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VW's Skoda says Ukraine partner making wire harnesses again

PRAGUE — Skoda Auto, part of the Volkswagen Group, said on Tuesday its supply partner in Ukraine had decided to restart production of wire harnesses which should allow the Czech carmaker to resume production of its electric ENYAQ iV model. Russia's invasion of Ukraine has added to supply chain problems for global automakers — which were already struggling with semiconductor shortages that have cut production — with a break in deliveries of wire harnesses from the war-torn country. While Skoda, the Czech Republic's biggest exporter, said it expects the supply of semiconductors to improve in the second half of 2022, it said the war in Ukraine and supply bottlenecks will put a significant burden on its operating business. Skoda's 2021 deliveries fell 12.6% year-on-year and earlier this month it stopped production of the ENYAQ because of harness shortages, saying that two other models were at risk because of the lack of availability of the component. "Our partner ... in Ukraine decided to restart production of wire harnesses this week, with full service and full security for workers there," Karsten Schnake, Skoda's board member for purchasing, said during its online 2021 earnings presentation. Wire harnesses form a key part of a car's electrical system, which group and guide cables inside the vehicle. "We decided to double the production in case something is going wrong, and this production will be ramped up in an alternative factory," Schnake said, adding that work there would start in three or four weeks. "Hopefully we can restart production of ENYAQ one or two weeks later when we have wire harnesses," Schnake said. Skoda delivered 878,200 cars worldwide in 2021, the first time that this had fallen below the 1 million mark since 2013. Nevertheless, the VW group brand's sales revenue rose 3.9% to 17.7 billion euros ($19.5 billion) in 2021 and operating profit rose 43.2% to 1.1 billion euros ($1 billion) as it took cost measures. Skoda did not give a financial or production outlook, saying there were still considerable uncertainties as a result of the conflict in Ukraine and the impact on its Russian operations. Skoda, like VW, has suspended production and other business activities in Russia, which was its second-largest market last year, with 90,400 vehicles delivered. ($1 = 0.9089 euros) (Reporting by Jason Hovet, Editing by Louise Heavens, Kirsten Donovan and Alexander Smith) Related video: Green Plants/Manufacturing Volkswagen Skoda Electric ukraine war

Volkswagen decides to keep Lamborghini and Ducati, transfers Bentley to Audi

Investors in the market for a high-end Italian manufacturer that peddles performance will need to keep looking. Volkswagen announced it will hang on to Lamborghini and Ducati in the foreseeable future. Executives in Wolfsburg, Germany, are making far-reaching changes to the Volkswagen Group to reboot it with a big focus on technology. Credible rumors claimed that the people in charge of the carmaker wanted to carve out Lamborghini — which owns Ducati — and ultimately list it, or at least a chunk of it, on the stock market in order to fast-track the group's electrification strategy. Going electric is expensive, so selling Lamborghini would have helped fund the expansion, and high-octane supercars don't easily go hand-in-hand with zero-emissions cars. "Volkswagen needs to change from a collection of valuable brands and fascinating combustion-engine products that thrill customers with superb engineering to a digital company that reliably operates millions of mobility devices worldwide," summed up Herbert Diess, the group's boss, during a September 2020 meeting. His team ultimately decided not to fully divest both brands. It's too early to tell whether part of Lamborghini will be listed on the stock market, as some insiders have suggested, or if those plans are off the table, too. Changes are coming to Bentley as well. While it's not being spun off either, it will fall under the Audi umbrella starting on March 1, 2021. Volkswagen explained linking the two companies will "allow for synergies to be achieved as part of the electrification strategy of the two premium brands," a statement which suggests they will share a growing number of components during the 2020s. Unverified rumors claim that Bentley will notably get its own version of an ultra-luxurious electric SUV code-named Landjet that Audi is currently developing. We've reached out to Bentley for more details, and we'll update this story if we learn more. Bugatti's future wasn't mentioned in the release; unconfirmed reports suggest it will be traded for a stake in Croatian start-up Rimac. Volkswagen's supervisory board also reaffirmed its support for Diess, who was appointed CEO in 2018 and who has played a significant role in the company's transformation. Finally, the board approved the development of what a statement refers to a future leading electric vehicle sold by the Volkswagen brand that will be developed and manufactured in Wolfsburg.

VW Group plan puts Porsche in charge of a 'super-premium' division

An Automobile report looks into what's happening on the organizational and technical sides of the Volkswagen Group, and what those changes could mean for the premium brands. The wide-angle view is that Porsche appears to have been anointed to "coordinate the future activities" at Audi, Bentley, Bugatti and Lamborghini. Audi would cede Lamborghini guardianship to Stuttgart, and Ducati — via a new concern called Ducati Enterprises — would become the shepherd for VW's other Italian investments. Executives target Jan. 1, 2019, to complete the reshuffle. VW wants to save a boodle by tying up four of its five top-tier brands, and putting the one with the highest ROI in charge. Porsche, within its own house, wants to reduce expenditures by $2.3 billion per year over for four years, the savings already earmarked for improving internal processes like R&D and production. Having Porsche share those gains as well as lead development of platforms, components and future-tech strategies for the sister sports car brands could benefit everyone. In the near-term, the brands have their own plans: Bugatti CEO Stephan Winkelmann is said to want a Chiron Superleggera, a roofless and "completely reskinned" Chiron Aperta, and a track-only Chiron SS. The Superleggera could take the Chiron Sport's and Divo's Jenny Craig routines even further. The Aperta seems a natural successor to the Veyron Grand Sport, a natural evolution of the recently introduced Sky View roof, and a reskin might include numerous Divo cues. It's also said Bugatti's considering "an all-electric high-end model" in conjunction with Porsche, Rimac, and Dallara, but name one supercar or hypercar manufacturer that isn't considering a lightning-fast EV. Lamborghini, deep into work on follow-ups for the Huracan and Aventador, might get a bit of a bump with the new plan. The carbon "monofuselage" for the next V12 flagship is said to be too far developed and too complex to scrap. It puts two electric motors on the front axle, batteries in the middle, and a naturally aspirated V12 with around 770 horsepower plus another e-motor with 402 horsepower in back. The Huracan is said to get a version of the same carbon architecture at the moment, but the corporate reorganization might press pause on it. Automobile says options include continuing the Huracan/ Audi R8 twinning, but that depends on Audi saying "Ja" to a third-gen R8 with Lamborghini bones.