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VW could look outside its own ranks for next CEO

Companies have two options when coming up with succession plans – hire within, or go outside its ranks. Either choice comes with advantages and disadvantages, to be sure. Hiring within means generally getting someone familiar with the company and its culture and traditions, while going outside is ideal if you're looking to shake things up and bring in fresh ideas. It's unclear which avenue the Volkswagen Group will go down when it comes time to replace its head man, Herr Professor Doctor Doctor Herr Martin Winterkorn, but he isn't ruling out a trip outside of Wolfsburg. Winterkorn has already given the reins of the VW brand to former BMW board member Herbert Diess, while Andreas Renschler, a former Daimler board member, is heading up VW's truck group. Now, Winterkorn has made some statements to a German weekly that indicate the most important thing about his successor isn't necessarily his (or her, though no women appear to be on the short-list) previous employer, Motoring.com.au is reporting, so much as his qualities as a leader and an engineering background. "A Volkswagen boss has to have a big affinity to our products. He needs to be close to customers and he needs to have a relationship with dealers," Winterkorn told Stern. "Like always, it depends on the personality and it also helps if the candidate is an engineer." Motoring throws out a couple of potential candidates from within, including Porsche boss Mathias Muller, Audi Chairman Rupert Stadler and engineering guru Ulrich Hackenberg, in addition to both Diess and Renschler. And while each candidate has a lot of potential, the only thing that's guaranteed right now is what Winterkorn has already said: "The decision about who will succeed me is not an easy one for the supervisory board."

Dealers mobilize to protect their margins from automaker subscription services

Six individual auto brands — Lincoln, Cadillac, Porsche, Mercedes, BMW and Volvo — have established or are trialing a vehicle subscription service in the U.S. Three third-party companies — Flexdrive, Clutch and Carma — run brand-agnostic subscription services. And three automakers — Mercedes-Benz, BMW, and General Motors — have also launched short-term rental services. Dealers, afraid of how these trends might affect their margins, are building political and lawmaking campaigns to protect their revenue streams. So far, three states are investigating automaker subscriptions, and Indiana has banned any such service until next year. It's certain that those three states are the first fronts in a long political and legal battle. Powerful dealer franchise laws mandate the existence of dealers and restrict how automakers are allowed to interact with customers to sell a vehicle. On top of that, Bob Reisner, CEO of Nassau Business Funding & Services, said, "Dealers and their associations are among the strongest political operators in many states. They as a group are difficult for state politicians to vote against." In California earlier this year, the state Assembly debated a bill with wide-ranging provisions to protect against what the California New Car Dealers Association called "inappropriate treatment of dealers by manufacturers." One of those provisions stipulated that subscription services need to go through dealers, but that item got stripped out when dealers and manufacturers agreed to discuss the matter further. In Indiana, Gov. Eric Holcomb signed a moratorium on all subscription programs by dealers or manufacturers until May 1, 2019, to give legislators more time to investigate. Dealers in New Jersey have taken their campaign to the state capitol, asking that the cars in subscription programs get a different classification for registration purposes. Automakers run the current subscription services and own the vehicles. Sign-ups and financial transactions happen online or through apps, leaving dealers to do little more than act as fulfillment centers to various degrees, with little legal recourse as to compensation amounts when they're called on to deliver or service a car. That's a bad base to build on for business owners who've sunk millions of dollars into their operations.

Eight Mercedes Fuso Canter E-Cell trucks now in service

Portugal is far better known for its scenery and seascapes (not to mention some of its alcoholic beverages) than its place as a vehicle-testing center. But the European country is serving just that purpose for Daimler's Mercedes-Benz division and a new line of trucks. And they are of the battery-electric variety. Daimler has sent eight of its Mercedes-Benz Fuso Canter E-Cell battery-electric trucks for customer-trial purposes to various parts of the Western European country. And these customers include the Portuguese cities of Lisbon, Porto and Abrantes as well as delivery company Transporta. These entities will be testing trucks that have about a 60-mile single-charge range and deliver 150 horsepower. The trials for the trucks, which have 14-foot beds, will last one year. Daimler hasn't released a whole lot of details on further development or sales possibilities of the model. The hybrid version of the Fuso Canter debuted in the fall of 2009 and was under the Mitsubishi badge at the time, even though it was 85-percent owned by Daimler. That model is said to boost fuel economy relative to conventionally-powered trucks by as much as 23 percent. Take a look at Daimler's press release on the Fuso Canter E-Cell and its Portugal testing below. Zero emission and quiet as a whisper: eight new Fuso Canter E-Cell in customer trials Eight Fuso Canter E-Cell in real-life testing with customers for a year Locally emission-free and virtually noiseless Powerful, high-torque electric motor Battery capacity ensures range of more than 100 km Highlight of anniversary year for the Canter assembly plant in Tramagal, Portugal The drive system to suit: Canter Euro VI, Canter Eco Hybrid and Canter E-Cell The cleanest technology, whatever the application: Fuso is a pioneer of "green" drive systems in the commercial vehicle sector. The Daimler subsidiary in Japan is the home of Daimler Trucks' centre of competence for hybrid technology, and with this experience behind it, Fuso has also been responsible for developing the new battery-electric-powered "Zero Emission" Canter E-Cell. The first all-electric light-duty truck, produced in a small series, runs emission-free and almost silently. The Canter E-Cell for Europe is manufactured at the Tramagal plant in Portugal. Eight vehicles have now been released for customer trials.