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BUSINESS

Volkswagen to end production of iconic German cars

Volkswagen announced Thursday it would end production of its iconic "Beetle" cars in 2019 after adding a pair of final editions of the insect-inspired vehicles.

Volkswagen to end production of iconic German cars
A Volkswagen 'Käfer', or Beetle, in Stuttgart in March 2018. Photo: DPA

The curvy-topped sedans, which shook off Nazi origins to become a global auto phenomenon, are being sidelined as Volkswagen emphasizes electric cars and larger family-oriented vehicles.

But company officials, still trying to completely turn the page after 2015's costly “dieselgate” scandal, opened the door to reviving the model at some point, alluding to the company's 2017 decision to unveil a revamped Volkswagen Bus as a possible template.

“As we move to being a full-line, family-focused automaker in the US and ramp up our electrification strategy…there are no immediate plans to replace it,” Hinrich Woebcken, chief executive of Volkswagen Group of America said in a statement.

“But, I would also say, never say never,” he added.

“The loss of the Beetle after three generations, over nearly seven decades, will evoke a host of emotions from the Beetle's many devoted fans,” Woebcken said.

Volkswagen plans to offer the two final edition models in both coupe and convertible styles. The cars will include nods to earlier versions, the company said.

  '60s icon

The vehicle's history goes back to the Nazi era, having first been developed by Ferdinand Porsche with support from Adolf Hitler, who in 1937 formed the state-run Volkswagenwerk, or “The People's Car Company.” After the war, the Allied countries eventually made Volkswagen a priority in an effort
to revive the German auto industry.

The sedans made their US debut in the 1950s, but sales were weak, in part owing to the company's Nazi origins.

The advertising agency Doyle Dane Bernback in 1959 rechristened the car the “Beetle,” and began touting the vehicle's small size as an advantage to consumers, according to the History Channel.

The car attained further popularity with the 1968 Disney movie “The Love Bug,” the story of a racing Volkswagen with a mind of its own.

Andy Warhol did prints featuring the car and a Beetle was also the most prominent car in the background of “Abbey Road,” the final Beatles album to be recorded.

US sales ceased in 1979, but the vehicle continued to be produced in Mexico and Brazil, according to Car and Driver. VW revived the “New Beetle” in the United States 1997.

But sales of the Beetle slipped 3.2 percent to 15,667 in 2017 in the United States, a fraction of the sales for the Jetta and Passat sedans.

At the Detroit Auto Show in January, the German automaker unveiled a revamped version of the Jetta and also touted the Atlas, a new mid-sized SUV.

VW continues to deal with fallout from the “dieselgate” scandal that broke in September 2015.

The company, having already paid out costly government settlements, is fighting billions of dollars in additional claims lodged by shareholders who saw their stock plummet in value after authorities cracked down on VW over the installation of so-called “defeat devices” into 11 million cars worldwide to fool regulatory emissions tests.

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ENVIRONMENT

Sweden’s SSAB to build €4.5bn green steel plant in Luleå 

The Swedish steel giant SSAB has announced plans to build a new steel plant in Luleå for 52 billion kronor (€4.5 billion), with the new plant expected to produce 2.5 million tons of steel a year from 2028.

Sweden's SSAB to build €4.5bn green steel plant in Luleå 

“The transformation of Luleå is a major step on our journey to fossil-free steel production,” the company’s chief executive, Martin Lindqvist, said in a press release. “We will remove seven percent of Sweden’s carbon dioxide emissions, strengthen our competitiveness and secure jobs with the most cost-effective and sustainable sheet metal production in Europe.”

The new mini-mill, which is expected to start production at the end of 2028 and to hit full capacity in 2029, will include two electric arc furnaces, advanced secondary metallurgy, a direct strip rolling mill to produce SSABs specialty products, and a cold rolling complex to develop premium products for the transport industry.

It will be fed partly from hydrogen reduced iron ore produced at the HYBRIT joint venture in Gälliväre and partly with scrap steel. The company hopes to receive its environemntal permits by the end of 2024.

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The announcement comes just one week after SSAB revealed that it was seeking $500m in funding from the US government to develop a second HYBRIT manufacturing facility, using green hydrogen instead of fossil fuels to produce direct reduced iron and steel.

The company said it also hoped to expand capacity at SSAB’s steel mill in Montpelier, Iowa. 

The two new investment announcements strengthen the company’s claim to be the global pioneer in fossil-free steel.

It produced the world’s first sponge iron made with hydrogen instead of coke at its Hybrit pilot plant in Luleå in 2021. Gälliväre was chosen that same year as the site for the world’s first industrial scale plant using the technology. 

In 2023, SSAB announced it would transform its steel mill in Oxelösund to fossil-free production.

The company’s Raahe mill in Finland, which currently has new most advanced equipment, will be the last of the company’s big plants to shift away from blast furnaces. 

The steel industry currently produces 7 percent of the world’s carbon dioxide emissions, and shifting to hydrogen reduced steel and closing blast furnaces will reduce Sweden’s carbon emissions by 10 per cent and Finland’s by 7 per cent.

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