Hans-Werner Kaas

Volkswagen Group's supervisory board is exploring significant measures to address the automaker's mounting cost crisis, focusing on potential plant closures and workforce reductions in #Germany. Discussions reportedly include halting production at the Dresden plant, which employs 300 workers, and selling the Osnabrück facility, where capacity utilization has fallen to just 30%. The Osnabrück plant employs approximately 2,300 people, but finding a buyer has proven challenging, adding uncertainty to the proposed measures.  The Dresden plant, known for its role in producing niche models such as the Volkswagen e-Golf and ID.3 in the past, has limited its operations to small-scale production and assembly, often serving as a showcase for innovation and sustainability. However, its low output and high operational costs make it a prime target for closure. Similarly, the Osnabrück facility, historically focused on producing convertible and small vehicles for Volkswagen and other brands, struggles with underutilization, reflecting broader shifts in consumer preferences and industry challenges.  Reports from manager magazin indicate divisions within Volkswagen’s leadership. The powerful Piech and Porsche families, the company's largest shareholders, are reportedly pushing for more aggressive cost-cutting measures. Their stance contrasts with other board members, who appear more cautious about the social and reputational impact of plant closures. Volkswagen's cost-cutting discussions come amid intensifying labor disputes. Recent negotiations between the company and unions ended without resolution, as record numbers of workers joined strikes across Germany. Unions have expressed strong opposition to plant closures and layoffs, advocating for job security and fair compensation. The next round of talks, scheduled for December 16-17, will be critical in determining the outcome of this escalating conflict.  https://lnkd.in/dJk6K882 #automotiveindustry #electricvehicles #china #europe Tesla BYD MG Motor Europe

6

The U.S. Automotive Industry is in a state of flux. Would you agree? I wrote this blog to share some of my research and observations about today's changing automotive market and uncertainty about its future. We are seeing fluctuating market demands, shifting government priorities, infrastructure issues, and cost pressures. Additionally, the rush to introduce Battery Electric Vehicles (BEV) has led to over-stressing the new product launch capacity of many OEMs and their suppliers. A rush to market has serious quality implications. New technologies, fewer experienced workers, and expedited launch timelines have compromised application of quality principles in the design and manufacturing processes. The principles of Advanced Product Quality Planning (APQP) are critical for ensuring a product “satisfies the customer and meets all performance and quality requirements.” Disregarding the disciplined, structured process of APQP and its necessary learning cycles results in poor quality products – as evidenced by product failures, recalls, complaints, and safety concerns. The recent J.D. Power’s Initial Quality Study confirms the prevalence of new vehicle quality issues. At High Value Manufacturing, we provide operations expertise and performance improvement services for manufacturers. Our team of highly skilled, highly experienced resources provide technical support for manufacturers requiring immediate labor solutions, with capabilities to provide an entire cross-functional launch team experienced in the application of the APQP process. #highvaluemanufacturing #manufacturingconsultant #APQP #qualityprinciples #productlaunch #automotivemanufacturing #USautomotive #USmanufacturing #onshoring

12

2 Comments

Volkswagen Group and Rivian Announce Plans for Joint Venture to Create Industry-Leading Vehicle Software Technology. Volkswagen Group and Rivian intend to enter a joint venture to create next generation software-defined vehicle (SDV) architectures to be used in both companies’ future electric vehicles. Volkswagen Group to invest an initial $1 billion in Rivian, with up to $4 billion in planned additional investment for a total expected deal size of $5 billion Joint venture is expected to build on Rivian’s industry-leading software and electrical architecture to create best-in-class software-defined vehicle technology platform. The partnership is anticipated to accelerate the development of software for Rivian and Volkswagen Group. It is expected to allow both companies to combine their complementary strengths and lower cost per vehicle by increasing scale and speeding up innovation globally. Rivian’s proven in-market zonal hardware design and integrated technology platform are expected to serve as the foundation for future SDV development in the JV that will be applied to both companies’ vehicles. Rivian plans to contribute its electrical architecture expertise and is expected to license existing intellectual property rights to the joint venture. Both companies aim to launch vehicles benefitting from the technology created within the joint venture in the second half of the decade. In the short term, the joint venture is expected to enable Volkswagen Group to utilize Rivian’s existing electrical architecture and software platform. The partnership’s ambition is to accelerate Volkswagen Group’s SDV plans and transition to a pure zonal architecture. Each company will continue to separately operate their respective vehicle businesses. Oliver Blume, CEO of Volkswagen Group said: “Our customers benefit from the targeted partnership with Rivian to create a leading technology architecture. Through our cooperation, we will bring the best solutions to our vehicles faster and at lower cost. We are also acting in the best interest of our strong brands, which will inspire with their iconic products. The partnership fits seamlessly with our existing software strategy, our products, and partnerships. We are strengthening our technology profile and our competitiveness." RJ Scaringe, Founder and CEO of Rivian said: “We’re very excited to be partnering with Volkswagen Group. Since the earliest days of Rivian, we have been focused on developing highly differentiated technology, and it’s exciting that one of the world’s largest and most respected automotive companies has recognized this. Not only is this partnership expected to bring our software and associated zonal architecture to an even broader market through Volkswagen Group’s global reach, but this partnership also is expected to help secure our capital needs for substantial growth..” #partnership #softwareinvestment #jointventure #softwarestrategy #technology #industryleadingvehiclesoftware

7

U.S. sales also hit by an aging portfolio and a lack of hybrids. TOKYO – Nissan has a Rogue problem in the U.S. that is torpedoing global profits. A lackluster launch of the updated crossover, Nissan’s top-selling nameplate, forced the embattled Japanese automaker to hoist incentives on mounting inventories of the outgoing model. The result was soaring expenses that nearly erased parent company operating income. In announcing the dramatic profit plunge in Nissan’s fiscal first quarter, CEO Makoto Uchida blamed the downturn on U.S. operations and cut the company’s full-year financial outlook. “We were unable to boost volume as expected,” Uchida said at the company’s July 25 earnings announcement. “This has been a very challenging quarter for Nissan.” Nissan’s operating profit collapsed 99 percent to 995 million yen ($6.4 million) in the three months ended June 30. Net income tumbled 73 percent to 28.56 billion yen ($183.0 million). Worldwide sales essentially flatlined at 787,000 vehicles in the April-June quarter. Nissan’s North American volume declined 1.7 percent to 323,000 vehicles, on a 3.1 percent slide in U.S. deliveries to 237,000. Sales slid because of problems in model changeovers for the Rogue and Sentra small car as well as because of Nissan’s aging product portfolio and its lack of hybrids. “The results for the first quarter were due to the impact of the U.S. operations,” Uchida said. “We knew that optimization of inventories in the U.S. would pressure our profit.” Selling expenses To limit the decline and bolster demand, Nissan booked overall selling expenses and pricing adjustments of around 77.8 billion yen ($498.5 million), taking a huge bite out of operating income. Nissan cleared stocks of the 2023 Rogue as the company rolled out the freshened 2024 model of the popular nameplate. The model changeover, Uchida said, was further undermined by a sudden softening of overall U.S. market demand that required more spiffs. Nissan’s spending over the quarter came mostly in the form of consumer loan assistance, instead of cash on the hood, in an effort to buoy resale values, Uchida said. “The most important factor here is U.S. inventories,” he said. Nissan’s global inventory, including dealer and company stocks, has swelled since March 2022, when it stood at 250,000 vehicles. By the latest quarter, it had ballooned to 640,000 vehicles. Nissan plans to reel in inventories to manageable levels over the July-September quarter, partly by adjusting production, Uchida said. Upcoming updates of higher-margin, up-market nameplates, including the Murano crossover and Armada SUV, will help sell vehicles, he said. Nissan thinks it can bring down U.S. inventories 20 percent by the October-December quarter. In other regions, Nissan’s sales rose 7.6 percent to 79,000 in Europe in the quarter ended June 30. China saw a stabilization from last year’s sales slide, contributing a 3.3 percent volume increase to 167,000 vehicles.

3

General Motors expects a restructuring of its joint venture operations with SAIC Motor Corp. in China to cost more than $5 billion in noncash charges and write-downs. The restructuring charges for the “SGM” joint venture are anticipated to include “plant closures and portfolio optimization,” according to the filing. GM said most of the costs are expected to be recognized as noncash, special item charges during the fourth quarter.

1

Goldman Sachs is predicting that human drivers and SAE Level 1&2 partial automation will dominate the consumer vehicle fleet through 2050. This has serious implications for policymakers. The U.S. Congress will be reauthorizing the Federal-Aid Highway program in 2026. How can we maximize the federal investment to support automation has serious implications for global competitiveness. Freight automation, for example, is not simply about addressing the estimated 50,000 shortage in truck drivers in the United States, it is about preparing the National Highway System (NHS) to use automated freight to improve U.S. global competitiveness. U.S. AV policy should focus on investing in a harmonized NHS. When it comes to road markings, dedicated funding to ensure that NHS routes have 6" wide longitudinal markings, require the use of lag patterns when installing contrast markings, ensure that exit and entrance ramps include dotted edge line extensions. I would like to see FHWA fast-track approval of orange markings for work zone lane shifts. The public overwhelmingly supports their use, computer vision systems benefit from clear direction in construction zones. U.S. leadership in the AV and CV space cannot only about Silicon Valley. It needs leadership to accelerate the development of a well-maintained and harmonized system of roadways. Congressional transportation committees should spend 2025 focused on what is needed to accelerate this process. At TMMA, we will be there to provide guidance developed through a decade of working with the U.S., European, and Asian automotive industries.

6

For Immediate Release   New Board Officers of the Connected Vehicle Trade Association (CVTA)   New Chairman   The Connected Vehicle Trade Association, Inc. the world’s largest and preeminent business league in vehicle communications, today announced that Chuck Brokish, Green Hills Software’s Director of Automotive Business Development, has been elected Chairman of the Connected Vehicle Trade Association (CVTA). Brokish has been an active member of CVTA, and has served on its board of directors for several years.      Scott McCormick, President of CVTA since its founding in 2004, said, “The Board of Directors unanimously voted for Chuck, due to his extensive support of the organization as a Board Director, providing leadership, expertise and guidance for many years. I consider Chuck a personal advisor on matters not only related to his field, but the growth of the organization.”    Chuck has been working on embedded processing applications for mobile and automotive industries for 35 years, and has been active in embedded security for over 25 years. He has experience in mobile communications, automotive active noise control, infotainment, ADAS, and V2X.   About Green Hills Software   Founded in 1982, Green Hills Software is the worldwide leader in embedded safety and security. Green Hills Software is headquartered in Santa Barbara, CA, with European headquarters in the United Kingdom. Visit Green Hills Software at https://www.ghs.com.   Gary Streelman, Chairman Emeritus   Gary Streelman has been appointed as CVTA Fellow for his 20 years of leadership, expertise and guidance to the Connected Vehicle Trade Association. McCormick said, “Gary was the first person I called when the ten largest automakers asked me to consider forming a nonprofit trade association for vehicle communications industry. Gary was our third Chairman over the 20+ years we have been established.     Dr. Hanan Alhaddi   Dr. Alhaddi was unanimously elected to the Board of Directors of the Connected Vehicle Trade Association at our June Board meeting.   Dr. Hanan Alhaddi is an industry expert and academic practitioner with 20 years of experience in vehicle connectivity strategy, enterprise transformation, and corporate strategy. She is a guest lecturer on strategy and director of integrative cases on AI at Oxford University.    Hanan holds a doctorate degree in business administration, graduate degrees in strategy and innovation from Oxford University and Harvard University, and bachelor’s degree in engineering from WSU. She is the Associate Editor of the Journal of Management and Strategy. She is the president and CEO of Alhaddi Consulting Group (launching in Q2 2024), a consulting firm specializing in strategy, transformation, and artificial intelligence.       

2

While the hybrid propulsion systems are expected to record growth in the near to medium term, pure #BEVs will outsell hybrids in the long term as they are a better answer to the world's energy transition and sustainability goals. S&P Global Mobility expert Michael Southcott says, "...Hybrids offer a viable short- to mid-term strategy for reducing vehicle emissions, giving the industry time to plan for widespread battery-electric vehicle adoption." https://okt.to/2lTmxt #electricvehicles

10

General Motors, after pouring billions of dollars into its Cruise robotaxi unit over the past eight years, said it’s ending the subsidiary’s stand-alone efforts and will combine it with in-house efforts to develop autonomous driving technologies for personal vehicles. The Detroit-based automaker said it will no longer fund Cruise’s robotaxi work as it will take too long and cost too much to scale the business to compete with competitors it didn’t identify. Presumably, its biggest challenge is catching up with Waymo, which is carrying hundreds of thousands of riders in its robotaxis every week and is about to expand the service to Miami, Austin and Atlanta.

8

1 Comment

Rivian Automotive (NASDAQ:RIVN) surged in postmarket trading on Tuesday by 50% after announcing plans to form a joint venture with Volkswagen (OTCPK:VLKAF). This partnership aims to develop next-gen electrical architecture and top-tier software technology. The collaboration is expected to speed up software development and reduce costs by combining both companies' strengths. Rivian will contribute its electrical architecture expertise and license its intellectual property to the joint venture. Vehicles using this technology are planned for launch in the latter half of the decade. In the short term, Volkswagen will use Rivian's current electrical architecture and software platform. Volkswagen will invest $5 billion in Rivian, starting with a $1 billion unsecured convertible note that will convert to common stock upon regulatory approval or by December 1, 2024. An additional $4 billion investment will follow. Rivian's shares jumped 50% in after-hours trading, and Amazon (AMZN), which holds a 17% stake in Rivian, is also impacted by this development.

4

💯💯𝐄𝐕 𝐂𝐡𝐚𝐫𝐠𝐞𝐫 𝐑𝐞𝐥𝐢𝐚𝐛𝐢𝐥𝐢𝐭𝐲: 𝐀 𝐊𝐞𝐲 𝐇𝐮𝐫𝐝𝐥𝐞 𝐟𝐨𝐫 𝐖𝐢𝐝𝐞𝐬𝐩𝐫𝐞𝐚𝐝 𝐀𝐝𝐨𝐩𝐭𝐢𝐨𝐧💯💯 🚙 Electric vehicles (#EVs) are gaining traction, but concerns about charging infrastructure reliability persist. 😓 This recent conversation hosted by the Detroit Economic Club with General Motors Chair & CEO, Mary Barra, demonstrates that OEMs are taking charger reliability seriously. 🧐 At WattsUp, we are at the forefront of this needed reliability transformation. 🔋 𝐖𝐡𝐲 𝐎𝐮𝐫 𝐒𝐨𝐥𝐮𝐭𝐢𝐨𝐧 𝐌𝐚𝐭𝐭𝐞𝐫𝐬: • 𝐏𝐫𝐞𝐝𝐢𝐜𝐭𝐢𝐯𝐞 𝐌𝐚𝐢𝐧𝐭𝐞𝐧𝐚𝐧𝐜𝐞: We detect anomalies that indicate impending failure, allowing operators to get ahead of the problem. 𝐆𝐨𝐭 '𝐞𝐦! • 𝐀𝐮𝐭𝐨𝐧𝐨𝐦𝐨𝐮𝐬 𝐎𝐩𝐞𝐫𝐚𝐭𝐢𝐨𝐧𝐬: We eliminate bottlenecks associated with user dependent intervention and scheduling. 𝐖𝐞 𝐠𝐨𝐭 𝐲𝐨𝐮 𝐟𝐫𝐢𝐞𝐧𝐝. • 𝐇𝐞𝐚𝐥𝐭𝐡𝐢𝐞𝐫 𝐁𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐌𝐨𝐝𝐞𝐥𝐬: Our solution minimizes charger downtime and reduces the amount of OpEx needed to maintain #EVSEs. 𝐆𝐨 𝐠𝐞𝐭 𝐭𝐡𝐚𝐭 𝐦𝐨𝐧𝐞𝐲! Have some ideas for how the charging experience and charger reliability can improve? We want to hear from you! Drop a comment below. 💚 https://lnkd.in/gu_pjRrD

14

1 Comment

This week, ZF's Kyle Williams spoke at WardsAuto's AutoTech Detroit on the evolving landscape for Tier 1 suppliers and exploring how suppliers can remain competitive in this dynamic era of SDVs. During the session, Kyle tackled the significant challenges suppliers face, including increased competition from tech companies and automakers developing their own software, and revenue loss due to hardware commoditization. Despite these hurdles, there are many opportunities in collaborating with software tech companies, co-developing new software functions with automakers, innovating sensor technologies, and using data to create unique selling points. In this era of software-defined vehicles, adaptation and innovation are crucial. ZF’s cubiX technology is a prime example of how integrated systems can redefine vehicle control and propel the industry forward. #AutoTechDetroit #Innovation #Mobility #ZF #cubiX

83

3 Comments

PARTNERSHIP: Volkswagen and Rivian announce joint venture to develop next-gen SDV platforms EV manufacturer #Rivian Automotive and #VolkswagenGroup (VW) have announced their intention to form an equally controlled and owned joint venture to create next-generation #electrical architecture and software #technology for software-define vehicles (SDVs). The partnership is anticipated to accelerate the development of #software for both companies. Rivian’s zonal hardware design and integrated technology platform will serve as the foundation for #SDV development in the JV for the companies’ vehicles. In the short term, the collaboration is expected to enable VW to use Rivian’s existing #electricalarchitecture and software platform. The partnership’s longer-term ambition is to accelerate VW’s SDV plans and transition to a pure zonal architecture. Oliver Blume, CEO of VW, said, “Our customers benefit from the targeted #partnership with Rivian to create a leading technology architecture. Through our cooperation, we will bring the best solutions to our vehicles faster and at lower cost.” RJ Scaringe, founder and CEO of Rivian, said, “We’re very excited to be partnering with Volkswagen Group. Not only is this partnership expected to bring our software and associated #zonalarchitecture to an even broader market through Volkswagen Group’s global reach, but this partnership also is expected to help secure our capital needs for substantial growth." Read more here: https://lnkd.in/esN6Xv-H #AutonomousVehicles #AV #SelfDriving #ADAS #AutonomousDriving #Automotive #AutomotiveIndustry #Transportation #Technology #FutureMobility #Sustainability #AVTExpoStuttgart #AVTExpoCA

1

If everything had gone to plan for General Motors over the last three years, the Detroit automaker would be well on its way to catching Tesla in sales of electric vehicles. In October 2021, GM CEO Mary Barra declared the automaker would “absolutely” catch up to the U.S. EV leader by 2025. Instead, after slower-than-anticipated EV adoption across the industry and GM-specific challenges with production, software and supply chains, the company remains well behind Elon Musk’s carmaker, as well as Hyundai Motor/Kia and Ford Motor. While GM has withdrawn most of its previously announced electric vehicle targets, the automaker believes its EV sales momentum is finally building thanks to an expanding lineup of all-electric vehicles – spanning a price range of roughly $35,000 to more than $300,000. “We are definitely outstripping the industry in terms of growth, in terms of EVs,” Rory Harvey, GM president of global markets, including North America, told CNBC. “We have the most comprehensive EV lineup out of any manufacturer in the industry, in the U.S., at the moment.” EV sales data provided to CNBC by the Detroit automaker, which publicly reports sales quarterly, shows a notable increase for GM through August. GM sold nearly 21,000 EVs in the U.S. in July and August – almost matching its full second-quarter EV sales. GM’s EV sales through August were up about 70% compared with a year earlier. “It’s a step change in terms of our EV performance,” Harvey said during an interview this month at GM’s Cadillac headquarters in suburban Detroit. Those two back-to-back record months for GM’s EVs have it within striking distance – about 2,000 units – of Ford through August. It still remained more than 20,000 units shy of Hyundai/Kia EV sales through last month. Both Ford and Hyundai/Kia report sales monthly. The legacy automakers are still fighting for a distant second behind Tesla, which Motor Intelligence estimates to have sold more than 164,000 EVs during the second quarter – roughly double the sales of GM, Hyundai/Kia and Ford combined during that time.      Harvey declined to speculate when, or if, GM expects to overtake its competitors in EV sales, but the automaker is forecasting a strong finish to the end of the year. “We have momentum on our side,” Harvey said. “We anticipate quarter four will be strong in terms of EV adoption. So, we’re looking forward to that close, and looking forward to taking a disproportionate share of the upside.” GM currently offers eight “Ultium-based” EVs for consumers — referring to its electric vehicle architecture and battery technologies. They range from mainstream models such as the Chevy Equinox and Blazer crossovers to three large pickup trucks and luxury models from Cadillac, including a bespoke $300,000 Celestiq. Two additional Cadillac vehicles – an electric Escalade and entry-level Optiq crossover – are expected to join the lineup by year’s end, bringing the total to an industry-leading 10.

2

1 Comment

“China has proven its capability in the electrical vehicle market. This success is largely a function of 10 years of investment and focuses by the Chinese government. It’s also a function of the innovation capability that the electrical vehicle industry has displayed,” John A. Quelch, Executive Vice Chancellor of Duke Kunshan University, told our reporter at the 2024 Summer Davos Forum.   In 2023, China accounted for over 60% of worldwide electric vehicle production and sales, with exports of electric vehicles, lithium-ion batteries, and photovoltaic products witnessing a 30% growth. As Chinese electric vehicle companies expand into international markets, what challenges and opportunities lie ahead in keeping their growth momentum? Which regions and countries should they focus on?    “I would expect to see, in addition, some manufacturing offshore in some emerging economies sponsored by Chinese EV manufacturers. Take Mexico for example--it will be one country where there’s likely to be some good joint-venture opportunities between Mexican companies and Chinese partners in developing the electric vehicle manufacturing industry.” John added. World Economic Forum

1