+++ AUDI stabilized its financial performance in the second quarter of 2024. At the same time, the car manufacturer is putting numerous new models on the road. Following the world premiere of the A5, the second all-electric model on the Premium Platform Electric (PPE), the A6 e-Tron, will follow at the end of July. At the same time, Audi is working intensively on achieving its economic targets with the Performance Program 14. Revenue amounted to €30.9 billion in the first half of the year; down 9.5 percent on the strong prior-year figure. Operating profit amounted to €2.0 billion. The operating margin reached 6.4 percent and net cash flow €1.1 billion. The Brand Group Progressive (apart from Audi, also Bentley and Lamborghini) delivered 843.991 vehicles in the first 6 months (-8.2 percent). The share of electric vehicles (BEV) developed positively, with 76.657 models delivered (+ 1.3 percent). “Audi is working resolutely on its financial performance”, says CFO Jürgen Rittersberger. “We are in a year of transition. We improved in the second quarter but still have a challenging road ahead. With our Performance Program 14, we are increasing our efficiency and consistently tapping into cost and revenue potential. At the same time, our company is launching numerous new models”. The Audi brand increased its deliveries in the second quarter by 10 percent compared with the first quarter of 2024, particularly in the all-electric models (+15 percent). In total, deliveries in the first half of the year amounted to 832.957 vehicles, which corresponds to a decline of 8.2 percent compared to the same period last year. Reasons for this included the prevailing supply bottlenecks and various model changes, which are gradually affecting volumes. Demand for plug-in hybrids also grew significantly by around 61 percent year on year. The company anticipates a further increase in delivery figures for the second half of the year, also thanks to the new models. “With the world premiere of the Q6 e-Tron in spring, we have entered the spectacular phase of our model fireworks. With the new model families of the A5, which has just celebrated its premiere, and the A6 e-Tron, which we will present at the end of July, we are now taking the next step”, says CEO Gernot Döllner. “With over 20 launches in 2024 and 2025, we are expanding and rejuvenating our portfolio and positioning ourselves flexibly and robustly with all-electric models, plug-in hybrids, and a new, highly efficient generation of combustion-engine vehicles. We will also benefit from this in terms of deliveries and revenue”. In Europe, the Audi brand’s all-electric models are experiencing stable demand despite the reduction or cancellation of subsidy programs in numerous markets. With 48.332 electric cars handed over, deliveries were only 1.7 percent below the previous year’s figure. In total, the Audi brand handed over 343.575 vehicles to customers in the first half of the year, a decrease of 9.7 percent. Deliveries in the home market of Germany also fell to 102.511 vehicles delivered. Demand for ‘e’ models continues to rise in the USA. The Audi brand delivered 11.121 electric vehicles in the first half of the year; an increase of 10.2 percent compared to the same period last year. At 92.913 models, total deliveries were 14.2 percent below the same period last year. In China, the Audi brand remains robust. With 320.370 models delivered (-1.9 percent), the Audi brand remained almost at the previous year’s level despite tougher competition and a declining premium market. Compared to the first three months of the year, the brand group was able to stabilize its financial performance in the second quarter. Overall, however, the key figures for the first half of the year were below the partially strong figures for the same period last year. Revenue decreased by 9.5 percent to €30,939 million. EU taxonomy-aligned revenue fell by 0.9 percentage points to 14.0 percent year on year. In terms of operating profit, Audi achieved €1,982 (H1 2023: €3,417) million in the first 6 months of the year. The operating margin amounted to 6.4 (H1 2023: 10.0) percent. Audi’s financial results fell by 11.0 percent to €783 (H1 2023: €880) million. Audi’s business in China included in this figure amounted to €338 (H1 2023: €457) million at the end of the first half of the year. Audi’s profit after tax amounted to €2.154 (H1 2023: €3.262) million after the first 6 months of the year. At the end of the first half of the year, net cash flow amounted to €1.130 (H1 2023: €1,882) million. The 39.9 percent decrease in net cash flow compared to the first half of 2023 is primarily due to the lower result. For 2024 as a whole, Audi continues to expect revenue of between €63 billion and €68 billion. Audi is adjusting its forecast for the operating margin. This is now anticipated to be in the range of 6 to 8 percent for 2024. The reason for the adjustment are expected restructuring expenses, for example as a result of an alternative use or plant closure of the Brussels site. The Audi Group’s net cash flow forecast remains unchanged at €2.5 to €3.5 billion. +++
+++ BENTLEY announced its financial results for the first 6 months of 2024, with the luxury British brand posting an operating profit of €261 million. This compares to the same period in 2023 where the company reported an operating result of €390 million. Overall revenue for this 6-month period was €1.388 billion against the €1.681 billion figure reported for the first half of 2023. Return on sales reached 18.8 percent, from the 23.2 percent figure for the same period last year. Commenting on these results, Jan-Henrik Lafrentz, Member of the Board for Finance and IT, said: “Despite a challenging first half of 2024, our half-year results provide a platform to remain focused on delivering our key strategic initiatives and investment plans, including the transformation of our product portfolio to fully-electric in the years to come. We do remain cautious and anticipate continued difficult trading conditions in some key markets, however we are seeing a great deal of optimism for the recently launched Continental GT Speed and expect this to have a significant, positive impact on our order bank numbers later this year and early in 2025 as the car enters global markets”. Of the half-year deliveries of 5.476 cars, the Bentayga accounted for 41 percent of total sales, with Continental GT and GTC recording 34 percent and the Flying Spur making up the remaining 25 percent of sales. Global sales were 23 per cent lower on the same period in 2023, with the Americas remaining the company’s strongest market, followed by China and Europe. +++
+++ HONDA will reduce its annual car output capacity in China by 50.000 units amid struggling sales, an official said Thursday, its first such cut in the Asian nation that has served as the automaker’s largest production base. Honda has been capable of producing 1.49 million units per year in China. While planning to increase production of electric vehicles by 240.000 cars, the automaker will shed 290.000 units, mainly gasoline-powered cars, pushing down its overall output capacity of four-wheel vehicles. The Japanese carmaker will halt production at one plant each of GAC Honda Automobile and Dongfeng Honda Automobile, its joint ventures with local automakers, around October and November, respectively. The latest development underscores the plight of Japanese automakers in China where their sales are plummeting due to an intensifying price competition and the rise of locally made EVs. Nissan decided to close its passenger car factory in Jiangsu Province, sources familiar with the matter said in June, while Mitsubishi discontinued vehicle production in the country last year. The downtrend has repercussions beyond the auto industry. Nippon Steel Corp said earlier this week it will dissolve its joint venture with Chinese steelmaker Baoshan Iron & Steel to cut steel production in China amid slumping sales of Japanese cars there. China has been the biggest production hub for Honda, which has an output capacity of about 5 million units globally. The planned cut is part of its broader efforts to readjust its production capability in the Asian powerhouse, which also included offering early retirement packages in May to cut part of its workforce. The Japanese automaker is trying to turn the tide by focusing more resources on EVs while shrinking gasoline-powered car operations. +++
+++ LAMBORGHINI increased its deliveries to customers by 4.1 percent in the first half of the year with 5.558 cars (H1 2023: 5.341). Revenue reached €1.621 (H1 2023: 1.421) million; an increase of 14.1 percent. Operating profit amounted to €458 (H1 2023: €456) million, while the operating margin remained strong at 28.2 (H1 2023: 32.1) percent. +++
+++ NISSAN tumbled more than 10 percent on Thursday after the Japanese automaker issued a profit warning, citing “intense sales competition”, especially in the United States. The company and its domestic rivals are also struggling to stand their ground in China’s market as fast-growing electric vehicle firms backed by Beijing race ahead. Net profit in the first quarter plunged 73 percent year-on-year to 28.6 billion yen, Nissan said; far below analyst expectations of 97.1 billion yen. The auto giant now predicts a full-year net profit of 300 billion yen, down from 380 billion yen previously forecast. “Our first-quarter results were very challenging” and “we have implemented measures to recover our performance”, CEO Makoto Uchida said in a statement. “From the second half we aim to maximize sales of new and refreshed models to achieve the revised forecast of sales volume and profit”, he added. Although global sales remained even, “profit was impacted by increased sales incentives and marketing expenses to meet intense sales competition and optimize inventory”, particularly in the United States, Nissan said. The disappointing first-quarter earnings come after the company nearly doubled full-year net profit in 2023-24, partly thanks to the weak yen inflating its takings. On Thursday, Nissan shares tanked 11 percent right after the earnings release but recovered to close down 6.98 percent. In China, competition also “remained intense”, but Nissan performed well among international brands, chief financial officer Stephen Ma said. Uchida said in May that Nissan would work with Chinese firms to launch 5 new electric or hybrid vehicles in the country within the next 2 years, calling operating in the market there “a survival game”. Nissan recently ceased production at a factory west of Shanghai as part of efforts to cut production capacity. A company spokesman confirming the move said Nissan was “committed to China under the strategy of ‘in China, for China’ with a focus on NEV transformation, corporate value, and overall competitiveness in the Chinese market”. The plant in Changzhou was a joint venture with state-owned Chinese auto company Dongfeng Motor. It had an annual capacity of 130.000 vehicles (8 percent of Nissan and Dongfeng’s total capacity in China) and only opened in 2020, according to Japanese media. China overtook Japan as the world’s biggest vehicle exporter last year, helped by its global dominance in electric cars as firms such as BYD speed ahead of international rivals. +++
+++ India’s car market is on track to reach 20 million units by 2047, helped by promising growth in electric vehicles, SUZUKI executive vice president Kenichi Ayukawa said. First, the goal is for Maruti Suzuki India, the Japanese carmaker’s subsidiary, to grab 50% market share by 2030, from around 40% for the fiscal year through March. “We’re confident that the Indian market will expand in the mid to long term”, he said in an interview. The emergence of India as an economic powerhouse and its expanding middle class present a clear opportunity for the manufacturer based in Hamamatsu, Shizuoka Prefecture, which has been active in the South Asian nation since 1983 and has found success as the topselling automaker with models such as the Swift. In order to keep its lead, Suzuki plans to introduce its first-ever EV in India, as well as in Europe, next year after exhibiting its mass production model at the upcoming auto expo in India in January, according to Ayukawa. “We’ll develop products, invest and expand our network”, he said. A total of 4.2 million passenger vehicles were sold in India in the fiscal year ended March, according to the Society of Indian Automobile Manufacturers. To put that number (and Ayukawa’s prediction) in perspective, 3.1 million passenger cars were sold in the United States last year, while Europe saw 15 million in unit sales. China is the world’s largest automobile market with 26 million passenger vehicle sales, according to the International Organization of Motor Vehicle Manufacturers. Although Suzuki’s planned eVX model is a premium EV, the carmaker will also roll out more affordable and compact models with lighter batteries, according to Ayukawa. The automaker is targeting 15% of its sales in India to be EVs by 2030, he added. “India faces environmental issues, so I think EVs will grow to an extent”, he said. Although people are paying more for cars more than they used to, “India remains a price-conscious market”, he added. Even so, car buyers are starting to show greater appetite for crossovers and SUVs, according to Ayukawa. Competition is tougher in that segment because it’s a “strong area for Tata and Mahindra”, he said. Tata Motors, India’s third-biggest carmaker, has already taken the lead with fully electric variants of its popular Tiago and Nexon models, and expects its EV business to reach profitability by early 2026. Suzuki will focus on models that can be used for everyday needs, which will require development of new types of batteries, according to Ayukawa. In the future, Suzuki may embark on domestic production of cells in the next five to 10 years, he added. As for collaboration in India with Toyota, which forged a strategic partnership with Suzuki in 2019 through a stake of about 5%, Suzuki will likely focus on smaller cars while Toyota will take the lead on bigger models, Ayukawa said. Toyota’s technology will also bolster Suzuki’s product development, he added. “We will learn basic know-how from Toyota and gradually make it our own”, he said. Suzuki also sees potential in cars powered by compressed natural gas (CNG), which is cheaper than gasoline in India, according to Ayukawa. Maruti Suzuki sold 483.000 CNG cars in the latest fiscal period, up 47% from a year earlier. Although Suzuki plans to start operating four plants that convert methane from cow manure into fuel for cars that currently run on CNG, there are challenges ahead, such as monetizing the organic fertilizer that remains after manufacturing the fuel at a large scale, Ayukawa said. +++
+++ TESLA ’s second-quarter net income fell 45% compared with a year ago as the company’s global electric vehicle sales tumbled despite price cuts and low-interest financing. The Texas, company said Tuesday that it made $1.48 billion from April through June, less than the $2.7 billion it made in the same period of 2023. It was Tesla’s second-straight quarterly net income decline. Second quarter revenue rose 2% to $25.5 billion, beating Wall Street estimates of $24.54 billion, according to FactSet. Excluding one time items, Tesla made 52 cents per share, below analyst expectations of 61 cents. Earlier this month Tesla said it sold 443.956 vehicles from April through June, down 4.8% from 466.140 sold the same period a year ago. Although the sales were were better than the 436.000 that analysts had expected, they still were a sign of weakening demand for the company’s aging product line-up. For the first half of the year, Tesla has sold about 831.000 vehicles worldwide, far short of the more than 1.8 million for the full year that CEO Elon Musk has predicted. The company’s widely watched gross profit margin, the percentage of revenue it gets to keep after expenses, fell once again to 18%. A year ago it was 18.2%, and it peaked at 29.1% in the first quarter of 2022. Tesla said it posted record quarterly revenue “despite a difficult operating environment”, The company’s energy-storage business took in just over $3 billion in revenue, double the amount in the same period last year. +++
+++ The head of a major trade organization for the auto industry in the UNITED KINGDOM has said he hopes Japanese automakers will ramp up investment in their plants in the European country as their plans will have spillover effects to spur more outlay from suppliers. Mike Hawes, the chief executive of the Society of Motor Manufacturers and Traders, said in a recent interview with Kyodo News in Tokyo that it is a logical step for automakers to upgrade manufacturing facilities or increase capacity to stay competitive. Britain, a key export hub to the European Union, has seen its auto production falter in recent years. Its annual output volume has yet to rebound sharply after plunging to the lowest level in 66 years in 2022 due to chip shortages, supply disruptions created by the coronavirus pandemic and the closure of Honda’s plant. 2 Japanese carmakers, Nissan and Toyota, remain among the top-4 largest auto producers in Britain, even as Honda closed its factory in Swindon in 2021 to pull out of local production. Sales of Japanese car brands account for about 15 percent of the overall British market. “They are very good plants. Very competitive plants”, Hawes said of manufacturing facilities at Nissan and Toyota. “But the challenge for any plant is to constantly improve your competitiveness”. Britain has been stepping up efforts to cut carbon emissions in recent years and is now planning to make all new vehicles zero-emission by 2035. But new prime minister Keir Starmer’s Labour Party, which won a landslide victory in the general election in early July, has vowed to bring forward the schedule to 2030, the date originally set before former prime minister Rishi Sunak postponed it by 5 years last year. In response to the government policy, Nissan said last November that it will spend up to 2 billion pounds ($2.5 billion) to increase EV production capacity at its Sunderland plant. Hawes said in the interview conducted before the election that he hopes the investment plan will attract other Japanese companies, including auto parts makers, to help build stronger supply chains in the country. But, Stellantis, the owner of the Opel / Vauxhall, Peugeot and Citroen brands, reportedly said that its plants in Ellesmere Port and Luton could close unless market demand for electric vehicles picks up and the British government’s EV sales quotas are loosened. Regarding the European Union’s recent decision to impose provisional tariffs on EVs built in China, the chief executive said he will closely monitor the potential impact on the British market. +++
+++ In the UNITED STATES , investors are punishing automakers’ stocks this week after second-quarter earnings reports exposed industrywide issues of slowing sales and high prices, just as the companies are having to spend huge sums to make new electric and gas vehicles. Each auto company has unique problems, but common to many are growing vehicle stockpiles on dealer lots, requiring increased discounts to sell them to buyers with stressed-out household budgets. Ford, which reported a drop in second-quarter earnings due electric-vehicle losses and persistently high warranty costs, led the declines. Its shares have fallen 20% this week. But others such as General Motors, Tesla, Stellantis and Nissan, all saw their shares drop about 8% or even more. Carlos Tavares, CEO of Jeep and Ram maker Stellantis, said a significant auto-industry storm he’s been warning about for several years has arrived. “We are in it,” he told reporters after releasing disappointing earnings Thursday. “For me, it’s a no brainer that this industry is going to be in turmoil”. Shortly after the coronavirus pandemic spread worldwide in 2020, automakers had to slow their factories due to a global shortage of computer chips. At the time, high-income buyers who couldn’t spend money on travel or restaurants started paying above sticker prices for a limited supply of pricey loaded-out vehicles. Automakers used their limited production to build only expensive stuff, and prices soared nearly 27% from pre-pandemic levels. The trend continued into late last year, with companies and dealerships making big profits with lower-than-normal sales. But as chip supplies returned, automakers ramped up production, and inventory on U.S. dealer lots grew to around 1.8 million a year ago. Now it’s just under 3 million, high but still a million short of pre-pandemic numbers. The problem for the industry is that it kept building expensive vehicles loaded with options, while most high-income buyers had already bought new vehicles. The remaining buyers now can’t afford much of what dealers have in stock because of high prices and interest rates. Now the big profits from pricey cross-overs and SUVs that paid to develop and build electric vehicles are starting to wane. “It’s kind of ridiculous that anyone would have been surprised that this party was going to come to an end”, said Sam Abuelsamid, principal mobility analyst for Guidehouse Insights. “There are only so many people that can afford vehicles this expensive, especially when interest rates have remained as high as they have for so long”. The average price of a new vehicle in the U.S. peaked in December at $48.408. It dropped a little to $47.616 last month. Discounts, which were minimal or non-existent for the past few years, rose to an average of $1.819 per vehicle in June. As the Federal Reserve raised interest rates, the average new auto loan rate jumped from a low of 4.1% in December of 2021 to 7.3% last month. That boosted the average monthly payment to $739 per month, with an average borrowing term of nearly 6 years. The average price of used vehicles soared more than 50% from before the pandemic to a peak of $31.095 in April of 2022. It has subsided to $27.277 in June as new vehicle prices started to fall. Stellantis’ earnings were crimped by a poor performance in North America. Tavares said the company’s prices are too high, causing potential buyers to leave showrooms without hearing about low-interest financing and other discounts. “Our customers are telling us that they need more affordability”, he said. Such demands have put Stellantis in a squeeze between offering lower prices, and inflationary pressures on the business, Tavares said. Stellantis, he said, must reduce costs to preserve profit margins at lower prices; something that all automakers are now facing. “We need appealing products, high-quality products at a competitive cost that protects the affordability that makes the customers buy our products”, Tavares said. Tavares predicted that the industry storm could last several years, and it could cause some automakers to fail. Automakers, especially General Motors, Ford and Stellantis, abandoned lower-cost small and even midsize cars starting 5 or 6 years ago, leaving them little to sell to those who want affordable vehicles, Abuelsamid said. Some, like GM, still offer affordable smaller SUVs. But those without affordable vehicles now are likely to struggle more than their competitors, he said. Industry analysts expect more discounts from automakers and possible interest rate cuts from the U.S. Federal Reserve later this year and into next year. So for those who can, it might be wise to wait before buying a new or used vehicle, said Eric Lyman, vice president of products for Black Book, which tracks auto prices. “Savvy buyers would be wise to pause their pursuit of a vehicle purchase until we see some more declines in both the used and new vehicle pricing, as well as the interest rate declines that everybody is expecting, to address the affordability crisis that we’re in”, Lyman said. +++
+++ When VOLKSWAGEN last month invested $5 billion in U.S. electric pick-up and SUV maker Rivian, the start-up’s shares soared on the cash infusion. And Volkswagen’s stock dropped 1.6%. Some analysts praised the creation of a Volkswagen-Rivian joint venture to help the German giant with software. But the investment raised cost concerns and reinforced how Volkswagen’s problems in critical areas undermined its global EV transition. The world’s second-largest automaker faces a vexing landscape of challenges in Europe, the U.S. and especially China, where domestic EV makers led by BYD are swiping its market share. It has lost more stock value than any major competitor over the past 2 years. By 2030, Volkswagen plans more than 30 new electric or hybrid models in China and hopes to boost sales to about 4 million from about 3 million today, lifting its market share to 15%. But in the near term, Volkswagen CFO Arno Antlitz said the company expects to continue losing China market share and hopes to merely maintain its position in Europe. Volkswagen’s troubles in China underscore bleak prospects for foreign automakers in the country, where homegrown EV-makers are dominating the world’s fastest electric-vehicle transition with high-tech, low-cost models. Volkswagen is particularly vulnerable because China accounts for about a third of its sales. That leaves Volkswagen’s much-smaller U.S. operation shouldering its biggest growth ambitions: The carmaker plans to more than double its U.S. market share to 10% by 2030. About a dozen investors and analysts interviewed expressed scepticism that the automaker has found the formula to achieve a sales boom. Volkswagen, they said, lacks a distinctive U.S. brand identity or breakthrough product plans in a crowded market that favours larger vehicles and has proven resistant to EVs. One upside: VW won’t have to compete with Chinese EVs in the U.S., which in May levied 100% tariffs on them. Antlitz said in February that Volkswagen has launched initiatives to boost its competitiveness in China over the next 2 years. “Until then”, he said, “we do not expect rising market share, rather the opposite”. In a written response to questions last week, a Volkswagen spokesperson added that the automaker expects to achieve cost parity with local competitors for compact cars by 2026, and aims to remain the largest international carmaker in China and third-largest overall. “Profitability is our top priority”, the spokesperson said. “We will not grow at any price”. Volkswagen’s China share dropped from 19% in 2019 to 14.5% last year. It has notched modest sales growth in the U.S. but will need to supercharge that to meet its market-share target. The Rivian tie-up is part of that U.S. strategy but won’t result in any new models to boost sales. The 50-50 venture will, instead, develop software and other technology for both automakers. Still, Volkswagen said it hopes products made with technology the venture produces will attract new customers. Rivian declined to comment on how it could influence Volkswagen’s sales. Volkswagen said it is planning more than 30 battery-electric models for the U.S. market, without providing details. What’s known is that Volkswagen will launch 2 electric models (a pick-up and a SUV) in late 2026 under the Scout nameplate, a historic American off-road brand, to be built at a new $2 billion South Carolina factory with capacity for 200.000 units. Scout CEO Scott Keogh said the plant could expand to double that size but declined to say what output he expected by 2030. Continuing on the retro theme, Volkswagen will release an electric version of its iconic Microbus, called the ID. Buzz later this year. It also plans new gas-powered SUVs, Volkswagen’s U.S. chief Pablo di Si said in an April interview, and possibly new plug-in hybrids. “I know we have aggressive targets”, di Si said. “Our plans are very solid”. Investors will need convincing. Volkswagen faces entrenched competitors in hybrids (Toyota, Ford) and SUVs (GM, Ford, Toyota). EV demand is globally waning but especially in the U.S., where they accounted for 8% of all 2023 sales. Jeffrey Scharf, a former Volkswagen investor, who now owns Mercedes-Benz stock, called VW’s market-share goal “hopelessly optimistic”. “If they had something like full self-driving or some other unique feature before anyone else did, I’d see it”, he said. “But they don’t have a recognizable niche anymore”. Volkswagen’s predicament reflects an industry shake-up stemming from the breakneck pace of electric-vehicle development in China, where domestic brands have tapped government subsidies and the nation’s superior battery supply chains. EVs and hybrids represent about 40% of China’s new car sales, according to the China Passenger Car Association. Foreign brands’ China market share has fallen to 44% in the first four months of this year from 62% in 2019. VW has fared better than some: GM’s China sales slumped by more than half this year so far. Volkswagen is heavily spending to stop the bleeding. In April, it announced a $2.7 billion investment in an EV design-and-production hub in Anhui province. That followed a $700 million investment in Chinese EV maker Xpeng last December to develop EV platforms and software, along with 2 electric models by 2026. But for now, the automaker must accept a diminished role in China’s EV market, six industry analysts said. Volkswagen also faces challenges in hitting its U.S. market-share target. Investors and analysts said Volkswagen needs to make products that spark the kind of enthusiasm as its historic successes, from the Beetle to the Microbus to the Golf. VW’s current SUV line-up, including the full-sized Atlas, is tailored to American tastes, but the company’s badge is not quite premium nor economy, said Roger Norberg, director of equity research at Thrivent Financial, a VW investor, who called the automaker’s market-share target “wishful thinking”. Keogh said Scout will deliver larger vehicles that appeal to U.S. buyers seeking a car with an American feel. “To make growth happen, you have to go into these new segments”, Keogh said. Still, investors highlighted that all-electric trucks and SUVs have attracted relatively few sales despite high-profile offerings from Ford, GM, Tesla and Rivian. Both the Scouts will start at $50.000 to $60.000, Keogh said. VW declined to comment on the pricing of the ID. Buzz. U.S. chief di Si said new SUVs will be “critical in terms of volume, share and profit”, but did not provide product details or clarity on where the company sees room for a new volume-seller. Volkswagen already offers small, medium and large SUVs. Its larger Atlas has boosted the carmaker’s SUV sales in the U.S., which rose 23% in the second quarter. Volkswagen is still wavering on plug-in hybrids. Executives once lauded hybrids as a bridge to fully electric cars but shifted to prioritize EVs after VW’s 2015 diesel-emissions scandal. Now, automakers that stuck with hybrids, including Toyota and Ford, are seeing their sales jump. “Investing money in hybrid versions of selected models would be better spent than in Scout”, said Moritz Kronenberger, portfolio manager at VW shareholder Union Investment. “I have yet to find anyone who yells ‘Hooray!’ about the plans for Scout”. +++