How Volkswagen's outsmarting its competition

Ulrich Hackenberg isn't yet a household name but if Volkswagen's $70 billion bet on his big idea pays off, he may join the likes of Henry Ford, Alfred Sloan and Taiichi Ohno in the canon of auto industry pioneers.

Since the heyday of Henry Ford and his Model T, the world's automakers have considered the "global car" to be their Holy Grail - the same basic design that can be built, in subtle variations, and sold in different markets.
Take that fundamental concept, stretch it across many different vehicle types, sizes and brands, then build them by the millions, and you begin to sense the enormity of Volkswagen's rapidly evolving "mega-platform" strategy and its potential impact on competitors around the globe.
 

Auto engineer Hackenberg nurtured this bright idea for three decades, after early pitches to auto executives were largely ignored, until somebody finally bought it wholesale. The man who bit was Volkswagen Chief Executive Officer Martin Winterkorn.

Hackenberg's fundamental rethink of vehicle platforms, the industrial Lego from which cars are designed and made, is helping power the German company to the top of the global sales charts several years ahead of its 2018 target. It could also make VW one of the most profitable carmakers in the world.
The strategy is not without risk. It could, for instance, expose Volkswagen to the threat of a massive global recall if a single part, used in millions of cars, fails.
 

But rivals have taken note of the power behind its move. Volkswagen's modular platforms are being benchmarked by most of the world's top automakers, including Toyota Motor Corp and Ford Motor Co (NYS:F), according to company executives.

"We'd be crazy not to," said a senior Ford official, requesting anonymity because of the proprietary nature of the subject.
VW's work on its largest mega-platform, known internally as MQB, began in earnest in 2007 and is being implemented over the next four years at a cost of nearly $70 billion, estimates Morgan Stanley. The potential payoff is compelling: Projected annual gross savings by 2019 of $19 billion, according to the bank, with gross margins approaching 10 percent.
 

SIX-YEAR GESTATION
After a six-year gestation, VW has just begun to implement its sophisticated and highly flexible platform with the deceptively simple label MQB, a German acronym for "modular transverse matrix." Virtually all of the group's small and medium front-wheel-drive family models, including the latest generations of the VW Golf and Audi A3, are being designed around MQB as their base.The new platform features a far greater degree of plug-and-play modularity, flexibility and parts commonality than at Toyota, General Motors Co, Ford and other competitors.
 

MQB "could be the single most important automotive initiative of the past 25 years," says Michael Robinet, managing director of IHS Consulting in Northville, Michigan. "It really changes the game."

With the new mega-platform strategy supporting its 12 brands, from spartan Skoda to Audi, Porsche and Lamborghini, VW is poised to snatch the global sales crown from Toyota as early as next year, according to investment bank Morgan Stanley.
 

VW envisions enormous leverage from MQB. The plan is to boost global sales to 10 million or more, with roughly two out of every three cars - some 40-plus models totaling 6.3 million sales a year - built on some variation of the MQB platform, according to U.S. research firm IHS Automotive.

None of VW's competitors has the diversity of brands, the breadth of technology, the sweeping geographic footprint or the deep pockets necessary to support and take advantage of such a wide-reaching initiative as MQB.
Even Toyota, the current global sales leader, is playing catch-up with its German rival.
 

Each of the three modular component sets will come in different variations that will enable enormous flexibility in terms of product design, while accommodating a wide range of powertrain options, from gas and diesel engines to electric motors and batteries.

"Modular platforms have grown beyond the technology (alone) to become a management tool which helps support the brands' development. The toolkits help the brands to preserve their character and sharpen their individuality," said Hackenberg, now development chief for the Volkswagen brand.
 

Excess exposure to a single market such as China contradicts VW's philosophy of spreading growth evenly and potentially makes it vulnerable to negative market developments and possible government interference, says Pieper.

To hedge its potential emerging-markets exposure, VW also has overhauled its loss-making North American operations - an estimated $4-billion investment, according to Morgan Stanley, that could more than double U.S. sales by 2018 to 1.3 million.
Even then, it would remain a mid-level player in the U.S. market dominated by GM and Ford, which sell nearly 5 million vehicles a year between them.
 

CHANGING OF THE GUARD
The full rollout of MQB may not be accomplished until the end of the decade, estimates Pearson. By then, the chief stewards of VW's corporate strategy - CEO Winterkorn and Chairman Ferdinand Piech - may be retired and the next generation of management moved into the top slots.The Austrian-born Piech, 75, is a third-generation auto executive. A mechanical engineer by training, he is the grandson of Ferdinand Porsche, the legendary Austrian designer of the original VW Beetle.
 

VW's supervisory board has yet to clearly anoint potential heirs to Piech and Winterkorn, 65, and it won't be easy, particularly since much of the power has been closely held by the two patriarchs since Winterkorn became CEO in 2007.

As for the company's strategic vision after Piech steps down, Morgan Stanley's Pearson says: "His legacy is (building) the world's largest and most successful auto company. I don't think the strategy will change any time soon."

Health Benefits of Sleeping Naked

Shed those inhibitions, this is no time to be embarrassed. While some people may frown upon the idea of sleeping in the nude, keep an open mind as we discuss the benefits of sleeping in your birthday suit.

Natural pain reliever

Clothes restrict blood circulation, hence shedding that artificial skin is good for stimulating the same. It helps in eliminating tension and discomfort from the abdominal viscera nerve region and even relieves waist pain. Those tight elastic bands do little good and hence should be loosened for a sound comfortable sleep. Medical research have shown that sleeping naked is good for those suffering from insomnia as it has a comforting effect on them.

Sebaceous glands stay happy

Sleep is not a complete no-activity state. The organs are at work and so to improve their productivity it is important that we don’t put pressure on them by way of clothes. It is said that bare skin absorbs more nutrients than with clothes on. Going naked will streamline and accelerate the repair process of the skin. A healthy, uninterrupted air flow will help in the process. Sleeping naked allows the sebaceous glands to do their work best, which is sebum discharge and regeneration. This in turn helps in improving the metabolic rate of the body.

Protects privates

That wet feeling can be a little discomforting in women and can increase the possibility of infection. Sleeping naked increases ventilation to these areas makes them comfortable and keeps them dry, thereby avoiding chances of fungal infection. For men, it has also been found to increase fertility by keeping the testes at adequate temperature and retaining the sperm quality too.

Enhanced lifestyle

Tired or feeling uneasy? Try going naked! A hectic day at work at times makes it hard to get that sound sleep that we cherish. However, sleeping naked can ease the tension and help in giving you that adequate dose of sleep. It relaxes the body and helps in a comfortable sleep. As a result, people wake up refreshed and remain energetic all day along.
How to improve sleeping pattern

Try and take a bath to be germ free. Make sure that the temperature and humidity in the bedroom is adequate, in order to avoid catching a cold. Transform that bed into something fluffy so that the drape feels good on your bare skin.  Though considered a taboo by some, the requirement of sleeping naked can be talked out with your spouse. People may ridicule the idea, but trust me they will soon be taking cues to get that comfort sleeping.

$100 million De Guigné estate comes with quite a contingency

Here's one of the more unusual home sale restrictions we've come across -- and we aren't referring to the estate's whopping $100 million price tag, although that does indeed put the home among the top five or so most expensive properties in the nation. (The most expensive is the Crespi-Hicks estate, in Dallas of all places, offered at $135 million.)

No, here's the real catch: You can't move in right away.

In fact, who knows when you'll be able to move in.

The property has been in the De Guigné family for 150 years. It's currently owned and occupied by Christian de Guigné IV (pronounced de-GEEN-yay), who was born there 76 years ago, the Contra Costa Times reports, and doesn't plan to leave the estate before he leaves this vale of tears. So it's being offered with the stipulation that the new owner can only move in after De Guigné dies. Quite a contingency, that "life estate" arrangement.

But here's what the farsighted buyer will get: 16,000 square feet of living space and, perhaps more stunningly, 47 acres of land in Hillsborough, Calif., halfway between San Francisco and Silicon Valley -- in one of the most expensive ZIP codes in the nation. The mansion was designed by architects Bliss & Faville and decorated by interior designer Anthony Hail. Its "grand-scale ballroom, living room, library and pavilion are aligned to open to a pool courtyard, revealing sweeping views of San Francisco and the East Bay," the listing at Sotheby's International Realty says. (My quote omits the listing's inexplicably eccentric capitalization.) The listing doesn't reveal the number of bedrooms and bathrooms, but it's safe to say that the Contra Costa Times' characterization of bedrooms as "numerous" is accurate. The real estate blog Curbed says the estate has seven bedrooms, nine bathrooms and a "flower-arranging room"; the Contra Costa Times puts the number of bathrooms at 11.

And while $100 million might seem stratospheric, a new neighbor over in Woodside recently paid the highest on-the-record price ever for a home in the United States: $117.5 million, for an estate on a mere 9 acres.

Any takers?

End winter chapped lips once and for all

The all-knowing beauty professionals were asked: "I get the worst chapped lips in the winter. What remedy will stop this once and for all?"

The dermatologist says: "The thin skin on your mouth loses moisture faster than any other area--especially when it's cold. Your instinct may be to buff off the flakes, but don't: This can leave the skin raw and allow bacteria in. Instead, focus on hydration. By keeping the skin nourished and protected, it'll repair itself quickly and stay soft."

If you're going to be outdoors for the day, swipe on a lip balm that contains SPF 30, since the delicate skin on your lips is especially vulnerable to UV rays. (Try Nivea A Kiss Of Protection Lip Care SPF 30, $2.99; drugstore.com.) And watch out for triggers that can aggravate dryness, such as acidic juices like orange and grapefruit, toothpaste that contains guaiazulene or sodium lauryl sulfate (it'll say so on the label), and fragranced lipsticks and glosses.
"Avoid all these for a bit and your lips will heal much faster." -- Jennifer M. Segal, M.D., fellow of the American Academy of Dermatology and consulting dermatologist for Simple Skincare.

The cosmetic chemist says:"To soothe and prevent chapped lips, try doubling up on products. During the day you want a balm that contains a rich emollient like shea or mango butter--they're loaded with fatty acids and lipids that help repair skin--and reapply it often. It's a myth that you can become addicted to lip balm, so don't worry!" (Try Aquaphor Lip Repair, $4.59; amazon.com.)
"Then, before bed, slather on a thick ointment that contains petrolatum, lanolin, or mineral oil to seal in moisture." A good choice is Vaseline Lip Therapy Mini Original, $2.36; amazon.com, which is pure petroleum jelly.
What's not ideal for chapped lips, though, are those "medicated" balms that contain tingly ingredients like camphor, menthol, eucalyptus, and peppermint oil: "Their cooling effect may feel good, but sometimes they can further irritate chapped lips."

The makeup artist says:
"Very pale or very bold lip colors will make a dry mouth look even more scaly, so stick with soft, natural shades like rose or, for darker skin, a subtle, reddish berry. If you wear lipstick, make sure it's a creamy formula--the matte or long-wearing ones can be drying. Or switch to a tinted lip balm until chapping heals."
Korres Lip Butters, $12 each; sephora.com, offer a nice range of colors; try (from top) Quince on dark skin, Jasmine for fair skin, or Pomegranate on olive skin.
If you're a lipgloss-lover, first swipe on a clear lip balm and give it a minute to sink in before you apply your favorite product. "Otherwise, the shade can separate and show all the little cracks in your skin." (This trick works under lipstick, too!)

Slavery-math questions cause uproar at NYC school

NEW YORK (AP) — A school principal said she's "appalled" by a homework assignment that used scenarios about killing and whipping slaves to teach math.

Adele Schroeter has ordered sensitivity training for the entire staff of Public School 59 in Manhattan following last month's assignment, the Daily News reported Friday.
A teacher had asked fourth-graders to write homework questions that blended math and social studies, education officials said. The teacher then used the students' questions, including the slave-related ones, as homework for the class.
One question stated the number of slaves who died while taking over a ship. It asked how many slaves were still alive. The other said a slave was whipped five times a day and asked students to calculate how many times a month he was whipped.
A student-teacher said she was shocked by the wording and later refused to hand out the worksheet in another class.
"I looked at the questions and was like, 'Wow! This is kind of inappropriate,'" Aziza Harding told the New York Post, saying the questions contained "desensitized" violence.
"I just found it alarming that this would happen in a state that you would think was more liberal," said Harding.
The Department of Education said the situation was "obviously unacceptable." It said "appropriate disciplinary action" would be taken.