By on October 3, 2015

Der neue Volkswagen XL1/XL1 ? Drive Luzern nach Genf

Volkswagen has a very steep, very tough hill to climb, and Volkswagen’s incoming chairman said the emissions scandal that affects 11 million cars is “a threat to the firm’s viability albeit a surmountable one,” reports Reuters.

Dieter Pötsch, who will soon take the chairman spot at Volkswagen Group AG, described the challenges ahead as an “existence-threatening crisis for the company” during a corporate meeting with employees in Wolfsburg, Germany’s Welt am Sonntag reported.

In order to take on those challenges, Volkswagen needs to fund the repairs of some 11 million vehicles, meaning cuts may be made to the company’s 100 billion euro R&D investment budget that was expected to last until 2018.

A cut in R&D spending is seen as a way to avoid a downgrade of the company’s credit ratings, a source close to the company’s board told Reuters.

Since the diesel emissions saga erupted in mid-September, Volkswagen has seen top-level executives shuffled around the company and — in certain cases — removing executives from posts entirely.

Martin Winterkorn, Volkswagen AG’s former CEO, left his post last week — replaced by Porsche CEO Mattias Müller — amid the scandal. Winterkorn was briefly under investigation in Germany until prosecutors said they had no proof Winterkorn knew of the cheating emissions software.

In the United States, at least one of Volkswagen’s largest dealers is taking the brand’s cars off the front line of its lot, the brand is the only one to see transaction prices trend negative last month, and its daily sales rate is down significantly even though the brand saw an overall monthly sales uptick due to a favorable sales situation in September.

Get the latest TTAC e-Newsletter!

Recommended

67 Comments on “Volkswagen May Cut R&D Budget to Fend Off “Existence-Threatening Crisis”...”


  • avatar
    HerrKaLeun

    I guess they can lay of that R&D guy who writes all the cheating software. After all, he didn’t do a good job being evasive anyway.

    On the other hand they need to hire the guy who can design diesels that meet both emission and power/economy requirements without adding $4K to each car. finding that guy may be tough.

    Or they give up small car diesel R&D since, you know, it is kind of obvious all the emission requirements only really are worth to implement for larger vehicles (except in Europe where the government subsidizes diesel fuel, just to later complain about emissions while at the same time allow the loop-holed fuel/emission tests)

    Edit: let’s cut R&D first. No one would want to cut compensation or golden parachutes of the managers and supervisory board members who, after all, either were part of the scheme or failed supervising. Let”s also not cut the obvious bribery of (mostly German) authorities. A worldwide fraud involving half the German industry and no raid or seizing of documents? they just let VW be the detective on this? This is like Al Capone running the FBI investigation on his case….

    • 0 avatar
      SCE to AUX

      Agreed on most points.

      The golden parachutes may be contractually agreed upon, and they won’t save the billions VW needs in this crisis. Still, it would be a nice gesture to address it.

      • 0 avatar
        HerrKaLeun

        if they wanted they could claim at least negligence. Either Witnerkorn knew about it, then he is at fault. Or he didn’t, then he is imcompetent. Either scenario justifies getting fired with no parachute.

        Many small people at VW will have to take a cut and suffer, most of them not involved int he scandal. how do we tell them to just take it when the CEO isn’t punished (and getting fired while still getting paid through the end of the term isn’t punishment)

        • 0 avatar
          VCplayer

          Unless of course the board was in on it too, in which case Winterkorn could roll on them if he’s upset.

          They need to keep him happy for their own good. Even if he couldn’t sink them on this scandal, he no doubt knows all kinds of things that can hurt VW. Kind of sucks, but it’s up to the authorities to prove Winterkorn did something illegal and prove it.

          • 0 avatar
            993cc

            I’m inclined to suspect that this whole thing originated with Piech.

            http://www.slate.com/articles/technology/bitwise/2015/10/volkswagen_s_emissions_scandal_has_a_villain_and_it_s_the_not_the_people.2.html

    • 0 avatar
      RobertRyan

      @Herrakleun,
      Pretty easy really,get someone who does it like everyone else. Terming to cheat everywhere pretty bad form

    • 0 avatar
      fwdoversteer

      I just wanted to say, I registered on this site after 4 years of lurker / readership just to give you props on your initial comment on this article. I’ve read many comments on this website – many by BTSR – that have almost prompted me to register (to respond), but I never did. You got me to break the chain, and that deserves commendation (though really, it’s not worth anything since it’s coming from a complete stranger.

      Once again, the people who make the company work without pushing numbers around and making a high salary while acting as if they really matter get the shaft in all of this. The people who push forward the engineering of the German automobile and those who have the creative minds to do this work are the ones who will suffer. The bean counters will see no repercussions.

  • avatar
    mchan1

    “…they can lay of that R&D guy who writes all the cheating software.”

    That programmer didn’t work for VW.

    All the R&D money VW spent in the past years did Not help with the Quality of its vehicles which is basically known to be troublesome and expensive. Also, it did help that the vehicles were decontented.

    What was the R&D money used for and where did all that research go? It should did Not help VW (if at all)!

  • avatar
    kmars2009

    The Germans aren’t stupid. If it weren’t for Karl Benz, the automobile wouldn’t even exist. Even the Nazi’s were clever on some medical research. (unfortunately, it was on the Jewish community)
    I’m sure VW will figure a way out of this dilemma…if it doesn’t go bankrupt first.
    The fact we are still relying on the internal combustion engine, in this day and age, is more than puzzeling.
    Tesla is on the right track…everyone else, is playing catch up. If only Tesla could make it more affordable to the average consumer.

    • 0 avatar
      RobertRyan

      @Tesla is as relevant to the European and other markets as Breasts on a Bull. Technology developed by Tesla more important for non Automotive purposes

    • 0 avatar
      MBella

      That’s not exactly true. Karl Benz and Gottlieb Diamler came up with their cars independently, and never actually met. There were also plenty of others who were working on the same thing all over the world. That was the basis of Henry Ford’s argument when he fought ALAM in court for a fraudulent patent. It didn’t take a genius to put an engine onto a carriage.

      • 0 avatar

        Siegfried Marcus is the first person recorded to have powered a four wheeled vehicle with a gasoline powered engine, around 1870. He was regarded as the inventor of the “benzeneautomobile” by the Viennese engineering community. The monuments to him in Vienna were torn down by the Nazis when Germany took over Austria and German encyclopedia publishers were later told by the Reich’s ministry of propaganda to excise Marcus’ name and replace it with those of Benz and Daimler.

        While you can’t discount the importance of Daimler and Benz, the fact is that many were working on the concept and it really wasn’t until the early 20th century that automobile engines were practical and reliable enough for the industry to get off the ground. The French were probably as important as the Germans, with Renault and Panhard. England contributed guys like Frederick Lanchester and Harry Ricardo. Americans figured out how to make it an industry, but there were also technical pioneers like David Buick, who popularized overhead valve engines.

        Had it not been Karl Benz, it would have been someone else, likely a name that’s already familiar.

  • avatar
    Brock_Landers

    Oh no, not the Tesla sermon again! For numerous reasons pure electric car is not the future. Elon Musk is a cool guy, but his charisma cannot wipe away electric car’s shortcomings.

    • 0 avatar
      kmars2009

      On the right track…does not mean the answer to the problem.
      Personally, hydrogen will most likely be the answer…however, the electric drivetrain must be necessitated to do so. It WILL happen eventually.
      People thought the automobile was a crazy idea too, at first.

      I suppose you still throw your garbage out your car window too…thinking it’s someone elses problem.

      • 0 avatar
        nickoo

        I used to believe in hydrogen too, but the costs and complexity of hydrogen fuel cells, not to mention the really-really-bad well-to-wheel efficiency of hydrogen makes me no longer a believer.

    • 0 avatar
      nickoo

      Battery electric can and will be the future of the automobile. We’re a lot closer than the skeptics think. Prototype testing of advanced batteries that solve the current battery draw-backs are happening even as we speak:

      http://news.mit.edu/2015/manufacturing-lithium-ion-battery-half-cost-0623

      http://powerjapanplus.com/battery/

      http://powergenix.com/

      Also look into silver-oxide and silver-zinc batteries and magnesium containing batteries for even more promising batteries.

      Also, breakthroughs are being made every single day in the lab, that most people of course don’t follow so they aren’t aware, here’s one just today:

      http://www.greencarcongress.com/2015/10/lissen-researchers-develop-energy-dense-li-metal-free-li-sulfur-battery-volkswagen-the-automotive-pa.html

      The question that should really be answered is, “will tesla be around in 10 years?”

      My answer is no. The giga-factory is being planned and built to manufacture CURRENT batteries with current manufacturing techniques. That has fail written all over it.

      • 0 avatar
        kmars2009

        Toyota and Honda both have new hydrogen vehicles coming out next year. (JDM and California only…I’m sure) Hybrids were thought to be complex 15 years ago, and all electric was thought too limited to be viable. Look where we are now.
        I believe there will be several choices in the future. You will pick which tech you want, depending on individual needs. I don’t see one solution for all.

      • 0 avatar
        RobertRyan

        @nickoo
        If you are prepared to relatively short journeys in a City environment, with a charging station infrastructure makes sense

        • 0 avatar
          kmars2009

          Visit California. They have many charging stations. Hydrogen can go even further. Infrastructure provided…of course
          The largest hurdle isn’t technology. Infrastructure is holding things back substantially.
          Plus the oil companies seem to rule…basically.

          • 0 avatar
            redmondjp

            And the oil companies will continue to rule with hydrogen vehicles . . . since they will be providing the fuel to run them (natural gas reformed into H2).

      • 0 avatar
        mcs

        @nickoo

        Add this article to the list:

        http://www.greentechmedia.com/articles/read/24m-unveils-the-reinvented-lithium-ion-battery

    • 0 avatar
      mcs

      >> For numerous reasons pure electric car is not the future.

      I managed to put 20k miles in a year on my EV. A long 100 mile round trip commute with a charging station at either end helped rack up the mileage fast. In that situation, it’s like having a perpetual motion machine. No standing out in the cold winter at gas stations. Took it on vacation too – Vermont where there’s a crap-load of CHAdeMO chargers. Just tire rotation and windshield washer fluid. It’s the workhorse of the family at this point.

      You also get the benefits of driving something that feels like it has a V-12 even in a compact car. No transmission kickdown – put the pedal down and it just goes. You can even torture owners of 4 Cylinder luxury cars “is it supposed to make that much noise? Are you sure there isn’t something wrong?”.

      So, what’s the future if it isn’t electric? Two cylinder turbo Mercedes S Classes? It will probably put out 400 hp, but sound like a Briggs and Stratton lawnmower at idle.

      • 0 avatar
        highdesertcat

        “I managed to put 20k miles in a year on my EV. A long 100 mile round trip commute with a charging station at either end helped rack up the mileage fast.”

        You’re lucky your situation is such that an EV is an ideal match. But how many people in the US really have a situation that would allow them to utilize an EV without range anxiety?

        I believe that gasoline and diesel ICE vehicles will remain viable modes of transportation, alongside the new-tech vehicles like EV, PEV, Hybrids, and Fuel Cell.

        • 0 avatar
          ttacgreg

          I doubt an EV would work where I live.
          Let’s talk range killing gators.
          Snow, subfreezing temperatures for more than 6 months out of the year, and lots of uphills and downhills.

          • 0 avatar
            highdesertcat

            Damn, greg, where do you live? Sounds like a Jeep Grand Cherokee with SelecTrac II 4wd is a better match for you.

          • 0 avatar
            Luke42

            EVs don’t have to be all things to all people in order to cut our gasoline usage by 30%.

            That saves a rot of gasoline for the people and purposes which actually need it.

            Seems like a win-win to me.

          • 0 avatar
            highdesertcat

            Luke, any combination of virtues and vices will work for some of the people some of the time.

            But why would we want to cut our gasoline usage by 30%? There’s plenty of oil, hence plenty of dino-fuel, for at least the next 200 years.

            And the overwhelmingly vast majority of Americans are just not into EVs, or global warming, or conservation, or reducing emissions.

            So if it works for you, I say bully for you. But it is unrealistic to think that many others will follow in your footsteps. Maybe you are just ahead of your time.

            Truth be told, I have owned LNG, LPG, Diesel and Gasoline-powered ICE vehicles during my lifetime.

            And gasoline is by far the preferred fuel of choice, for me, and the vast majority of other drivers.

            Tiny diesels are fraught with problems as VWs current predicament illustrates. EVs cause range anxiety, and most hybrids like the Prius, Volt, et al, are often too small to be a family vehicle.

            And this is where the 4-dr pickup trucks, SUVs, CUVs, and minivans clearly rule.

        • 0 avatar
          ttacgreg

          The snow belt of Colorado. To be honest, I got by just fine for the first 25 years up here on front wheel drive and all season tires. Goes to show that the ultimate winter driving tool is between the ears. I do have a Suzuki 4WD with winter tires now, and I can be considerably more careless in my vehicular and tire placement now.
          Using a battery to heat the interior of a car in sub zero (F) temps has to be a massive range reducer. Crunchy or just sand-trap like snow driving surfaces have to be a major energy drain too.
          I typically experience about a 30 % hit in fuel efficiency in the winter.

          • 0 avatar
            highdesertcat

            Oh, yeah, I’m very familiar with the snow belt of Colorado, especially north and south of the I-70 corridor from Denver West to Utah, and South of Grand Junction, Delta, Montrose, Ouray, Telluride, Durango, and so on.

            Have family and friends in all those areas, and my wife’s sister used to live in Littleton before moving to Holland to be closer to her parents in Germany.

            My son and his business partner do a lot of business with the cattle ranchers around the Montrose area. Black Angus, you know.

            I’m amazed that you haven’t gone 4wd, or at least Subaru-like AWD.

            BTW, I highly recommend the 4wd Grand Cherokee. Perkins in Colo Sprgs is the best Jeep dealer in the US. No kidding!

            Check out their website. I refer people there all the time. Drive a little, save a lot.

            No, I don’t work for them. Just know happy campers who bought from them.

  • avatar
    Lorenzo

    Well, the cut in R&D kind of lets the air out of Peter De Lorenzo’s contention that the Germans will recover by coming back with new technology. We have to be careful about the hit to Volkswagen’s American sales, since the vast majority of their business is outside of the US – even Ferdinand Piech said something along the lines of ‘we don’t fully understand the American market’.

    If they can limit the damage to diesels intended for the American market, with their diesel models in Europe and elsewhere meeting the standards of those locations, they can recover quickly. In a pinch, I wouldn’t rule out Instapundit’s Glenn Reynolds’ idea that the “cheat device” could be explained to merely meet the standard “for the test”. He’s a lawyer, so that phrase apparently means something VW lawyers could use to save a few $ billion.

    What doesn’t seem to be mentioned is that the trick was necessary because the EPA and California’s CARB conspired to reduce the NOx emissions standard so low as to cap the performance of turbo-diesels. That seems like a back door method of banning passenger car diesels without having to ban diesels outright.

    • 0 avatar
      SCE to AUX

      Can’t blame the EPA when nobody else cheated.

      • 0 avatar
        seth1065

        Well I agree can not blame the EPA , no idea if anyone else cheated yet but VW did if they could not meet the EPA number at a price point they were happy with they should have not sold the TDI’s in the USA.

    • 0 avatar
      HerrKaLeun

      Lorenzo: Put your tinfoil hat back on, we can read your mind, even on the internet. just kidding.
      the EPA/CARB isn’t lowering emission standards to punish diesel, they just made them the same for all cars regardless of fuel.

      In Europe (before Euro 6 anyway) diesel were allowed higher NOx and PM emissions than gasoline engines (who in turn were allowed higher CO and HC emissions). this is like giving bad students an easier test.
      but if you care about people and the environment you should require them same from each vehicle, which the EPA did.

      It just comes down to reality, diesel in cars is not economical if you want clean air. diesel is great for ships, trucks, train etc. and there on a large scale emission control is easier. for smaller vehicles, gasoline is just better. This isn’t an alien, CIA, Bush, Obama or communist conspiracy….

      • 0 avatar
        Lorenzo

        My tinfoil hat is staying firmly on my head! There’s a reason the old standards were different for gas and diesel, the engines run differently and have different advantages/disadvantages. Would requiring diesel engine particulate filters in cars make sense? “One size fits all” is a lie, and even “one size fits most” is stretching it (no pun intended).

        The EPA has a long history of favoring single standards where flexibility was needed. The EPA’s initial clean air standard for particulates made sense for New York City but was impossible to meet in Montana, even if you depopulated the state and returned it to prairie. Local and regional standards had to be applied. The same strategy is needed for gas/diesel/hybrid powertrains.

        • 0 avatar
          MBella

          Actually, there have been more than a few studies that show that the ne GDI engines produce almost as many particulates as diesels. Particulate filters are probably coming soon.

          • 0 avatar
            RobertRyan

            @MBella
            Much more Nitious Oxides and particulates than Diesels

          • 0 avatar
            CJinSD

            And once again AGM cretins with no sense of proportion or priorities have succeeded in compromising actual human health over their belief that the sky is falling. I suppose that’s fine if you’re really just a misanthrope leveraging ignorance to exercise your hatred for your fellow man.

        • 0 avatar
          HerrKaLeun

          the EPA doesn’t require a particular technology, they require results. Gasoline cars don’t need PM filters since they don’t emit them.

          All the requirements are made with a lot of car industry input and lobbying. no emission requirement is impossible to meet. It is just some manufacturers want to go the easy route and cheat.

          If the EPA mandated easy standards (i.e. chisel the 1990 requirements in stone) we only needed a simple catalytic converter and filter etc. but guess what, some manufacturers still would try to cheat and even save that. cheaters can’t blame the test, especially if the majority passes the test without cheating (everyone knows they already have enough legal loopholes….)

          • 0 avatar
            RobertRyan

            Yes Gasoline cars need PM filters
            http://europe.autonews.com/article/20131128/ANE/131129865/new-gasoline-engines-emit-1000-times-more-particles-than-predecessors-

          • 0 avatar
            colin42

            GDI engines can emit alot of pm, but these particles are smaller and don’t have much mass, hence under the EPA regs which measure particulate mass they don’t need a particulate trap. In Europe the regs are / have moved to a particulate number meaning it is probable that a trap will be needed on GDI engines

          • 0 avatar
            redmondjp

            Yes, and if you do your homework, you will find that the smaller PM is even more hazardous to your health, as the smaller it is, the farther it makes it into your lungs (where it never comes back out, and eventually causes scar tissue > COPD, etc).

            The big, heavy stuff that forms black snot is less dangerous as it gets taken out earlier and doesn’t get into the lungs as deep.

            I don’t like breathing any of it, personally.

    • 0 avatar

      The mere existence of a defeat device is a violation of the Clean Air Act as amended. Defeat devices are specifically prohibited. Also, the black letter law is that anything that can change the way the emissions control system works must be documented and reported to the EPA. Those are just two of the violations.

      I have a lot of respect for Prof. Reynolds but I’ve also read the EPA’s complaint and the wording of the law and I suspect that he hasn’t.

      VW’s guilty as sin.

      • 0 avatar
        Lorenzo

        Well then, Volkswagen will have to hire Larry L. Archie of North Carolina, an attorney whose motto is: “Just because you did it, doesn’t mean you’re guilty”.

        http://overlawyered.com/2015/03/just-because-you-did-it-doesnt-mean-youre-guilty/

  • avatar
    Brock_Landers

    Lorenzo this scandal will not be “lawyered” under the carpet any time soon. In Europe it is only starting to raise its head. One of the reasons is how well this sells in the media. The god-powerful media who decides who lives or who dies. VW scandal is a pure Hollywood Erin Brockovich – Michael Clayton type blockbuster script material – big global supercorporation is cheating and breaking the law intentionally, polluting the enviroment at the same time, millions of customers – oridinary folks are the victims of the scam. This is pure gold for the media, they will keep milking it as long as they can. Next big wave of media sh*tstorm will hit when everybody finds out that VW’s fix will raise the fuel consumption and lower power of those 11 million cars.

    • 0 avatar
      Lorenzo

      I never said anything about “under the carpet”, I said it could reduce the fines/penalties to save a few billion. You have to KNOW VW lawyers are going to try every argument they can to make the cost less expensive. Claiming a technicality works wonders in court proceedings; the court of public opinion, not so much.

  • avatar
    Kendahl

    Cut R&D to save the company. That’s like putting a tourniquet around your neck to cut blood loss from a head wound. The automobile business is very competitive. Other manufacturers aren’t going to slow down product development while WV climbs out of its current hole. If they are dumb enough to do this, VW will resemble Hyundai and Kia 10 years ago.

  • avatar
    kmars2009

    As long as Bentlys, Audis, Porsche, Seat, Skoda, etc…continue to sell, VW will survive.

  • avatar
    Joss

    I wonder on industrial espionage. The bottom line is VW will surely be knocked from No 2. There’s so much money involved.

    Lawyers will enjoy the feeding frenzy.

  • avatar
    nickoo

    Volkswagen is being too knee jerk in this. They need to take action yes, but relax, this is going to blow over. Fix the cars that need fixed and pay the fines. The general public will forget about it in 6 months and those who were going to buy diesel will keep buying them anyways. Nobody buys diesel for green cred in the US, they buy it for the diesel driving characteristics and the fuel economy.

    Greenies rightfully buy hybrids and electrics. If Volkswagen is smart, and they appear to be, they’d be in the race for either an EV with range extender or a pure electric with 200+ mile range that was actually affordable, i.e. what Chevy is doing.

    Additionally, if Volkswagen is seeking to rehab it’s image and do it quickly, then they could adapt and bring the XL1, their ultra efficient space age looking hybrid, to the US, the one in the headline photograph.

  • avatar
    nickoo

    I’m not excusing VW, but the dirty little secret that the entire automobile industry is ignoring is the horrible nano-particle pollution from gasoline direct injection. Direct injection doesn’t allow for as complete a fuel mixture leaving the center of the fuel droplets unburned and creating nano particle soot which is nearly unregulated and hundreds of times worse for air quality than diesel pollution due to direct injection vs diesel powered vehicles on the road. That’s where the EPA/CARB needs to be looking, because it’s a very serious problem that is being largely ignored.

    The industry should move towards electrolysis systems to create hydrogen injection into the air stream along with keeping the fuel injection into the manifold to further enhance mixing and greatly reduce soot. You’d basically have a water tank with a catalyst in it that you’d need to fill every so often with pure water. It does work, studies have been done on these types of hydrogen injection systems and they work marvelously.

  • avatar
    mshenzi

    If this truly becomes existence threatening for VW, the German government will have to decide whether or not to step in with some sort of bailout or support. A collapse for VW (and, no doubt, parts of its supply chain) would surely be a big hit on the German economy and cause statistically significant new unemployment.

  • avatar
    mike978

    I am sure they can quite easily delay or slow down certain projects over the next few years. They have just launched their modular platform which means they can minimize platform spending for a while.

    They had also been planning on saving some money to try and raise their margins to Toyota levels. Those efforts probably met internal resistance since the company was profitable and all seemed OK. With this event that internal resistance will be much more easily overcome and they could make significant cuts to not just R&D, but manufacturing, sales, marketing and general admin. It could be just what they need to become more efficient with their spending.

  • avatar
    993cc

    Before cutting basic R&D, they should cancel the new Phaeton and the new Bugatti. They’re money-losing vanity projects that VW can’t afford, and which only serve Ferdinand Piech’s ego.

  • avatar

    The let’s say 99,5% of the Volkswagen people who weren’t aware of the cheating chip in the diesels must be grinding their teeth that management was prepared to take such a huge risk only to become the #1 automaker. Can’t think of another case in which so much was put at peril by so few people. Makes BP’s Deep Horizon look like one platform too many. Perhaps Porsche, Bugatti and Bentley no longer want to be affiliated with Volkswagen.

  • avatar
    Luke42

    Their R&D hasn’t really helped the build cars that can stand up to the American duty cycle, or which can me easily be repaired. And I haven’t seen much innovation from them, besides some small/lightweight vehicles.

    I wander what all of those euros were being spent on?

    They might be able to do a lot more with a lot less.

    Extending MQB to make it easier to tailor the product mix to local markets would be a good start, if they want to chase volume. In the US, the people’s car is currently a modestly priced reliable CUV with a family-friendly interior. A volume EV would help future-proof the brand if/when EVs become the present – being 5-10 years behind Tesla, Nissan, and even GM doesn’t seem like a way to gain sales.

    Accomplishing this on a fraction of $13.5 billion sounds very plausible.

    • 0 avatar
      highdesertcat

      I agree. I owned two of their products and neither held up well.

      And that’s where Toyota really excelled at sizing up their market and built their vehicles to stand up to the American duty cycle, and much more.

  • avatar
    blueflame6

    First on the chopping block should be the idiotic Bugatti program. The fact that VW spent billions of Euro on that automotive wankery instead of core mass-market R&D is all the evidence you need that VW management is clueless.

  • avatar
    Pch101

    Reducing R&D is a given. The questions to ask are what programs are going to be cut and/or delayed, and how large the cuts will be. If those reductions can’t produce enough savings, then start looking for stock dilution, asset sales, layoffs, etc. to supplement those cuts.

  • avatar
    kmars2009

    @highdesertcat…just because there is oil, does not mean we are to continue using it. The whole point to EV or alternative fuel, is to reduce emissions. Correct?

    • 0 avatar
      highdesertcat

      kmars2009, I’m sure that there is a small eco-friendly tree-hugging segment of the American population that wants to reduce emissions. I say good on them! I’m not one of them.

      But I am a proponent of the more choice we have, the merrier. This means if people wants EVs, let there be EVs (without taxpayer subsidies).

      However, since there is sooooooooooooooo much oil, why not use it? It has served us long and well. Ditto coal! If we don’t burn it, someone else will because we will export it.

      And I also think that there is room for alternative sources of energy, like solar, wind, wave, geothermal, natgas and nuclear. The more the merrier, but without taxpayer subsidies.

      • 0 avatar
        mcs

        >> This means if people wants EVs, let there be EVs (without taxpayer subsidies).

        That’s okay, but we should get rid of ICE car and oil industry subsidies as well.

        http://www.reliableplant.com/Read/14907/foreign-owned-auto-plants-netted-$36b-in-subsidies

        • 0 avatar
          highdesertcat

          mcs, I agree!

          It is because of those subsidies that gasoline prices were artificially driven higher than they should have been.

          But the harsh reality of an overabundance of oil has finally set in and gas prices today are where they should have been all along.

          • 0 avatar
            mcs

            Actually, I think the subsidies for Tesla and the Leaf are due to expire. Not sure of the time period. I think the technology is improving to the point they really won’t need the subsidies soon – and I really don’t think Tesla needs them now.

            I’m also in a somewhat unique position of receiving both oil subsidies and an EV subsidy. I’d be fine without them – although, I do look at it as a way of reducing the taxes I pay. I’m a New Mexico taxpayer and I’ve never even been in the state. Tax cuts for the rich sort of in disguise.

Read all comments

Back to TopLeave a Reply

You must be logged in to post a comment.

Recent Comments

  • Scoutdude: Well no one likes showing someone 200 houses, so I’m thinking in their case they didn’t really...
  • Jerome10: Let the money printing commence! Honestly, these look fantastic. Never a GM guy but they know how to do...
  • Lorenzo: Since I live in San Diego, I wax the car, clean the inside of the windows to prevent fogging, and replace...
  • Lorenzo: Heh. The solution is simple: asians, like Americans, don’t read signs. They just follow the arrows and...
  • SPPPP: Well, languages using pictograms have some ideographic characters, right? Maybe the complexity of all those...

New Car Research

Get a Free Dealer Quote

Staff

  • Contributors

  • Timothy Cain, Canada
  • Matthew Guy, Canada
  • Ronnie Schreiber, United States
  • Bozi Tatarevic, United States
  • Chris Tonn, United States
  • Corey Lewis, United States
  • Mark Baruth, United States