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Volkswagen feuds with thriving stablemate Skoda

BERLIN, Oct 4 (Reuters) - Volkswagen managers and unions are seeking to curb competition from lower-cost stablemate Skoda, move some of its production to Germany and make the Czech brand pay more for shared technology, company sources told Reuters. As VW struggles to cut jobs and spending at German factories and turn the page on dieselgate, Skoda's superior car reviews and profitability have intensified the brands' rivalry within the Volkswagen empire. VW now wants to reduce what it sees as Skoda's unfair advantages - combining German technology with cheaper labor - and reaffirm the top-selling brand's primacy ahead of a wave of new electric car launches, the sources said. The tussle between VW and Skoda is reviving tensions at the heart of the Volkswagen group between profits and jobs, and between central control and autonomy for its 12 vehicle brands. "Instead of devoting our efforts to beating Tesla, we may just be setting up a futile internal conflict," said one manager. Once the butt of jokes, Skoda has blossomed under 26 years of VW group ownership into a successful mid-market carmaker, steadily winning business from rivals - including VW - and surpassing even Audi's operating profit margin last year. At the same time, VW is facing thousands of job cuts as management moves to trim excess capacity at German factories. Its powerful domestic unions see Skoda's success as both a threat and a potential lifeline. VW workers' representatives are now demanding the transfer of some Skoda production to their underused German plants, a source close to the supervisory board told Reuters. The proposal aims to offset declining output of the VW Passat and aging Golf that could otherwise threaten more jobs. They are also making the case that Skoda should pay higher royalties to use VW's main common vehicle platform. The so-called MQB architecture also underpins mid-sized models from the group's Audi and SEAT brands. Responding to the news, Czech Prime Minister Bohuslav Sobotka said he would meet Skoda management and unions to ask for clarification. The government will seek to ensure that VW investment plans are followed through and that "production is not moved outside the country," a statement released by Sobotka's office said. Skoda's main union warned that a production shift could cost as many as 2,000 jobs. VW's works council declined to comment.

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."

Recharge Wrap-up: New Mitsubishi Evo PHEV, Amsterdam buses go all electric by 2025

Mitsubishi hopes to launch a new vehicle badged as the Evo based on the Concept XR-PHEV II. Mitsubishi President and COO Tetsuro Aikawa tells Autocar the new vehicle will share characteristics with the outgoing Lancer Evolution loved by enthusiasts, but will feature a plug-in hybrid powertrain in the body of a compact crossover. "In Japanese, when you pronounce 'Oh,' it means 'king,'" says Aikawa. "So we would like to launch this type of car, featuring EV and PHEV technology, which is the ultimate of its kind. 'EV' for electric vehicle, 'O' for king - Evo." The Mitsu boss also envisions the four-wheel-drive Evo to be "light and fast - something performance-oriented." Read more at Autocar, or at Hybrid Cars. Amsterdam aims to have all its buses running on electric power by 2025. Within two years, the city will have 40 electric buses in operation, and will phase out the rest of the diesel fleet in the following years. "This project means we are saying goodbye to symbolic behavior and pilot projects," says transport alderman Abdeluheb Choho. "We have decided to just do it, not to experiment with five buses." Read more at Clean Technica. BMW and General Motors are both listed in the top five US organizations generating and using green energy onsite. In an EPA list, BMW's Spartanburg, South Carolina manufacturing facility is number four, with credit going to its use of landfill gas. In 2013, 69,383,477 kWh - or 37 percent of its total usage - came from green energy. GM's Fort Wayne Assembly was number five, with 43 percent of its power coming from methane from a nearby landfill. Volkwsagen also made the Top 30 list, at number 15, for its Chattanooga assembly plant's use of solar power. See the EPA's full list, and read more at Green Car Congress. Volkswagen will release its 2014 sustainability report on Twitter on Monday, May 4. It will be the first step in using the social medium to distribute information on economic, environmental and social sustainability to a larger audience. The report will include a section called "Electrifying China with a tailor-made efficiency strategy," which focuses on reducing CO2 emissions through the use of electric vehicles. Volkswagen has already begun releasing highlights from its report on its Twitter account with the hashtag #VWCSR. Read more in the press release below and, of course, on Twitter next week.