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Volkswagen powers up the grid to take on Tesla

Source: Reuters

FRANKFURT/DUESSELDORF, Nov 17 (Reuters) – Volkswagen (VOWG_p.DE) plans to double staff numbers at its charging and energy division, roll out new payment technology next year and strike more alliances to take on Tesla (TSLA.O) in a key electric vehicle (EV) battleground: power infrastructure.

By ensuring there are enough fast-charging plugs – and enough power – for the EVs it wants to sell, Europe’s biggest carmaker hopes to convince drivers worried about battery ranges that they can ditch their fossil fuel cars for good.

Underlining its electric ambition, Volkswagen has drafted in power industry veteran Elke Temme, who spent nearly two decades at German energy companies RWE (RWEG.DE) and Innogy, to help the carmaker get in better shape to take on Tesla.

In the job since January, Temme, 53, has been tasked with bundling the carmaker’s various power activities such as procuring energy, enabling customers to charge their cars at home, and on the road, and selling the electricity required.

Getting this done will require a bigger workforce and Temme plans to double the staff at Volkswagen’s European charging and energy division, known as Elli, to about 300 in 2022, having already tripled it this year, she told Reuters in an interview.

“We’re investing in huge growth areas that don’t always have to be profitable right away. We always see these investments in the overall context of our group strategy,” she said. “That’s why building up a comprehensive infrastructure is key.”

Temme declined to specify the budget she has been given but said Volkswagen, led by Tesla admirer Herbert Diess, has approved the investment requests for the division, which also sells home battery storage systems similar to Tesla’s Powerwall.

Volkswagen leads the pack worldwide by far with its investment plans for EVs and batteries through 2030, according to a Reuters analysis, and it is planning to spend 35 billion euros on battery EVs by 2025.

PLAYING CATCH UP

But when it comes to the networks of fast-chargers that many analysts believe are crucial for bringing EVs into the mainstream, VW has some catching up to do.

Tesla has been rolling out high-performance Superchargers for years and has a global network of about 30,000 fast-chargers that it says can give a 200 km (125 mile) boost in 15 minutes.

The company said in October that its own network has doubled in the past 18 months – and will triple over the next two years.

Volkswagen, meanwhile expects its network of fast-chargers to nearly quadruple to about 45,000 by 2025 – when it aims to overhaul Tesla as the global EV market leader – with 18,000 EV pumps in Europe, 17,000 in China and 10,000 in North America.

Volkswagen in March said it plans to spend 400 million euros on expanding its fast-charging network on the continent by then.

But that’s a drop in the ocean compared with the 5 billion euros the European Union reckons is needed every year until 2040 to expand charging infrastructure on the continent, and it is raising the pressure on utilities and governments to step up.

In Europe, the Volkswagen group is a shareholder in the EU’s fast-charging venture Ionity, along with rival carmakers BMW (BMWG.DE), Daimler’s (DAIGn.DE) Mercedes-Benz, Ford (F.N) and Hyundai (005380.KS).

It has also teamed up with energy firms such as Italy’s Enel (ENEI.MI), Britain’s BP (BP.L) and Spain’s Iberdrola (IBE.MC) to plug geographical gaps and form the blueprint for how funding for EV infrastructure can be split across industries.

“Various models are conceivable, from product partnerships and joint ventures to M&A,” said Temme.

CARS AND POWER

Tesla has already shown that when it comes to EVs, just selling cars no longer cuts it. It has adopted a model that offers customers everything from cars to battery storage to solar panels as well as electricity in some U.S. states.

Volkswagen is now selling power to retail clients that drive an EV or plug-in hybrids. One of its tariffs – which is available to customers who don’t own a VW – has attracted more than 10,000 clients since its launch in July, Temme said.

She said VW was planning to make its fast-chargers available for all EV drivers, unlike Tesla which has so far kept its supercharging network just for Tesla drivers – with the exception of a pilot programme in the Netherlands. read more

“We are pursuing a different approach than Tesla when it comes to charging infrastructure roll-out,” said Temme.

“We want an open, non-discriminatory charging network and will develop our services to make our offer more comfortable, simpler, more attractive.”

Volkswagen says its open-for-all approach means buyers of its EVs can charge at more than 250,000 existing public charging points across Europe – from various providers with various charging speeds.

The problem is that charging protocols and payment methods can vary across vendors, potentially turning the act of refueling an EV into a time-consuming and messy undertaking.

From the first quarter of 2022, Volkswagen plans to offer “Plug & Charge” technology in Europe to make the process smoother.

The car will store the owner’s payment details and make a contactless payment when the charging plug is attached to the EV at refuelling stations set up for the service.

While these are new challenges for established carmakers, Temme, who witnessed first-hand the abrupt shift of Germany’s utilities away from nuclear power in the wake of the Fukushima disaster, believes they can be mastered.

“Utilities must reinvent themselves and transition from nuclear and coal to renewables. In the automotive industry, including at Volkswagen, the question is currently how to consistently shift the focus from conventional vehicles to sustainable mobility,” she said.

“These challenges are of similar magnitude.”

($1 = 0.8738 euros)

Reporting by Christoph Steitz, Vera Eckert and Tom Kaeckenhoff; Editing by David Clarke

Our Standards: The Thomson Reuters Trust Principles.

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Combating Cyber Fraud in the Aviation Industry

Source: Finance Derivative

Written by Andrea Feldman, Senior Cyber Threat Intelligence Analyst at BlueVoyant

Fraudulent cyber-attacks targeting the airline industry are a common issue largely seen coming out of the underground, such as the deep and dark web. According to RSA Security, airlines are the industry most affected by online fraud, accounting for 46% of fraudulent transactions. As a result, the financial costs for airlines are huge with losses due to fraud estimated at 1.2% of the total global airline revenue.

Over the past few years, there has been a significant spike in threat actors targeting the aviation industry worldwide, due to airlines’ increasing reliance on online booking and reservation platforms. These online tools make it more convenient for customers to purchase airline tickets and have become an industry standard. However, it has also enabled fraudsters to exploit vulnerabilities in online systems. The significant disruption and increase in remote work caused by the COVID-19 pandemic has also caused an increase in fraud in recent years.

Analysing Fraud in the Underground Market

Posts offering flight tickets or compromised accounts with frequent flyer miles or reward points at advantageous prices are very common in underground forums, chat platform groups, and even on social media. Threat actors commonly sell flight tickets at reduced prices by using compromised credit cards to purchase tickets. These kinds of posts are frequently seen in the underground market targeting airlines worldwide. Threat actors typically purchase the flight tickets a few hours before the flight, reducing the likelihood of the airline identifying the fraud in time.

Compatible BIN numbers

It is also common to see posts in underground forums where threat actors seek specific credit card BINs that perform well when booking with certain airlines.

Compromised Travel Agent Consoles

Nevertheless, some threat actors obtain tickets by hacking travel agents’ accounts or conducting fake bookings. Examples include threat actors plotting in an underground forum offering access to a travel ticket panel for sale.

Messages from a threat actor can include mentions of the fake travel panel and its ability for users to instantly issue plane tickets under any name, on any airline, or to any destination. Furthermore, the threat actor can note that the access originates from a large, legitimate company with many accounts, which increases the difficulty for the breach to be detected.

Compromised Frequent Flyer Accounts

Frequent Flyer programs are also heavily targeted in the underground market as another way to issue fraudulent flight tickets. Threat actors offer compromised frequent flyer account credentials for sale, often at advantageous prices. These credentials, which include frequent flyer miles or reward points, are obtained through fraudulent methods such as phishing or hacking into customer accounts. The attackers then steal points or miles and redeem them for flights or other rewards. Access to the compromised accounts themselves is then sold separately.

Fraudulent activities can lead to financial losses for an airline due to chargebacks, increased operational costs for fraud prevention, and damage to the airline’s reputation.

Mitigation of Aviation Fraud

To combat this kind of fraud, it is crucial to enhance security measures and ensure the effectiveness of fraud prevention systems. Employee training and awareness are also essential components for implementing prevention techniques.

Given that fraudsters continuously adapt their methods, it is important to:

· Regularly review and update fraud prevention policies and procedures to address evolving threats

· Conduct thorough internal audits to identify any gaps or exploits in existing systems and processes

· Stay informed about emerging technologies and industry standards to leverage innovative solutions for fraud prevention

· Enforce Multi Factor Authentication (MFA) for user accounts, and ensure password policies are effective and up to date

· Airlines should be monitoring for phishing websites impersonating them, compromised accounts sold in the underground and other fraudulent activities in the dark web.

As the risk of fraud within the aviation industry continues to pose a threat, organisations must be prepared to implement stringent security measures. Companies should look to partner with cybersecurity partners which offer impersonation and fraud detection solutions. They must also implement dark web monitoring and brand protection services, essential to actively monitoring underground communities. This will enable companies to stay ahead of fraudsters, helping to triage the most serious threats that can otherwise have a severe impact on an airline’s reputation and customer experience ratings in a significantly competitive market.

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Could 3D Solid State Batteries Accelerate the Adoption of Electric Vehicles 

As we push towards the goal of net zero by 2025, the era of the internal combustion (IC) engine is drawing to a close.

Although consumer reliance on the humble petrol- or diesel-fueled motor car has been climbing at a steady and predictable pace ever since Henry Ford-style mass production caught on, there has been a modest dent in the demand for traditional vehicles, with nearly one in five cars sold in 2023 being electric.

So will this trend continue to grow? We would argue yes, but putting a timescale on this is a tricky task: the predictability we have seen with IC vehicles doesn’t apply to everything. Not all innovations buck conform to one clearly defined trend. And this appears to be the case with electric vehicles.

With nearly 20% of new cars being electric in some regions, electric vehicles (EVs) are steadily increasing their market share. In fact, in countries like Norway, adoption reached around 80% in 2023. This year, it’s projected that 25% of passenger car registrations will be electric, surpassing 17 million units in global sales. These numbers indicate a significant upward trend in EV adoption, especially in recent years.

Nonetheless, even taking these encouraging figures into account, EVs still only represent a small proportion of all vehicles on the road. This needs to change otherwise there’s a danger that EV adoption could stagnate.

What needs to change to boost EV adoption?

Apart from the natural laws of supply and demand, the main limitations hindering EV development are most notably cost, slower recharge rates and limited range.

This is where batteries come in as the key to addressing these hindrances. 

Batteries designed for vehicles focus on overcoming a range of challenges. Weight, cost, and the sourcing of materials are all significant. Beyond these, one factor stands out. With, nearly 50% of consumers claimed they’d need a higher real-world range to consider switching from ICE vehicles to electric cars according to a recent survey by GoCompare – the limitations posed by a battery’s range is a key factor to be addressed. 

This means that we are a long way off being reliant on fossil fuels to power our vehicles. However, a solution might be closer than we think. 

LionVolt’s cutting-edge battery technology is a driving solution for electric cars and sustainable aviation by creating groundbreaking 3D solid-state technology for next-gen batteries.This new technology could be key to far greater EV uptake at a scale that could set a steep new trend.

What are 3D solid-state batteries, and how do they work?

The key to overcoming the challenges limiting the shift towards electrification are batteries and cells that are much faster to charge than those currently used and can extend range and performance. Central to these developments are advances in lithium-ion batteries. 

In terms of range, the science revolves on energy density – how much energy can be packed into each battery for a given weight. To achieve high density, we are seeing a shift to more advanced products from materials commonly used in today’s cells. New anode technologies, including silicon and lithium, will increase today’s range and can be ‘dropped into’ the existing supply chain. To get a significant increase, the production process involves switching the flammable liquid common to old-style batteries with a solid, non-flammable material.

Obvious benefits to drivers and the planet alike range from,faster charging, higher performance, intrinsically higher standards of safety, longer battery life, and radically lowered carbon footprints

The real gamechanger here is extended range: driving ranges upwards of 800 km—or about 500 miles—are no longer the stuff of EV drivers’ imagination and this could be the stepchange we need for mass adoption. 

LionVolts innovations in the battery space address consumer demands for extended range while also offering a safer, more sustainable alternative to traditional batteries. 

This lays the foundations for an increased uptake of EVs in the future, but electric cars are not where the innovations end. LionVolt are also developing larger versions of these batteries that have the very real potential of fueling aviation. We could say when it comes to electrification to achieve net zero, the sky’s the limit (no pun intended!).

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The Benefits of EV Salary Sacrifice: A Guide for Employers and Employees

As the UK government continues to push for greener initiatives, electric cars have become increasingly popular. The main attraction for both employers and employees is the EV salary sacrifice scheme.

By participating in an EV salary sacrifice scheme, both employers and employees can enjoy cost savings and contribute to environmental sustainability along the way! This article will delve into the specifics of how these schemes operate, the financial advantages they offer, and the broader positive impacts on sustainability.

We will provide a comprehensive overview of the mechanics behind EV salary sacrifice schemes and discuss the various ways in which they benefit both employees and employers, ultimately supporting the transition to a greener future in the UK.

What is an EV Salary Sacrifice Scheme?

An EV salary sacrifice scheme is a flexible financial arrangement that permits employees to lease an EV through their employer. The key feature of this scheme is that the leasing cost is deducted directly from the employee’s gross salary before tax and National Insurance contributions are applied. By reducing the taxable income, employees can benefit from substantial savings on both tax and National Insurance payments. This arrangement not only makes EVs more affordable for employees but also aligns with governmental incentives to reduce carbon emissions.

For employers, implementing an EV salary sacrifice scheme can lead to cost efficiencies as well. The reduction in National Insurance contributions on the employee’s reduced gross salary can offset some of the costs associated with administering the scheme. Additionally, such programmes can enhance the overall benefits package offered by the employer, making the company more attractive to prospective and current employees.

Benefits for Employees

1. Tax and National Insurance Savings

By opting for an EV salary sacrifice scheme, employees can benefit from reduced tax and National Insurance contributions. Since the lease payments are made from the gross salary, the taxable income decreases, resulting in substantial savings.

2. Access to Premium EVs

Leading salary sacrifice car schemes often provide access to high-end electric vehicles that might be otherwise unaffordable. Employees can enjoy the latest EV models with advanced features, contributing to a more enjoyable and environmentally friendly driving experience.

3. Lower Running Costs

Electric vehicles typically have lower running costs compared to traditional petrol or diesel cars. With savings on fuel, reduced maintenance costs, and exemptions from certain charges (such as London’s Congestion Charge), employees can enjoy significant long-term financial benefits.

4. Environmental Impact

Driving an electric vehicle reduces the carbon footprint and supports the UK’s goal of achieving net-zero emissions by 2050. Employees can take pride in contributing to a cleaner environment.

Benefits for Employers

1. Attract and Retain Talent

Offering an EV salary sacrifice scheme can enhance an employer’s benefits package, making it more attractive to potential recruits. It also helps in retaining current employees by providing them with valuable and cost-effective benefits.

2. Cost Neutrality

For employers, EV salary sacrifice schemes are often cost-neutral. The savings on National Insurance contributions can offset the administrative costs of running the scheme, making it an economically viable option.

3. Corporate Social Responsibility (CSR)

Implementing an EV salary sacrifice scheme demonstrates a commitment to sustainability and corporate social responsibility. This can improve the company’s public image and align with broader environmental goals.

4. Employee Well-being

Providing employees with a cost-effective means to drive electric vehicles can contribute to their overall well-being. With lower running costs and the convenience of driving a new EV, employees may experience reduced financial stress and increased job satisfaction.

How to Implement an EV Salary Sacrifice Scheme

1. Assess Feasibility

Evaluate whether an EV salary sacrifice scheme is feasible for your organisation. Consider the number of interested employees, potential cost savings, and administrative requirements.

2. Choose a Provider

Select a reputable provider that offers a range of electric vehicles and comprehensive support services. Ensure they can handle the administrative tasks and provide a seamless experience for both the employer and employees.

3. Communicate the Benefits

Educate your employees about the advantages of the scheme. Highlight the financial savings, environmental impact, and access to premium EV models. Provide clear guidance on how they can participate in the programme.

4. Monitor and Review

Regularly review the scheme’s performance to ensure it continues to meet the needs of your employees and the organisation. Gather feedback and make adjustments as necessary to enhance the programme’s effectiveness.

Conclusion

The EV salary sacrifice scheme offers a win-win situation for both employers and employees in the UK. With significant financial savings, access to premium vehicles, and a positive environmental impact, it’s an attractive option for forward-thinking organisations. By implementing such a scheme, employers can demonstrate their commitment to sustainability and employee well-being, while employees can enjoy the benefits of driving an electric vehicle at a reduced cost.

Adopting an EV salary sacrifice scheme is a step towards a greener, more sustainable future for everyone.

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