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 teases electric flagship showing a sleek four-door fastback
      Bentley appoints Skoda exec as sales chief
      Alfa Romeo names global leadership team to revive brand
      Honda unveils its new Level 3 tech, but how does it work?
    • Bentley appoints Skoda exec as sales chief
      Alfa Romeo names global leadership team to revive brand
      VW brand will accelerate electric vehicle shift
      Spain will use EU funds for EV battery plant with VW's Seat, Iberdrola
    • Opel Mokka 2020
      Stellantis battery JV seeks contracts with other automakers
      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
    • 6DEFENDER-MAIN_i.jpg
      Bigger Land Rover Defender confirmed by JLR
      Porsche adds Taycan electric wagon, stepping up Tesla challenge
      Toyota will stay in Europe's minicar segment while others electrify or leave
      Mercedes preps debut of EQE EV, a Tesla Model S rival
    • 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
    • UK sales plunge 36% in worst February since 1959
      Spain's February sales fell 38% in 'perfect storm'
      German sales plunge 19% in worst February since 2007
      Italy sales dropped 12% in February but incentives boosted demand from private buyers
    • Bentley appoints Skoda exec as sales chief
      Alfa Romeo names global leadership team to revive brand
      Toyota names new CEO for Europe
      Audi appoints former Porsche exec as finance chief
    • 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
    • VW teases electric flagship showing a sleek four-door fastback
      VW brand will accelerate electric vehicle shift
      Spain will use EU funds for EV battery plant with VW's Seat, Iberdrola
      Stellantis will increase pace of EV launches in Europe, U.S.
    • Honda unveils its new Level 3 tech, but how does it work?
      Honda to sell limited batch of Level 3 self-driving cars
      VW tests self-driving taxis in Germany ahead of 2025 launch
      A 'genius idea' gets a second chance in Renault's mobility strategy
    • EVs make huge gains helped by incentives, tougher CO2 rules
      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
    • Porsche adds Taycan electric wagon, stepping up Tesla challenge
      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
    • 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
      CORRECTED: Turkey sales, January: Ford, Kia, Opel, BMW rise
  • Opinion
    • Blogs
    • Commentary
    • Guest columnists
    • geely.jpg
      Why Geely wants to be a contract manufacturer
      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
    • 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
    • taycan_cross_1.jpg
      view gallery
      7 photos
      Porsche Taycan Cross Turismo
      view gallery
      11 photos
      Volvo C40 Recharge
      view gallery
      11 photos
      Hyundai Bayon
      view gallery
      9 photos
      Honda HR-V Hybrid
    • 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. Q&A
November 24, 2020 02:03 AM

VW's Diess talks electrification and the value of Tesla

Burkhard Riering
Automobilwoche
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    Bloomberg

    VW Group CEO Herbert Diess on Tesla's market value: "Tesla is not valued as a conventional automotive company."

    Volkswagen Group's future direction is clear to its CEO, Herbert Diess: The solution is electric mobility. With its program for full-electric cars in all the main market segments, VW aims to comply with increasingly tougher global CO2 emissions regulations and also make a contribution to a greener planet. Diess, 62, talked about this, changes in VW's top management and Tesla's stock market value in an interview with Automobilwoche, a German-language sister publication of Automotive News Europe.

    VW is moving toward battery-powered electromobility more resolutely than other long-established automakers. Why?

    You have to do it consistently if you want traffic to become CO2-free. If you don't develop combustion and electric vehicles on the same platform, the electric cars will be really good. That's why we decided to develop an independent e-platform.

    How many times a month do you doubt that this radical approach may not the right one?

    The last time I had doubts was 10 years ago. Since then, the goal and course have been clear. We want to become CO2-free and achieve our fleet emission reduction targets. The answer as to how to achieve this is clear.

    Could VW brand soon sell only electric cars in advanced countries and no longer offer combustion engines ?

    That's up to the customers and legislators. In various countries there are discussions about when only emissions-free vehicles will be allowed to be sold. Restrictions on the registration of combustion engines or even bans on this drive system will answer the question of what customers will be able to buy in the future.

    Why is VW still building plug-in hybrid cars if full-electric vehicles are the future?

    Plug-in hybrids are justified and are wrongly criticized so strongly. If you drive the new [plug-in] VW Tiguan, it can do 50 km to 60 km on elecric power. Many Tiguan customers drive 80 percent of their total driving distance with it. Modern plug-in hybrids are a good choice both economically and ecologically. The CO2 balance is nowhere near as negative as is occasionally shown.

    There are many countries where combustion engines will continue to be popular for decades. Will VW abandon these markets?

    No, we have very good combustion engines and hybrids. And in countries with low car usage, it makes sense to think electric right from the start.

    Does it still make sense to build up a network of filling stations there? Solar energy and electric mobility are much more obvious.

    The basic principle for the market strategy is that electromobility makes particularly good sense where CO2-free electricity is available.

    DAILY NEWSLETTER: Sign up and get the top news of the day in Europe every business weekday.

    How far do EVs need to be able to travel on a single charge to win over skeptics?

    There has been a range contest among car manufacturers in the past few years. That will become less important. What matters will be that what is offered is environmentally friendly. Batteries that are too large and heavy are not good for the CO2 balance. Something in between is right.

    You drove the VW ID3 battery-powered hatchback to Italy's Lake Garda for your summer vacation. How was that?

    We had a range of around 350 km (218 miles) and that suited us quite well.

    The ID family starts with the numbers 3 and 4. What will the nomenclature look like in the end? Will it be the equivalent of the existing platform, i.e. from A00 to L?

    The concept is to build fully electric versions for the main VW segments. The ID3 starts in the Golf segment, the ID4 corresponds to the Tiguan in terms of dimensions. In addition, a sedan will be added, and you know the ID-Buzz (electric minivan) study. There are still gaps in the nomenclature. We will find offer solutions.

    Would you say that VW has started on time with the ID family? Or is VW too late?

    The time is right. As long as electric mobility was in the niche with market shares below 1 percent, it made sense to only electrify existing platforms. We did that with the Golf and the electric version of the Citigo minicar. But now that volumes are coming into the markets, our own ID platform is the logical and best solution.

    The production start of ID3 in Zwickau, Germany, was not an easy one. According to information from Automobilwoche in September, VW had to deploy about 500 additional employees to rework vehicles. Is the production of an EV still profitable?

    Reworking is not the right word. We pre-produced vehicles in which we are now installing the software. That is true. We need employees for this. We are working extra shifts to meet the demand.

    How important is the market value of VW to you? Tesla is much smaller and has ten times the market capitalization of VW Group. Do you understand how stock markets can create this situation?

    I can understand it. Tesla is not valued as a conventional automotive company. Thanks to its high valuation, even ambitious expansion plans can be financed well via the market.

    How will you make VW's factories fit for the future? Some of them are more than 70 years old.

    We have many new, modern locations. Unlike other automakers, we are converting entire plants to build e-vehicles. We are consistently exploiting economies of scale. That's why EVs from four different group brands are starting up in Zwickau on the MEB platform.

    VW wanted to establish production in a big way in Turkey. That was not possible. Now, you say it will be Bratislava, Slovakia.

    Turkey is off the table. We decided to build up capacity in Bratislava. That means no cost disadvantage compared to Turkey. Also because of coronavirus, we have reassessed our capacity requirements and currently do not need an additional plant. But it remains a disadvantage that we cannot better tap into the Turkish market via a plant in Turkey.

    You are also heavily shaking up top management, which has caused unrest in the company. Why the restructuring?

    In the TMK division [the group's top management unit,] around 30 colleagues out of around 300 have recently changed positions. That is a comparatively small number. Changes are important to improve. This applies to the company as a whole and to the management. That is why targeted rotation is also part of management development.

    Personnel development seems to be your favorite topic.

    It is crucial that the right people take on responsibility in the right place. Business is people. At least 70 percent of success depends on having the right people in management.

    In a recent interview, you said that 80 percent of management restructuring has taken place, which means that 20 percent is still open. Who are the 20 percent?

    Since then we have have moved on and new appointments have been made.

    Last question: 2020 was a year that will go down in history. What has the coronavirus pandemic done to VW?

    We work in a focused and consistent manner and take advantage of our market opportunities. During the pandemic, we have been able to increase our global market share by 0.5 percentage points this year. Of course, we miss the personal contact with our colleagues at our locations and in our markets. I can only talk to many of our business partners on the phone or via video conferencing. That's not enough in the long run. Direct personal contact is important. So far, we have had only a few cases of coronavirus: 0.11 percent of the workforce is infected, in Germany the figure is 0.36 percent [as of mid-October]. I think we have managed this well.

    RECOMMENDED FOR YOU
    VW teases electric flagship showing a sleek four-door fastback
    Recommended for You
    VW teases electric flagship showing a sleek four-door fastback
    VW teases electric flagship showing a sleek four-door fastback
    Honda unveils its new Level 3 tech, but how does it work?
    Honda unveils its new Level 3 tech, but how does it work?
    Aston Martin boss Stroll has big plans for F1 team
    Aston Martin boss Stroll has big plans for F1 team
    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