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Volkswagen Group names Paefgen head of classics program

You may remember the name Franz-Josef Paefgen. Until recently, the German engineer and executive was head of both Bentley and Bugatti. Before that he was chief executive of Audi, after working for several years at Ford. He technically "retired" earlier this year, but like the cars he helped create, an executive like Paefgen could never really retire. So it should come as little surprise that the Volkswagen Group has named Dr. Paefgen head of its Classic program.
In his new capacity, Paefgen will oversee the historic automobile activities of the entire VW Group, including those of Volkswagen, Seat, Skoda, Audi, Lamborghini, and of course Bentley and Bugatti. It strikes us as a suitable semi-retirement for the man responsible in no small part for the Bugatti Veyron and Bentley Mulsanne, to name just two, and who was decorated in 2006 by the ACO as the "Spirit of Le Mans" for his contribution to endurance racing. Read the official announcement after the break.

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.

Recharge Wrap-up: meet the '66 ZelectricBug, DOE announces home-scale H2 refueling competition

The US Department of Energy has launched the $1 million H2 Refuel H-Prize competition to create small- to medium-scale hydrogen refueling systems. The systems could be home-scale systems that produce hydrogen using utilities at home for refueling, or medium-scale systems to supply locations such as retail centers, apartment complexes or small fleets. The DOE sees hydrogen fueling infrastructure as the biggest obstacle to fuel-cell vehicle adoption and putting the production and refueling in the hands of the consumer could be a way around that obstacle. Read more at Energy.gov and at Green Car Congress. Hyundai has announced a new six-speed automatic transmission with integrated electric motor for new hybrid models. The new configuration puts most of the hybrid powertrain components within the transmission, and the torque converter has been eliminated. The new engine clutch reduces drag with fewer clutch discs, and the mechanical oil pump has been replaced with an electric one. The result is fewer energy losses, improved efficiency and greater mileage. Read more at Hybrid Cars in Reuters or in the press release from Hyundai below. Zelectric Motors has completed its electric 1966 Volkswagen Beetle rebuild, and has put it up for sale. The '66 ZelectricBug, as it's called, is powered by a 50-kW electric motor and 20-kWh battery pack, and offers 120 pound-feet of torque. It has a range of 80 miles, and is capable of at least 100 mph. The stock transmission has been rebuilt. It also has some new goodies like high-performance sway bars, custom shocks, and LED lighting. The '66 ZelectricBug is priced at $45,000. Check it out in the video below and read more at Hybrid Cars. A startup called Alevo says it will build a billion-dollar factory in North Carolina to make longer-lasting lithium iron phosphate batteries. Alevo has purchased an old cigarette factory in Concord for $68.5 million, but it's unclear whether or not the company has secured the $1 billion investment to begin producing batteries. The company plans to create 2,500 to 6,000 jobs and produce several gigawatts worth of batteries per year, which is a tall order for a relatively unknown company. Read more at Gigaom, or in Alevo's press release below. Tesla owners in Shanghai will be exempt from the city's $12,000 registration fee. About 400 people have already received the free license plates in Shanghai, where the government wants to encourage alternative fuel vehicles.