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VW chair says component cost decrease keeps him confident of EV success

Volkswagen AG is in the middle of implementing a comprehensive electric vehicle strategy, one that we've been documenting for a long time. The Group stands ready to offer dozens of plug-in vehicles in the coming years if it feels there is sufficient demand and believes that selling a million EVs in Germany by 2020 is reasonable. That would be a solid number, but remember that VW sold over 5,923,000 passenger cars around the world last year, and the group as a whole sold over 9.7 million. At the company's annual Media Conference and Investor Conference in Berlin recently, the chairman of the board of VW AG - surrounded by some decidedly non-green examples of the VW Group's vehicles (some absurd new Bugatti, for example) - took some time to put the company's EV plans into focus. The upshot is that Dr. Martin Winterkorn is still guiding his electromobility ship into new waters, saying that "many more [plug-in] models will follow." Winterkorn said there are three main reasons he is confident in the ability of VW (and Audi and Porsche, at the very least) to push EV sales upward. Batteries are getting better, he said, and if the ranges can be extended, then customers are happy. But the real secret lies in reducing component costs. He said (as translated): It is important to look at the cost of the components: the battery technology, the electric motor and the electric components. Whenever you go into volume production, you of course have economies of scale. In two to three years' time, if we are able to achieve the goals we are setting for ourselves with cost and reach sufficient volume, I do believe that we can achieve two to three percent [market share] within VW Group. So, hitting a million EVs by 2020 is reachable. With the e-Golf and the e-Up off to excellent sales starts, we're willing to be confident as well.

The Volkswagen Group switches official language to English

The Volkswagen Group can't be fairly thought of as entirely German anymore, so the news that the company is switching its official language to English to help attract managers and executives is a rational, if surprising, decision. While many VW Group companies are still staidly German in character and culture, consider the other companies that it controls: Bentley (British), Bugatti (French), Ducati and Lamborghini (Italian), Skoda (Czech), Scania trucks (Swedish), and SEAT (Spanish). Not to mention the large Volkswagen Group of America operation, which constructs cars in Chattanooga, TN. Volkswagen's explicit motivation is to improve management recruitment – making sure the company isn't losing out on candidates for important positions because they can't speak German – and that's inherently sensible in a globalized economy. Particularly considering, like it or lump it, that English is the lingua franca of said global economy. It also should make it inherently easier to communicate between its world-wide subsidiaries and coordinate operations. It's hard to say for sure if this will have any impact on the consumer, although it's easy to see the benefits if, say, VW Group hires some American product planners or engineers and they push for features and designs that more closely suit American needs. After all, the US is a hugely important market for any manufacturer, and so the switch to English almost certainly has something to do with the outsized influence of the US in the global economy. And there doesn't seem to be a downside from a purely rational perspective, although it could mean that the Group's corporate culture becomes less German. Whether that's a good or a bad thing depends on your perspective. Related Video: Image Credit: Krisztian Bocsi/Bloomberg via Getty Images Plants/Manufacturing Audi Bentley Bugatti Porsche Volkswagen SEAT Skoda

Workers at Mississippi auto supplier protesting low wages

Workers at an automotive seat factory in Mississippi are protesting what they say are low wages and poor working conditions as they attempt to unionize in what could become a new front for the United Auto Workers in the state. A group of workers and supporters at the Faurecia SA seating plant in Cleveland plans a Tuesday march. "We work an auto job and we're getting paid like Wal-Mart wages," said Jamarqus Reed, a 32-year-old Pace resident who has worked at the plant for almost 10 years. "We're trying to better ourselves." Nationally, the UAW has staked its future on unionizing Southern auto factories, with limited success so far. The union has been trying to organize Nissan Motor Co.'s Canton, MS, plant for years, and lost a 2008 worker vote at a Johnson Controls plant in nearby Madison that French-based Faurecia bought in 2011. The UAW narrowly lost a unionization vote at the Volkswagen AG plant in Chattanooga, TN, last year, but the union has since qualified for a new labor policy at the plant that grants access to meeting space and to regular discussions with management. The policy stops short of collective bargaining rights. The union is also trying to organize Nissan's assembly plant in Smyrna, TN, and Daimler AG's Mercedes-Benz plant in Tuscaloosa, AL. Protesters say Faurecia employees make a top wage of $11.64 per hour, while contract workers make $7.73 an hour. Company spokesman Tony Sapienza said that with overtime, the typical Faurecia employee makes more than the $27,000 a year that is the median wage around Cleveland. Wages are often low in the heavily impoverished Delta. "We are very confident that we are offering a very competitive wage," Sapienza said. Organizers criticize use of lower-paid contract workers Shannon Greenidge, a 44-year-old Cleveland resident, said she worked for a labor agency for more than two years before being hired directly by Faurecia. Greenidge said she makes $9.29 an hour, and can't save for retirement or to send her 11-year-old daughter to college. "That's not going to help me down the line in life," she said. Union supporters say as many as half the workers at the plant work for a contract-labor agency. Sapienza said that while the number varies, the company expects 15 percent of its workforce will be temporary employees this year. The UAW has organized some Southern auto parts plants in recent years, including Faurecia plants in Cottondale, Alabama, in 2012 and Louisville, Kentucky in 2013.