Scout debuts EV / EREV (gas-powered range extender) SUV and Pickup

[Sedoy]

In addition to all that, don’t underestimate poorly thought-out policies trying to ban ICE vehicles by 20XX, forcing manufacturers to spend billions on EV R&D while increasing dependency on Chinese suppliers… Good job, Euro bureaucrats, a great way to kill one of the few industries you have left.

Originally Posted by gblansten

And a large drop in sales in the Chinese market. Also energy costs have hit them in Germany. It's a perfect storm of bad including their Audi and Porsche brands.

[ShocknAwe]

Would have been interested had they proposed an ICE. Looks nice. Otherwise nah.

[gblansten]

Originally Posted by Sedoy

Yep, in addition to all that, don’t underestimate poorly thought-out policies trying to ban ICE vehicles by 20XX, forcing manufacturers to spend billions on EV R&D while increasing dependency on Chinese suppliers… Good job, Euro bureaucrats, a great way to kill one of the few industries you have left.

It's a rough time to be VW.

[Efthreeoh]

Originally Posted by BlkGS

Big companies don't typically tighten their belts that way. If the shit hits the fan, thus just full stop things in an emergency move.

That said, I think a lot of what the issues at VW pertain to are high European labor costs, and a home market being flooded with Chinese product sold below cost to drive competition out of business.

Agree. That was my point. The idea here is Scout Motors is an independent startup owned by VW. Being a startup, it has no legacy costs, and it will standalone in the US market as a US subsidiary of VW AG. It just needs investment dollars from VW. The plant is $2B and the engineering and management labor another $1B so far (guessing). Not much for VW.

[gblansten]

Originally Posted by Efthreeoh

Agree. That was my point. The idea here is Scout Motors is an independent startup owned by VW. Being a startup, it has no legacy costs, and it will standalone in the US market as a US subsidiary of VW AG. It just needs investment dollars from VW. The plant is $2B and the engineering and management labor another $1B so far (guessing). Not much for VW.

VW has $215 billion dollars of debt to finance while their sales are shrinking.

https://companiesmarketcap.com/volkswagen/total-debt/

[Efthreeoh]

Originally Posted by gblansten

VW has $215 billion dollars of debt to finance while their sales are shrinking.

https://companiesmarketcap.com/volkswagen/total-debt/

Why not spend a few billion to expand a new market share in the US.

[BlkGS]

Originally Posted by Efthreeoh

Why not spend a few billion to expand a new market share in the US.

For reference, per that same site their market cap is only $50B. That means VW owes credits 5x more than they're worth.

One could argue that they're dramatically undervalued, but that's the numbers.

[Efthreeoh]

Originally Posted by BlkGS

For reference, per that same site their market cap is only $50B. That means VW owes credits 5x more than they're worth.

One could argue that they're dramatically undervalued, but that's the numbers.

Last number I saw yesterday VW 2023 revenue was $349B, up over $50B from 2022.

[gblansten]

https://www.ft.com/content/b5d916ad-...a-070c092861af

Volkswagen profit plunges 64% as China sales slide in 3rd quarter.

I think those China numbers are going to continue to erode permanently.

[Sedoy]

Well, apparently that wasn't enough becasue VW now wants to eliminate bonuses and cut wages by 10%...

https://www.carscoops.com/2024/10/vw...t-wages-by-10/

Originally Posted by Efthreeoh

Last number I saw yesterday VW 2023 revenue was $349B, up over $50B from 2022.

[Efthreeoh]

Originally Posted by Sedoy

Well, apparently that wasn't enough becasue VW now wants to eliminate bonuses and cut wages by 10%...

https://www.carscoops.com/2024/10/vw...t-wages-by-10/

Why not spend a few billion to expand a new market share in the US.

[BlkGS]

Originally Posted by Efthreeoh

Why not spend a few billion to expand a new market share in the US.

What if it doesn't make money like most EV offerings? What if it ties you up in court for 5 years as dealers get an injunction against you selling direct to consumer? Those are just the first two risks I see.

When things are financially rough, only the government decides to spend a whole bunch of money on off chance ideas. But they can get away with that because their shareholders (taxpayers) have no idea just how broke our government is or where their money comes from.