An auto company that plans to compete with, well, all other transitioning automakers to mobility companies. Click to Enlarge.
Volkswagen says it has now earmarked around €16 billion for investment in the future trends of e-mobility, hybridization and digitalization in a strategy that goes up to 2025. To be able to finance the sizable future investments required, it gave a presentation last week using a lot of EV hype. This was clearly designed to assure the financial markets. VW said it will systematically work on increasing its efficiency with ACCELERATE – its latest reorganization.* The targeted operating margin of at least 6% is expected to be achieved by 2023 and will be secured long term. Time and financial results will tell.
VW says it is becoming more resilient to fluctuations in the market that have pummeled it for the past couple of years. To achieve this, Volkswagen is seeking to trim its fixed costs by 5% before 2023, increase factory productivity by 5% per year, optimize material costs by 7% and bring all regions into the black in the long term. In South America and the United States, Volkswagen is trying to break even in the current fiscal year. The company says it can now post a profit in North America with a decrease in sales volumes of around 15% and in South America with sales volumes down by as much as 30%.
Its latest strategy says that ‘by turning the vehicle into a software-based product, Volkswagen is setting the scene for new, data-based business models aimed at lowering entry barriers to individual mobility while offering very attractive service packages for the customers. Volkswagen thus aims to generate additional revenue over the service life of the vehicle through charging and energy services, through software-based functions that customers can reserve as needed, or through automated driving.” Continue reading →
Census Survey – Stimulus Payments Eased Financial Suffering
Vote Democratic to decrease working people suffering and end welfare for the rich?
By now the unnecessarily severe negative effects are well-documented from the previous Administration’s denials that Covid was a threat to public health and the American economy. Americans are about to receive a third round of stimulus checks through the new American Rescue Plan Act that the Biden Administration pushed past the do-nothing Republican congressional non-representatives of the people – none of them voted for it – in spite of overwhelming public approval polling ranging from 60% to 85% of the items therein.
Data from the US Census Bureau clearly support the need and positive effects of stimulus payments, unlike the failed Republican tax cuts for the rich that did not result in increased investments in the US economy because the off-shore holdings were largely fictional tax dodges not real investments in overseas businesses. There were no large amounts of capital that would return home and be invested in the US economy, although plenty of rich people including foreigners supped at the welfare for the rich GOP table. Continue reading →