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Driving change: Rwanda’s first electric tractors

KEY POINTS



<ul class="wp-block-list"><li>Speaking to CNBC’s “Squawk Box Europe” at the World Economic Forum in Davos, Switzerland, on Tuesday, Herbert Diess said alleviating supply chain issues would likely help create some momentum for the German auto giant over the coming months.</li><li>“Markets are always about the future,” Diess said when asked why investors valued Tesla at such a premium to other traditional carmakers.</li><li>“We are still aiming at keeping up and probably overtaking by 2025 when it comes to sales,” Diess said.</li></ul>



The chief executive of&nbsp;<a href="https://www.cnbc.com/quotes/VOW3-DE">Volkswagen</a>&nbsp;believes Europe’s biggest carmaker can overtake&nbsp;<a href="https://www.cnbc.com/quotes/TSLA" target="_blank" rel="noreferrer noopener">Tesla</a>&nbsp;to become the world’s largest seller of electric vehicles by 2025.



Speaking to CNBC’s “Squawk Box Europe” at the World Economic Forum in Davos, Switzerland, on Tuesday, Herbert Diess said alleviating supply chain issues would likely help create some momentum for the German auto giant over the coming months.



“Markets are always about the future,” Diess said when asked why investors valued Tesla at such a premium to other traditional carmakers, such as Volkswagen.



“Tesla currently is in the lead when it comes to EVs, probably also it is the most digital car company already and they have some advantages,” he continued. “We are still aiming at keeping up and probably overtaking by 2025 when it comes to sales.”



Diess said Tesla has been able to demonstrate good results and high returns with a credible business model. However, he reaffirmed his belief that Volkswagen could soon close the gap when it comes to EV sales.



“I think for Tesla, also, ramping up now will probably be a bit more challenging. They are opening up new plants and we are trying to keep up speed. We think in the second half of the year, we are going to create some momentum,” Diess said.



Volkswagen’s Frankfurt-listed shares traded around 0.9% lower on Tuesday morning, roughly in line with losses in the autos sector on the pan-European Stoxx 600.



<h2 class="wp-block-heading" id="h-supply-chain-crisis-to-alleviate"><a></a>Supply chain crisis to alleviate</h2>



More than two years into the coronavirus pandemic, the auto industry continues to grapple with the challenge of obtaining crucial parts and building enough vehicles to meet demand.



Shortages of critical supplies, particularly when it comes to battery production, are expected to be an ongoing constraint for the growth of electric vehicle sales in the years ahead.



Nonetheless, Diess said there are some positive signs on the horizon. He expects to see some relief from the semiconductor supply market from the middle of the year.



“I would say that we would see an alleviation of this situation towards mid-year and second half we should be in better shape — if the situation is not getting any worse, which I don’t think so,” Diess said.



When asked whether this means he expects the semiconductor crisis could end in the second half of the year, Diess replied: “I wouldn’t say end but we see a much-improved situation. I think supply chains are getting in order again.&#8221;

Volkswagen chief says German car giant will overtake Tesla on electric vehicle sales by 2025

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German car manufacturer Volkswagen set up an assembling plant in Kigali two years ago with an aim to roll out a fleet of e-cars and a new mobility solution, how have these ambitions fared so far? CNBC Africa spoke to the CEO of Volkswagen’s mobility solutions in Rwanda, Serge Kamuhinda for more.

Volkswagen mobility in electric fleet drive

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The sharing economy has been a success story in many parts of the world with the likes of Uber and Airbnb among the frontrunners.

How viable is the sharing economy in Rwanda?

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At the ongoing World Economic Forum Annual Meeting in Davos, CNBC International had a conversation with CEO of Volkswagen (VW), Herbert Diess on their current performance and future plans.

World Economic Forum: Volkswagen CEO on tech ventures

World Economic Forum: Volkswagen CEO on tech ventures, partnerships & future plans

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This week in the headlines in Rwanda, the VW’s launched the electric car, Moreover the first East and Central Africa Mining Forum took place here in the country and the Hong Kong Trade Development Council and Rwanda’s Private Sector Federation hosted the Hong Kong trade and investment seminar. TV and Multimedia Editor at The New Times, Olivia Ikilezi joins CNBC Africa for more on the news that made headlines in Rwanda this week.

VW’s electric car launched in Rwanda

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The first ever electric cars have hit Rwanda’s roads as German carmaker Volkswagen launched its pilot electric mobility project in Africa. This according to officials demonstrates the country’s commitment to adopt and drive technological advances. CNBC Africa’s Steven Muvunyi reports.

Rwanda recognises green mobility with launch of electric cars

KIGALI, June 27 (Reuters) &#8211; Volkswagen will launch a car assembly facility in Rwanda on Wednesday, the first such factory in the East African nation as Europe’s biggest carmaker expands its presence in the region.
READ: <a href="http://cnbc.africa/news/2018/01/19/volkswagen-start-rwanda-car-assembly-may/">Volkswagen to start Rwanda car assembly in May </a>
Car ownership remains low in the nation of 12 million people with just over 200,000 private cars registered since 1997, according to the country’s tax collection body.
But Volkswagen, which already builds vehicles in nearby Kenya, hopes not just to sell vehicles but for them to also be used in an Uber-like car-sharing system where people will use their smartphones to book rides.
The German automaker said in January that it initially plans to build up to 5,000 cars per year, beginning with the Polo and Passat models.
Monique Nsanzabaganwa, the vice governor of Rwanda’s central bank, welcomed the move as an example of much needed investment in the nation, which receives over $1 billion in foreign aid and development assistance but has made business-friendly reforms in recent years.
“It is a vote of confidence for Rwanda,” she told Reuters. “It is good for job creation in Rwanda and making Rwanda a trusted location for services and in this case, manufacturing.” (Reporting by Clement Uwiringiyimana in Kigali; editing by Costas Pitas and Jason Neely)

Volkswagen opens its first Rwandan car assembly facility

Germany’s Volkswagen AG said on Thursday it would start assembling three vehicle models at a new plant in Rwanda in May for local sale and use in its own new ride-sharing service.
<img loading="lazy" decoding="async" class="aligncenter wp-image-40570 size-full" src="http://cnbc.africa/wp-content/uploads/2017/02/vw__pixabay.jpg" alt="Volkswagen targets East Africa" width="960" height="640" />
The company said it planned to spend $20 million to start developing the assembly plant and ride-hailing service &#8211; part of a push into sub-Saharan Africa.
Thomas Schaefer, chief executive of Volkswagen Group South Africa, said they were trying to wean East African drivers off second-hand imports.
“We are trying to break this thought-pattern that Africa is poor; they can’t afford (new) cars,” he told a news conference.
Volkswagen will produce three models; the Hatchback Polo, the Passat and possibly the Teramont, a large sports utility vehicle, it said in a statement.
The carmaker said it had registered a local company to run its ride-sharing service and signed up a local software firm to develop a smartphone application to hail rides.
Global ride-sharing companies such as Uber have not yet moved into Rwanda.
Volkswagen said 500-1,000 jobs would be created in the first phase of the investment, including the drivers of the first batch of cars for the ride-hailing service.
Schaefer said the service will feed demand for the assembly plant, since vehicles in the scheme will be driven all the time, forcing the need for constant replacement.
There were 300,000 cars in Rwanda last year, in a country of 12 million people, the CEO of the Rwanda Development Board, Clare Akamanzi, said as she welcomed the deal. Most of the cars on the roads are second-hand imports from countries such as Japan.
Writing by Duncan Miriri

Volkswagen to start Rwanda car assembly in May

NAIROBI (Reuters) &#8211; German automaker Volkswagen (VW) plans to double output at its Kenyan assembly plant and could build a second model there, Kenya’s presidential office said without giving a timeline.
VW set up the vehicle assembly plant in 2016, resuming production in Kenya after a four decade break. The plant has started by assembling VW’s Vivo model.
READ: <a class="l _PMs" href="http://cnbc.africa/news/east-africa/2016/12/22/volkswagen-takes-to-the-east/">Volkswagen to open plants in Kenya, Rwanda</a>
President Uhuru Kenyatta was told by VW’s South Africa chief Thomas Schaefer “the firm was exploring producing a second model in Kenya, possibly a hatchback &#8211; small SUV &#8211; while doubling production of the VW Polo Vivo to at least 300 vehicles,” the presidential office said in a statement late on Friday.
<blockquote class="twitter-tweet" data-lang="en">
VW to double production in Kenya; explores second model <a href="https://t.co/GNZaQbjo63">https://t.co/GNZaQbjo63</a> <a href="https://t.co/GIFdFrgrGj">pic.twitter.com/GIFdFrgrGj</a>
&mdash; Uhuru Kenyatta (@UKenyatta) <a href="https://twitter.com/UKenyatta/status/951858888294486016?ref_src=twsrc%5Etfw">January 12, 2018</a></blockquote>
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VW has long experience operating in emerging markets. But Kenya’s car market is dominated by low-priced, second-hand imports from countries, such as Japan.
http://cnbc.africa/news/special-report/2015/07/10/vw-brings-car/
Other brands assembling vehicles in Kenya include Isuzu, Toyota, Nissan, Mitsubishi and Peugeot.
Reporting by George Obulutsa; Editing by Edmund Blair

Volkswagen to double output from Kenya plant

Volkswagen AG suffered a new setback on Monday when an executive was charged with conspiracy to defraud the United States over the company&#8217;s diesel emissions cheating and the automaker was accused of concealing the cheating from regulators.
Oliver Schmidt, who was general manager in charge of VW&#8217;s environmental and engineering office in Michigan, did not enter a plea at an initial appearance in U.S. District Court in Miami on Monday and was ordered held pending a hearing on Thursday by U.S. Magistrate Judge William C. Turnoff.
Schmidt, who was shackled and wearing a jail uniform, was charged with fraud and conspiracy in not disclosing a cheating device used to rig U.S. diesel emissions tests from 2006 through 2015.
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He was arrested on Saturday in Florida after attempting to return to Germany from a vacation there, the Justice Department said. Schmidt&#8217;s lawyer David Massey said Schmidt had learned of the investigation and reached out to the U.S. Federal Bureau of Investigation to offer to cooperate. Schmidt then met with FBI agents in London last year, he said.
The arrest was first reported by the New York Times.
The arrest and court appearance come as VW nears a $3 billion plus &#8211; and potentially $4 billion &#8211; settlement with the Justice Department and Environmental Protection Agency to resolve civil and criminal investigations into the diesel scandal, which sources have told Reuters could be announced as soon as Wednesday. Talks are still under way about some details of the settlements and no deal has been reached, sources said.
An FBI complaint unsealed on Monday against Schmidt said he and other VW employees told executive management about the &#8220;existence, purpose and characteristics&#8221; of an emissions cheating device in July 2015, and that the executives chose not to immediately disclose it to U.S. regulators.
The FBI complaint accused VW of deliberately misleading regulators about cheating pollution tests in the United States, but did not charge the company with a crime.
Schmidt and other employees gave a presentation about the &#8220;defeat device&#8221; on or about July 27, 2015, more than a month before the automaker disclosed the device to U.S. regulators in September 2015, the complaint said.
The cheating allowed nearly 580,0000 of VW&#8217;s U.S. diesel vehicles sold since 2009 to emit up to 40 times legally allowable pollution levels.
&#8220;In the presentation, VW employees assured VW executive management that U.S. regulators were not aware of the defeat device,&#8221; the complaint said. &#8220;Rather than advocate for disclosure of the defeat device to U.S. regulators, VW executive management authorized its continued concealment.&#8221;
One slide in the presentation included &#8220;Indictment?&#8221; if regulators did not approve its diesel software for 2016 models, according to the complaint. The complaint said that in 2006 VW employees realized they would not be able to meet U.S. diesel emissions standard and decided to create cheating software.
Volkswagen said it could not comment on an ongoing legal matter. Hinrich Woebcken, VW&#8217;s chief executive of the North America region, told reporters at the Detroit auto show on Monday that the automaker was &#8220;surprised&#8221; by the criminal charge.
A U.S. VW employee, James Liang, was charged in September and pleaded guilty to misleading regulators about diesel emissions and agreed to cooperate with the investigation. His sentencing was delayed last week as prosecutors consider charging others, a court filing said.
LATEST SETBACK
The news comes as VW is trying to convince Americans it has changed its ways. The world&#8217;s second-largest automaker emphasized its focus on the U.S. market as it rolled out two new sport utility vehicles at the Detroit auto show, including a new longer Tiguan SUV with more cargo space and a larger all-new Atlas SUV that will be built in Tennessee.
&#8220;We intend to take that second chance,&#8221; Woebcken told reporters who joined VW in January 2016. &#8220;We are on a good path to get things straight&#8221; and added that VW is a &#8220;good corporate citizen.&#8221;
He said VW employs 600,000 people worldwide and they &#8220;are honest people&#8221; and that it was &#8220;unfortunate that a small group of people generated this disappointment.&#8221;
Much of the company&#8217;s senior management departed following the scandal, including CEO Martin Winterkorn.﻿
But the allegations in the FBI filing show how difficult it is proving for VW to draw a line under the biggest business scandal in its 80-year history almost 16 months after it broke.
On Monday, however, VW shares rose 4.2 percent to their highest since September 2015 on optimism about the expected U.S. criminal settlement, topping the German blue-chip DAX index. The shares are still 10 percent below pre-scandal levels.
VW admitted in September 2015 to installing the secret defeat device software in hundreds of thousands of U.S. diesel cars to cheat exhaust emissions tests and make them appear cleaner than they were on the road, and that up to around 11 million vehicles could have similar software installed worldwide.
The automaker initially blamed a small group of &#8220;rogue engineers&#8221; for the test-cheating, and has repeatedly said no current or former board members were involved.
The ensuing scandal has cost the company more than $18.9 billion in provisions and forced it to drop its diesel offensive in the United States. VW&#8217;s global brand chief Herbert Diess told reporters on Sunday the company has no plans to ever resume U.S. diesel sales.
VW has already agreed to spend up to $17.5 billion in the United States to address claims from regulators, dealers, and owners.
Separately on Monday, a British law firm launched legal action against VW seeking thousands of pounds of compensation each for UK drivers affected by the emissions scandal.
In Britain, 1.2 million cars are affected and Harcus Sinclair UK, which is being supported by Slater and Gordon, said around 10,000 drivers had already signed up to the legal action before the launch.﻿

U.S. charges Volkswagen executive with fraud over emissions scandal

Volkswagen ﻿on Wednesday inaugurated a vehicle production facility in Kenya and revealed plans to start assembling cars in Rwanda by end 2017﻿.﻿
READ: <a href="/news/east-africa/2016/09/08/volkswagen-targets-east-africa/">Volkswagen targets East Africa &#8211; CNBC Africa </a>
The Government of Rwanda signed a memorandum of understanding (MoU) with Volkswagen Group for a new integrated mobility concept Wednesday evening. The signing took place at the Marriot Hotel. According to a statement on the Republic of Rwanda&#8217;s website, &#8220;﻿The concept includes car sharing and ride hailing services as well as the establishment of a local production facility in accordance with the environmental standards of Volkswagen’s Think Blue&#8221;.﻿
<blockquote class="twitter-tweet" data-lang="en">
<a href="https://twitter.com/hashtag/Volkswagen?src=hash">#Volkswagen</a> to start assembling cars in <a href="https://twitter.com/hashtag/Rwanda?src=hash">#Rwanda</a> by end 2017 <a href="https://t.co/pwGBcNKqhz">https://t.co/pwGBcNKqhz</a> <a href="https://twitter.com/RDBrwanda">@RDBrwanda</a> <a href="https://t.co/Q1LVBF7KmE">pic.twitter.com/Q1LVBF7KmE</a>
— Government of Rwanda (@RwandaGov) <a href="https://twitter.com/RwandaGov/status/811644842744967173">December 21, 2016</a></blockquote>
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&#8220;In addition, possibilities of training initiatives for the local population are being investigated together with other German companies&#8221;.﻿ 
The MOU signing between <a href="https://twitter.com/RDBrwanda">@RDBRwanda</a> &amp; <a href="https://twitter.com/Volkswagen">@Volkswagen</a> South Africa is a <a href="https://twitter.com/hashtag/MadeInRwanda?src=hash">#MadeInRwanda</a> breakthrough within the automative industry in Rwanda <a href="https://t.co/S40bQ1toaK">pic.twitter.com/S40bQ1toaK</a>
— Rwanda Development (@RDBrwanda) <a href="https://twitter.com/RDBrwanda/status/811583037473484800">December 21, 2016</a>
Explaining the rationale for the deal Thomas Schäfer, CEO of Volkswagen Group in South Africa said: “Volkswagen is consistently developing market potentials in Africa. Only a few hours ago, we inaugurated our third production facility in Africa in Kenya. Today in Rwanda, we are launching a concept that will foster individual mobility in this rapidly developing country and make this market a further pillar of the Volkswagen brand’s commitment to Africa”.
Schäfer added that the implementation of the MoU will start with an investigation phase in January next year; and if all goes as planned, the first cars will be assembled in Rwanda before the end of next year.
The Rwanda Development Board (RDB) welcomed the Uber like innovative approach to mobility concepts.
The RDB’s CEO Francis Gatare said Rwanda is a competitive place to do business and this was demonstrated in many international rankings that <a href="/news/financial/2016/10/25/africa-reforms-to-make-doing-business-easier/">capture the ease of doing business around the world</a>.
“Rwanda has been putting in place infrastructure for technology and connectivity that makes it a convenient place to experiment in new ways of mobility that have not been integrated in other African markets,&#8221; he said.
“We have 100% 4G connectivity across the country,” he said, which along with our population and location, “makes a strong business proposition for VW and other companies to do business here.&#8221;
The RDB is not in talks with other international car manufactures at this stage. However, Uber, which does not yet operate in Rwanda, is working with local regulators to put in place platforms to become operational, according to Gatare.
The impact the assembly plant will have on Rwanda&#8217;s economy and jobs is not yet clear. But the RDB CEO said estimates had forecast between 5000 and 10 000 cars could be manufactured from the plant.
In Kenya, Volkswagen inaugurated a vehicle production facility in the industrial town of Thika﻿. Kenya’s President Uhuru Kenyatta and Dr Herbert Diess, CEO of the Volkswagen brand, were present when the first locally produced Polo Vivo rolled off the production line. 
At the inauguration, Diess underlined Kenya&#8217;s key role within the Volkswagen brand&#8217;s Africa strategy: &#8220;After over 60 years of Volkswagen vehicle production in South and North Africa, I am delighted to now have a further site in Kenya. We will systematically continue to develop our position in the fast-growing African car market.&#8221;
The Volkswagen Kenya Polo Vivo car will retail at Ksh1.65M. <a href="https://twitter.com/hashtag/KaribuVW?src=hash">#KaribuVW</a><a href="https://t.co/BcNK5EFhqB">pic.twitter.com/BcNK5EFhqB</a>
— Adan Mohamed (@AdanMohamedCS) <a href="https://twitter.com/AdanMohamedCS/status/811540904292954113">December 21, 2016</a>
In addition to vehicle production, Volkswagen will be offering Kenyan customers a comprehensive package including a manufacturer&#8217;s guarantee as well as a maintenance and service plan. Financing schemes will be developed together with local banks in order to allow individual mobility and to provide Volkswagen with the impetus it needs for its re-entry to the Kenyan market.
 President Kenyatta said: &#8220;A few months ago, this was only a dream. Now Volkswagen&#8217;s investment in Kenya has become reality. This is further proof of my government&#8217;s determination to strengthen the production location of Nairobi and to forge ahead with the industrialization of the nation.&#8221;
The decision by the Volkswagen Group to invest in Kenya resonates well with my Administration’s stated policy to industrialize our economy. <a href="https://t.co/SAjUisaNpW">pic.twitter.com/SAjUisaNpW</a>
— Uhuru Kenyatta (@UKenyatta) <a href="https://twitter.com/UKenyatta/status/811544510249443328">December 21, 2016</a>
 The joint project implemented together with DT Dobie in Thika near to the Kenyan capital Nairobi is Volkswagen&#8217;s third production plant in Africa, together with one plant in South Africa and one in Nigeria. In the initial phase, annual production of up to 1,000 vehicles is planned. In the long term, it will be possible to produce up to 5,000 units per year at the plant of Kenya Vehicle Manufacturers (KVM). The assembly facility is flexibly designed and offers the possibility of investigating the production of further models in the event of positive developments in the new car market. In addition, the Volkswagen Group recently announced plans to start vehicle production in Algeria.  ﻿﻿

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Volkswagen

Driving change: Rwanda’s first electric tractors

Volkswagen chief says German car giant will overtake Tesla on electric vehicle sales by 2025

Volkswagen mobility in electric fleet drive

How viable is the sharing economy in Rwanda?

World Economic Forum: Volkswagen CEO on tech ventures, partnerships & future plans

VW’s electric car launched in Rwanda

Rwanda recognises green mobility with launch of electric cars

Volkswagen opens its first Rwandan car assembly facility

Volkswagen to start Rwanda car assembly in May

Volkswagen to double output from Kenya plant

U.S. charges Volkswagen executive with fraud over emissions scandal

Volkswagen to open plants in Kenya, Rwanda

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