VW to cut 60% of their models, sez Finance Chief

[UG_Passat]

Remember VW's upmarket strategy in 2000-2010? It didn't work, so they went downmarket to get more sales.

"Profitable"... if people don't buy, you don't profit, especially when you work in higher profit margins.

Does this means VW Auto Group will SEAT and Skoda the axe???

 

[BMWTurboDzl]

You do realize that America depends on China for 97% of our prescription drugs...including
antibiotics which our troops would need if we ever had a military conflict with China. When you say 'free flow of knowledge' are you referring to our universities educating our enemy (for profit)....in fact the President (in between being VP and President) was writing letters of recommendation to top universities for the children of his son's communist Chinese partners. If you don't think that the middle class has been SOLD OUT by our elite class* (for profit) then we can agree to disagree...

So? You do realize that there are other areas of the world which can manufacture a commodity product like prescription drugs? You do realize that the rest of the world finances your spending habits? Just about everything you buy/consume is cheaper than what it otherwise would be.

What I'm saying is that anyone in the world with an internet connection has access to literature with which to teach themselves. Chemistry, engineering, etc. It's all there for free and has been for the better part of 20 years.

The problems with the middle class is the result of competition. This is nothing new. For example, textile workers in England were replaced by machines, then UK based Mills were replaced by mills based in the NE US, then these mills were replaced by mills in the SE US, which themselves were replaced by mills outside the US. This took over a 150 yrs to occur but it did happen.

As for universities that has always been the case. Besides on a weekly basis I see individuals who took on tens of thousands of dollars in student loans just to get degrees where their salaries will never be sufficient to pay off the loans themselves. Where's the personal responsibility? There are "rich" kids who would be in the top 1 percent of just about any HS class in the US but because they're in the top 15 percent of a "wealthy district" they get kneecapped by Admissions and never get accepted into some of the top universities.

Profit is not guaranteed. You're looking for a return (i.e. wage) on your capital (ie. labor) invested with an employer. Everyone is looking for a return on their capital.

 

[JeffKeryk]

Remember VW's upmarket strategy in 2000-2010? It didn't work, so they went downmarket to get more sales.

"Profitable"... if people don't buy, you don't profit, especially when you work in higher profit margins.

Does this means VW Auto Group will SEAT and Skoda the axe???

How about when you sell high volume and make low or no profit? That's the problem Mr. Antlitz is speaking to.

 

[Andrew1972]

VW in US is having an incredible year. The lack of availability from other makes has people buying Tiguans and Atlas making a strong sales year. All car makers are figuring out make the profitable models / versions to order instead of flooding car lots hoping they sell.

 

[UG_Passat]

How about when you sell high volume and make low or no profit? That's the problem Mr. Antlitz is speaking to.

That's the automaker's problem controlling cost vs quality and quantity. If it costs too much relative to their product and market segment, it doesn't matter how much they sell, it's not profitable enough.

VWAG might as well drop the VW, Skoda and SEAT brands and focus on Audi, Bentley and Lambo, if they can't be profitable on the mainstream brands.

 

[pbm]

So? You do realize that there are other areas of the world which can manufacture a commodity product like prescription drugs? You do realize that the rest of the world finances your spending habits? Just about everything you buy/consume is cheaper than what it otherwise would be.

What I'm saying is that anyone in the world with an internet connection has access to literature with which to teach themselves. Chemistry, engineering, etc. It's all there for free and has been for the better part of 20 years.

The problems with the middle class is the result of competition. This is nothing new. For example, textile workers in England were replaced by machines, then UK based Mills were replaced by mills based in the NE US, then these mills were replaced by mills in the SE US, which themselves were replaced by mills outside the US. This took over a 150 yrs to occur but it did happen.

As for universities that has always been the case. Besides on a weekly basis I see individuals who took on tens of thousands of dollars in student loans just to get degrees where their salaries will never be sufficient to pay off the loans themselves. Where's the personal responsibility? There are "rich" kids who would be in the top 1 percent of just about any HS class in the US but because they're in the top 15 percent of a "wealthy district" they get kneecapped by Admissions and never get accepted into some of the top universities.

Profit is not guaranteed. You're looking for a return (i.e. wage) on your capital (ie. labor) invested with an employer. Everyone is looking for a return on their capital.

So you are OK with our health (prescription drugs) being outsourced to our most dangerous adversary (which isn't Russia despite what we're told by those becoming rich sucking up to the Chicoms.) Do you find it hypocritical that people like Lebron James constantly knock America for 200 year old sins while sucking up to the Chicoms (who still use slave labor) ? The same can be said for NIKE, Apple etc (all hypocrites)...

What do you do for a living BMW? You talk like somebody who is immune from GLOBALISM which is hurting the middle class but making our elites even richer.
PS: I agree that our adversaries are studying Physics, Chemistry etc...while our kids are 'learning' sociology, psychology and other useless nonsense.

PS: I finance my 'spending habits'....it's our politicians who needs to control their SPENDING HABITS....which they are using to buy their POWER...

 

[JeffKeryk]

That's the automaker's problem controlling cost vs quality and quantity. If it costs too much relative to their product and market segment, it doesn't matter how much they sell, it's not profitable enough.

VWAG might as well drop the VW, Skoda and SEAT brands and focus on Audi, Bentley and Lambo, if they can't be profitable on the mainstream brands.

It sounds as though you and VW are in synch, at least somewhat. I'm sure a lot of loyal customers will be disappointed.

 

[KCJeep]

Passat, Jetta, Golf.... I assume when this is all over, we'll only have one of those remaining in the US market?

Golf was already cut, this is the Passat's last year the high volume / high value Jetta remains going forward.

I was at my VW dealer yesterday for an oil change, they are small but the lot is normally jammed. They had less than 20% of normal stock, mostly Atlas' that were spread way out to try to make it look like they had something. Those were complimented by maybe 5 Tiguans and 1 Jetta, that was it. I'll be glad when this gets sorted out.

 

[BMWTurboDzl]

So you are OK with our health (prescription drugs) being outsourced to our most dangerous adversary (which isn't Russia despite what we're told by those becoming rich sucking up to the Chicoms.) Do you find it hypocritical that people like Lebron James constantly knock America for 200 year old sins while sucking up to the Chicoms (who still use slave labor) ? The same can be said for NIKE, Apple etc (all hypocrites)...

What do you do for a living BMW? You talk like somebody who is immune from GLOBALISM which is hurting the middle class but making our elites even richer.
PS: I agree that our adversaries are studying Physics, Chemistry etc...while our kids are 'learning' sociology, psychology and other useless nonsense.

PS: I finance my 'spending habits'....it's our politicians who needs to control their SPENDING HABITS....which they are using to buy their POWER...

Typically trade between countries begets peace, but there always are parties on both sides who look to the state to provide them with an advantage over the competition (ie. regulatory burdens, technology transfer schemes, tariffs, etc). People by in large do NOT enjoy competition. Whether that be competition on the individual level in the form of cheaper wages (i.e. individual willing to accept less pay) or at the market level. They always look for an advantage at the expense of others.

I've been in banking/mortgage finance for over 25 years. Firmly middle class. Things would be vastly different if I had 2 kids but tbh that would have been irresponsible of me. My industry is swiftly moving towards automation and I imagine I'm on the last wave.

Years ago a cousin of mine made an interesting observation. He owns a small engineering firm in Stanford Calif. He said he could hire electrical engineers in China for something like 1/20th the price in the US. He hasn't done it out of IP concerns.

PS. What I'm talking about the USD hegemony and the Petrodollar. There's a reason the majority of the oil traded around the world is priced in USD. Americans benefit from that.

 

[UG_Passat]

Does anyone remember the success of the VW Phaeton?

 

[Wrenchturner44]

The Phaeton was a great vehicle with the W12. The car was more Audi than VW.....kind of like the CC and the Arteon that replaced it.

 

[UG_Passat]

The Phaeton was a great vehicle with the W12. The car was more Audi than VW.....kind of like the CC and the Arteon that replaced it.

The Audi A8 had the aluminum spaceframe, which the VW did not.

But the CC and Arteon that replaced it in the US glorified Passats, and not the A4-platform Passat, the Golf-based Passat

 

[edyvw]

VW will never axe Skoda. Skoda is best performing VW brand.
What they will do is streamline production as they have numerous models across the world that are not sold in Usa And Europe. So Golf might be only vehicle in hatchback category etc.

 

[BMWTurboDzl]

Does anyone remember the success of the VW Phaeton?

Bentley with a VW badge.

 

[joekingcorvette]

It's a competitive world out there in the new car auto industry. There are a lot of manufacture's and only so many buyers. This could be the death of VW. If you ever need parts on these new vehicles it gets expensive. This is a very bold move and could be devastating to the company especially with all the changes such as electric, gas and hybrid. There are lots of choices and I prefer to buy something reliable and mass produced instead of being a guinea pig on a new model especially a luxury vehicle. Once that warranty is out it's game over.

 

[KCJeep]

I bet in 5 years or so VW is the big boy on the block for EVs, not Tesla.

 

[JeffKeryk]

"Wait till the big boys get in..."

 

[TiGeo]

Remember VW's upmarket strategy in 2000-2010? It didn't work, so they went downmarket to get more sales.

"Profitable"... if people don't buy, you don't profit, especially when you work in higher profit margins.

Does this means VW Auto Group will SEAT and Skoda the axe???

My W8 Passat is a shining example of that era.

 

[TiGeo]

Focused on quality eh? does this mean VW plastics will become durable?

When's the last time you owned or drove a current gen VW? This isn't 2000...

 

[The Critic]

What do you do for a living BMW? You talk like somebody who is immune from GLOBALISM which is hurting the middle class but making our elites even richer.
PS: I agree that our adversaries are studying Physics, Chemistry etc...while our kids are 'learning' sociology, psychology and other useless nonsense.

As they say: focus on the things that are actively within your control. Those are the levers that will impact your personal success.

Worrying about geopolitical issues and using them as excuses for your own issues will not help your personal situation.