Tag Archives: Blume

News

Blume: Volkswagen Group to prioritize design in its future operations

Oliver Blume, the CEO of Volkswagen Group, has announced the company’s plans for the future, highlighting the importance of design as a key pillar in its operations. Speaking at the 2023 Munich motor show, Blume emphasized that design would play an even more crucial role as the company transitions from traditional combustion engine models to electric-powered ones.

Blume also emphasized the Volkswagen Group’s efforts to differentiate its individual car brands, which include Volkswagen, Volkswagen Commercial Vehicles, Škoda, Seat, Cupra, Audi, Lamborghini, Bentley, Porsche, and Scout. According to Blume, design is a critical factor in achieving success and enhancing brand differentiation.

He stated, “With distinctive design identities, we can create unique products and enhance brand differentiation in terms of exterior, interior, and digital presence. The Volkswagen Group is transforming into a design-driven company.”

In line with this new design strategy, the Volkswagen Group aims to deliver high design quality and strong brand differentiation. Blume showcased the ID. GTI Concept and Cupra DarkRebel show car as examples of the company’s design-led approach.

The ten-point plan also includes goals such as improving the platform strategy, enhancing the technology profile to stay competitive, expanding in the Chinese market with local partners, and implementing a growth plan for the US market, including the relaunch of the Scout brand with unique electric models designed specifically for the North American market.

Volkswagen

Volkswagen Group Reports Strong H1 Results and Expands Presence in China

The Volkswagen Group has announced solid results for the first half of the year, demonstrating its strategic realignment and restructuring efforts. With a focus on long-term, sustainable growth, the Group delivered reliable performance and strong financial results. Sales in North America are showing improvement, while the Group is also strengthening its position in China through technological partnerships and capitalizing on the growing trend of fully electric vehicles.

Financial Performance

In H1 2023, the Volkswagen Group achieved an operating profit of EUR 13.9 billion, an increase of around 13 percent compared to the previous year. The corresponding margin was 8.9 percent, surpassing the guidance range of 7.5 percent to 8.5 percent. Operating profit stood at EUR 11.3 billion, primarily due to non-cash hedging effects mainly from commodity hedging.

In terms of revenue, the Group experienced an 18 percent growth to EUR 156.3 billion in H1, driven by a recovery in volume, solid mix, and pricing. Although vehicle deliveries in China declined by 1 percent, signs of recovery were observed towards the end of the reporting period.

The Group’s electrification strategy continued to gain momentum, with battery electric vehicles (BEV) representing a 7.4 percent share of total deliveries in H1. The Group also aimed to reach a BEV share of 8-10% of total deliveries in FY 2023. Despite challenges in the market environment, Volkswagen managed to increase its market share in Europe and remains the market leader in the BEV segment.

The Group’s net cash flow in H1 was influenced by logistics chain bottlenecks, resulting in a muted net cash flow of EUR 2.5 billion. However, Volkswagen Group aims to achieve a full-year net cash flow of EUR 6-8 billion, taking measures to ensure the lower end of this range is met.

China Expansion

Volkswagen Group is accelerating its strategic transformation in China, aiming to maintain its position as the most successful international OEM and one of the top 3 players in the market. Despite an initial challenging period in the first two months of the year, the Group’s delivery figures in China showed significant improvement from March to May compared to the previous year. A decline in June was attributed to non-recurring effects. The Group delivered a total of 1,451,900 vehicles in China in H1 2023.

In order to expand its product range and address promising customer and market segments in China, Volkswagen Group has entered into two partnerships in the region: a strategic partnership with Xpeng and an expansion of an existing cooperation between Audi and FAW/SAIC. These collaborations align with the Group’s “in China for China” strategy, allowing it to capitalize on market-defining trends and leverage the growth momentum of the Chinese market.

Brand Performance Programs

Each brand within the Volkswagen Group is launching its own Performance Program to enhance profitability and resilience. These programs set ambitious targets across the brands, focusing on improving margins, product mix, and vehicle equipment. The programs also explore emerging business models, such as mobility solutions, to generate additional profit. The Group aims to achieve efficiency through economies of scale and cost optimization in areas including development, materials, production, distribution, and fixed costs.

Realignment of Platforms

The Group is realigning its technology platforms to drive innovation and achieve economies of scale. Key advancements include the establishment of the group-wide SSP platform by 2024, followed by the introduction of the second-generation MEB+ platform from 2025. The Group’s battery strategy and ramp-up will be supported by the Unified Cell developed by PowerCo. The CARIAD organization is also being realigned to accelerate the execution of the E³ platforms and further develop software-defined vehicles.

Financial Outlook

Volkswagen Group confirms its financial outlook for FY 2023, with a slight adjustment in the delivery forecast to 9 to 9.5 million vehicles. The Group remains on track to achieve its sales revenue target. Supply chain disruptions have been easing, with pressure shifting from semiconductor shortages to transportation and logistics delays. Lower raw material costs and an improving logistics situation in H2 are expected to support the Group’s performance programs and strengthen its competitive position in an increasingly challenging market environment.

Conclusion

The Volkswagen Group has delivered solid financial results in H1 2023, driven by its strategic realignment and focus on sustainable growth. By expanding its presence in China, accelerating electrification efforts, and implementing brand performance programs, the Group aims to enhance its competitiveness and strengthen its position in key markets. With a clear plan, measurable milestones, and a commitment to value-driven production, Volkswagen Group is well-positioned for long-term success.

Motorsport

Porsche CEO Camped In $7,000 Roof Tent On Top Of 911 Turbo S At Le Mans

Porsche CEO Oliver Blume decided to experience this year’s Le Mans race firsthand, but he didn’t opt for luxury accommodations. Instead, he parked his black 911 Turbo S at the Porsche Employee Camp and stayed in a rooftop tent with his wife for two nights.

The rooftop tent, introduced by Porsche less than a year ago, is an all-season accessory that can comfortably accommodate two adults. It features an integrated polyfoam mattress, two side windows with insect screens, and a skylight for ventilation and views. The tent also proudly displays Porsche branding and a mountain silhouette motif inside. It was designed, developed, and produced by Porsche’s original accessories and upgrades division, Porsche Tequipment.


Motorsport

VW Group CEO Acknowledges Audi’s Lagging Position Compared to Competitors, Software Problems to Blame

The CEO of Volkswagen Group, Oliver Blume, has admitted that Audi is falling behind its rivals, with software issues being identified as the main culprit. In order to address this issue, the automaker will accelerate the development of battery-electric vehicles (BEVs) for the luxury brand.

Blume made this statement about Audi’s current standing during the company’s Capital Markets Day. He specifically mentioned, “We have encountered significant software problems that have caused delays in the launch of our exciting electric products,” as reported by Automotive News Europe.


News

Volkswagen SSP EV platform to offer up to 1700bhp from 2026

Volkswagen Group CEO Oliver Blume has reaffirmed the company’s commitment to launch its comprehensive SSP (Scalable Systems Platform) electric architecture in 2026, despite potential delays to 2028/29 that were previously mentioned.

Blume stated that the architecture will cover a wide range of vehicles, from city cars to sports cars, with power exceeding 1700bhp. Initially, VW had planned for the SSP to handle around 1100bhp.

“The SSP architecture will balance the need for scale and standardization with differentiation and speed,” Blume emphasized.

The SSP architecture was initially announced in 2021 with a planned launch date in 2026, starting with Audi’s Artemis project. However, delays, particularly concerning the crucial software 2.0, caused development to be pushed back to 2028/29, as previously stated by executives like VW brand CEO Thomas Schäfer.

VW Group brands will share architecture modules across 40 million vehicles as part of their efforts to standardize parts and increase economies of scale, with the goal of reducing the high price of electric cars. Blume stated that “most” vehicles on the SSP platform will achieve profit margin parity with internal-combustion-engined cars, compared to only “some” on the group’s MEB electric car platform.

“Architectures cover up to 75% of all material costs for BEV, compared to up to 10% for ICE,” Blume explained. “Therefore, architectures are a key driver for profitability in the future.”

One component that will be shared across all models is the planned ‘Unified’ battery cell, which will be manufactured in future VW plants and can accommodate a range of chemistries, including the cost-effective LFP (lithium-iron-phosphate).

Blume also revealed new performance details about SSP cars, including a 10%-80% charging time reduced to an average of 12 minutes, compared to the existing 35 minutes for MEB models. Additionally, the software 2.0 and electronic architecture will enable hands-free driving up to level four.