Why VW loses money on every Electric Car it sells

[@Rockool52]

The rear underbody was 170 parts, not 70! Now they are casting the front underbody also! They got rid of 600 robots and freed up 30% of the factory floor to be used to increase production! The Shanghi factory is producing nearly 100K autos a month!!

[@JBoy340a]

I would phrase it as getting rid of a lot of assembly steps. It really does not matter whether humans, robots, or fairies did the work. The work no longer needs to be done.

[@therollingpalankeen]

I wonder where did you get that number of 170 parts because according to kzbin.info/www/bejne/fJKsc5eMmdpjrdE or t=591 or kzbin.info/www/bejne/j4vSh3iXqq13qpY it is indeed 70! Please, enlighten me.

[@allanmarks2150]

I live in a very small village in Guatemala. I have never seen an EV, and I might never see an EV - but I do find it fascinating to follow what is happening. From what I see on YT, it appears that there are a lot very brilliant scientists working on developing EVs, and all things related to engery production and storage, and a lot of dumb as a brick management. The technology has changed a lot in past 50 to 70 years, but the dramatic difference in personalities between the majority of people who go into science, and the majority of people who go into management seems not to have changed at all.

[@DrJohnnyJ]

That is not a valid generalization. The management of the companies that aren't changing are responding to incentives that won't let them change. As an example, quarterly earnings reports.

[@karthikeyanm.v8381]

You will see ev very soon. In your village . Soon

[@ovi9610]

One of your best videos. This is a resume of the "really big problem" of legacy automakers. They are still living in the 20th Century.

[@aininja2477]

This is a great video. Thank you Viking. This video should be part of Business Management courses thought at universities.

[@tjmozdzen]

In addition to the automation, they have to get the software right. That is another barrier. But at least they are trying, as you say. Will their effort be enough and fast enough? Like you said, we hope so. We need more EVs on the road ASAP to start to make a dent in oil demand.

[@bru512]

Sam... You are getting closer... Tesla is an innovative software company that manufactures computers on wheels. Until competitors take that approach there will be no competition.

[@josephlemieux5909]

Steven you have nailed it!

[@JBoy340a]

Good points about the startups. Startups look at their cost going forward and determine automation will save them from hiring a lot of workers. Old-line companies are saddled with contracts that make it difficult to quickly adopt new technologies and reduce the number of workers to same level as the startups.

[@huckleberryfinn6578]

Also, don't forget the unions. They block anything that threatens their jobs.

[@chrisborns5972]

Also not all automation operates at the same speed and efficiency.

[@brendanpells912]

This isn't a new story. It's always better to build a brand-new factory than have to adapt to existing factories. I'm sure that the Hyundai and Kia factories in Czech Republic and Slovakia are every bit as efficient as anything Tesla has built. Also recognise that existing car makers build a much wider range of vehicles to address all sectors of the market whereas Tesla only makes cars for a narrow niche market.

[@markrowland1366]

Early twenties, I worked for Johnson and Johnson selling hospital and Dental. I discovered four new markets which were worldwide.

[@r.a.monigold9789]

Imagine being raised a Football Fan - your friends and family are also fans. You go to games, You watch games on video. You collect stats. You know teams' players, mascots, colors and logos. You are a FANatic. One day you are moved from Great Britain to America. OR from America to Great Britain. Either way - YOU ARE LOST. Cultures are totally different and most important so is FOOTBALL! You either learn fast to like your new country - or fail completely. THIS is the dilemma of I.C.E. manufacturers trying to build EVs - they are LOST.

[@wizgang0]

When you understand the culture of the auto-industry, you can easily see how Tesla is playing a long game. It is hard, yet fundamental that large companies learn to adapt newer techniques and technologies that make them competitive. We saw this when Edwards Deming introduced TQM in Japan and helped Japan become the number one automaker in the world. This new level of automation takes manufacturing to the next level of efficiency, allowing some companies to succeed where others will not.

[@hemaccabe4292]

In the US, we don’t even notice the difference on our electric bill when we start plugging in the car. In China, they notice a lot and they don’t want an electricity guzzler.

[@LambdaWave84]

I really like Tesla and I got actually one... however the quality control is just awful. They should learn a thing or two about this from legacy automakers like VW.

[@creolerican]

you need to update your research. quality control issues were in the early phases of Model 3

[@LambdaWave84]

@@creolerican No. I've a 2020 TM3, made in Fremont, it was riddle with assembly issues, misaligned panel gaps and doors, etc.

[@saff226]

All model Y have rear castings. I think currently only 4680 model Y have front castings.

[@JamesOliverLindsey]

also on weight. less material reduces cost to the oem to produce too.

[@ArielBatista]

The first few years of a new car it never makes money till the 3rd or 4th year. As more products are made and more models that use the same basic parts are made, then comes the profit.

[@lengould9262]

Not how economic theory works.

[@vancity2349]

Some good potential for VW, but long time away, huge costs, only 30% efficient after?

[@carlwilson8859]

I have maintained that US legacy companies were losing money on each vehicle based on (1) VW losing money on each vehicle (as claimed in this article) and (2) my assumption the VW would be doing a better job at this than VW. So here's my question: Are the US legacy companies doing a better job at automation than VW?

[@carlwilson8859]

Correction: I said, "losing money on each vehicle" -- I meant in each EV vehicle. Also "automation" should be taken in broadest sense.

[@felixsu375]

It appears that legacy auto is just waiting for new auto makers to kill them with productivity. There is no way to compete with just marketing if you don't even make money with each vehicle.

[@icosthop9998]

True

[@hemaccabe4292]

Metal costs money, needing 200 K less saves a lot of money.

[@michaelwiley5427]

Crash damage repair of die cast vs stamped welded ?

[@lengould9262]

That's for insurance companies to worry about.

[@michaelwiley5427]

@@lengould9262 wrong insurance companies don’t worry, they charge accordingly. If the only body shops that can repair are original manufacturer and castings are more expensive, too difficult, or not economical to repair, the ownership cost ie insurance will be much higher than stamped welded vehicles.

[@MyUniversalUniversity]

WAY TO LITTLE, WAY TO LATE!!! Good Video, thanks!!

[@RayMrRobert]

The lack of ingenuity and resilience in legacy automakers tells us the story of why humanity is losing the ability to preserve life and enjoy the blessings we could all enjoy.

[@RalphButtigieg]

How far ahead will Tesla be in 2026? You can expect there will be teslabots in all their factories. Can't see Volkswagen being able to do that.

[@kongwee1978]

A china use a lot of Germany robots to reduce labour cost, but the german car marker..........

[@lengould9262]

Most industrial robots currently come from Japan.

[@kongwee1978]

@@lengould9262 Only the lower tie robotics.

[@lengould9262]

@@kongwee1978 What companies do you think are above Fanuc etc? I note that of the 10 top robot companies worldwide, 2 are German, 1 is Swiss, 1 is Danish, 1 is Korean, and the remaining 5 are Japanese. Thats 50%.

[@kongwee1978]

@@lengould9262 You are looking at quantity, not quality. Kuka, ABB are used in heavy and high precision. Japanese just cover the easier job. In one factory, not all robotic are under one company. There is alway a mix.

[@stevehayward1854]

Most Robots are made by Fanuc which is a Japanese company, just have a look at those yellow robots whirling parts around, on the side you will see in Red Letters Fanuc. I have spent the last 30 years programming them

[@pegefounder]

Even far more worse is the house industry. I am just creating GEMINI next Generation Inc. and we will be Tesla at houses. We will have unbelievable prices and performance. Yes, a house can have performance in terms of low energy consumption, high electricity production by photovoltaic, using batteries to sell electricity at the most expensive hours in the spot market.

[@halitosis75]

I want to set up an EV showroom in Kabul, Afghanistan can you helps me

[@thomasruwart1722]

Ironically, Ford's motto used to be "Ford has a better idea"

[@icosthop9998]

LoL That was a great fine 👌 1935 Volkswagens being lowered into a barge by a Crane 👍 🤣

[@Mrbfgray]

Imagine doing it like THAT. This is why we are much more prosperous today. :D

[@briankinder9292]

Go back to 1980, BL Metro, a body shell every 42 seconds, about 70% built by robot, VW first robot around 1985. Robots started at BL, who remembers that. 1950's my milk came on a electric vehicle, I bought my ice cream from Dickie in his electric van, 50% of the local busses were electric. Do a search on KZbin for Austin Metro Development 3 and jump to 5.40 in or go to 7.30 and compare to modern build. Look where the UK is today ?

[@chrisheath2637]

The Frog nodded in agreement,Viking...

[@medman36]

I think it will be a massive undertaking. I respect those who are trying to steer Volkswagon in the right direction in challenging times. The world has only just recovered from the economic malaise of covid. We're heading into a global potential economic recession currently with energy prices skyrocketing, thus all product prices increasing, cost of living becoming expensive in the global market. Russia has decided to start a war right at the tail end of post-covid. Pressure from climate change and the also starting to use the EV revoltion as a geopolitical political economic leverage to end the Russia's war (recent DW news showed Mongolia's President calling for gigafactoreis to produce batteries on their country).

[@BackpackandGear]

I would not bet against Elon Musk, he is a master at cutting costs!

[@hemaccabe4292]

GM and Ford also lose money on each EV even at their crazy prices.

[@oddmundfjordbakk2774]

Is Hyundai and Kia also loosing money on their EV’s?

[@PhxElecAuto]

But VW is so big with many brands, AUDI, LAMBO ETC . Aren't they too big to fail?

[@icosthop9998]

It helps them to go down slower.

[@charlesvanderhoog7056]

A company is defined by its products but its development is defined by its people and its culture. Cultures are hard to change because the people that rose to power used the culture to get to the top. They fear if they change the culture, their own position may be at stake, too. Apart from that, you have the rich kids and nonsensical (extremely conservative) Arabs on the boards who are mainly interested in dividends which makes them averse to risk and reluctant to invest in newfangled technologies. The only way legacy companies could compete is by setting up new independent companies and factories but that would immediately undermine the established top managers which is why they won't do it, even Farley of Ford did not dare to make a new company independent.

[@pauljmeyer1]

Let's see well-designed motorcars that will have long production runs instead of the silly built-in obsolescence standard that has been the practice of most legacy auto manufacturers.

[@jonmichaelgalindo]

China's culture might not be as conducive to innovation as some other countries, but it is _very_ conducive to adaptability, efficiency, and growth. It's sad to see so many brilliant engineers hamstrung in traditional companies resistant to change. :-/

[@alanjameson8664]

It doesn't matter how hard you whip a horse, it won't win a race with an automobile.

[@jeffperteet2327]

Fast is still heavy, these makers should forge carbons skeletons and mold some aluminum on it and so on

[@TecnamTwin]

Heavy is pretty much irrelevant when aero is great.

[@jeffperteet2327]

@@TecnamTwin I disagree, ingreased grade and roads not having the most smooth finish on pavement bring down range as well. These stamped out materials should not be the permanent option and pretty much only option for your product. Cpnsumers are going to tire of the bean looking car upon every purchase. Forged carbon and aluminum should be used in the plan

[@lengould9262]

Totally confused.😋

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[@RussInGA]

maybe VW will need to buy a bunch of Tesla Bots to automate in late 2020s?

[@JBoy340a]

You know Tesla is going that way. So other companies need to also to keep their costs in line.

[@胖卡比-j6k]

tesla is quite expensive. thats probably the main reason why they can make profit.

[@nguyep4]

The high price is extra profit on top of the manufacturing efficiency.

[@johnb7430]

The tesla direct sale model also keeps the profit a dealer would have made

[@lengould9262]

So why don't the competition just raise their prices?

[@胖卡比-j6k]

@@lengould9262 because every other car companies are undercutting each other for more market share.

[@lengould9262]

@@胖卡比-j6k You're very confused.

[@bbyl1485]

Simple, it is not made in China, unlike Tesla.

[@jambay4785]

Tired of "Tesla Killer" remarks, Tesla wanna-be more like it and they keep falling short of the mark for advancement and production. Something to say about "they suck" but don't want to offend anyone that might read this.

[@BrisbaneTeslaGuy]

It’s probably to late really

[@quettagladiator5272]

What a load of bull crap…!

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[@SamOlds2999]

100th comment

[@johnnyappleseed6960]

I mean, Tesla just announced that they will be gutting the Germany factory, and heading for greener pastures.. And all we get is a video about how superior Tesla is to VW..

[@nguyep4]

Making up stories now?

[@johnnyappleseed6960]

@@nguyep4 Stories?

[@johnnyappleseed6960]

@@nguyep4 Tesla is struggling in Germany, they will be moving key, vital equipment to their Texas factory.....Heard it here first.

[@nguyep4]

@@johnnyappleseed6960 That is the battery factory.

[@davekozlowski1266]

@@johnnyappleseed6960 as someone else stated that is some battery manufacturing equipment. The battery area isn't even done yet so due to tax credit in the USA, they are moving some of the crated equipment to Texas. They will still do battery manufacturing in Germany, just ramping much slower. As far as car production, they are about 6 months into the start-up process and are up to 2,000 cars a week. That's without running 3 shifts. If memory serves me, the new VW plant after almost 2 years, has a run rate of about 3,500 cars a week. Tesla will greatly exceed that number in less than 1 year.

[@cisco6926]

Legacy is Fucked. They cannot survive the disruption that’s hurtling at them. Goodbye and good riddance