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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.

Audi tests new kind of car sharing, lets you buy cars with buddies [w/video]

Car sharing services like ZipCar, Car2Go and others offer people in cities the chance to have a vehicle without dealing with the hassles of parking or maintenance, while also eliminating traffic. However, many individuals are turned off by the idea of splitting a car with an entire metropolis or would prefer to have a specific model at their disposal. For these unsatisfied souls, Audi has a new arrangement in Stockholm, Sweden, called Audi Unite that might be just the ticket. The setup is basically a small-scale car sharing service. Up to five people agree to share any of Audi's models for a year or two – even an R8 if they are so inclined. Each user has a special Bluetooth key fob that identifies them to the vehicle, and a smartphone app allows operators to schedule time with the car. Each person is then billed monthly according to his or her use. Audi thinks it might work best with friends, colleagues or neighbors, but the company can also play matchmaker for clients, if necessary. "In the beginning, our biggest fear was what if two people want to go somewhere at the same time-what happens then?" said Clemens Weisshaar, one of the founders of design firm Kram/Weisshaar that helped develop the idea, to Fast Company. "Interestingly, it never happened." They chose Stockholm because the city was tech-savvy, and there is a tradition of sharing there. Prices for Audi Unite seem fairly reasonable for each user. According to the service's website, if four people use an A3 Sportback for two years with a 20,000-kilometer (12,247-mile) driving limit, they would pay an average of 2,091 Swedish krona ($277) each per month. For an extra 365 krona (about $50) per person each month, they can add a package that includes vehicle pickup and delivery for monthly interior and exterior cleaning, winter tire exchanges and necessary servicing. After Stockholm, Audi plans to try Unite in other Swedish cities before launching the program in additional countries, according to Fast Company. Scroll down to watch a video with more explanation about how the program works and read the automaker's press release about the initiative.

VW confirms development of 10-speed dual clutch, 134-hp/liter diesel

Each year, the Vienna International Motor Symposium showcases some of the up-and-coming technologies automakers are engineering for the use in passenger cars, and Volkswagen AG CEO Martin Winterkorn revealed some big developments VW is working on for its future products. Winterkorn discussed a multi-faceted approach that VW is looking to reduce its fleet fuel consumption and exhaust emissions.
Some of the bigger news he discussed included a "high-performance" diesel engine that will produce 134 horsepower per liter and a 10-speed DSG automatic transmission. While no specific applications were mentioned, we can only hope this is for the Audi R4 we keep hearing about.
Another topic he touched on that caused us to perk up our ears was had to do with VW's plug-in hybrid technology. While we know the PHEV versions of the Audi A3 and Porsche Panamera are on the way, Winterkorn also said that these two models will be followed up by Golf, Passat, Audi A6 and Porsche Cayenne plug-in models. Scroll down for a press release highlighting the automaker's future fuel-saving initiatives.