Assets
Performance indicators
2024: Lower sales in China. The country's share in the company's income is 33%
2023
2nd place in car sales in the world
Defeat in battle with Tesla and BYD in the electric car market
Europe has to reboot its auto industry.
Volkswagen, Renault and Stellantis are thinking of the unthinkable, exploring contracting with arch-rivals to produce cheaper electric cars and counter existing threats.
Loss of leadership in the Chinese market
Main article: Cars in China
In the list of companies with the largest R&D costs
For Amazon shows the costs of technology and content (not R&D).
ByteDance statistics date back to 2021 (according to the Wall Street Journal)
2022: Internet-Connected Cars Market Share - 11.7%
Based on Q1 2019 to Q4 2022 data
2021
Seventh in the world in terms of net revenue - $285 billion
"'Net revenue"' (net revenue) - revenue for added value.
This revenue includes revenue costs such as discounts, returns, etc.
Net Revenue Formula=Gross Revenue - Directly Related Selling Expenses.
Car sales - 8.9 million (-4.5%)
In 2021, Volkswagen sold a total of 8.9 million cars (including Skoda, Audi and Seat models), which is 4.5% less than a year earlier. Sales fell due to a shortage of chips and logistics problems amid the COVID-19 coronavirus pandemic.
For these reasons, the German automaker suffered especially badly in the Chinese market - 3.3 million Volkswagen cars were sold there in 2021, which is 14% less than a year ago.
At the end of 2021, Volkswagen delivered a total of 452,900 electric vehicles and hybrid vehicles, which is twice as much as 20202. Such vehicles accounted for 5.1% of the group's sales. In China, sales of electric cars and hybrids amounted to 70 thousand, which, as noted in Volkswagen, is below the companies' own expectations. The best-selling electric cars of the brand in 2021 were:
- Volkswagen ID.4 (119,600 sold);
- Volkswagen ID.3 (75,500 pieces)
- Audi e-tron, including the Sportback version (49,200 units);
- Skoda Enyaq iV (44,700 units);
- Volkswagen e-up! 1 (41,400 pieces);
- Porsche Taycan, including the Turismo version (41,300 units).
In the European market, 3.5 million Volkswagen cars were sold, which is 2.7% less than a year earlier. Western Europe accounted for sales of 2.9 million cars (-2.7%), Germany - 991,900 (-9.6%). In Central and Eastern Europe, Volkswagen sales amounted to 658,300, down 2.8% compared to 2020.
In North America, Volkswagen sold 908,400 cars, surpassing the previous year's result by 15.6%. Such positive dynamics is primarily associated with the United States, where sales amounted to 671,800 cars (+ 16.9%). In South America, 5.1 percent growth in sales of Volkswagen cars was recorded (up to 514,600 units[1]
Volkswagen beat SAP to become the most expensive company in Germany
On March 17, 2021, SAP lost the title of the most expensive German company to Volkswagen. This is evidenced by the data of the Frankfurt Stock Exchange.
According to Reuters, citing data from this trading platform, Volkswagen's growth at its peak on March 17, 2021 reached 12%, and the market capitalization exceeded 136 billion euros. The SAP figure on this day amounted to 127 billion euros.
On March 18, 2021, Volkswagen shares rose 0.3%, and capitalization reached 141.8 billion euros. At SAP, securities fell in price by 0.81%, and the market value of the enterprise software manufacturer decreased to 126 billion euros.
Prior to that, Volkswagen became the leader of the main German index DAX six years ago, but the scandal that erupted shortly after with an underestimation of the indicators of harmful emissions of diesel cars - "dieselgate" - seriously undermined the company's position.
From the beginning of 2021 to March 17, Volkswagen shares rose 47%, and they began to grow especially actively in recent days after its management announced plans for large-scale investments in battery production and a constant increase in the share of electric vehicles. The company plans to become a leader in the electric vehicle market by 2025.
According to Volkswagen CEO Herbert Diess, the carmaker costs 200 billion euros, which is significantly less than the world's largest electric car manufacturer Tesla - its market capitalization by March 18, 2021 is measured at $650 billion.
Bloomberg notes that the capitalization of Volkswagen in March 2021 increased by an amount that corresponds to more than half of the value of BMW. On March 17, the stock price of the latter reached its highest since September 2018 after declaring that approximately half of BMW's car sales over 10 years will come from electric vehicles.[2]
2020
Global Automotive Market Share - 11.4%
Volkswagen's share of the global car market was 11.4% (Nikkei data). Read more here.
Volkswagen AG capitalization for November
Volkswagen electric cars
Main article: Volkswagen Electric vehicles
History
2024
German Plant Closure Announcement
On October 28, 2024, the German concern Volkswagen announced its intention to close at least three factories in Germany. In addition, as part of a large-scale reorganization, the automaker will cut tens of thousands of employees and cut salaries by 10% for other workers.
According to Bloomberg, Volkswagen is forced to take unprecedented measures to stabilize the situation in the face of declining sales and increased competition from Chinese manufacturers. In its entire history, Volkswagen has never closed enterprises in Germany. The CEO of the company, Oliver Blume, points to high costs, which necessitates radical changes.
Volkswagen did not disclose the exact scale of the layoffs, noting only that the situation is "serious." At the same time, it is known that the reduction in wages may affect up to 140 thousand employees. Concern workers are concerned that these measures are just the beginning of plans to reduce the automaker's operations in Germany, which is struggling with high energy and labor costs. Volkswagen's decision could be a major blow to Europe's largest economy.
 | We are not efficient enough at our German enterprises, "said Thomas Schäfer, head of the VW brand, adding that production costs are 25-50% higher than the company's plans. |  |
Bloomberg notes that Volkswagen is in a difficult position after an unsuccessful transition to electric vehicles. The weak lineup has hampered sales in China, where rivals such as BYD are actively strengthening the position. In addition, Volkswagen sales in Europe in 2024 were about 20% below the values observed before the COVID-19 pandemic.[3]
The closure of the first factories in Germany due to the collapse of demand for bad cars of the company
In September 2024, VW issued a warning that the company would have to close plants for the first time in its 87-year history. Among the closed were the Volkswagen AG electric vehicle plant in Zwickau.
Leading automakers underutilize several plants across Europe.
Volkswagen AG is considering cutting 15,000 employees as plants close, Jefferies said.
Analysts believe that the cost of closing plants will amount to 4 billion euros.
The business closures will add to fears that the region faces a protracted downturn after lagging behind rivals.
Hackers have been stealing technical data from Volkswagen for years
On April 20, 2024, it became known that cybercriminals had been stealing technical data from the German automaker Volkswagen for several years. In total, at least 19 thousand files containing confidential information about various units and technologies for the production of vehicles were stolen.
It is reported that hackers attacked the IT infrastructure of the Volkswagen group, which includes the brands Audi, Lamborghini, MAN, Porsche, Skoda, Bentley and others, from 2010 to 2015. In particular, in 2010, attackers began to analyze the concern's systems for vulnerabilities and weaknesses. A year later, cybercriminals managed to penetrate the internal Volkswagen network and gain a foothold in it. Further, file theft was carried out in several stages.
The investigation showed that the hackers had at their disposal data related to the development of gasoline engines, gearboxes and dual-clutch transmissions. In addition, information regarding alternative energy sources, including hydrogen fuel cells, has leaked. The attackers were also interested in developments in the field of electric vehicles.
According to Der Spiegel and ZDF, Chinese hackers may be involved in the attacks. This is indicated by the IP addresses of the PRC, the characteristic malware, as well as the time at which cybercriminals usually attempted an invasion. At the same time, the Chinese embassy in Berlin calls such accusations "outrageous" and states that the PRC authorities "are fighting any form of cyber espionage." Volkswagen confirmed the hacking of its IT infrastructure, stressing that it has significantly improved security since the invasion. The damage from the actions of hackers as of April 2024 was not disclosed.[4]
2023
Smartphone maker Vivo sets up company to develop automotive technology
In early November 2023, it became known that the Chinese manufacturer smartphones Vivo had entered into a long-term cooperation agreement with Cariad, a subsidiary of the division. Volkswagen Group Together, the parties intend to develop new technologies for smart cars. To do this, the partners created Mobile x Mobility Fusion Joint Innovative Lab (abbreviated M Lab). More. here
All Volkswagen factories in Germany stopped work due to IT collapse
On September 27, 2023, Volkswagen was forced to stop production at all its factories in Germany due to an IT collapse. The massive glitch that triggered the cascading effect affected the entire Volkswagen group, which includes brands such as Porsche AG and Audi.
Volkswagen reported that the observed problems are associated with a certain "malfunction of the IT components of the network" at the global headquarters located in Wolfsburg. The consequences of this disruption affected a number of other German Volkswagen businesses, including units in Emden, Osnabrück, Hanover, Dresden and Zwickau. In addition, problems were recorded at component factories in Braunschweig, Kassel, Chemnitz and Salzgitter.
An Audi spokesman confirmed production disruptions within the unit, stressing that the extent of the impact is being carefully analysed. Porsche AG declined to comment on the situation. Volkswagen Group stressed that fixing the problem has the highest priority. What exactly the problems are connected with is not specified. The German automaker emphasizes only that the IT collapse is not related to a cyber attack.
| | There is still no indication that the failure was caused by external influences. Affected systems are currently restarting. There are consequences for car factories, the company said, without elaborating further. | |
This incident adds to Volkswagen's problems. The company has previously faced the need to reduce production of electric vehicles at the Zwickau facility due to insufficient demand. In connection with the IT collapse, the Minister of Transport and Digital Infrastructure of Germany Volker Vissing called on automotive companies to strengthen the security of their systems.[5]
Employee layoffs due to low demand for the company's electric vehicles
At the end of June 2023, it became known that the German concern Volkswagen decided to reduce the production of electric vehicles due to low demand. In addition, the automaker has planned the layoffs of hundreds of employees. Read more here.
Plan to launch US battery plant instead of EU
In March 2023 Financial Times , it said it had Volkswagen shelved its plans To Europe North America to build a battery plant in and preferred a similar facility in. That USA decision came after it was estimated that the company could receive €10bn in benefits from "green" technology America is poaching European companies with.
In mid-March 2023, the European Commission will publish a law on zero-energy industry as a response to the American green scheme. The EU risks losing billions of investments, which will be decided in the coming months and years. Lobbying group Transport & Environment has warned that Europe will lose more than two-thirds of its battery projects.
Hiring 2,800 IT Professionals for Automotive Digital Development
The Volkswagen Group has decided to hire an additional 2,800 IT specialists in order to develop advanced digital solutions. The German automaker announced this on February 1, 2023.
Specifically, Cariad's division, which specializes in vehicle software development, requires 1,700 employees. Volkswagen itself and its subsidiary premium car brand Audi need 700 and 400 qualified IT specialists, respectively. Volkswagen announced that it has combined the search and hiring of employees in Cariad, Audi and its own infrastructure, as it focuses on the further digitalization of the automotive industry.
At the end of 2021, the Volkswagen group revealed a five-year investment plan aimed at developing promising technologies. In total, €89 billion will be spent on car electrification and the introduction of digital solutions. Of these, about €30 billion will be spent on software development, including for autopilot systems. Volkswagen estimates that by 2030, a third of the global automotive market's mobility-related revenues will come from software-based services. €52 billion will be spent on the development of electric vehicles. The company expects electric vehicles to account for 25% of its sales by 2026.
Around 2025, Volkswagen is forecasting a peak investment in software and technology for next-generation vehicles. By 2026, Europe's largest automaker will have barely invested in outdated internal combustion engine technology. By this time, the company expects to make significant profits from electrical mobility.[6]
2022
Toyota remains the leader in car sales in the world for the third year in a row
In 2022, the Japanese corporation Toyota retained its leadership in the volume of car sales on a global scale. Thus, for the third year in a row, the company held this title, as evidenced by the data on deliveries published on January 30, 2023. Read more here.
Building a company to make electric SUVs
In mid-May 2022, Volkswagen announced the creation of a new electric vehicle company in the United States called Scout, which will produce an all-electric pickup truck and a rugged SUV aimed at the American consumer. The launch of the brand will strengthen Volkswagen's presence in the United States, and major players including Ford, General Motors, Tesla and Rivian are already present in the American market. Read more here.
2021
Reduction of 30 thousand jobs
In mid-October 2021, Volkswagen CEO Herbert Diess said at a meeting of the supervisory board that the company is cutting 30,000 jobs as part of the transition to electric vehicles (EV). Competition from new German market participants such as Tesla has pushed Volkswagen to accelerate the transformation, he stressed.
Tesla plans to produce 500 thousand cars a year in Germany with 12 thousand employees, while 25 thousand Volkswagen employees produce only 700 thousand cars at the Wolfsburg plant. A spokesman for the company reiterated Herbert Diess's position that the presence of Tesla and other companies in Germany increases the relevance of the switch to electric vehicles, but denies that specific calculations have been made of how many jobs may be lost in the process.
| | There is no doubt that we must address the competitiveness of our Wolfsburg plant due to the emergence of new market participants. Tesla sets new performance standards in Grunheid, said Volkswagen spokesman Michael Manske. | |
Michael Manske, separately noted about new Chinese and American automakers making their way to Europe, referring to the Tesla plant under construction near Berlin, which will produce from 5 thousand to 10 thousand cars per week at peak capacity, which will more than double the production of battery cars (EV) in Germany in 2020. He added that on October 13, 2021, there is an active discussion within the company and there are already many good ideas, but there are no specific scenarios yet.
At the same time, it is indicated that some Volkswagen enterprises, in particular factories in Zwickau and Brussels, have already been modernized for a new era. Businesses in Hanover and Emden are gradually switching to electric vehicle production. However, the main plant of the automaker in Wolfsburg has so far been excluded from the process.
German automaker Volkswagen plans to stop producing cars with internal combustion engines (ICE) in Europe by 2035. In addition, by 2030 in Europe, the company intends to increase the share of electric vehicles in total sales to 70%.[7]
Fine of €502 billion for collusion in cleaning technologies from harmful emissions
In early July 2021, the European Commission fined Volkswagen and BMW and other automakers $1 billion for conspiring to limit the use of the emission cleaning technology they developed in diesel cars. Mercedes managed to avoid a fine of €727 million for cooperation with the authorities on this issue.
| | Five car manufacturers - Daimler, BMW, Volkswagen, Audi and Porsche - had the technology to reduce harmful emissions beyond what was required by law, in line with EU emissions standards. But they avoided competition and did not use the full potential of these developments, - said the head of the EU antimonopoly committee Margrethe Vestager. | |
The Daimler carmaker, which manufactures Mercedes cars, managed to avoid punishment, as he was the first to inform the European authorities about the conspiracy. Otherwise, he would have to pay €727 million. According to Reuters, Volkswagen will pay about €502 billion in fines, BMW - €373 million. BMW managed to reduce the fine several times from €1.4 billion, the manufacturer promised not to challenge the decision in court. In addition, all three companies may face claims from buyers.
According to the European Commission, the automakers brought to justice regularly held meetings at which they discussed how to eliminate harmful emissions with nitrogen oxide content by adding the substance AdBlue. As a result of the meetings, the companies agreed not to compete with each other in cleaning exhaust above the statutory norm, despite the fact that the technologies necessary for this already existed.
| | Automakers Daimler, BMW and Volkswagen reached an agreement on tank sizes and ranges for AdBlue and came to a common understanding regarding AdBlue's average estimated consumption. They also exchanged commercial confidential information on this issue, the European Commission explained.[8] | |
Agreement with Huawei to use 4G patents
On July 9, 2021, the company Huawei announced the conclusion of a license agreement with the supplier of the Volkswagen Group concern. The agreement includes a license to use 4G Huawei's essential patent standard (SEP) cars in Volkswagen, equipped with wireless modules. communications More. here
Data theft of 3.3 million customers as a result of a hacker attack
In June 2021, it became known that hackers stole the data of 3.3 million customers from Volkswagen and put them up for sale. The automaker acknowledged the leak, but called it not as large-scale as described in the media.
According to Motherboard, the database collected by cyber criminals includes Volkswagen email addresses and vehicle identification numbers (VIN). As confirmation of his words, one of the hackers published two samples of data, which include full names, email addresses, postal addresses and phone numbers of customers.
Volkswagen said most of the stolen data includes the names and last names of customers, their postal addresses, e-mail or phone numbers.
Most of the leaked information came from 3.1 million Audi customers or interested buyers in the US and 163,000 in Canada. For Volkswagen, 3,300 customers and interested buyers were affected.
Volkswagen writes in a letter to customers that an unnamed supplier of VW, Audi and official dealers left unprotected customer data for 2014-2019 between August 2019 and May 2021. Whether this data was used by attackers or not is unknown. A hacker offers to buy a stolen database for $4-5 thousand.
Law enforcement agencies were notified of this incident. By June 2021, work is underway with external network security specialists and the offending supplier to assess the damage and take measures to minimize the consequences.
The publication says that a script was used to collect data to scan the Internet for open Azure BLOB objects, which are essentially data repositories stored in the Microsoft cloud.[9]
Ex-head of Volkswagen will personally pay for the installation of software that underestimates harmful emissions
In early June 2021, the former head of VolkswagenMartin Winterkorn agreed to pay the car concern about 10 million euros in compensation for the damage caused to the company due to the scandal with falsification of data on harmful emissions of cars. Read more here.
The beginning of the development of chips for unmanned vehicles
In early May 2021, Volkswagen Group announced the development of its own high-performance chips for self-driving cars, as well as related software. Herbert Diess, CEO of the concern, told the German newspaper Handelsblatt about this.
| | To achieve optimal performance in light of the high requirements for self-driving cars, all software and hardware must be designed by the same company, Diess said in an interview. | |
According to Diss, this is a fundamental issue of creating the best hardware. As an example, he cited Apple and Tesla, which are developing promising chips on their own, and do not use ready-made solutions. So, for example, at the very beginning, Tesla used standard NVIDIA solutions in its electric cars, but then switched to chips of its own design. This approach allows Tesla to develop and implement new features of Full Self-Driving and Autopilot autonomous driving systems faster than competitors.
Diss noted that Volkswagen will not independently engage in the production of chips, but will try to take possession of all the necessary patents. The company will entrust the production of its chips to an experienced chipmaker, just as Apple orders the release of its own A- and M-series chips from Taiwanese manufacturer TSMC.
A similar move could be a key step toward Volkswagen's goal and allow the company to become a more flexible and tech-savvy brand. Volkswagen said that the fully electric car ID Buzz will be the first model of the carmaker to be able to move autonomously. In 2021, the highly automated version has already begun to be tested on the roads. Germany[10]
Random announcement of the future renaming of the American division
Volkswagen accidentally published a press release announcing the future renaming of the American concern's division to Voltswagen of America. This was announced on March 29, 2021 by the TV channel. CNBC
It is noted that the name of the division will read "volt" - a unit of measurement of electrical potential, this will emphasize the company's effort in the production of electric vehicles.
According to the TV channel, the press release was dated April 29 and it has already been removed from the concern's website. A spokesman for the company declined to comment, but a source familiar with Volkswagen's plans confirmed the authenticity of the release, noting that these plans are not yet publicly available.
A press release said the division's renaming would take place in May and would be a "public statement on the company's future investment in electric vehicles." It also emphasized that the models of electric vehicles will have emblems with the inscription Voltswagen, while the standard company logo will remain on cars with a gasoline engine.
In order to "preserve elements of Volkswagen's heritage," the logo will remain dark blue for petrol-powered cars and will use blue for a "new electric vehicle-focused branding."
In addition, the release specified that Voltswagen of America will remain the operating division of Volkswagen Group of America and a subsidiary of Volkswagen AG, headquartered in Herndon, Virginia[11]
Reduction of 5 thousand jobs
In mid-March 2021, it became known that the German automaker Volkswagen plans to cut up to 5,000 jobs by the end of 2023 as part of a program to reduce costs. The saved funds will ensure the carmaker's transition to the production of electric vehicles, the company said in a statement.
According to the Handelsblatt newspaper, in December 2020, the Volkswagen board of directors approved a plan according to which the concern will reduce production costs by 5 percentage points. First of all, this indicator is planned to be achieved through personnel decisions.
Some categories of employees will be given the opportunity to retire early, management said in a statement. Thus, workers born in 1964 and earlier will be offered to switch to part-time employment, and then retire before the retirement age, which in Germany is 65 years for both women and men. The company promises to increase pension payments to such employees.
The part-time employment program can last up to six years. Volkswagen management believes that about 3 thousand employees will use this option. In addition, employees born in 1961 and 1962 can retire early in 2021 or remain as part-time specialists with 75% of wages retained for 2.5 years. They are then also expected to retire early. This offer can be used by up to a thousand more employees.
The rest of the employees will have to leave the company as part of gradual cuts. In addition, vacant positions that have not been hired for a long time will be excluded from the personnel plan. According to Volkswagen, the concern has 5 thousand vacant positions.[12]
2020
Report of acute shortage of chips for cars
In mid-December 2020, Volkswagen warned of a violation of the supply chain for electronic parts for cars. The German automaker said it was facing a slowdown in increased production due to a massive supply shortage, which is caused by a shortage of semiconductor components for automotive electronics. This is due to the recovery of global automotive markets after a decline in sales during the COVID-19 coronavirus pandemic. Read more here.
$18 billion in fines and compensation paid to the United States due to fraudulent software
By the end of July 2020, the company paid a total of $18 billion in fines and compensation in the United States because of the "dieselgate."
American owners of Volkswagen cars received over $9.8 billion in compensation in the case of manipulation of data on the content of harmful substances in the exhaust gases of diesel cars of the German company, the US Federal Trade Commission (FTC) said.
According to her, more than 86% of car owners preferred VW to buy out their cars, or prematurely terminate the lease agreement without waiting for the defects to be corrected.
Volkswagen increases stake in Audi to 100%
In mid-June 2020, it became known that Volkswagen would pay $267 million to buy out Audi's premium division from minority shareholders. Volkswagen already owns a 99.64% stake in Audi and will now increase its stake to 100%. Read more here.
Investing $2.6 billion in self-driving car developer Argo AI
At the end of May 2020, Volkswagen closed a deal to invest $2.6 billion in self-driving car developer Argo AI. Read more here.
Investing €2bn in Chinese electric car makers
At the end of May 2020, Volkswagen announced its investment in two Chinese manufacturers of electric vehicles and components for them. The total investment exceeds 2 billion euros. Read more here.
German court orders Volkswagen to pay car owners the full cost of cars for using fraudulent software
At the end of May 2020, a German court ordered Volkswagen to reimburse car owners for the full cost of cars that were equipped with fraudulent software, but the total amount of compensation will depend on the vehicle's mileage.
The decision of the Federal Court in Karlsruhe set an important precedent for hundreds of thousands of owners of diesel cars with software that distort harmful emissions. That ruling will count toward some 60,000 lawsuits in lower courts in Germany.
The first lawsuit was filed by Herbert Gilbert, 65, of Rhineland-Palatinate, who was seeking full compensation for a Sharan minivan acquired in 2014. The plaintiff claimed he believed the ad and was convinced he was buying a car that was only slightly polluting. According to the decision of the land court, the Volkswagen concern must pay the client 25,600 euros plus interest ($27,930). This payout is nearly €6,000 ($6,542) below the original purchase price as judges took into account the car's depreciation.
Chief Justice Stephan Seiters took into account that Volkswagen "over the years has systematically brought to the market vehicles whose fraudulent software was configured in such a way that they satisfied the restriction (emissions) requirement only under test conditions." The judge decided that the very fact of selling the modified car to the plaintiff hurt him, although Volkswagen insisted that even vehicles with fraudulent software were "usable" for their intended purpose.
Even before the landmark trial, at the end of April 2020, Volkswagen organized an out-of-court settlement of a mass lawsuit by hundreds of thousands of plaintiffs. It was decided to pay 235,000 drivers at least 750 million euros ($818 million).[13]
200 thousand drivers in Germany will receive 620 million euros from Volkswagen for fraud of the company with software
The Federal Union for the Protection of Consumer Rights (VZBV) on April 20, 2020 reported that Volkswagen agreed to pay 620 million euros in compensation to 200 thousand car owners, residents of Germany affected by the diesel scandal. Depending on the model and age of the purchased car, buyers will receive from 1350 to 6250 euros.
In order to receive the payment, car owners will have to sign a binding agreement with Volkswagen, according to which they refuse further claims as part of a pre-trial settlement of the class action. The company plans to start paying funds from May 5, 2020.
At the end of February 2020, Volkswagen announced that it had reached an agreement with VZBV on compensation to 260 thousand buyers of cars with diesel engines for a total of 830 million euros. 250 thousand people filed applications for compensation, but by mid-April 2020 only 130 thousand applications made a positive decision. The manufacturer will consider the applications of another 21 thousand car owners in the near future.
Initially, it was planned to accept applications until April 20, 2020, but due to the large number of applicants, it was decided to extend the deadline for accepting applications.
| | The large number of agreements concluded suggests that we have made a fair offer to our clients, "said Hiltrud Werner, head of legal affairs and member of the board of Volkswagen. | |
However, lawyers believe that the coronavirus pandemic played a decisive role in reaching agreements.
| | People are cash strapped, many have been laid off or put on leave. Therefore, they are glad of any compensation they can receive, - commented Christopher Rother, who processed about 12 thousand complaints about the "dieselgate."[14] | |
Sending 80,000 employees on forced leave
At the end of March 2020, it became known that Volkswagen was sending 80 thousand employees on forced leave due to the coronavirus, which led to a drop in car sales and disruptions in the supply of components.
According to Deutsche Wirtchafts Nachrichten, citing a representative of Deutsche Wirtchafts Nachrichten, the company is forced to adjust its production program amid the coronavirus pandemic.
In this regard, the factories of the enterprise in Lower Saxony, Hesse and Saxony will introduce reduced shifts until April 3, 2020. The MAN truck division, as well as Audi and Porsche, will operate on the same schedule.
Volkswagen also said that due to the lack of components supplied from European factories, the carmaker will temporarily suspend production at the automobile plant To Kaluga and contract assembly Nizhny Novgorod for two weeks - from March 30 to April 10, 2020.
At the same time, the company clarified that the period of suspension of production will be qualified as simple and will be paid in accordance with the legislation of the Russian Federation.
In the context of the coronavirus pandemic, Volkswagen decided to stop working at its headquarters in Wolfsburg, as well as at production facilities in Emden, Hanover, Osnabrück, Zwickau and Dresden. In addition, parts were no longer produced at factories in Braunschweig, Salzgitter, Kassel, Chemnitz and car seats.
Frozen production in Spain in Pamplona, as well as in Palmela in Portugal, the plant in Slovakia does not work. The same applies to the divisions of the concern in Argentina and Brazil. In Mexico, it is planned to take a break from March 30, 2020.
Audi and Volkswagen have changed their logos, calling on society to self-isolate due to the coronavirus pandemic.[15]
Payment of €830m to hundreds of thousands of car owners in Germany due to software underestimating emissions
In mid-February 2020, Volkswagen announced that it would pay compensation to the German owners of its diesel cars for software that underestimated harmful emissions. This promotion will cost the German automaker 830 million euros
In 2015, regulators fined Volkswagen, which used special engine control software in its diesel cars to hide excessive levels of pollution. The scandal has caused many lawsuits.
The proposal came despite the breakdown of negotiations with the German consumer association VZBV, which agreed with Volkswagen to conclude a settlement deal.
| | The failure of negotiations to resolve the problem with the VZBV Consumer Association should not affect customers, "Volkswagen said in a statement, adding that all customers enrolled in the VZBV compensation program will be entitled to a legal settlement of the issue. For now, Volkswagen is offering a "previously agreed settlement" to customers who joined a class action in Germany and "complied with the terms of the settlement package without seeking support from VZBV. | |
Volkswagen said it broke off talks with VZBV because of excessive costs to pay lawyers representing consumer entities. According to the company, lawyers demanded €50 million for their services. According to VZBV, the negotiations failed because the automaker did not guarantee a compensation system that would be adequate to the needs of customers. The VZBV Consumer Association added that it would continue to seek settlement on the terms of VZBV through German courts.
Some 460,000 Volkswagen diesel car owners, who are outraged by price manipulation, sought compensation, according to the class action.[16]
Building a Company to Develop an Automotive IT Platform
In late January 2020, Aeris Communications, which specializes in IoT solutions, teamed up with Volkswagen Group of America to form a joint venture to develop an IT platform for vehicles. The new company was named Vantic LLC. Read more here.
2019: Opening a new company to develop Volkswagen Autonomy self-driving cars
At the end of October 2019, Volkswagen announced the creation of a new subsidiary that will focus on projects in the field of self-driving cars. The structure, called Volkswagen Autonomy, was headed by VW's senior vice president of self-driving, Alexander Hitzinger, who previously also worked for Apple. Read more here.
2018
Investing 3.5 billion euros in digital business
On August 23, 2018, Volkswagen announced an investment of 3.5 billion euros in the development of the digital business. Part of the funds will go to the development of the cloud platform, to which cars and drivers will be connected to provide various services, including car sharing.
Volkswagen also announced the development of an operating system called vw. OS, which will find application in the company's electric vehicles starting in 2020.
It is noted that cars using vw. OS, will receive a completely new electronics architecture that will facilitate the introduction of self-driving features.
Instead of using about 70 different sensors and controllers that work independently of each other in each car, in the new machines of the concern, various sensors will be connected using the proprietary operating system.
Thus, as noted by Reuters, the information collected by parking sensors can be related to steering, brakes and navigation maps so that the car can park as soon as the on-board camera "notices" an empty parking space.
In addition, the OS created internally will make it easier to update automotive software, since in this case the automaker does not depend on third-party software.
From 2020, Volkswagen is going to produce cars only with an Internet connection. Every year, 5 million cars will become part of the Internet of Things.
The corporation expects to earn about 1 billion euros by 2025 through the provision of new digital services, such as car sharing, delivery of goods and the search for parking spaces.
In the second quarter of 2019, Volkswagen plans to launch the We Share car-sharing service, which will have a fleet of 2,000 electric vehicles.[17]
A complete transition to digital car design
In August 2018, the German automaker Volkswagen announced a complete transition to digital design of its vehicles. It took the company about two years.
As part of the digital transformation, Volkswagen began to actively use interactive designs, large LED screens, virtual and augmented reality technologies for 3D modeling. For example, the company's employees use special glasses that allow people who are in different parts of the planet to simultaneously connect to a virtual space to work on creating product images.
By August 2018, the entire process of work of the Volkswagen Design division - from the beginning of project development to the receipt of a new product - became completely digital. Volkswagen says this significantly increases the efficiency of each stage and allows more productive interaction with various specialists.
| | Software optimization and staff development have a positive impact on the productivity of our employees. The process of creating new products is also accelerated and their quality is improved, "says Volkswagen chief designer Klaus Bischoff. - When designing new models, Volkswagen uses a full range of digital solutions. | |
For example, for the final approval of the design of car models, an 18-meter LED screen is now used. One of the advantages of using virtual modeling is a significant reduction in the design volume of future models from designer plasticine, which saves time and money. Since mid-2016, the reduction in the production of physical presentation models has saved a significant amount of money.[18]
Order batteries for electric vehicles worth €20bn
Volkswagen has ordered €20bn worth of electric vehicle batteries. This was stated by the CEO of the company Matthias Mueller (Matthias Mueller) in March 2018. According to him, the German auto giant has entered into agreements with suppliers of batteries and related technologies from Europe and China, where the company sells 80% of its machines. In the future, it is planned to attract a contractor from North America.
Main article Volkswagen Electric vehicles
2017
$40 billion investment in electric vehicles, self-driving cars and digital services
In November 2017, Volkswagen approved a budget of 34 billion euros (about $40 billion) for the development of electric vehicles, unmanned vehicles and digital services. Thanks to these investments, the German automaker wants to become the world leader in the electric vehicle market, reports Reuters news agency.
Using 3D Printers
In June 2017, Volkswagen announced the start of the use of 3D printing in the production of parts for cars. Meanwhile, the introduction of 3D printers at one of the largest factories of the concern replaced almost all production devices.
In June 2017, Volkswagen began producing car parts by 3D printing. The first such product was an adapter coupling for the Volkswagen Corrado model, which, however, has already been discontinued. Using this adapter, placed between the window control handle and the control mechanism, it was possible to prevent damage to the leather upholstery of the door.
| | The creation of this coupling has become a real problem. In particular, due to the thin channels in the part, which require a high degree of accuracy, - said Tobias Pape, part procurement manager for classic Volkswagen models. | |
It also became known about the purchase of Ultimaker 3 and Ultimaker 2 + 3D printers for Volkswagen Autoeuropa in Portugal, which produces more than 100 thousand cars annually. Printing equipment is used by the company to create not parts for cars, but special tools used in assembling vehicles.
It is noted that by June 2017, using 3D printers, 93% of the working equipment was created, which was previously purchased from supporters of suppliers. As a result, the automaker achieved savings of about $150 thousand per year. Approximately 4 thousand people work at the Portuguese factory.
| | In addition to the time and money savings achieved, we can create more complex and ergonomic devices that will eventually become much more useful in everyday operations, since they are better adapted to our needs, said manager Luis Pascoa, who is in charge of experimental projects at the Volkswagen Autoeuropa plant[19] | |
2015: Recognition of the use of fraudulent software for low emissions of cars
In September 2015, the German automaker admitted that it had installed software in the car that allowed it to manipulate tests for compliance with engines with environmental standards.
1967: Vemag factory with the DKW car brand became part of Volkswagen
The Vemag plant, which previously produced DKW cars, joined the Volkswagen AG group in 1967.
1959
1939
Later, the factory that produced DKW became part of VW.
1934: Hitler inspects the model of the first Volkswagen Beetle
Notes
- ↑ ). Volkswagen Sales Hit by Chip Shortages as Fears Rise on Omicron Impact in China
- ↑ VW Becomes Germany’s Most Valuable Company on EV Enthusiasm
- ↑ VW Seeks Unprecedented Plant Closings as Auto Crisis Deepens
- ↑ Multi-year Volkswagen breach points to Chinese hackers
- ↑ Volkswagen Grapples with Major IT Outage, Disrupting Production Across Brands
- ↑ Volkswagen Plans to Hire 2,800 Tech Employees
- ↑ Volkswagen CEO warns a delay in shift to electric vehicles could cost 30,000 jobs - sources
- ↑ EU fines Volkswagen, BMW $1 bln for emissions cartel
- ↑ Hackers Are Selling Data Stolen From Audi and Volkswagen
- ↑ VW will design chips for autonomous vehicles
- ↑ Volkswagen accidentally announced the new name of the division in the United States
- ↑ Volkswagen cutting 5,000 jobs till 2023, 900 employees to opt for early retirement
- ↑ Volkswagen must buy back 'dieselgate' cars: Germany's top court
- ↑ Volkswagen settles emissions class action with three-quarters of claimants
- ↑ VW to close most European plants 'for two to three weeks'
- ↑ Volkswagen offers 830 million euros to compensate German buyers
- ↑ Volkswagen to invest $4 billion to build digital businesses, software
- ↑ High-tech for the future: Volkswagen Design focuses on working digitally
- ↑ Volkswagen Autoeuropa 3D Prints Manufacturing Tools to Save Thousands of Euros
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