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Matthias Muller officially named VW Group CEO

While the vast number of rumors made it seem like a foregone conclusion, Porsche boss Matthias Muller has officially been named Volkswagen Group CEO to replace the recently resigned Martin Winterkorn. His contract runs through the end of February 2020, and until a replacement is found, Muller also gets to hang onto his old job as chairman of Porsche. At the same time, the VW Group Supervisory Board is announcing a massive structural reorganization across the entire company, with the new management model in place by the beginning of 2016. Contrary to previous rumors, Michael Horn remains as President and CEO of VW Group of America. The board wants a greater emphasis on brands and regions going forward, and the scale of this shift can be seen in the US. On November 1, VW Group business in the US, Mexico, and Canada is being combined under the leadership of current Skoda chairman Winfried Vahland. However contrary to previous rumors, Michael Horn remains as President and CEO of VW Group of America. Other brands are also seeing some significant changes mechanically. Porsche, Bentley, and Bugatti now fall under the Group's "sportscar and mid-engine toolkit." This means that the brands will start sharing standardized technical parts. A Chief Technical Officer across all of the company's brands will also start working toward future innovations. The new brand-centric view means the end of a group-wide production department. "Going forward, the brands and regions will also have greater independence with regard to production. So it follows that they should also hold the responsibility for these activities," Berthold Huber, interim Chairman of the Supervisory Board, said in the announcement. In a statement with the press release about his promotion, Muller promised to turn the company around after such an international crisis. He said: "My most urgent task is to win back trust for the Volkswagen Group – by leaving no stone unturned and with maximum transparency, as well as drawing the right conclusions from the current situation. Under my leadership, Volkswagen will do everything it can to develop and implement the most stringent compliance and governance standards in our industry." Matthias Muller appointed CEO of the Volkswagen Group Muller remains Chairman of Porsche AG until a successor has been found Matthias Muller (62) has been appointed CEO of Volkswagen AG with immediate effect.

Recharge Wrap-up: First VW e-Golf in US up for auction, meet Project Ain't Fuelin'

Volkswagen is auctioning the first e-Golf in the US to raise money for Global Green USA. The auction is live now, and bidding goes until 3:30 pm Eastern on October 29. Global Green USA will use the proceeds to help find solutions to climate change, and the winner will get to enjoy emissions-free driving before the car e-Golf goes on sale in November. If you don't live in or near California, Connecticut, Maine, Maryland, Massachusetts, New Jersey, New York, Oregon, Rhode Island, Vermont or Washington DC, you might want to sit this one out, as the car will only be available to pick up at dealers in those initial launch states. Go bid now, or learn more in the press release below. Berlin, Germany will use Solaris electric buses for a complete bus line in 2015. The downtown line will run 3.8 miles between Zoologischer Garten Station and Sudkreuz. The transport operator Berliner Verkehrsbetriebe (BVG) will use four of the Solaris e-buses for the test, each about 39 feet long. The buses use a 200-kilowatt inductive charging system at the ends of the line to recharge in just a few minutes. The government-funded test runs through 2016, but BVG pans to use the electric buses beyond that timeline. Read more at Green Car Congress. The American Petroleum Institute (API) is worried that the Obama administration will use ethanol requirements to influence a Senate race in Iowa. In the midst of a close race against Republican Joni Ernst, Representative Bruce Braley, the Democratic candidate, is urging Obama to reject a cut in the Renewable Fuel Standard. The November election approaches, meanwhile the EPA continues to delay issuing an ethanol requirement for the year, with or without its proposed 16-percent reduction. Rejecting the cut could help get farmers and ethanol producers on the side of Braley. "We are very concerned that the signals we are seeing from the administration is that the political calculations are outweighing sound fuels policy," says API's Bob Greco. Read more at Businessweek. Project Ain't Fuelin' aims to fix up old cars to return them to original fuel economy, and then surpass it. Episode 3 of Valvoline's Under The Hood video series features Daniel Gray of MPGomatic, who is doing just that to a 1999 Honda Civic HX Coupe. He aims to get 50 mpg out of the old Civic by tuning it up, tinkering with the aerodynamics, switching to more efficient tires and other modifications.

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.