0P6N.IL - VOLKSWAGEN AG VOLKSWAGEN ORD SH

IOB - IOB Delayed price. Currency in EUR
144.10
-2.05 (-1.40%)
At close: 5:40PM BST
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Previous close146.15
Open146.35
Bid0.00 x 0
Ask0.00 x 0
Day's range143.95 - 146.40
52-week range131.20 - 166.71
Volume264
Avg. volume4,582
Market capN/A
Beta (3Y monthly)N/A
PE ratio (TTM)N/A
EPS (TTM)N/A
Earnings dateN/A
Forward dividend & yieldN/A (N/A)
Ex-dividend dateN/A
1y target estN/A
  • Volkswagen recalls 679,000 U.S. vehicles that could roll away
    Reuters

    Volkswagen recalls 679,000 U.S. vehicles that could roll away

    Volkswagen AG said Friday it is recalling 679,000 U.S. vehicles sold since 2011 that could roll away because of an electrical issue. VW said a build up of silicate on the shift lever micro switch contacts is to blame. Dealers will install and additional switch and circuit board and disable a micro switch.

  • Bloomberg

    VW Explores Buying Stakes in Chinese Auto Suppliers

    (Bloomberg) -- Volkswagen AG is exploring potential investments in Chinese automotive suppliers as it seeks to secure access to key technology in the world’s largest car market, people familiar with the matter said.Options under discussion include buying equity stakes or forging joint ventures with Chinese suppliers, particularly firms with technology used in electric vehicles, according to the people. VW has been examining several possible targets including Guoxuan High-Tech Co., a battery maker based in China’s Anhui province, the people said, asking not to be identified because the information is private.Shares of Guoxuan High-Tech jumped 6% in Shenzhen trading after Bloomberg reported the talks, more than doubling their gain for the year. The company has a market value of about $2.1 billion. VW was up 0.4% in Frankfurt.Battery technology is a critical area for VW, the world’s biggest automaker, as it seeks to safeguard vast purchasing volumes needed to power the auto industry’s largest push into electric cars, which is led by China. The German carmaker picked China’s Contemporary Amperex Technology Co. as its initial battery provider in the country.The Chinese market will take on a bigger role for VW as both a production hub and research center, Chief Executive Officer Herbert Diess told reporters in April in Shanghai. The company plans to deliver 22 million fully electric vehicles worldwide by 2028, with more than half of them made in China.No final decisions have been made, and there’s no certainty the deliberations will lead to a transaction, the people said. VW is “in talks with different local suppliers for possible cooperation in the future,” the company said in an emailed statement.“The evaluation of our battery supply capacities in China is ongoing and necessary for a high volume of e-mobility production,” VW said.A representative for Guoxuan declined to comment.VW is also considering expanding its three vehicle-making joint ventures in China as part of a strategy review. The company has said it’ll work with partners on mobility offerings and plans to add a smaller electric-car platform specifically for China’s megacities.VW operates ventures with major Chinese carmakers SAIC Motor Corp. and China FAW Group Co. after being one of the first foreign automakers to start business in the country more than three decades ago. It’s also exploring options to acquire a stake in its smallest local partner, Anhui Jianghuai Automobile Group Corp., people familiar with the matter said in April.Tesla Said to Agree to Buy Batteries From LG for China FactoryChina’s top three home-grown electric-car battery makers, CATL, BYD Co. and Guoxuan, dominate the market with about 79% of the country’s new-energy vehicle battery installments in the first half, according to Bloomberg Intelligence.Still, they face a risk as the government phases out subsidies that effectively motivated carmakers in China to use locally made batteries. The policy change puts non-Chinese battery makers such as South Korea’s LG Chem Ltd. on an equal footing with their local rivals.By teaming up with VW, Guoxuan can gain additional funding and an endorsement to its brand amid the intensifying competition. The company, which supplies local carmakers including BAIC Motor Corp. and Geely Automobile Holdings Ltd., said in April that it has been talking to a “first-tier international brand” but didn’t share details, citing a confidentiality agreement.(Updates with share moves in third paragraph.)To contact Bloomberg News staff for this story: Vinicy Chan in New York at vchan91@bloomberg.net;Christoph Rauwald in Frankfurt at crauwald@bloomberg.net;Haze Fan in Beijing at hfan40@bloomberg.net;Steven Yang in Beijing at kyang74@bloomberg.net;Tian Ying in Beijing at ytian@bloomberg.netTo contact the editors responsible for this story: Fion Li at fli59@bloomberg.net, ;Anthony Palazzo at apalazzo@bloomberg.net, ;Emma O'Brien at eobrien6@bloomberg.net, ;Shiyin Chen at schen37@bloomberg.net, Ben Scent, Ville HeiskanenFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Volkswagen not interested in buying Tesla stake
    Reuters

    Volkswagen not interested in buying Tesla stake

    Volkswagen said on Thursday it was not interested in taking a stake in Tesla, denying a media report that CEO Herbert Diess wanted to buy shares in the U.S. company to access its software and batteries technology. "The speculation about buying a stake in Tesla made by Manager Magazin is without merit," a Volkswagen spokesman said in a written statement to Reuters. Manager Magazin had said Diess meets with Tesla CEO Elon Musk on a regular basis because of the U.S. carmaker's expertise in software and battery cell design, and that Tesla had so far rebuffed Volkswagen's efforts at striking an alliance.

  • Tesla Stock Waffles on Volkswagen Stake Rumors
    Market Realist

    Tesla Stock Waffles on Volkswagen Stake Rumors

    Today, citing German business publication Manager Magazin, Reuters reported that Volkswagen CEO Herbert Diess is interested in a stake in Tesla.

  • Bloomberg

    VW Denies Report CEO Is Interested in Buying Stake in Tesla

    (Bloomberg) -- Volkswagen AG denied a report that its chief executive officer would be interested in buying a stake in Tesla Inc., calling it unfounded speculation.A VW spokesman rejected the report by Manager Magazin, which had said VW CEO Herbert Diess would invest in Tesla immediately if he could, citing unidentified managers at the German carmaker. Tesla shares erased a gain of as much as 3.6% before the start of regular trading, trading down 0.7% as of 10:45 a.m. Thursday in New York.Buying a stake in Tesla would undercut Diess’ stated aim to take the electric-car maker head-on. Volkswagen’s namesake brand alone is targeting sales of 1 million battery-powered vehicles by 2025, an executive reiterated earlier Thursday. The Volkswagen group has budgeted at least 30 billion euros ($33 billion) in spending on electric cars. “We see Volkswagen as the company that can stop Tesla, because we have abilities Tesla doesn’t have today,” Diess said in a July 2017 interview with Bloomberg News.This isn’t the first time Volkswagen has denied reported interest in Tesla. Chief Financial Officer Frank Witter said in September that there was “no substance” to a Wall Street Journal report a month earlier that said the company was one of the potential investors bankers had lined up to support Tesla CEO Elon Musk’s short-lived effort to take the carmaker private.(Updates with VW reiterating electric-vehicle sales target in the third paragraph)To contact the reporter on this story: Christoph Rauwald in Frankfurt at crauwald@bloomberg.netTo contact the editors responsible for this story: Craig Trudell at ctrudell1@bloomberg.net;Anthony Palazzo at apalazzo@bloomberg.netFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Bloomberg

    VW Targets Higher Profit as E-Car Costs, Uncertainty Weigh

    (Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Volkswagen AG’s namesake brand expects to lift profit margins over the next few years despite an expensive shift to electric cars and growing economic headwinds in Germany and abroad.VW, in the midst of the auto industry’s most ambitious electric-car push, is sticking with a target of selling 1 million battery vehicles by 2025, Ralf Brandstaetter, the unit’s chief operating officer, told reporters on Thursday. The brand is sticking with a goal of 6% operating-profit margins in 2022, up from 5.2% in the first six months this year.The sales goal, which would move VW well past Tesla Inc., “is the guiding star of our strategy,” Brandstaetter said.Luring buyers toward e-cars -- from tech-savvy youngsters to traditional loyalists -- will be critical for the VW group to turn its 30 billion-euro ($33 billion) spending spree into a success and avoid steep European Union fines for breaching emission limits. Trade woes and recession fears are adding to the urgency and forcing VW to become more efficient after a decade of rising demand.Economic swings are hard to predict and do pose a risk in coming months, Brandstaetter said -- from Brexit’s fallout to persistent tension between the U.S. and China.“We’re monitoring the situation very closely,” he said. But VW’s broad global presence and economies of scale put the manufacturer in a better position than many rivals to cope with economic swings, he said.While the manufacturer’s diesel-emission scandal caused a fundamental crisis, it also “became a catalyst for the transformation of Volkswagen,” Brandstaetter said. That set the stage for the bold plans under way now.VW plans to use its vast scale to produce electric cars at more competitive costs than rivals. The brand, which accounts for about half of the group’s global deliveries, in the past has been bogged down by an unwieldy range of vehicle variants, bloated costs and poor budget discipline.A new brand logo, which will be unveiled next month, can be displayed on car fronts as well as smartphone screens. It was last tweaked six years ago with a more three-dimensional look, and has changed only modestly since the manufacturer’s resurrection after World War II.VW’s electric-car offensive starts with the rollout of the ID. 3 hatchback in Zwickau, Germany, later this year and will be followed by almost 70 more models across the group in the next 10 years. VW has taken desosits for 27,000 vehicles, and the brand’s sales chief, Juergen Stackmann said the number may well reach 30,000 in time for the Frankfurt auto show in September.What Bloomberg Intelligence Says“An initial push through Audi e-tron and Porsche Taycan could transform the company into the new Tesla, a view not yet shared by the market. Dedicated EV platforms should lead to a fundamental change in mix, much-needed scale and a cost advantage.”\-- Michael Dean, BI auto industry analystVW will roll out production of cars based on a new dedicated electric-car platform dubbed MEB, adding sites in China, Czech Republic and the U.S. VW has added 4 billion euros to its planned spending on IT projects as software will play an increasingly important role in future cars.VW shares gained 1.6% to 144.26 euros as of 1:04 p.m. in Frankfurt. The stock is up 3.8% this year.(Updates with sales goal for ID. 3 in third-to-last paragraph)To contact the reporter on this story: Christoph Rauwald in Frankfurt at crauwald@bloomberg.netTo contact the editors responsible for this story: Anthony Palazzo at apalazzo@bloomberg.net, Tom LavellFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • U.S. judge urges VW, SEC to resolve civil Dieselgate suit
    Reuters

    U.S. judge urges VW, SEC to resolve civil Dieselgate suit

    A federal judge in California on Friday urged the U.S. Securities and Exchange Commission and Volkswagen AG to resolve a civil suit stemming from its Dieselgate emissions scandal. U.S. District Judge Charles Breyer in San Francisco, who earlier had questioned why the agency waited two years to sue the automaker, said he was putting the suit on hold until Oct. 4. The SEC filed a civil suit in March accusing Volkswagen and its former chief executive, Martin Winterkorn, of defrauding investors in U.S. bond offerings.

  • Nissan, BMW in Talks to Pull South Africa Into Electric Car Era
    Bloomberg

    Nissan, BMW in Talks to Pull South Africa Into Electric Car Era

    (Bloomberg) -- Nissan Motor Co., BMW AG and Volkswagen AG are among carmakers in talks to bring the electric-car revolution to South Africa, as the nation’s auto-factory floors risk being left behind in the global switch to greener vehicles.The industry is preparing a unified stance on electrification to present to the government by the end of the year, Mike Mabasa, chief executive officer of the National Association of Automobile Manufacturers of South Africa, or Naamsa, said in an interview.Among the goals is persuading lawmakers to reduce or drop a 23% import tariff on electric vehicles to help ramp up nascent domestic sales, he said. Another is to roll out a charging infrastructure in a country where the state-owned power monopoly is in deep financial crisis.Taking steps to boost the popularity of electric vehicles in South Africa is just one part of the equation. The auto-manufacturing industry makes up about 7% of the country’s economy, according to Naamsa. The sector is one of the more positive aspects of an economy expected to grow at less than 1% for a second consecutive year.“The country needs to move forward and bring new technologies,” said Mike Whitfield, Nissan’s chairman for the southern Africa region. “The rest of the world will move very fast and if we don’t get going we will be left behind.”South Africa has long been a hub for global automaking, attracting plants operated by seven carmakers from Toyota Motor Corp. to Isuzu Motors Ltd. Last year, the manufacturers exported almost 210,000 cars to Europe, where Volkswagen is already retooling factories to only make electric cars. That’s just under a third of all local production and makes up 60% of exports.To date, there are no firm plans for electric-car or hybrid production in South Africa, but the government and industry agreed in 2018 to extend a manufacturing incentive program, creating jobs and enabling models like the BMW X3 sport utility vehicle and Nissan’s Novara pickup to be produced locally.“The electric-vehicle play in South Africa will not be determined by the South African consumer, but by the requirements of export markets,” Martyn Davies, an auto-industry specialist at Deloitte LLP, said by phone from Johannesburg, adding that the weaker rand is also making exports more attractive.The quality of the local plants of BMW, Ford Motor Co and Mercedes-Benz AG are good enough to make retooling quite straightforward, he said, adding that the next product made in South Africa by those automakers could feasibly be electric.Under the terms of the new manufacturing plan, the automakers will have to more than double annual production to as many as 1.4 million vehicles by 2035, and that won’t happen without making electric cars as well as gas or diesel, according to Naamsa’s Mabasa.BMW’s i3 and i8 are two of only three models currently available in the birth country of electric car pioneer Elon Musk, and only 620 units have been sold. Jaguar Land Rover introduced the I-Pace earlier this year, while Nissan is holding off on the launch of the latest Leaf until after an agreement is reached on import tariffs.Elsewhere on the African continent, a plan by Volkswagen to introduce an electric-vehicle in Rwanda stands in contrast to a lack of other developments.Another barrier to an accelerated electric-car boom in South Africa is Eskom Holdings SOC Ltd., the power provider that last week reported an annual loss of almost $1.5 billion and requires an $8.8 billion government bailout over the next three years.The utility has been forced to implement intermittent rolling blackouts and is reliant on coal, which is out of step with the environmentally friendly advantages of producing electric cars, Mabasa said. Therefore, the industry paper is likely to lay out a mixture of power sources between Eskom and privately owned renewable energy projects, he said.But the need to turn around Eskom’s financial situation is likely to be of more pressing concern to the government than using it to enable the electric-car industry, Nissan’s Whitfield said.“There is excess capacity, but quite frankly Eskom’s issues have to be addressed or we will have much bigger problems,” Whitfield said.\--With assistance from Prinesha Naidoo.To contact the reporter on this story: John Bowker in Johannesburg at jbowker2@bloomberg.netTo contact the editors responsible for this story: Anthony Palazzo at apalazzo@bloomberg.net, Elisabeth Behrmann, John BowkerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Betting Like SoftBank Drives Toyota’s Value Up by $19 Billion
    Bloomberg

    Betting Like SoftBank Drives Toyota’s Value Up by $19 Billion

    (Bloomberg) -- Everywhere you turn in the transportation industry these days, Toyota Motor Corp. seems to already be there.From batteries and self-driving vehicles to lunar rovers and ride-hailing companies, the world’s second-biggest automaker is on an investment spree, pouring more than $3 billion into deals and partnerships in recent years. Toyota, which reports first-quarter results Friday, is placing bets across the board, mimicking technology investors like SoftBank Group Corp.Toyota, Volkswagen AG and other carmakers face an uncertain future as new technologies and business models ripple through the $2.23 trillion global auto industry. Uber Technologies Inc. has made younger buyers less interested in owning and driving cars, and Tesla Inc.’s success with electric vehicles has spurred bigger rivals to counter with their own products. All told, car sales will be only slightly higher in 2030, while new spending on mobility services will total $1.34 trillion, Accenture predicts.“They are developing by far the most diverse lineup of different mobility products, from personal mobility to luxury cars and various types of shared mobility and commercial vehicles,” said Janet Lewis, an analyst at Macquarie Capital Securities (Japan) Ltd. in Tokyo. “Investors, to the extent that they are invested in the auto sector, generally agree that Toyota is looking like a winner.”Indeed, shareholders are endorsing Toyota’s approach. The automaker’s stock rose 1% on Thursday, leaving it up 10% this year and adding $18.6 billion in market value. That’s better than the Topix index and other Japanese automakers, even amid tepid profit and sales growth. Analysts surveyed by Bloomberg predict quarterly operating profit will rise 1.3% to 692 billion yen, while revenue will climb 1.6% to 7.48 trillion yen.Big BetIn addition to investments and partnerships, Toyota’s spends about 1.05 trillion yen ($9.7 billion) a year on research and development.Akio Toyoda, chief executive officer and grandson of the automaker’s founder, has been holding forth at public appearances about Toyota’s transformation into a mobility service provider from a manufacturer.“My true mission is to completely redesign Toyota into a mobility company,” Toyoda said in May, saying the mission is to not just make products that move people around but provide “all kinds of services related to mobility.”Ride-HailingToyota’s strategy is to tie up with the strongest ride-hailing providers in each region and then integrate its hardware and software into their services. Toyota is a major investor in the world’s three top ride-hailing companies: Uber, China’s Didi Chuxing and Southeast Asia’s Grab Holdings Inc.In Japan, the carmaker teamed up with SoftBank — which has poured even more money into the three companies — in yet another mobility service venture called Monet Technologies Inc.The Japanese companies are betting that Monet can evolve into a variety of transportation-related business. For example, they envision meal-delivery vehicles that can prepare food en route to customers, or hospital shuttles that offer medical examinations.Toyota’s rivals aren’t standing still, either. General Motors Co. injected $500 million into Uber rival Lyft Inc. in 2016 while also pursuing its own robotaxi program with the Cruise Automation unit. Daimler AG and BMW AG merged their car-sharing operations this year after buying up several local ride-hailing ventures.ElectrificationWhile Toyota was first out of the gate with the Prius hybrid car, it hasn’t rolled out any mass-market EVs. Like Volkswagen and other major automakers, the Japanese company was biding its time. That will change next year, when Toyota introduces the first of six EV models planned through 2025.To secure enough batteries, Toyota recently stepped up its dealmaking with manufacturers, racing competitors to secure supplies for pure-electric and hybrid vehicles. Volkswagen and Daimler have made tens of billions of dollars in battery investments.In July, the Japanese auto giant made back-to-back battery announcements with China’s Contemporary Amperex Technology Co. Ltd. and BYD Co. Toyota also is committed to work with suppliers Toshiba Corp., GS Yuasa Corp. and Toyota Industries, as well as long-term partner Panasonic Corp.In Japan, Toyota teamed with Mazda Motor Corp, Suzuki Motor Corp., Subaru Corp. and parts makers to develop a common platform for EVs, betting that a combined effort can save development and production costs.Earlier this year, Toyota’s brought forward its EV sales target by five years. The company now expects to see annual sales of 5.5 million units globally in 2025, compared with a previous timeline of 2030.Fuel CellsToyota placed bets on fuel-cell technology years ago, gambling that hydrogen would replace batteries to store and deliver electricity for cars. So far, the technology’s complexity and high development costs has scared off most rivals. Three years after introducing its Mirai hydrogen car, the model remains a rarity even in Japan.Even so, Toyota is keeping fuel-cell car development alive, with hopes that Chinese interest in hydrogen will create a bigger market for the technology. In April, Toyota said it will work with Chinese truckmaker Beiqi Foton Motor Co. and Beijing SinoHytec Co., an affiliate of Tsinghua University, to develop more commercial vehicles with fuel cells. In July, it struck a similar deal with carmaker China FAW Group Co. and Higer Bus Co. to supply fuel-cell systems.Hybrid CarsAfter keeping its hybrid-car technology in Japan, the U.S. and developed markets for years, Toyota is now seeking to enter new markets. It will supply its hybrid system to Suzuki globally, while Suzuki will sell compact vehicles through Toyota in India and Africa, the carmakers said in March. The pair also will jointly develop a multipurpose vehicle that will be sold in India under both brands.Toyota also may share the hybrid-car engine technology it pioneered with the Prius with Chinese manufacturers, seeking to catch up with rivals in the world’s biggest auto market. Toyota is in advanced talks to license its hybrid system to Chinese carmaker Geely Automobile Holdings Ltd., Bloomberg reported last year.Toyota will benefit if China eases emissions rules so that low-polluting hybrid cars aren’t penalized as much as normal gas guzzlers. Policy makers are now considering rules that would count levels from a super-low emission vehicle as one-fifth of a normal gasoline car, according to a draft of the rules released July 9 by China’s Ministry of Industry and Information Technology.A majority of Toyota’s new partners are Chinese manufacturers because Toyota wants to catch up there with Volkswagen and General Motors in the next decade. China contributed most of Toyota’s growth last year, as well as this year, thanks to new products and its Lexus luxury brand, which benefited from lower government tariffs on auto imports from Japan.Connected CarsAlthough Toyota lags behind General Motors and European rivals, the digital information business has been a central -- yet less visible -- element of its vision for the future.Automobiles are generating more data that can be shared in order to improve safety, monitor road conditions and help passengers. For example, many manufacturers see a future when collisions become rare because autonomous vehicles will be programmed to avoid each other.Toyota is working to have 70% of new cars connected globally by 2020, with almost all of those in the U.S. and Japan. Automakers are already using the cloud to generate revenue through telematics insurance and car-sharing services.Toyota also has talked about using data to alert dealers when cars need servicing, provide information about road and traffic conditions for smart city planning, and inform retailers where their customers are commuting from to allow more targeted marketing.Moon PlansAlthough less relevant for Earthlings, Toyota wants to be the first automaker on the moon. Together with the Japan Aerospace Exploration Agency, Toyota is planning to build a six-wheeled, self-driving transporter that can carry two humans for a distance of 10,000 kilometers. They expect to land a vehicle on Earth’s closest ndaimeighbor in 2029.The rover will use solar arrays and fuel cells to generate and store power. The vehicle will be big enough so the astronauts can take their suits off and live in it while exploring the lunar surface.“Toyoda is determined to shift his company into a mobility company from a conventional hardware-oriented corporation,” said Koji Endo, senior analyst at SBI Securities Co. “It’s yet to be seen if Toyota can win among the competition and rapid changes in the business model, but it seems management is determined to chase this course.”(Updates with Toyota shares in)\--With assistance from Kae Inoue.To contact the reporter on this story: Ma Jie in Tokyo at jma124@bloomberg.netTo contact the editors responsible for this story: Young-Sam Cho at ycho2@bloomberg.net, Reed Stevenson, Michael TigheFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • German prosecutors charge ex-Audi boss Stadler over emissions cheating
    Reuters

    German prosecutors charge ex-Audi boss Stadler over emissions cheating

    German prosecutors said on Wednesday they had filed charges against former Audi Chief Executive Rupert Stadler, who is being investigated over his role in Volkswagen's emissions test cheating scandal. Volkswagen admitted in September 2015 to having used illegal engine control software to cheat pollution tests, triggering a global backlash against diesel. The public prosecutor's office in Munich said Stadler and three other defendants are being charged with fraud, false certification and criminal advertising practices.

  • Reuters - UK Focus

    UPDATE 3-German prosecutors charge ex-Audi boss Stadler over emissions cheating

    German prosecutors said on Wednesday they had filed charges against former Audi Chief Executive Rupert Stadler, who is being investigated over his role in Volkswagen's emissions test cheating scandal. Volkswagen admitted in September 2015 to having used illegal engine control software to cheat pollution tests, triggering a global backlash against diesel. The public prosecutor's office in Munich said Stadler and three other defendants are being charged with fraud, false certification and criminal advertising practices.

  • Bloomberg

    There’s a $5,600 Electric Makeover for Your Old Diesel Car

    (Bloomberg) -- About 5,000 euros ($5,600) are set to buy your 10-year-old combustion clunker an electric makeover—and offer a cut-price way to avoid driving bans across European cities.French startup Transition-One has developed retrofitting technology that adds an electric engine, batteries and a connected dashboard into older models of Fiat Chrysler Automobiles NV, Volkswagen AG, Renault SA and PSA Group for about 8,500 euros, or 5,000 euros after government subsidies in France.“I’m selling to people who can’t afford a brand new 20,000-euro electric car,” founder Aymeric Libeau said in an interview aboard his first prototype, a Renault Twingo from 2009 with an electric driving range of 180 kilometer (112 miles). “We’re turning the best-selling models across Europe into electric cars.”Libeau expects French and European regulator approval by the end of the year and will start pre-orders in September to test demand.Automakers are rushing to churn out electric cars to comply with stricter regulations on emissions in Europe. While sales are rising, hybrid and battery cars made up less than 3% of total sales last year as vehicle prices remain comparatively high with shorter driving ranges than conventional models.Read more: A Dead End for Fossil Fuel in Europe’s City CentersEven as the tepid uptake is set to reverse in coming years, initiatives like Transition-One’s show the car industry is still trying to navigate a path towards an electric future, with the risk of outright driving bans giving birth to moonshot ideas. “You could technically turn a handcart into an electric car—the question is, does it make sense and how big is the effort?”An increasing number of cities has already started to ban older diesel cars, after the 2015 Volkswagen diesel emission-cheating scandal prompted scrutiny of cars flouting limits. Over the next decade, many more European cities will cut access to fossil-fuel cars altogether.In the prototype Twingo, three battery packs are fitted in front and two in what used to be the gas tank. The whole pack, bought from a Tesla Inc. parts reseller, weighs 120 kilograms (265 pounds). To compare, Renault’s electric Zoe has a 290 kilogram battery for a 210 kilometer driving range. Prices start at around 23,000 euros excluding battery rental battery.The transition takes less than a day, leaving the original stick shift and gear box and installing the plug behind the hatch that drivers usually pop open to refill the tank.There are doubters on Libeau’s approach, and questions over how attractive a shortened driving range will be to motorists. Markus Lienkamp, a professor of automobile technology at the Technical University of Munich, also warns against the risk of errors and the difficulty of obtaining regulatory approvals for the retrofitted cars.“You could technically turn a handcart into an electric car—the question is, does it make sense and how big is the effort?” Lienkamp said. “My advice would be to drive the combustion car as long as it can take, and just buy a new electric car after, because it makes much more sense financially.”Libeau, whose previous experiences include co-founding software company Pentalog Group, has worked on retrofitting for two years, and tested the method with a French business school. He is looking to raise 6 million euros to build a factory he says would be capable of churning out as many as 4,000 vehicles next year.Retrofitting services have so far focused on one-offs for classic cars with a number of small companies offering a variety of conversion kits. What’s specific with the French startup is a plan to help create a regulatory framework rather than case-by-case permits to broadly offer the technology.Read more: The New Hot Rods Are Souped-Up Vintage Cars With Electric MotorsPSA Chief Executive Officer Carlos Tavares has called the idea of retrofitting “great” while cautioning that large companies needed worldwide regulations on emissions and safety before going down this road. “For that to happen, first thing is: align regulations,” he said on his online show ACoffeeWithCarlosTavares earlier this month.Transition-One’s solution is compatible with models including PSA’s Citroen C1 and Peugeot 107, Fiat 500, Toyota Aygo, Twingo II and Volkswagen Polo.“If the end goal is to cut pollution, all solutions should be on the table,” Libeau said, driving in the dense traffic of central Paris. “New cars aren’t enough.”\--With assistance from Oliver Sachgau.To contact the authors of this story: Ania Nussbaum in Paris at anussbaum5@bloomberg.netMarie Mawad in Paris at mmawad1@bloomberg.netTo contact the editor responsible for this story: Elisabeth Behrmann at ebehrmann1@bloomberg.netFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Group 1 Automotive (GPI) Q2 2019 Earnings Call Transcript
    Motley Fool

    Group 1 Automotive (GPI) Q2 2019 Earnings Call Transcript

    GPI earnings call for the period ending June 30, 2019.

  • Motley Fool

    Hard Times for Big Auto

    A slowing cycle, geopolitical tensions, union pressures, and more -- automakers just can’t catch a break.

  • Volkswagen Profit Jumps on Strong SUV Demand
    Motley Fool

    Volkswagen Profit Jumps on Strong SUV Demand

    Good SUV and luxury sales -- and no diesel-scandal charges -- helped VW to a strong quarter.

  • Volkswagen second-quarter operating profit up 30% as SUV push pays off
    Reuters

    Volkswagen second-quarter operating profit up 30% as SUV push pays off

    Volkswagen Group shares rose 2% after the carmaker posted a 30% rise in second-quarter operating profit despite a drop in vehicle sales as rising demand for sports utility vehicles and premium brands boosted margins. Volkswagen bucked a trend of falling demand for passenger cars by launching a range of higher-margin sports utility vehicles at a time when demand for sedans is falling. Daimler, Aston Martin and supplier Continental warned on profits this week.

  • Reuters - UK Focus

    UPDATE 2-VW Q2 operating profit up 30% as SUV push pays off

    Volkswagen Group shares rose 2% after the carmaker posted a 30% rise in second-quarter operating profit despite a drop in vehicle sales as rising demand for sports utility vehicles and premium brands boosted margins. Volkswagen bucked a trend of falling demand for passenger cars by launching a range of higher-margin sports utility vehicles at a time when demand for sedans is falling.

  • Cummins makes offer for VW's large engines unit: sources
    Reuters

    Cummins makes offer for VW's large engines unit: sources

    United States-based diesel engines maker Cummins has made an indicative offer for Volkswagen's MAN Energy Solutions unit, people close to the matter said, as the carmaker seeks to slim down its portfolio of disparate assets. Volkswagen announced in May that it is exploring a sale or partnership for its MAN Energy Solutions as part of a restructuring of the German cars, trucks and bus empire. VW has held talks with Cummins, and received an offer from the U.S. company for MAN Energy Solutions, the sources said.

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