Automotive News Canada - September 2023 - 15

* SEPTEMBER 2023
15
VW Canada is positively electric about EV rollout
The automaker plans to
introduce more than 25 new
models by 2030; most of the
cells will come from Canada
By GRACE MACALUSO
and GREG LAYSON
AUTOMOTIVE NEWS CANADA
VOLKSWAGEN IS ACCELERATING ITS
electrification plan, with Canada playing
a leading role in the automaker's bid to
build a global EV supply chain.
" It's going faster and faster - our decisions
[on] making our own batteries; getting
to own, source and
getting into mining, "
said Pierre Boutin, CEO
of VW Group Canada, on
the Aug. 25 " Automotive
News Canada Podcast. "
Volkswagen's initial
plan to spend Cdn $45 billion
on electrification
globally by 2024 is ahead
of schedule.
FILE PHOTO
" I can tell you today,
we're well above that figure, "
he said, noting that
Volkswagen's new global
electrification plan calls
for spending US $190 billion
(Cdn $258 billion)
over the next five years.
This year, VW chose
the southwestern Ontario
Increased production of the Volkswagen ID4 electric vehicle at the plant in
Chattanooga, Tenn., means that waiting times for buyers is dropping, said VW
Group Canada CEO Pierre Boutin. PHOTO: VOLKSWAGEN
Volkswagen Group plans to introduce
more than 25 new EV models
by 2030, and it said most of the cells
for those vehicles will come from St.
Thomas.
Boutin: VW
is ahead of
schedule with
its initial plan
to spend Cdn
$45 billion on
electrification
globally by
2024.
city of St. Thomas as the site of its first
North America battery-cell plant. The $7
billion facility, slated to open in 2027, is
expected to employ 3,000 people. It will
have six production blocks with a potential
production volume of up to 90 gigawatt-hours,
which is enough cells for
about one million EVs a year, the automaker
said.
" As we start learning more and
more about electrification of mobility,
our aim is to be net zero by 2050, " said
Boutin. " We're taking a lot of actions
for everything we do, not just the vehicles
we provide consumers. So that's
really important for us to continue
with our investments. "
Boutin spoke on a range of issues
facing the auto industry. The interview
has been edited for clarity and length.
HOW ARE SALES OF THE ELECTRIC ID4
MIDSIZE CROSSOVER?
We started the factory [in
Chattanooga, Tenn.] last fall. And
month after month, we're getting
more production, so more availability
of the vehicle. That means the waiting
time for consumers is shrinking.
Canadian supplier snaps
up three U.S. plants
The purchase is the
latest in a string of
deals under a new
leadership team
By DAVID KENNEDY
TORONTO BUREAU CHIEF
TORONTO-BASED ABC
Technologies Holdings Inc. is
expanding in the United States
with the acquisition of the automotive
arm of California's
Plastikon Industries.
The supplier said the US $130
million (Cdn $170 million) deal
will add three plants - one
each in California, Texas and
Kentucky - to its portfolio, as
well as bolster growth in the electric
vehicle segment.
The purchase represents a
" significant step forward " for
ABC Technologies, according to
company CEO Terry Campbell.
" It amplifies our position
as an industry leader in lightweighting
and plastic injection
molding, gives ABC a stronger
foothold in the EV space, and
most importantly, provides a
new set of employees with opportunities
to play larger roles in
molding the future of mobility, "
Campbell said in a release.
The buyout, announced Aug.
23, will add about 900 staff to
ABC Technologies' workforce,
which totals
about 10,000
people globally.
The
purCampbell:
The
acquisition
of
three
U.S. plants
gives ABC
Technologies,
based in
Toronto,
" a stronger
foothold
in the EV
space. "
FILE PHOTO
chase is the latest
in a string
of deals for
ABC, which
has been
retooling its
global footprint
for the past
year under a
new leadership
team.
The three
U.S. plants
will be collectively
known
as Plastikon
Automotive
following the
acquisition.
According to ABC Technologies,
the facilities generated about
US $280 million ($370 million) in
revenue in fiscal 2022 producing
vehicle assemblies, battery housings
and interior components for
automakers and Tier 1 suppliers.
The deal is expected to close
in the third quarter. - ANC
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The sales momentum has been very,
very strong. Today, only two-thirds of
our dealers are selling it. But by the
spring, we believe we'll have 100 per
cent of our dealers selling the ID4.
ARE WAIT TIMES FOR CONSUMERS
IMPROVING, OR IS IT STILL A HIT-AND-MISS?
It's a hit-and-miss, depending on
what consumers want. Electric vehicles
have some supply-chain
challenges, combustion
engines have supply-chain
challenges.
While the consistency
of production planning
is improving, the bigger
issue is logistics - bringing the cars to
dealerships and consumers. We're not
yet at the pre-COVID performance of
logistics.
WHERE DOES THE ID BUZZ FIT IN VW'S
PRODUCT PLAN, PARTICULARLY IN CANADA?
We're launching two new vehicles
next year: the ID7, which is a worldclass
sedan, and the ID Buzz [bus],
which is an icon for our brand. It represents
the essence of the DNA of the
Volkswagen brand. It's an extremely
important vehicle for us; we're not
looking at major volume. It's an ID
for people looking for more space for
longer trips. Also, we have a version
for North America with a wheelbase
that's 25 centimetres longer [than the
European version].
DO YOU THINK VOLKSWAGEN'S EXPERIENCE
WITH RELAUNCHING THE BEETLE MADE IT
EASIER TO REINTRODUCE THE ID BUZZ?
We have a history that we should be
proud of; we've touched so many families
around the world, so many stories.
Obviously it started with the Beetle
and this means a lot because you have
to demonstrate the emotional attachment
to our brand. And yes, we want to
continue to leverage this. I hope we're
going to see more of these historical
vehicles in our brand coming back.
And you will see this being 100 per
cent electric. That's a transition we're
doing.
HOW ARE VOLKSWAGEN AND ITS DEALERS
TACKLING HIGH INTEREST RATES?
We need to continue to be mastering
value in the vehicles we produce.
There's one thing that we've learned
during COVID-19: the extent to which
we were not efficient with our overall
inventory. So, we've learned to manage
with undersupply; we further invested
in digital retailing.
We have to do a much better job as
a manufacturer to control our production.
And I'll tell you, more is not better.
We must be a lot more efficient. We
need to have the right level of inventory
that benefits consumers, dealers and
manufacturers. - ANC
23_005625_Auto_News_Canada_SEP_CN Mod: August 8, 2023 3:21 PM
Print: 08/17/23 2:06:47 PM page 1 v7
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