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Skoda plans big investment into electric cars as part of rebound effort

PRAGUE — Czech carmaker Skoda, part of the Volkswagen Group, said on Wednesday it would invest around 2.5 billion euros over the next five years on future technologies, with more than half going to electric vehicle investment. The Czech Republic's largest exporter is hoping for a rebound in 2021 from a global car sales drop but faces uncertainty over the coronavirus pandemic and a semiconductor shortage rattling the industry. "This year is likely to be another big challenge," finance director Klaus-Dieter Schuermann said. "We expect Skoda Auto's group performance to improve, with sales revenue significantly above the level of last year." Skoda reported on Wednesday a 54.5% drop in 2020 operating to 756 million euros ($894 million). Sales revenue dropped 13.8% to 17.1 billion euros. Global deliveries remained above 1 million cars for a seventh straight year despite a 19% drop after production outages at the outset of the pandemic and a fall in China, its biggest single market. Chief Executive Thomas Shaefer said the car company was managing the semiconductor shortage "but it will follow us for awhile" and the impact was not visible yet. Skoda's core market in Europe would be electric in the future, Shaefer said, although it was still not time to completely switch away from traditional models, which include the launch last year of a new generation of its flagship Octavia model. It has also started production of the all-electric Enyaq iV model, which is a version of Volkswagen's ID.4. Skoda plans investments of 1.4 billion euros into electromobility development as part of its five-year investment plan. Investments will also go into digitalization activities and plant modernization. Related video: Green Volkswagen Skoda Electric

Volkswagen could outsell GM in China for the first time in nine years

As of the end of November, Volkswagen had sold 70,000 more cars than General Motors in China in 2013, making it appear inevitable that VW will outsell GM there. The feat would return the German brand to the top of chart in China for the first time in nine years, but even the second-place getter won't be complaining too loudly: both automakers sold more than three million vehicles in a market pegged to hit 16 million sales this year.
Volkswagen said it could have sold more cars if it had had more production capacity in China. The arrival of a new-to-China Audi A4, a China-built A3 sedan, the VW Bora and Skoda Octavia, as well as an $18.2-billion-euro investment in the country to construct new factories, means VW should see its numbers grow in 2014. GM's lineup is expanding next year, too, adding four Chevrolet nameplates and two vehicles to its Baojun brand as it tries to get to five million in sales by 2015.
Among other automakers, Ford benefited from good product and woes for Japanese automakers over a territorial dispute with China, outselling Toyota by almost 32,000 units through the end of November. The Ford Focus is China's best-selling vehicle so far this year.

VW boss confirms Subaru-aping Golf Alltrack for US

Subaru needs to watch out, because the Japanese brand with a utilitarian image has a big bull's eye on its back. Not only is Acura considering going 100-percent all-wheel drive in a bid to mimic the successful automaker, Volkswagen has just confirmed that the Golf Alltrack is coming to the US as another competitor for Subaru's popular Outback crossover. Volkswagen Group of America CEO Michael Horn has confirmed the addition of the higher-riding, all-wheel drive version of the Golf SportWagen to Automotive News, indicating that the model will arrive in the US in 2016. "That's what our dealers, our customers, are asking us for," he said to the industry publication. The Golf Alltrack, which debuted at the Paris Motor Show in early October, has an extra 0.75 inches of ride height and protective black cladding all the way around. Its biggest mechanical differentiator from other Golfs is its Haldex all-wheel drive system, a setup that can completely unhook from the rear axle when not needed to save fuel. In Europe, the Alltrack is available with a turbocharged 1.8-liter with 178 horsepower and two diesels offering between 109hp and 182 hp. However, Horn made no mention of likely powertrains for the US. Horn tells Automotive News that all-wheel drive tooling is currently being installed at the Puebla, Mexico, factory where the standard Golf Sportwagen is built. VW might have tipped its hand about this possibility several months ago when press shots of the wagon were released for the US with TDI and 4Motion badges. Horn says he expects even the front-wheel drive version to be a sales hit here, suggesting it may eventually account for 50 percent of the Golf range's volume.