Skip to main content
Sister Publication Links
  • Automotive News
  • Automobilwoche
  • Automotive News Canada
  • Automotive News China
Subscribe
  • Subscribe
  • Newsletters
  • Login
  • HOME
    • Latest news
    • Automakers
    • Suppliers
    • New Product
    • Environment/Emissions
    • Sales By Market
    • On The Move
    • Auto Shows
    • VW, BMW, others plot Europe network expansion with charging venture
      Electric-only Volvo C40 to challenge Tesla Model 3, VW ID3
      view gallery
      11 photos
      Volvo C40 Recharge
      JLR axed electric Land Rover, Jaguar on MLA platform to focus on better tech
    • JLR axed electric Land Rover, Jaguar on MLA platform to focus on better tech
      Hyundai counts on Bayon's 'distinctive' design to make small SUV stand out
      Harrison named Toyota Europe CEO, succeeding van Zyl
      Mercedes misses fuel economy targets in U.S., China
    • Sogefi appoints new CEO, virus weighs on 2020 results
      3BIDEN-MAIN_i.jpg
      Biden to press for $37 billion to boost chip output amid shortage
      Continental grille web.jpg
      Continental invests in object recognition startup
      1OUSTER-MAIN_i.jpg
      Why lidar suppliers may run into obstacles
    • Electric-only Volvo C40 to challenge Tesla Model 3, VW ID3
      view gallery
      11 photos
      Volvo C40 Recharge
      Hyundai counts on Bayon's 'distinctive' design to make small SUV stand out
      view gallery
      11 photos
      Hyundai Bayon
    • Valeo joins Bosch, GM, others in pledge for carbon neutrality
      GMEVBarra-MAIN_i.jpg
      GM aims to stop selling gasoline vehicles by 2035 in carbon neutrality pledge
      VW will appeal $20M Spanish diesel compensation ruling
      Death of diesel looms as automakers accelerate to electric future
    • French sales fell 21% in February as COVID slump continues
      Russia sales fall 4% in January as rebound stalls
      3CARNIVAL-MAIN_i.jpg
      Why European auto sales may not rebound
      Europe sales plunge 26% in January amid COVID lockdowns
    • Audi appoints former Porsche exec as finance chief
      Sogefi appoints new CEO, virus weighs on 2020 results
      Audi's new chief engineer will accelerate EV push
      Suzuki chairman will retire after longest reign in auto industry
    • Geneva Auto Show
    • Frankfurt Auto Show
    • Paris Auto Show
    • Beijing Auto Show
    • Shanghai Auto Show
  • Features
    • Long Read
    • Interview of the Month
    • Focus on Electrification
    • Focus on Mobility
    • Segment Analysis
    • Latest Launches
    • Supplier Spotlight
    • Europe By The Numbers
    • Apple, Nio, other auto newcomers get creative to avoid Tesla's 'production hell'
      How Amazon, Google are transforming the auto industry
      EV-only future looks closer than ever in Europe
      European car retailing poised for shake-up as 'agency' model gains support
    • Renault CEO bets on 'winning horses' for turnaround
      Nvidia CEO says software will soon define the car, drive profit
      Tavares: Keeping PSA, FCA merger on track an 'incredible' achievement
      Renault CEO outlines ambitious revival plan
    • JLR axed electric Land Rover, Jaguar on MLA platform to focus on better tech
      Mercedes misses fuel economy targets in U.S., China
      Volvo to be electric-only brand by 2030; EVs will be sold exclusively online
      JLR seeks partner for Jaguar EV platform
    • Skoda connectivity features need to offer more 'must-have' allure
      Luminar-MAIN_i.jpg
      Who's who in the lidar world
      A 'genius idea' gets a second chance in Renault's mobility strategy
      Volvo sets tough goal for car subscriptions arm
    • EVs, surging SUVs to hit Europe's biggest segment
      Wagons hold market share, but costly EV shift looms
      Electrification gains speed in Europe's key compact segment
      Hybrids beat the market; sales expected to top 1 million in 2022
    • Hyundai counts on Bayon's 'distinctive' design to make small SUV stand out
      Mercedes positions C-Class as sportier S-Class
      Nissan Qashqai gets better handling thanks to new platform
      ARTURA-MAIN_i.jpg
      McLaren embarks on deeper electrified future with Artura
    • How GKN is transforming to gain from e-powertrain shift
      Marelli CEO expects e-powertrains to provide long-term boost
      Veoneer boss expects to reach key milestone this quarter
      How Faurecia aims to become a hydrogen leader
    • Europe sales by model, January: Porsche, Lamborghini, Volvo defy down market; Toyota Yaris No. 1-seller for the month, VW Golf finishes 4th
      Top 10 sellers by market, January: Skoda Octavia finishes No. 1 or No. 2 in eight markets
      Russia sales fall 4% in January as rebound stalls
      Turkey sales, January: Ford, Opel, Fiat, Mercedes rise sharply
  • Opinion
    • Blogs
    • Commentary
    • Guest columnists
    • Jaguar Land Rover Gerry McGovern
      Gerry McGovern is right man to steer Jaguar reinvention
      A 'genius idea' gets a second chance in Renault's mobility strategy
      Skoda connectivity features need to offer more 'must-have' allure
      Will an all-electric Jaguar be sold off?
    • Understanding the impact of design on marketing, brand and user experience
      Ex-Aston Martin CEO Palmer calls on UK to intensify battery commitment
      Why Apple must target the $230B luxury car market
      Apple car: Who will build it? Magna Steyr possible candidate
  • Photos
    • Photo Galleries
    • Geneva Photo Gallery
    • Beijing Photo Gallery
    • Frankfurt Photo Gallery
    • Paris Photo Gallery
    • Shanghai Photo Gallery
    • view gallery
      11 photos
      Volvo C40 Recharge
      view gallery
      11 photos
      Hyundai Bayon
      view gallery
      9 photos
      Honda HR-V Hybrid
      view gallery
      13 photos
      Mercedes-Benz C-Class (2021)
    • koenigsegg-gemera-front-quarter-passenger-01.jpg
      view gallery
      14 photos
      Koenigsegg Gemera
      view gallery
      21 photos
      Fiat New 500
      view gallery
      11 photos
      Aston Martin V12 Speedster
      view gallery
      13 photos
      Audi A3 Sportback 2020
    • At the Beijing show, sales rebound and EV boom mix with murky outlook
      3BEIJING-MAIN_i.jpg
      Beijing show to highlight competition for local EV makers
      Beijing auto show delayed due to coronavirus
      Maserati will unveil Ghibli hybrid at Beijing show
    • view gallery
      11 photos
      Mercedes-Benz Vision EQS
      view gallery
      11 photos
      Renault Captur
      view gallery
      5 photos
      Mercedes-Benz AMG GLB 53
      view gallery
      10 photos
      Mercedes-AMG GLE 53 Coupe
    • view gallery
      8 photos
      VinFast Lux SA2.0 SUV
      view gallery
      8 photos
      VinFast Lux A2.0 sedan
      view gallery
      9 photos
      Seat Tarraco
      view gallery
      7 photos
      Toyota Corolla station wagon
    • view gallery
      4 photos
      Nio ET Preview
      view gallery
      7 photos
      Infiniti Qs Inspiration concept
      view gallery
      5 photos
      BMW 3-series LWB
      view gallery
      9 photos
      Mini Clubman
  • Podcasts
  • Car Cutaways
  • EVENTS
    • ANE Congress Conversations
    • ANE Shift
    • ANE Rising Stars
    • ANE Eurostars
    • ANE Leading Women
    • Watch Again
      • July 9: EU green deal in the COVID-19 new normal
      • July 16: Assisted or Autonomous Driving
      • July 23: Challenges in Electrification
      • July 30: The Road Ahead for Europe
    • Meet the 2020 winners
    • Watch the 2020 Rising Stars awards again
  • More
    • Publishing Partners
    • Social Media
    • Contact Us
    • Media Kit
    • About Us
    • Capgemini: Securing the industry's future through a radical rethink
    • Capgemini: Succeeding with the automated driving journey through AI
    • Toyota Europe
    • UFI Filters
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter
MENU
Breadcrumb
  1. Home
  2. Automakers
April 17, 2020 01:37 PM

VW may miss 2020 China fuel-use target, exec says

Christiaan Hetzner
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    VW is counting on the 2021 launch of ID3 battery-electric hatchback in China to help the automaker reach its emissions targets in the country next year.

    Volkswagen Group China may miss its 2020 fuel consumption targets in the world's largest market, forcing it to purchase emissions credits from other automakers, a senior executive said Friday.

    Stephan Woellenstein, the manufacturer’s operations chief for the country, said that even though the automaker expects to more than double sales of so-called New Energy Vehicles (NEVs) such as plug-in hybrids, it cannot guarantee it will meet its mandated requirements.

    “We are still in our fine-tuning at present to see whether we will be self-compliant this year in terms of our fuel consumption targets or need to compensate with the help of partners given our reduced volumes in the first quarter,” he said in a call with reporters.

    Woellenstein, however, is confident VW Group will comply with China's fuel-use targets next year, which is when the company will debut its family of full-electric vehicles underpinned by its MEB architecture. The SAIC Volkswagen joint venture will make EVs in Anting while the FAW-VW partnership will make them in Foshan.

    Much like Europe, China has an ambitious weight-based fleet target for 2020 that corresponds to an average fuel consumption target of 5 liters of gasoline per 100 kilometers based on the New European Driving Cycle (NEDC). The target drops to 4 liters per 100 km in 2025.

    In addition, automakers in China need to reach an NEV quota based on points awarded for the electric range of a vehicle. For example, Volkswagen Group China sold 4.23 million vehicles in 2019 and needed to achieve 423,000 credits to fulfill that year’s 10 percent point quota, either by a minimum of 212,500 plug-in hybrids that are awarded two points each or 85,000 long-range EVs that qualify for five or some mixture in between.

    Failure to meet either target means credits have to be transferred, either through affiliated companies or by paying to achieve compliance with the help of other companies that have a surplus of credits.

    Originally Volkswagen Group China aimed to sell more than 400,000 NEVs in China this year.

    “In Europe we are fighting to get the [ID3 compact hatchback and ID4 crossover] on the street without any glitches, and, to a degree, we [VW Group China] are affected by this, but we are on schedule when it comes to ramping up our factories in Anting and Foshan,” he said.

    Huge declines

    When asked about the status of the Chinese market, Woellenstein said he expects the country's vehicle sales decline to be 15 percent to 20 percent in April and return to last year’s level potentially by June.

    This is an improvement over the 80 percent decrease in China sales in February and last month's 40 percent drop.

    VW Group outperformed the market in the first quarter with sales down 35 percent to 613,900 vehicles compared with an overall decline of more than 40 percent during the three-month period.

    “We are seeing a strong return from customers,” he said. “There’s pent up demand in many cases from first-time car buyers looking to avoid the use of public transit.”

    Additional impetus in the second half could come from an economic stimulus program expected to be announced during the National People’s Congress that could take place in mid-May.

    Also on Friday, China reported that first-quarter economic output fell 6.8 percent, the first contraction since quarterly GDP records starting being kept in 1992. It is believed to be the worst decline since the country introduced market-style reforms under Deng Xioping in the late 1970s.

    Despite the overall market's woes, Woellenstein said 32 of the automaker’s 33 assembly sites were running again at a utilization rate of 70 percent to 80 percent. Some plants are even back to a three-shift operation, he added.

    The executive also shared good news regarding the overall health of the automaker's workforce. “Over the past four to five weeks during our journey back toward normality we have not seen one positive case of Covid-19 among our 103,000 employees,” he said.

    RECOMMENDED FOR YOU
    VW, BMW, others plot Europe network expansion with charging venture
    Recommended for You
    VW, BMW, others plot Europe network expansion with charging venture
    VW, BMW, others plot Europe network expansion with charging venture
    Electric-only Volvo C40 to challenge Tesla Model 3, VW ID3
    Electric-only Volvo C40 to challenge Tesla Model 3, VW ID3
    JLR axed electric Land Rover, Jaguar on MLA platform to focus on better tech
    JLR axed electric Land Rover, Jaguar on MLA platform to focus on better tech
    Succeeding with the automated driving journey through AI
    Sponsored Content: Succeeding with the automated driving journey through AI
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up and get the best of Automotive News Europe delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    SUBSCRIBE TODAY

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    SUBSCRIBE NOW
    Connect with Us
    • Twitter
    • Facebook
    • LinkedIn
    • Instagram

    Founded in 1996, Automotive News Europe is the preferred information source for decision-makers and opinion leaders operating in Europe.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI  48207-2997
    Tel: +1 877-812-1584

    Email Us

    ISSN 2643-6590 (print)
    ISSN 2643-6604 (online)

     

    Resources
    • About us
    • Contact Us
    • 2020 Media Kit
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Awards
    • Rising Stars
    • Eurostars
    • Leading Women
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Europe
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • HOME
      • Latest news
      • Automakers
      • Suppliers
      • New Product
      • Environment/Emissions
      • Sales By Market
      • On The Move
      • Auto Shows
        • Geneva Auto Show
        • Frankfurt Auto Show
        • Paris Auto Show
        • Beijing Auto Show
        • Shanghai Auto Show
    • Features
      • Long Read
      • Interview of the Month
      • Focus on Electrification
      • Focus on Mobility
      • Segment Analysis
      • Latest Launches
      • Supplier Spotlight
      • Europe By The Numbers
    • Opinion
      • Blogs
      • Commentary
      • Guest columnists
    • Photos
      • Photo Galleries
      • Geneva Photo Gallery
      • Beijing Photo Gallery
      • Frankfurt Photo Gallery
      • Paris Photo Gallery
      • Shanghai Photo Gallery
    • Podcasts
    • Car Cutaways
    • EVENTS
      • ANE Congress Conversations
        • Watch Again
          • July 9: EU green deal in the COVID-19 new normal
          • July 16: Assisted or Autonomous Driving
          • July 23: Challenges in Electrification
          • July 30: The Road Ahead for Europe
      • ANE Shift
      • ANE Rising Stars
        • Meet the 2020 winners
        • Watch the 2020 Rising Stars awards again
      • ANE Eurostars
      • ANE Leading Women
    • More
      • Publishing Partners
        • Capgemini: Securing the industry's future through a radical rethink
        • Capgemini: Succeeding with the automated driving journey through AI
        • Toyota Europe
        • UFI Filters
      • Social Media
        • Facebook
        • Instagram
        • LinkedIn
        • Twitter
      • Contact Us
      • Media Kit
      • About Us