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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

Rimac inks deal to purchase 55% of Bugatti from VW Group

ZAGREB, Croatia — Croatian electric supercar builder Rimac is taking over the iconic French manufacturer Bugatti in a deal that is reported to be worth millions of euros. Rimac said GermanyÂ’s Volkswagen Group, including the Porsche division — which owns a majority stake in Bugatti — plans to create a new joint venture. The new company will be called Bugatti-Rimac. Rimac Automobili announced Monday that it will be combining forces with Bugatti to “create a new automotive and technological powerhouse.” Rimac has progressed in 10 years from a one-man garage startup to a successful company that produces electric supercars. Mate Rimac, who founded the company in 2009, says the venture is an “exciting moment” and calls the combination of the companies “a perfect match for each other.” Porsche will own 45% of Bugatti-Rimac while Rimac Automobili will hold the remaining 55% stake, according to Croatian media reports. Financial details of the deal were not published. Bugattis will continue to be assembled in eastern France, where the company was established in 1909. The vehicles will use engines developed and made in Croatia. “In an industry evolving at ever-increasing speed, flexibility, innovation and sustainability remain at the very core of RimacÂ’s operations," the company said. “Uniting RimacÂ’s technical expertise and lean operations with BugattiÂ’s 110-year heritage of design and engineering prowess represents a fusion of leading automotive minds." Earnings/Financials Green Bugatti Automakers Porsche Volkswagen Green Automakers Electric Supercars

Ferdinand Piech (1937-2019): The man who made VW global

Towering among his peers, a giant of the auto industry died Sunday night in Rosenheim/Upper Bavaria, Germany. Ferdinand Piech, a grandson of Ferdinand Porsche, who conceived the original Volkswagen in the 1930s, was the most polarizing automotive executive of our times. And one who brought automotive technology further than anyone else. Ferdinand Porsche had a son, Ferdinand (called "Ferry"), and a daughter, Louise, who married the Viennese lawyer Anton Piech. They gave birth to Ferdinand Piech, and his proximity to two Alfa Romeo sports cars — Porsche had done some work for the Italians — and the "Berlin-Rome-Berlin" race car, developed by Porsche himself, gave birth to Piech's interest in cars. After his teachers in Salzburg told his mother he was "too stupid" to attend school there, Piech, who was open about his dyslexia, was sent to a boarding school in Switzerland. He subsequently moved on to Porsche, where he fixed issues with the 904 race car and did major work on the 911. But his greatest project was the Le Mans-winning 917 race car, developed at breathtaking financial cost. It annihilated the competition, but the family had had enough: Amid growing tension among the four cousins working at Porsche and Piech's uncle Ferry, the family decided to pull every family member, except for Ferry, out of their management positions. Piech started his own consultancy business, where he designed the famous five-cylinder diesel for Mercedes-Benz, but quickly moved on to Audi, first as an engineer and then as CEO, where he set out to transform the dull brand into a technology leader. Piech killed the Wankel engine and hammered out a number of ambitious and sophisticated technologies. Among them: The five-cylinder gasoline engine; Quattro all-wheel drive and Audi's fantastic rally successes; and turbocharging, developed with Fritz Indra, whom Piech recruited from Alpina. The Audi 100/200/5000 became the world's fastest production sedan, thanks to their superior aerodynamics. Piech also launched zinc-coated bodies for longevity — and gave diesel technology a decisive boost with the advent of the fast and ultra-efficient TDI engines. Less known: Piech also decided to put larger gas tanks into cars. Customers loved it. Piech's first-generation Audi V8 was met with derision by competitors; it was too obviously based on the 200/5000.