announced the creation of the Scout brand in May 2022 and outlined putting the first products from the new company on sale in 2026. Prototypes for the Scout pickup and SUV will debut in 2024.
Volkswagen Group's EV strategy in the US is to have more than 25 electric models available by 2030. Its ambition is to double the market share of the company's various brands in the country.
To make this happen, the automaker is expanding its EV production capabilities in the US. For example, it will begin building the electric ID.4 in Chattanooga. There will be a $7.1 billion investment into North America over the next five years to fund the electric model expansion.
Pablo Di Si will give up his role running VW Group in South America to take over operations in North America. The automaker will announce his successor there at a later date.
Scott Keogh joined Volkswagen Group in 2006 as the chief marketing officer for Audi of America. In 2012, he became President and CEO of Audi of America. He took over as President and CEO of Volkswagen Group of America and Head of the Volkswagen Brand in North America in 2018.
Pablo Di Si had his first job with the automaker as President an CEO of Volkswagen Argentina in 2014. That leadership expanded to running things for Brazil and Latin America in 2017.
Volkswagen AG abruptly ousted Herbert Diess, its chief executive officer and architect of the auto industry’s biggest electrification effort, after repeated clashes with labor unions chipped away at his support with key stakeholders.
Porsche boss Oliver Blume will succeed Diess within weeks, ending a four-year tenure in which Diess' hard-nosed leadership style caused constant friction and undermined his effectiveness. Missteps on key projects including delays at VW’s software unit also contributed to the shakeup, people familiar with the matter said.
VW’s board is betting Blume will be a more collaborative and stable leader, said the people, who asked not to be identified discussing private deliberations. He’ll remain the head of Porsche, which VW is trying to list late this year in what could be one of Europe’s biggest-ever initial public offerings.
Diess, 63, becomes the latest in a long line of leaders undone by VW’s complex hodgepodge of power centers. Skirmishes between the manufacturer’s controlling shareholder family, trade union and the German state of Lower Saxony that holds a significant stake have undermined performance and ended careers.
“Herbert Diess has strategically geared Volkswagen group toward electromobility,” Wolfgang Porsche and Hans-Michel Piech, leaders of the family with majority voting rights at VW, said in a joint statement. “It is to his particular credit that the Volkswagen group today is in a strong position for further transformation.”
Diess was hired away from BMW AG in 2015, shortly before VW admitted to rigging millions of diesel vehicles to cheat on emissions tests. He’s arguably pushed the most aggressive electrification effort among legacy car manufacturers, earning plaudits from the likes of Tesla Inc. boss Elon Musk.
Blume, 54, has been viewed as a potential successor to Diess for some time, though any changeover was seen as years away. VW’s board extended Diess’s contract around this time last year to 2025.
He’ll be flanked by Arno Antlitz, who will become VW’s chief operating officer in addition to chief financial officer.
Less than two hours before VW announced Diess’s departure from the management board, he tweeted out a LinkedIn post wishing employees a happy summer holiday and wrote that the company was in good shape for the second half of the year.
Blume started at VW as a trainee at Audi, then rose through the ranks at Seat and the company’s namesake brand before joining Porsche in 2013 as head of production. He managed to largely contain Porsche’s involvement in the diesel-emissions scandal that cost the manufacturer more than 30 billion euros ($30.7 billion).
Diess initiated an ambitious push into battery-cell production and got backing for the IPO of Porsche, which is planned for the fourth quarter. At the same time, he occasionally allowed friction with VW’s unions and other stakeholders to spill over into public. He likened VW to a “tanker” with “old, encrusted structures” in need of breaking up, vowing to modernize the company and move more quickly.
VW’s efforts to develop its own software also has been plagued by internal wrangling and delayed important projects, including a line of next-generation Audi EVs and an updated Porsche Macan sport utility vehicle.
While Diess enjoyed wide-ranging support among analysts and investors, VW’s stock price has languished in recent months. Its preferred shares have declined 24% this year, dropping the company’s market value below 84 billion euros, a far cry from a target of 200 billion euros mapped out in 2019.
Blume also will be left with the unfinished business of reviving VW’s relevance in the US. Diess had set a target to double market share in the country and planned to spend $1 billion reviving the Scout brand as a maker of electric SUV and pickup models to take on the likes of Ford Motor Co., General Motors Co. and Rivian Automotive Inc.
The VW brand, which swung to profitability in the U.S. last year, has long struggled due to the lack of popular SUV models in its lineup. In March, VW pledged $7.1 billion over the next five years toward improving its US offerings and boosting battery research and manufacturing capabilities.
VW’s board convened this week in Chattanooga, Tennessee, where the automaker produces Atlas SUVs and the electric ID.4. Scott Keogh, who returned the VW brand to profitability for the first time in years, was tapped to head the Scout brand, while Pablo Di Si, an Argentine in charge of VW South America, was named Keogh’s successor as head of the Americas.
Volkswagen reports that during the third quarter of 2022, its vehicle sales in the US improved 12% year-over-year to 88,820. That's an important turn after a few negative quarters, nonetheless, the year-to-date result at 232,099 is still in the red (down 20%).
The most important news for us is that the all-electric Volkswagen ID.4 is back in the game again. In Q3, the company delivered 6,657 units, which is 10% more than a year ago and a new record.
Electric car share out of Volkswagen's total volume improved to 7.5%, although a year ago it was 7.6%.
Considering that Volkswagen intends to achieve 7,000 units per month at the Chattanooga plant, before the end of this year, it might become one of the best-selling models on the market. Ultimately, the US-made ID.4 most likely will be responsible for 100% of sales in the US.
Let's recall that the company had more than 40,000 reservations at the end of 2021, which means that at least in the short term, there shouldn't be any issues with a lack of demand. The only thing to do is to produce as many ID.4 as possible.So far this year, 11,072 Volkswagen ID.4 were sold in the US, which is nearly 10% less than at the same time a year ago. Cumulatively, more than 27,000 ID.4 were delivered to customers.
In Europe, the Volkswagen ID.4 also is expected to sell better and better, as it's now produced at two plants: in Zwicaku (Germany), and also in Emden (Germany). With two more plants in China: in Anting and Foshan (online since 2020), the model is produced at five plants on three continents.
Volkswagen ID.4 customers found out at the end of October that their EVs will not come with a Level 1 or Level 2 charger at delivery. If they needed or simply wanted one, then they would have to order it for $350. Instead of disappointing everyone, the German automaker followed up with another email letting the affected customers know they were entitled to a gift card. 9 photos
A Level 1 (L1) charger is good for charging at home by simply using any socket available, and it adds a few miles of range per hour. A Level 2 (L2) charger is better at putting electrons in your battery – it can add a maximum of 30 mi (48 km) of range per hour. Just like phones, EVs should at least come with an L1 charger since the L2 option requires a 240-volt plug.
But some carmakers choose to not include the L1 charger with the vehicle any longer. Tesla did so first, and now Volkswagen is following in its footsteps. But unlike the American EV maker, the German brand is sending ID.4 owners an email in which they are notified about the change. Furthermore, the affected customers receive a “prepaid loyalty card” that can be used for various charging options, including the installation of an L2 charger.
That's how you do things, Tesla!
“Because you may not have realized prior to your purchase that the Model Year 2023 ID.4 EV does not come with a Level 1 charging cable, we’re sending you a $200 prepaid loyalty card to use towards the charging option that works best for you and your home set-up. You should receive your card within the next two to three weeks via US Mail,” says VW in the email published by one of its customers on a dedicated forum. The loyalty card is valid for one year after it was issued.
Finally, if you have bought an EV made by VW and it came without a charger, then you should contact the company and ask them about the loyalty card. That is, of course, if you have not been notified beforehand about not having an L1 or L2 charger included anymore with the car.
While the European new car market didn't have a good year, there were some interesting surprises in the overall model rankings for 2022. According to data released by JATO, the best-selling new car in the region was the Peugeot 208 at 206,816 units. Its volume increased by 5 percent compared to 2021, allowing Peugeot to lead this ranking for the first time since 2007, when the 207 reigned supreme.
Indeed, the 208 dethroned the Volkswagen Golf, which has continuously led the European car market since 2008. This major change can be explained by the continued sales decline of the German hatchback across Europe following software problems, availability, and increased competition within the Volkswagen group. The Golf thus slipped to fifth place in the standings, well behind the Dacia Sandero, the Volkswagen T-Roc, and the Fiat/Abarth 500.
Citroen C3 And Peugeot 2008 Out Of The Top 10
Among the other great performances of the top 10 is that of the Fiat 500, which moved from ninth position in 2021 to fourth last year. The Volkswagen T-Roc climbed from sixth position to third, becoming the best-selling SUV in Europe and ousting the Peugeot 2008.
The 2008 dropped out of the top ten, as its volume fell 28 percent, but it remained Peugeot's second best-selling SUV and Stellantis' most popular. The Citroën C3 moved from tenth position in 2021 to eleventh in 2022. These two models were replaced in the top 10 by the Hyundai Tucson, in eighth place, and the Dacia Duster in ninth, both surpassing sales of another traditional hot-seller, the Renault Clio, which dropped from fourth position to tenth in 2022.
Tesla Model Y: The Best-Selling Electric
Further down the chart, the Tesla Model Y did really well with 138,128 units. It managed to outsell the Model 3 and become the best-selling electric vehicle in Europe. The Model Y failed to surpass the 141,952 units registered by the Model 3 in 2021. However, with 233,307 units registered, Tesla was the 18th best-selling brand in Europe, ahead of other major automakers such as Seat, Mini, Mazda, or Suzuki.
The Toyota Yaris Cross also saw a surge in registrations: the volume rose from 27,272 units in 2021 to 136,986 units last year. Although Toyota is a latecomer to the B-SUV sector, the Yaris Cross is proving to be the right bet, as it was the fourth-best-selling B-SUV. The Kia Sportage also recorded an important increase, thanks to the arrival of the latest generation: it was the second best-selling C-SUV, yielding the top spot to its cousin, the Hyundai Tucson. These two SUVs were able to surpass big bestsellers like the Nissan Qashqai, Volkswagen Tiguan, Ford Kuga, and Peugeot 3008.
It's a sad thing to have to announce, but the Volkswagen VR6 that's powered some of the great Volkswagen models won't be available in a new car in the US again. Volkswagen has never been afraid of updating its engines but emissions are the VR6's problem.
"The VR6 engine is done in America. The technology is old, and emissions targets are key. It's not worth re-investing in the engine to achieve this," Hein Schafer, Volkswagen's SVP of Product Marketing and Strategy, said in a roundtable interview at the Chicago Auto Show.
The VR6 probably doesn't fit into Volkswagen's electrification plans, and emissions will become an issue worldwide, so we don't expect it to last long in other markets, either.
The VR6 is a six-cylinder unique cross between a V and an inline design that uses two banks of three cylinders offset against each other. The design was constructed so a six-cylinder engine could fit into bays designed for an inline-four engine. It first appeared as a 2.8-liter in the Volkswagen Passat B3 sedan and the Corrado, depending on the geographical market, before it became an option on the MK3 Golf and the third generation of the Jetta. Various models used a 2.9-liter version, including a Mercedes minivan, and a cylinder was lopped off to create the VR5.
In 2006, the VR6 became a 3.6-liter engine in Volkswagen models and spread to be used in the Porsche Cayenne in a 3.2-liter guise, later upgraded to the 3.6-liter version. After around 2010, Volkswagen started phasing out the VR6 as it downsized four-cylinder turbocharged units, but it made a comeback in the midsized Atlas crossover in 2017 and as a redesigned unit for the Chinese market.
It's the 2024 Volkswagen Atlas where the story ends for the VR6, as even the Golf R's engine was downsized to a four-cylinder turbo. The 2023 Volkswagen Atlas is available with the VR6, but the newly-announced 2024 Atlas has a four-cylinder turbo direct-injection TSI engine making 269 horsepower and 273 lb-ft of torque. It's almost as powerful as the outgoing VR6 in horsepower but produces more torque across a broader rev range.
Here's something unlikely to be posted by the comfortable one nor Stunna:
Volkswagen has reclaimed the EV sales crown in Germany in the first seven months of the year, overtaking Tesla and the trio of premium domestic brands – Mercedes-Benz, Audi, and BMW.
VW edged past Tesla in electric car registrations from January through July, thanks to added volume from its newly launched models, especially the ID. Buzz passenger van and its commercial variant, the ID. Buzz Cargo.
According to data from Germany's Federal Motor Transport Authority (KBA) shared by Automobilwoche (via Electrek), Volkswagen sold 41,475 electric vehicles in Germany through July, while Tesla sold 40,289 units. Each of the two brands sold more than twice as many EVs as Mercedes-Benz, which took third place with 20,613 registrations.
Haha I also joined the wait list for the ID Buzz. It's pretty appealing with its more interesting appearance and it's pretty much gonna be the only EV minivan.
04-07-2022, 09:17 AM
The Kia Sportage also recorded an important increase, thanks to the arrival of the latest generation: it was the second best-selling C-SUV, yielding the top spot to its cousin, the Hyundai Tucson. These two SUVs were able to surpass big bestsellers like the Nissan Qashqai, Volkswagen Tiguan, Ford Kuga, and Peugeot 3008.
