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Coronavirus prompts VW to stop production throughout Europe

FRANKFURT — Volkswagen Group, the world's biggest carmaker, is suspending production at factories across Europe as the coronavirus pandemic hits sales and disrupts supply chains, the company said on Tuesday. The German carmaker, which owns the Audi, Bentley, Bugatti, Ducati, Lamborghini, Porsche, Seat and Skoda brands, also said that uncertainty about the fallout from coronavirus meant it was impossible to give forecasts for its performance this year. "Given the present significant deterioration in the sales situation and the heightened uncertainty regarding parts supplies to our plants, production is to be suspended in the near future at factories operated by group brands," Chief Executive Herbert Diess said on Tuesday. Volkswagen's powerful works council concluded it was not possible for workers to maintain a safe distance from each other to prevent contagion and recommended a suspension of production at its factories from Friday. Production will be halted at VW's Spanish plants, in Setubal in Portugal, Bratislava in Slovakia and at the Lamborghini and Ducati plants in Italy before the end of this week, Diess said. Most of its other German and European factories will prepare to suspend production, probably for two to three weeks, while Audi said separately it would halt output at its plants in Belgium, Germany, Hungary and Mexico. Volkswagen's vast factories in Chattanooga, Tennessee, in Puebla, Mexico, and plants in Brazil were not affected, but that would depend on how the coronavirus spreads, VW said. Volkswagen has 124 production sites worldwide of which 72 are in Europe, with 28 in Germany alone. "2020 will be a very difficult year. The coronavirus pandemic presents us with unknown operational and financial challenges. At the same time, there are concerns about sustained economic impacts," Diess said.   Production in China resumes Volkswagen Group sold 10.96 million vehicles last year, putting it ahead of Toyota based on the latest figures from the Japanese carmaker. Globally, VW employs 671,000 people and it delivered 4.86 million vehicles to European customers in 2019. Only last month the car and truck maker based in Wolfsburg, Germany, predicted that vehicle deliveries this year would match 2019 sales and forecast an operating return on sales in the range of 6.5% to 7.5%. "The spread of coronavirus is currently impacting the global economy. It is uncertain how severely or for how long this will also affect the Volkswagen Group.

Recharge Wrap-up: Chevy Spark EV in Canada, Audi to use Valeo electric supercharger

The Chevrolet Spark EV will become available to retail customers in Canada. "We're expanding our electric vehicle offerings to our customers by offering the 2016 Spark EV for retail sales in the growing EV markets here in Quebec as well as in Ontario and BC," says Chevrolet's Chris Hay. Chevrolet has not yet released pricing for the Spark EV in Canada. In the US, the Spark EV is available in California, Oregon and Maryland. Read more at Hybrid Cars. Four recreational vehicle companies in Texas have settled with the EPA over illegal import and sale of off-road vehicles. The 4,000-plus Hammerhead brand vehicles in question were imported without the proper certification, a violation of the Clean Air Act. Some vehicles lacked proper emission control equipment or were manufactured by a company not listed on the certificate application. The settlement totals $560,000 in civil penalties for the companies involved. Read more from the EPA. The Iowa Supreme Court has upheld the state's natural gas tax, which was challenged by the ethanol industry. Ethanol producers, which use natural gas to make ethanol, argued the complicated tax was unconstitutional, as it forced certain plants to pay more than their competitors. Taxes vary by location, and some plants have to tap into interstate pipelines at much higher tax rates rather than get it from a local utility. Now, ethanol producers will work to change the law. "My hope is that people understand that, something may be constitutional but that doesn't make it good public policy," says Iowa Renewable Fuels Association Executive Director Monte Shaw. Read more at Manufacturing.Net. Audi will use Valeo's electric superchargers to improve fuel economy and acceleration. Valeo says Audi will launch a vehicle using its electric supercharger next year, with other reports suggesting that car will be the Audi Q7. The company says other unspecified automakers will also use the technology in their vehicles. While the electric supercharger adds to the vehicle's cost and electric energy use, it can improve fuel economy by as much as 20 percent. Read more at Automotive News Europe. Featured Gallery Chevrolet Spark EV View 13 Photos Related Gallery 2016 Audi Q7: Detroit 2015 View 15 Photos News Source: Hybrid Cars, EPA, Manufacturing.Net, Automotive News EuropeImage Credit: Chevrolet Government/Legal Green Audi Chevrolet Alternative Fuels Emissions Ethanol Fuel Efficiency Electric Off-Road Vehicles recharge wrapup

Audi rumored to buy Alfa Romeo, officials deny it

For more than two years, Volkswagen has been making public statements about its willingness to buy Alfa Romeo and quadruple the Italian brand's sales, and for just as long, Fiat CEO Sergio Marchionne has replied with some version of "Mr. Piëch, drop it." According to a report in Ward's Auto, all that jousting might be over: it claims that sources close to both Marchionne and Audi CEO Rupert Stadler admit that the two are in talks for Audi to buy not just Alfa Romeo, but a production plant in Italy. In fact, a final deal could possibly include partsmaker Magnetti Marelli.
Against that backdrop, a report by German news weekly Stern quotes a Fiat spokesmen as saying it doesn't comment on rumors and an Audi rep has said flatly that "There is no substance in the news." If a sale is being arranged, the timing would seem to point to how eager Fiat is to raise cash to complete its major initiatives. Even though Alfa Romeo continues to delay its return to the US, it just showed off the production version of the 4C at the Geneva Motor Show (shown above) and said that preferred Fiat dealerships here would get them. Then there's Alfa's recently concluded deal with Mazda to develop a roadster based on the next generation MX-5 Miata - a deal that would seem to help both the Italian and Japanese brands.
The monetary issues are troublesome, though. Fiat is taking a beating in the European market and its weak-kneed balance sheet is delaying gotta-have-it products like the Jeep Cherokee. Fiat has been talking to banks about getting money to buy the rest of Chrysler and those financial institutions have also raised issues about debt and cash reserves, and the nasty game of chess Fiat is playing with the United Auto Workers (and now the court system about the portion of Chrysler it doesn't own) could end up blowing another hole in Marchionne's plans. It is possible that this could finally have convinced Fiat to at least see how serious Audi's parent company, Volkswagen, is about buying Alfa Romeo. Or it could be just another rumor.