AUTONEWS

VW loses €1.5 billion and abandons partnership with Bosch

Cariad—a company established by the VW Group to develop the software systems increasingly essential to modern vehicles—was designated to represent the German consortium in the "Automated Driving Alliance" partnership with fellow German firm Bosch. The goal was to develop an autonomous driving system; VW invested approximately €1.5 billion in the project, funds that have now gone to waste following the cancellation of both the project and the partnership.

This is not the first time Cariad has landed the German group in hot water. The software company was formed through the merger of over a hundred startups specializing in software, yet it never managed to produce a system for the group's various brands that could match the quality of the best systems offered by competitors. This failure contributed to the departure of then-CEO Herbert Diess in late 2022 and forced Porsche to turn to Google’s Android Automotive to equip its models—specifically the electric Macan—starting in late 2024.

Despite this unenviable track record, Europe’s largest automotive group (and the second-largest globally) once again placed its trust in Cariad’s technical teams. The plan was to collaborate with Bosch—leveraging Mobileye’s cameras and digitization capabilities—to design a driver-assistance system effective enough to eventually deliver an autonomous driving solution suitable for all the group's brands, particularly the luxury ones. However, according to the German newspaper *Bild*, VW Group management acknowledges that, despite all efforts, "a significant disadvantage persisted in the VW system compared to those of its rivals," specifically Tesla and Waymo.

The VW Group admits that Cariad and Bosch were unable to master this complex technology, yet maintains that it is impossible to envision the car of the future without autonomous driving capabilities. That is why it is already scouting the market for alternatives—not partners to help develop an in-house system, as it has done until now, but rather a turnkey solution. All signs point to the company having already found one; according to the German press, the automaker is expected to announce a deal with a supplier soon, likely in September.

There appears to be a possible explanation—or rather, two—for this rapid search for an alternative. The first (and less likely) option is a solution from Mobileye, a NASDAQ-listed Israeli company. Originally a specialist in imaging and image processing software, Mobileye has recently expanded its scope to include autonomous driving, particularly after Intel acquired an 88% stake in the firm. However, the level of development and refinement offered by its technology remains to be seen. A second potential supplier for an autonomous driving system is Rivian, a young electric vehicle manufacturer with which VW formed the "Rivian and Volkswagen Group Technologies" joint venture—a partnership involving a $5.8 billion (approximately €5 billion) investment from the German group. The joint venture’s goal was to develop new platforms and electronic architectures for the next generation of electric vehicles. Rivian is developing an autonomous system known as "Gen2"—independently of the aforementioned partnership—and this solution could potentially be of interest to the VW Group.

Cost-cutting measures could lead Volkswagen to sell its shares in Bayern Munich...The Volkswagen Group needs to "tighten its belt" amidst the restructuring of its operations, and selling shares held in football clubs like Bayern Munich could be part of the measures taken.

According to *Correctiv*, the manufacturer is weighing the future of the 8.3% stake in the Bavarian club—held via Audi since 2009—even though the club has an enterprise value of €4.7 billion, according to Football Benchmark. The initial purchase cost €90 million.

Also under review is the future of the 10.4% stake in Stuttgart held via Porsche, acquired in 2023 for €45 million. Furthermore, MHP (a Porsche subsidiary) might cease to be the main stadium sponsor for the club from the capital of Baden-Württemberg.

Football is a potentially lucrative business in which the Volkswagen Group has been involved for decades; it even owns Wolfsburg, a club recently relegated to the German second division. In that case, *Correctiv* reports that funding is likely to be reduced. VW also holds a 20% stake in Ingolstadt 04, which plays in the third tier. There are no plans to divest from these two clubs.

Now, not only are the stakes in Bayern Munich and Stuttgart potentially in jeopardy, but sponsorship cuts may also be on the cards—an area where the group is active, including with the German national team.

The situation at the Volkswagen Group is complex, as it considers major restructuring measures to return to profitability and sustainability. *Manager Magazin* reported a few weeks ago that the group could cut up to 100,000 jobs and close four factories in Germany over the coming years.

AUTONEWS

Toyota Aqua GR Sport

The second generation of the Toyota Aqua hybrid hatchback debuted in 2021 as a product intended exclusively for the Japanese market, although its predecessor enjoyed a very wide sales geography and was known as the export Toyota Prius C. Nevertheless, the Aqua model continued its evolution in the domestic market and last year underwent a planned restyling. After the update, the range temporarily lost the sporty GR Sport version, which has only now been returned to the offer.

The main visual difference between the Toyota Aqua GR Sport and its “regular” brothers is the aggressive body kit, which includes a new front bumper with larger air intakes and black side sills. At the rear is a sports bumper with a simulated diffuser, but it is unchanged from the pre-reform Aqua GR Sport. Of course, the recognizable GR emblems are present at the front and rear. Optional accessories are available, such as window deflectors or carbon fiber license plates.

The rear bumper is very similar to the pre-facelifted Aqua GR Sport, with decorative honeycomb inlets around the diffuser. The facelift does add a black garnish mounted between the taillights. Despite the GR badge and an electrified ICE under the hood, the exhaust pipe stays hidden from view.

The color palette for the GR Sport is limited to white, gray, black, and red. The optional GR Parts add extra fins on the fenders to reduce turbulence, window visors, branded discharge tape, carbon license plate holders, door stabilizers, and more, serving as an alternative to the Modellista upgrades.

Staying true to tradition, the GR Sport benefits from handling upgrades. Extra underfloor bracing improves rigidity, while the revised suspension and retuned steering sharpen the driving experience. There are no changes to the 114hp 1.5-liter self-charging hybrid setup. And while the Aqua is available in AWD (E-Four) form, the GR Sport can only be had with front-wheel drive.

Alongside the GR Sport’s return, Toyota rolled out a handful of updates for the regular Aqua. Every E-Four variant now comes with a heated steering wheel as standard, upgraded fabric seats, and a rear center armrest housing two cupholders.

Inside, the GR Sport's main features are its comfortable seats with combined details, integrated headrests and improved lateral support. The decorative inserts are dark grey, and the pedals have aluminium caps. Logos from Toyota's performance division Gazoo Racing are found on the steering wheel and headrests, and can be added to the floor and boot mats for an additional fee.

The chassis of the Toyota Aqua GR Sport has been modified with chassis reinforcements designed to increase body rigidity. The suspension and steering have been retuned for a more dynamic driving experience. The hybrid powertrain, however, remains unchanged from the standard versions. The system includes a naturally aspirated 1.5-litre 3-cylinder petrol engine (91 PS, 120 Nm), an electric motor with 59 kW (80 PS) and 141 Nm of torque, and an electromechanical CVT transmission. The maximum system output is 116 PS.

Although the standard Aqua can be optionally equipped with E-Four all-wheel drive, with a separate electric motor on the rear axle, the GR Sport comes exclusively with front-wheel drive. That's why the GR Sport boasts red brake calipers with recognizable logos, along with 17-inch wheels. In Japan, the minimum price of the Toyota Aqua GR Sport hatchback is 3,238,400 yen (17,495 euros). For comparison, standard versions cost from 2.8 million yen (15,130 euros).

CIZETA MORODER

Cizeta Moroder V16T goes up for auction

The unique Cizeta Moroder V16T supercar exudes the spirit of the 80s, and will be sold at Sotheby's auction next month.

The model was built in Italy in partnership with automotive engineer Claudio Zampolli and legendary music producer Giorgio Moroder, and it can be said that the V16T fully embodies the 80s, both its good and bad sides.

The 1988 Cizeta Moroder V16T bears chassis number #001 and is the first prototype built and the only one to bear Moroder's name.

The story goes that Moroder had a Lamborghini Countach serviced by Zampolli, who had previously worked for Lamborghini, but wanted to build his own supercar. Starting a joint project, they hired Countach designer Marcello Gandini to design the V16T, which was partly based on the Lamborghini P132 prototype, the car that also served as the inspiration for the Diablo.

With supercar proportions and a V16 engine mounted behind the driver, essentially two V8s from a Lamborghini Urraca, the V16T debuted in late 1988 after numerous delays. These delays led to Moroder pulling out of the project, leaving the remaining nine examples in production as the Cizeta V16T.

The chassis was constructed from elliptical chrome-molybdenum steel tubing, enveloped by elegant bodywork designed by Marcello Gandini—who had previously designed the Lamborghini Countach and several aerodynamic Maseratis—and Claudio Zampolli. The shape of the V16T's front end was derived from Gandini's original design for the Lamborghini Diablo. Initially, Gandini wanted to reuse the design he had created for the Diablo, but Zampolli was unimpressed with the rear section. Consequently, only the front of the car retained the original design, while the rear featured modifications made by Zampolli himself. In a notable design choice, the V16T is the only production car equipped with four independent pop-up headlights—stacked vertically in pairs on each side—while the taillights were borrowed from the Alpine A610.

Performance and production... The V16T achieved a top speed of 328 km/h (204 mph) and could accelerate from 0 to 100 km/h (62 mph) in 4 seconds.

Only one prototype bearing the Cizeta-Moroder name was built before the partnership dissolved. That car—finished in pearl white with a red leather interior—remained in Moroder's possession; it was fully restored by Canepa in 2018 and subsequently auctioned in January 2022.

In 1991, the list price of a Cizeta was estimated at US$300,000. Although production forecasts called for one car per month, only eight examples (including the prototype) were actually built between 1991 and 1995, before the company relocated its operations from Modena, Italy, to Fountain Valley, California. The financial slowdown in the mid-1990s, combined with the car's inability to meet US road-legal regulations and its high asking price, limited production to custom orders. Subsequently, three more cars were completed (two coupes and a spyder) in 1999 and 2003. The car built in 2003 was a convertible variant of the V16T named the Cizeta Fenice TTJ Spyder, completed at the special request of a Japanese client.

As of May 1, 2006, the car was still in production on a made-to-order basis, though the price was then $650,000—or $850,000 for the Spyder TTJ—excluding shipping, taxes, and extras. According to a 2018 interview, Zampolli considered the car theoretically still in production and available for purchase up until 2018, even though none had been built since the 2003 Spyder. Zampolli passed away on July 7, 2021, at the age of 82.

Chassis #001 was retained by Moroder himself, who parked it and later sent it to Canepa in California in 2018 for restoration, where the car was completely restored and upgraded by Porsche specialists. Moroder did not sell it until 2022 at an RM Sotheby’s auction, where it fetched $1,363,500.

Now, however, the car is set to change hands again next month, with the auction house estimating it could fetch between $1.4 million and $1.8 million.

Autonews

AUTONEWS

Will Mercedes' new 'Little G' SUV come from Hungary?

Almost three years after Mercedes announced plans for a more compact and affordable version of the G-Class, new information has emerged about its production location. Contrary to previous expectations, the so-called "Little G" or "g-class" will probably not be built in Germany. In order to reduce costs, its production could be moved to Hungary.

After the announcement at the IAA in Munich in September 2023, it was speculated that the smaller SUV would be assembled at the Rastatt plant in Germany, alongside the CLA model. This was a logical assumption, given that the "g-class" is expected to use the same platform. However, Automotive News Europe, citing sources familiar with Mercedes' operations, claims that the smaller G will be assembled at the Kecskemét plant. The decision is apparently motivated by lower operating costs in Hungary compared to Germany.

Before it can make any savings, Mercedes plans to make a significant investment. The company is investing €1 billion in expanding its Kecskemét plant to increase annual capacity to 400,000 vehicles, making it the largest in the European production network.

The Hungarian plant is expected to account for as much as 30 percent of Mercedes’ total European production, double its current share. Around 3,000 new employees will be hired to achieve this goal, bringing the total workforce to around 7,500.

Regardless of location, the new model is expected to hit the market in 2027. The original plan was for the G-Class to be produced exclusively as an electric vehicle, but US dealers have convinced the company to also offer a petrol engine. Although the price difference between the petrol-engined model and the electric vehicle is narrowing, the mild hybrid GLB is still around €4,000 cheaper in Germany than its electric version.

Production in Hungary could result in a lower retail price, but only if Mercedes decides to pass on some of the savings to customers. In terms of capability, one shouldn't expect the off-road performance of the large G-Class, but logic dictates that it will handle more demanding terrain much better than the similarly sized GLB. The two models may not be that closely related after all, as Mercedes boss Ola Källenius once said that "the G-Class is a completely new development".

In terms of price, it is expected to be significantly more expensive than the GLB, which starts at 46,868 euros. At the same time, it will remain well below the large G-Class, which costs 127,591 euros. If it is indeed an all-new model, as Mercedes claims, this will likely be reflected in a higher price compared to the existing compact car range, but without entering the territory of the G-Class.

The decision to relocate production should not worry potential buyers. Namely, the full-size G-Class is not built in Germany either. It is not technically manufactured by Mercedes, but by Magna Steyr at its plant in Graz, Austria. That hasn't hurt the vehicle's success, which saw record sales last year with demand up 23 percent to 49,700 units delivered. Cutting costs is common practice in the industry, and taking advantage of lower operating costs is a logical business move.

AUTONEWS

Hydrogen: clean fuel of the future — if we can find a cheap and clean way to ship it

Many experts refer to hydrogen as “the fuel of the future.” It is expected to help decarbonize the global economy in two main ways: burning it or feeding it into a fuel cell produces storable energy with no carbon emissions, just water. And it can be used in place of fossil fuels or as a chemical feedstock in hard-to-decarbonize industrial processes such as steel and cement production.

But for hydrogen to realize its potential, two challenges must be overcome. Researchers worldwide are now working to address the first: finding a method of producing pure hydrogen that’s both cheap and low in carbon emissions.

Just as critical is finding a good means of transporting and storing hydrogen. A team led by researchers at the MIT Energy Initiative (MITEI) has been tackling that less-discussed but important challenge. The location where the pure hydrogen is produced is likely to be far away from where it will be used, so moving it will be critical — and difficult.

The problem stems from two characteristics of hydrogen: It’s the lightest gas there is, and it has low energy density per volume. Therefore, delivering a given amount of energy requires a large volume of hydrogen and a container that’s sealed so tightly that the hydrogen molecules can’t escape. Suffice it to say, moving a liquid fuel such as gasoline is easier. And without a good means of storing and transporting hydrogen, it can’t fulfill its promise as the world’s clean fuel of the future.

In 2024, with funding provided by ExxonMobil Technology and Engineering Co. through MITEI, a team of MITEI researchers and their Exxon colleagues began examining various approaches to transporting hydrogen. The researchers have now concluded that there’s no single answer; the cost and carbon emissions from a given transportation method will vary from one location to another. Therefore, instead of presenting a table showing the “best” outcome, the team created a tool that enables users to understand the various options and choose the best option for their particular use case. 

The study was led by former MITEI postdocs Gasim Ibrahim, now an R&D engineer/scientist at Honeywell, and Guiyan Zang, former MITEI group lead who is now an associate professor at Washington State University. Additional MIT co-authors include former postdocs Bosong Lin, Jacqueline Garrido, Woojae Shin, and Haoxiang Lai.

The hydrogen challenge and hydrogen “carriers” that can help...The team’s starting assumption was that for hydrogen to become a viable fuel for the world, it would need to be transported over long distances — specifically, overseas, across continents, or across large water bodies. Given the properties of hydrogen gas, it would be best to convert it to some liquid form before shipping.

There are known ways to do that, but what would be best for shipping? How much would various methods cost, and how much would they add to the carbon intensity of the delivered hydrogen?

“There hasn’t been a lot of attention paid to addressing those questions,” Ibrahim says. While some studies have been done, their conclusions are inconsistent and many uncertainties remain, both because the cost and carbon emissions will differ from place to place and because there’s not a lot of data to inform how the large-scale transportation of hydrogen will work.

“So we decided the best thing to do was to develop an adaptive tool that would enable users to perform their own assessments — a tool that could be updated very easily,” Ibrahim explains. “And we would make it open source, so anyone can see and update the numbers that we used in formulating and testing it. As the industry develops, and as scale becomes more a factor, the assumptions made in [our initial] assessments of the economics and the carbon intensity [of different shipping methods] will need to be updated.”

To focus on the transportation and storage issues, their model — called the Hydrogen Carrier Analysis Tool, or HyCAT — doesn’t consider how the starting hydrogen is produced, or how the hydrogen is used after it’s delivered. HyCAT focuses on determining the costs and carbon emissions incurred as the hydrogen is transported and delivered. In addition, while a full life-cycle assessment would include all environmental impacts, HyCAT focuses on emissions of greenhouse gases (GHGs).

The tool is easy to use, says Ibrahim. Built into it is a user interface with drop-down menus for inputting assumptions, and results from an analysis are presented in simple bar charts that include links to tables presenting the details.

Ibrahim clarifies that, while HyCAT has a well-defined boundary — “incoming hydrogen to outgoing hydrogen” — in an analysis of a specific situation, the user will input various factors about the local situation, including the carbon intensity and cost associated with production of the incoming hydrogen. “So that will inform the final values that come out of a HyCAT analysis,” says Ibrahim, and in part explains why the results vary from place to place.

Based on the user’s assumptions, HyCAT calculates the cost and GHG emissions at five steps in the “supply chain”:

-converting the hydrogen into liquid form at the “export” terminal;

-storing the hydrogen-rich liquid;

-shipping it when an empty tanker becomes available;

-storing it at the “import” terminal; and releasing the hydrogen as a gas suitable for burning or being fed into a pipeline for distribution.  

Options for liquifying hydrogen gas...The main decision in analyzing the cost and emissions of a proposed hydrogen transport plan is how to convert the gaseous hydrogen to a liquid, and then how to recover the hydrogen gas at the end.

One approach is to simply change the gaseous hydrogen into an easily transportable liquid. But turning hydrogen gas into a liquid requires making it very, very cold. Indeed, notes Ibrahim, “you would need to consume about a third of the energy content of the hydrogen to make the gaseous hydrogen cold enough to liquify.” A further problem arises as the liquified hydrogen is being stored and moved. Unless the vessel containing the liquid hydrogen is properly insulated, the liquid hydrogen can re-gasify and escape. The upside of hydrogen liquefaction is that no chemical reactions are required.

Other options involve using a hydrogen “carrier.” Some liquid chemical compounds will absorb hydrogen atoms under certain conditions, and under other conditions will release them. Therefore, one approach to solving the hydrogen transportation problem is to make a carrier compound absorb the hydrogen where it’s made and then release it when it reaches its destination. This approach therefore involves two chemical reactions — one to bind the hydrogen to the carrier and the other to release it.  

In their demonstration runs, the researchers looked at the hydrogen carriers involving three potential compounds, each of which has known advantages and disadvantages.

One of those carriers is produced by adding hydrogen to toluene. That chemical reaction hasn’t been studied a lot, but there’s one known drawback: the source of toluene is typically the oil and gas industry, so the toluene itself has a relatively high carbon intensity when it picks up the hydrogen. Moreover, over time some of the toluene is lost, so more toluene must be added.    

The researchers also looked at “synthetic methane,” which is made by reacting hydrogen with carbon dioxide. That reaction has been known for some time. Ibrahim notes that making synthetic methane actually consumes carbon dioxide, often captured from the atmosphere. On the negative side, however, one of the products of the reaction is water, so some of the hydrogen is lost each time the reaction occurs.

The final option they analyzed is ammonia, which forms when hydrogen reacts with nitrogen from the air. That reaction is very well-studied and is used commercially. “We’ve been producing ammonia for a long time,” says Ibrahim. And the infrastructure for transporting and storing it is well established. While Ibrahim refers to ammonia as the “most promising option,” the reaction needed to release the hydrogen has not received much attention.

Varying conclusions and future plans...Based on their sample runs, the researchers observed that the best path to follow will vary from place to place and from situation to situation. “As we developed the tool, we saw that the ‘best’ carrier was very specific to the supply chain at hand,” says Ibrahim. “It’s a function of how far you’re trying to ship your hydrogen, energy and shipping costs at your exporting and importing countries, the capital cost of building the needed facilities at both ends, and more.”

Ibrahim and his team are now planning a follow-up study in which they use HyCAT to analyze specific supply chains under certain conditions. They’ll then select assumptions that are highly uncertain and look at the range of possible values for those assumptions. “Then we’ll be able to say, ‘under these conditions, this carrier is better than that one,’ or ‘this carrier is better at cost, but worse at carbon intensity,’” says Ibrahim.

For now, the main conclusion of the study, says Ibrahim, is that “there’s no conclusion.” He warns decision-makers not to assume that anything they see in the literature can easily be generalized or extrapolated to their specific conditions. Instead, decision-makers should use HyCAT to explore the options available to them. Guided by their results and the objectives and values of their company, they will be able to optimize their supply chains and make clean-burning hydrogen a reality.

Nancy W. Stauffer | MIT Energy Initiative

VELOCE MOTORCYCLES

Veloce Ethereal: new 145 hp two-stroke café racer

Two-stroke motorcycles continue to spark enthusiasm, and a new project aims to revive this philosophy using modern technology. Enter the Veloce Ethereal, a café racer powered by an engine rarely seen today: a 500cc, inline-four, two-stroke unit.

The engine was developed to deliver 145 hp—an output typically found in larger-displacement motorcycles. The project seeks to combine the performance characteristics of two-stroke engines with a chassis and aesthetic inspired by classic design.

The word "Ethereal," according to the Royal Spanish Academy (RAE), signifies something sublime, volatile, unreal, abstract, pure, elevated...A meaning that could well apply to the engine, which acts as a self-supporting element anchored to the multitubular chassis. We are referring to the 500cc two-stroke V4 engine, capable of delivering 145 hp at 12,000 rpm.

Veloce Motorcycles is not talking about a 500cc two-stroke V4 engine, but rather an L4: four cylinders arranged in two banks of two at a 90-degree angle. It utilizes two crankshafts—much like the Veloce Aperion with its X8 engine, which, naturally, has double the displacement. The Ethereal features a laser-cut aluminum 4-into-4 exhaust system optimized for the two-stroke engine. The single-sided rear swingarm, located on the left side, is machined from aluminum.

The Veloce Ethereal features café racer styling, including a half-fairing, a single-seat tail section, and a sporty riding position. The package is complemented by high-quality suspension and braking components designed to optimize the engine's performance.

The development of this motorcycle aims to demonstrate that two-stroke engines still have a place in high-performance projects, utilizing current technical solutions to meet modern demands.

For now, the Veloce Ethereal remains a project in development, with neither a launch date nor a price confirmed. However, its specifications and mechanical configuration make it one of the most impressive offerings in the classic-inspired motorcycle segment.

On the other hand, forget about traction control, anti-wheelie systems, slip management, and other safety features. Nothing has been specified in this regard. And sincethe Aperion doesn’t have any of these features despite its 280 ch, why would Veloce install them on a machine that’s half as powerful?

The Ethereal prefers to be equipped with more “tangible” features, such as a large inverted fork, a machined aluminum single-sided swingarm, large brake rotors front and rear, a very aggressive riding position, a radiator tucked away in the rear (like the old Benelli Tornados), laser-sintered alloy exhausts, and a minimalist steel-tube frame.

For die-hard enthusiasts only...The weight is unknown, but it won’t be heavy. Unlike the price, which is expected to easily exceed 50,000 euros. The brand has announced that the Ethereal will be slightly cheaper than its big brother, which costs nearly 90,000 euros.

In any case, when you love something...you go all out, right? Because once you’ve cleared the price hurdle, you’ll need to stay highly motivated: only 48 units of the Veloce 500 Ethereal will be produced, and they’ll be street-legal only in the United Kingdom. As for Euro 5+ emissions standards and rider-assistance features? It leaves them in the dust.

 

by Autonews

 

AUTONEWS

Alfa Romeo S.Z.

Presented in the Alfa Romeo stand at the 1989 Geneva Motor Show, the S.Z. was designed to amaze the public with its aggressive sporty profile, marked by low ground clearance, a high beltline and a wedge shape that conveyed grit and speed.

It was the result of the ambitious project called ES30 (for "Experimental Sportcar 3.0 litre"), an attempt by Alfa Romeo to reaffirm its tradition as a manufacturer of rear-wheel drive sports cars, but using new technology. The production of 1000 units was also commissioned to coachbuilder Zagato.

Besides its innovative composite fibre bodywork, the car was the first in the industry to be produced using computer-aided design and manufacturing (CAD/CAM) systems. The unprecedented use of this technology significantly reduced design lead times and, most importantly, the need for refinements and modifications during production.

The heart of the S.Z. was its impressive V6 “Busso” engine (named after the designer), which equipped the 75 3.0i Quadrifoglio Verde in 1987. It incorporated electronic injection and a three-way catalytic converter, delivering 185 hp and up to 204 hp in the S.Z. version.  The mechanics also included a 5-speed rear axle gearbox integrated with the differential, as well as suspension and brakes lifted from the 75 1.8 Turbo Evolution competition car. The chassis consisted of a steel underbody covered by a modern, composite-fibre bodyshell.