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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.

Ford Mustang Mach-E fails Sweden's moose test

The infamous moose test has claimed another casualty. This time it's the Ford Mustang Mach-E AWD Long Range, which was tested in an electric four-way alongside the Tesla Model Y, Hyundai Ioniq 5 and Skoda Enyaq iV (an electric utility vehicle closely related to the Volkswagen ID.4 that is sold in the United States). According to the Swedish testers at Teknikens Varld, Ford's electric car not only failed to hit the speed necessary for a passing grade, it didn't perform well at slower speeds, either. To pass the outlet's moose test, a car has to complete a rapid left-right-straight S-shaped pattern marked by cones at a speed of at least 72 km/h (44.7 miles per hour). The test is designed to mimic the type of avoidance maneuver a driver would have to take in order to avoid hitting something that wandered into the road, which in Sweden may be a moose but could just as easily be a deer or some other member of the animal kingdom elsewhere in the world, or possibly a child or car backing into the motorway. Not only is the maneuver very aggressive, it's also performed with weights belted into each seat and more weight added to the cargo area to hit the vehicle's maximum allowable carrying capacity. The Mustang Mach-E only managed to complete the moose test at 68 km/h (42.3 mph), well below the passing-grade threshold. Even at much lower speeds, Teknikens Varld says the Mach-E (which boasts the highest carrying capacity and was therefore loaded with more weight than the rest of the vehicles tested in this quartet) is "too soft in the chassis" and suffers from "too slow steering." Proving that it is indeed possible to pass the test, the Hyundai and Skoda completed the maneuver at the 44.7-mph figure required for a passing grade and the Tesla did it at 46.6 mph, albeit with less weight in the cargo area. It's not clear whether other versions of the Mustang Mach-E would pass the test. It's also unknown if Ford will make any changes to its chassis tuning or electronic stability control software, as some other automakers have done after a poor performance from Teknikens Varld, to improve its performance in the moose test. Related video:

VW, Fiat, Mercedes could be CNG winners in Europe

Fiat ads in the US try to play up the exotic, sexy side of Italian culture. On the home front in Italy, however, passenger-vehicle sales are marked by something less edgy and quite a bit more practical: the growth of compressed-natural-gas (CNG) powered car sales. In fact, Italy is leading a group of European countries where CNG sales are on the upswing and may be benefiting automakers like VW, Fiat and Mercedes-Benz, according to Automotive News. VW started sales of its Golf TGI natural-gas vehicle this year – the company's fourth in Europe – while Mercedes-Benz added a natural-gas B-class model. Fiat accounts for about 50 percent of CNG vehicles sold on the continent. In all, Europe's CNG sales through September totaled about 67,000, up seven percent from a year earlier, Automotive News Europe says, citing research firm JATO Dynamics. And the number of CNG vehicles on Europe's roads could jump tenfold within the next decade. The draw is a combination of lower refueling prices and a CNG drivetrain that typically emits less CO2 than diesel vehicles. As for Italy, about five percent of new-vehicle sales are CNG. To put that into perspective, hybrids, battery-electric vehicles, plug-in hybrids and diesels combined to account for about 4.2 percent of US vehicle sales last year. News Source: Automotive News - sub. req.Image Credit: Volkswagen Green Fiat Mercedes-Benz Volkswagen Natural Gas Vehicles CNG