Herbert Diess @TechCrunch about #Scout, #Software, #AutonomousDriving and more | Summary and Q&A

Transcript

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Summary

In this video, Herbert Diess, the CEO of VW Group, discusses the launch of a new brand called "Scout" in the U.S. The brand will focus exclusively on electric vehicles (EVs), aiming to capture a portion of the American SUV and pickup truck market. Diess explains the rationale behind the decision and the opportunities that arise from the current shift towards electric vehicles. He also touches on the importance of heritage and nostalgia in the automotive industry and how VW plans to leverage that with the Scout brand. Additionally, Diess talks about VW's plans for production, sales strategies, and the role of software and autonomous driving in their future vehicle lineup. He also shares insights into their relationship with Tesla and their approach to supply chain challenges in the EV industry.

Questions & Answers

Q: Why does VW need a new brand in the United States?

The SUV and pickup truck segment is highly popular in the U.S., and VW sees a significant opportunity to relaunch an American brand with a rich history. While heritage alone is not sufficient, combining it with modern technology and design can lead to success.

Q: Why did VW choose to leverage the historical name "Scout" instead of creating an entirely new brand?

Heritage plays an important role in creating a connection with customers. The rich history associated with the Scout name evokes nostalgia and reverence. While a strong history provides a good foundation, VW still needs to deliver an excellent car that meets modern standards.

Q: Where is VW planning to produce the Scout brand vehicles?

It is still early to determine the exact production plans. VW is considering various options, including starting on a brownfield or greenfield site. The goal is to produce a large-sized SUV and pickup truck, potentially in one plant, with two body variants.

Q: Will the Scout brand vehicles be sold directly to consumers or through existing VW dealerships?

The sales strategy for the Scout brand is still under consideration. VW is assembling a competent team in the United States to understand the American customer's needs, explore manufacturing opportunities, and make informed decisions about sales channels.

Q: VW has an ambitious goal to increase its U.S. market share to 10% by the end of the decade. How does the Scout brand fit into this goal?

The Scout brand alone cannot achieve the entire goal, but it is expected to contribute around 2 percentage points of market share. The rest of the growth will come from other factors, such as the launch of new EVs and overall market growth.

Q: What capacity targets does VW have for the Scout brand vehicles?

The specific capacity targets are yet to be determined. VW aims to fill one plant facility, which could potentially produce 200,000 to 300,000 vehicles. Economic feasibility will be a crucial factor in determining the capacity.

Q: Is VW planning to build a battery gigafactory in the United States?

Yes, VW is considering the establishment of a battery gigafactory in the United States. The location is still undecided, but it is a part of VW's strategy to secure its battery supply chain and meet the demand for EVs.

Q: How does VW plan to make the Scout brand vehicles stand out in a competitive market with other EV pickups and SUVs?

VW believes in its ability to differentiate through extraordinary build quality, durability, and design. The Scout vehicles will combine historical cues with modern technology, making use of innovations in electric drivetrains, fast charging, and other features.

Q: How is VW investing in software innovation for its vehicles?

VW recognizes the importance of software in modern cars and has been building up its software capabilities. They are working on enhancing software performance, including multiple software updates this year for charging algorithms and driver assistance functionality. VW is ramping up its internal capabilities to develop and deploy software continuously and safely.

Q: Is VW planning to acquire more software companies?

VW is actively expanding its software capabilities, and more acquisitions are expected in the future. While specific details cannot be disclosed, VW is interested in software companies that can contribute to driving capabilities, in-car experience, and software deployment in the cloud.

Q: What are VW's plans regarding autonomous driving?

VW is working on both robo-taxi and private car applications of autonomous driving. They have partnered with Argo AI to develop autonomous driving technology and are gradually advancing their capabilities. The initial focus will be on simpler environments and gradually expanding to more complex situations and weather conditions. The goal is to offer a safe and efficient autonomous driving experience, both in commercial and private vehicles.

Q: How would you describe the relationship between VW and Tesla?

VW has a positive relationship with Tesla, and they learn from each other. While VW does not aim to partner directly with Tesla due to their unique business model, they respect Tesla's achievements and consider Tesla's ideas and strategies relevant for the industry.

Q: Is VW looking to mine raw materials for battery production?

VW acknowledges the crucial role of raw materials, specifically for battery production. They are investing in their own battery production and securing long-term contracts for raw material supply. While mining operations might be considered, initial focus is on establishing a reliable and sustainable supply chain for the fast ramp-up of EV production.

Q: In the face of supply chain challenges, how is VW protecting its supply chain for EVs?

VW is focused on building its own battery production capabilities and securing long-term contracts for raw materials. This ensures a stable supply chain for EV production. The challenge lies not only in securing the required materials but also in developing the necessary ratios and exploring potential alternatives.

Takeaways

VW's decision to launch the Scout brand in the U.S. demonstrates their commitment to entering the American SUV and pickup truck market with electric vehicles. The brand leverages heritage and nostalgia, aiming to combine it with modern technology and design. VW is investing in battery production, software innovation, and autonomous driving capabilities to differentiate themselves. The relationship with Tesla brings mutual respect, and VW learns from Tesla's achievements. The challenge of securing a reliable supply chain for raw materials is being addressed through investments in production capabilities and long-term contracts. Through these efforts, VW aims to achieve its ambitious goal of increasing its U.S. market share to 10% by the end of the decade.