Volkswagen has bet $30 billion to start beating Tesla in 2020

Volkswagen CEO Herbert Diess has promised the NEO electric car in 2020 with 400 kilometer (250 mile) range at a price of $28,000. Volkswagen has invested $30 billion into electric cars and batteries. They are building a large plant in Shanghai.

The NEO electric cars will first be introduced in China and Europe.

There will be a modular electric platform (MEB) which will be the basis for a million EVs a year by 2025.

There will be a hatchback and ID Crozz crossover and then 2022 there will be an electric Microbus.

260-mile range for the mid-range Tesla model 3 and 310 miles for long-range

Tesla is expanding into Europe and China with its Model 3. By 2020, Tesla should have finally reached its $35,000 Model 3 price point without incentives. Currently the mid-range is about $46,000. They expect $10,000 in incentives through the end of 2018.

Volkswagen Group

Volkswagen AG (OTC: VLKAY), is one of the world’s largest automobile manufacturers. In 2017, it was worth more than $75 billion.

Volkswagen owns Audi, Bentley, Lamborghini and Bugatti, Skoda and Seat.

109 thoughts on “Volkswagen has bet $30 billion to start beating Tesla in 2020”

  1. $28,000 and 200 miles at 80mph is my convert to electric price and range. I don’t trust manufacturer claims of 250 mile range today. Teslas are beautiful. So are VW

  2. The electric bus looks fun. Would like to see a sychro westfalia 4×4 camper bus with off road tires and a performance package.

  3. Hat’s off to Elon Musk. He, and the people of Tesla, have dragged the legacy auto industry into revisiting the electric vehicle.The reboot was inevitable, but might have taken decades more without Elon. Thank you Elon, I’ve been wishing for this for decades.

  4. I hope that VW electrics will not be VW clean diesels and promises will be kept. Tesla competes more with BMW, not VW. The Model 3 is very luxurious vehicle. I wish there was Model 7, competing with Corollas or even less-costly cars. Safer than India cars, too. 🙂 “The is plenty of room at the bottom” when it comes to low price but good value — not just here but around the world.

  5. Three things:- Batteries – where is VW going to get them at a competitive price?- Charging network – 30 bil into cars isn’t going to build a competitive charging network- Trustworthiness – which corporation has lied more about more important things in the last few years?In other words, “I’ll believe it when I see it”.

  6. Just a heads up that VW has been misrepresenting their ranges – you need to derate by about 18%. So 205 miles not 250.Also a lead VW engineer said the base Neo would have tepid acceleration.

  7. Hello Ev people; all any of these EV manufacturers has to do is to call me, Edward at: 203-500-8777 to talk to me about my EV project that allows an EV (my car is called “The Watt” and /or EEV-3) to travel somewhere around 840-1,280 miles (not km) on a single charge! I retrofitted a car with a motor, battery pack and my ‘technologies’ to enable this car to potentially go over 1,200 miles on a single charge but as you all know there are at least 5 different criteria that a vehicle (ICE or EV) will get its range from. My battery pack is like 1/3rd the size of Tesla’s and since they make a great car, I wish that they would buy my technologies. “Happy motoring”; Sincerely; Edward H. – Owner of New Ideas and Iovations, LLC in CT USA

  8. They better shoot for more range than that if they plan to market in 2020. The Bolt introduced 2 years ago gets 238 miles of range EPA range and not some bogus European range number.

  9. Yes they have. If by lie you mean say they will have X and didn’t have X at the specified date. Then yes many corporation sin the US are guilty. Tesla is just more publicized.

  10. Yes they have. If by lie you mean say they will have X and didn’t have X at the specified date. Then yes many corporation sin the US are guilty. Tesla is just more publicized.

  11. Forgive me, but I don’t buy the lawnmower pollution thing. They don’t smell particularly bad even though they’re carbureted. Unfortunately, I have to mow my quarter acre of grass every week in the spring/summer – I’m a reluctant participant in the modern suburban landscaping fetish. I burn about half a gallon a month with a 3kW Briggs & Stratton

  12. The other underappreciated source of emissions is from small engines like lawnmowers, etc. Apparently their contribution to local smog/particulates is wildly disproportional to their fuel consumption.

  13. Forgive me, but I don’t buy the lawnmower pollution thing. They don’t smell particularly bad even though they’re carbureted. Unfortunately, I have to mow my quarter acre of grass every week in the spring/summer – I’m a reluctant participant in the modern suburban landscaping fetish. I burn about half a gallon a month with a 3kW Briggs & Stratton

  14. The other underappreciated source of emissions is from small engines like lawnmowers, etc. Apparently their contribution to local smog/particulates is wildly disproportional to their fuel consumption.

  15. Did those companies lie to THEIR investors about those delays or made promises to the contrary, tho? No.Learn the difference between apples and oranges.

  16. I repeat…for, oh…the 11 BILLIONTH time now…I don’t have it in for Tesla. I have it in for the Musk Fluffers, as I make it pretty clear.

  17. Companies have production delays all the time. A 6 month delay is not really that bad. If that is worthy of a DOJ investigation, why is the DOJ not investigating Boeing for the SLS (which is scamming the taxpayers) or Lockheed for the F-35, or any other number of government contractors that regularly fail to deliver on time and for the quoted cost?

  18. Companies have production delays all the time. A 6 month delay is not really that bad. If that is worthy of a DOJ investigation, why is the DOJ not investigating Boeing for the SLS (which is scamming the taxpayers) or Lockheed for the F-35, or any other number of government contractors that regularly fail to deliver on time and for the quoted cost?

  19. Tesla will be around for a long long time. The skeptics keep under estimating them, they will never mass produce a car…done. They will never make a profit…done. It’s a great American company, one of the best ones I can think of, people should be supporting a company putting America First.

  20. You’ve really got it in for Tesla. I’d love to hear the story behind that someday. In the mean time I can’t say I disagree with you.

  21. That’s a real and important issue but it’s also a local issue. Ask your community to place limits on the use of fire wood for heating. For instance they shut down most such heating in the SF Bay Area on a Spare The Air days when pollution is trapped by inversion layers.

  22. They better shoot for more range than that if they plan to market in 2020. The Bolt introduced 2 years ago gets 238 miles of range EPA range and not some bogus European range number.

  23. Methane still needs very high pressures, very low temperatures, or huge tanks. Dimethyl ether is much more easily managed. It has a boiling point of -24 C, whereas methane’s is -161, so DME has a much lower vapour pressure, and liquefies at similar pressures to LPG. DME works well in diesel engines, with no soot, and very low NOx production without catalysts. It’s non toxic, can be made out of methane or plant stock, and is not a greenhouse gas. It’s basically water with both hydrogens replaced by a -CH3 group, so, unlike methane, a polar molecule that doesn’t mind being a liquid.

  24. Tesla will be around for a long long time. The skeptics keep under estimating them, they will never mass produce a car…done. They will never make a profit…done. It’s a great American company, one of the best ones I can think of, people should be supporting a company putting America First.

  25. Hello Ev people; all any of these EV manufacturers has to do is to call me, Edward at: 203-500-8777 to talk to me about my EV project that allows an EV (my car is called “The Watt” and /or EEV-3) to travel somewhere around 840-1,280 miles (not km) on a single charge! I retrofitted a car with a motor, battery pack and my ‘technologies’ to enable this car to potentially go over 1,200 miles on a single charge but as you all know there are at least 5 different criteria that a vehicle (ICE or EV) will get its range from. My battery pack is like 1/3rd the size of Tesla’s and since they make a great car, I wish that they would buy my technologies. “Happy motoring”; Sincerely; Edward H. – Owner of New Ideas and Iovations, LLC in CT USA

  26. That’s a real and important issue but it’s also a local issue. Ask your community to place limits on the use of fire wood for heating. For instance they shut down most such heating in the SF Bay Area on a Spare The Air days when pollution is trapped by inversion layers.

  27. They better shoot for more range than that if they plan to market in 2020. The Bolt introduced 2 years ago gets 238 miles of range EPA range and not some bogus European range number.

  28. Methane still needs very high pressures, very low temperatures, or huge tanks. Dimethyl ether is much more easily managed. It has a boiling point of -24 C, whereas methane’s is -161, so DME has a much lower vapour pressure, and liquefies at similar pressures to LPG. DME works well in diesel engines, with no soot, and very low NOx production without catalysts. It’s non toxic, can be made out of methane or plant stock, and is not a greenhouse gas. It’s basically water with both hydrogens replaced by a -CH3 group, so, unlike methane, a polar molecule that doesn’t mind being a liquid.

  29. They lied; they basically showed us how ridiculous US emissions regulations are in doing so. the real problem was in 1970 and they fixed that – now the rules have gotten so oppressive that a major manufacturer tried to game them. As if a VW diesel was ‘Rollin Coal (slang for emitting clouds of black smoke). Meanwhile nobody yells at my neighbor for burning firewood excessively rich. my neighborhood smells like gypsies live here and it’s not even cold yet

  30. Storing hydrogen is very difficult and requires energy. Better to have it locked with carbon like methane, instead.

  31. 3. Definitely trust VW over Tesla. Odds are much better that VW will be around in five years than Tesla being around in 5 years.”Especially since…The Department of Justice (DOJ) is investigating whether Tesla misled investors about the production of its Model 3 sedan, The Wall Street Journal reports.According to the publication, the DOJ is trying to determine if the automaker made projections in 2017 about Model 3 production that it knew it would not be able to achieve.”When we started the Model 3 production ramp, we were transparent about how difficult it would be,” a Tesla representative said. “Ultimately, given difficulties that we did not foresee in this first-of-its-kind production ramp, it took us six months longer than we expected to meet our 5,000 unit per week guidance.”…but I am sure that the NBF Resident Musk Fluffers will attack me here for just passing the news along that they don’t like to hear.

  32. 1. Seems the current plan is to build their own. It isn’t that hard.2. Mostly irrelevant if your EVs have a 200 mile range3. Definitely trust VW over Tesla. Odds are much better that VW will be around in five years than Tesla being around in 5 years.

  33. First of all, Tesla is nothing more than aanother government scam. We wouldn’t need billions of charging stations built nationwide if we followed Toyotas lead with a vehicle that charges itself while driving. Much more efficient. Second, if tesla or government was in the least bit interested in helping people or the environment theyd be developing the hydrogen car. You all need deprogramming.

  34. Hello Ev people; all any of these EV manufacturers has to do is to call me, Edward at: 203-500-8777 to talk to me about my EV project that allows an EV (my car is called “The Watt” and /or EEV-3) to travel somewhere around 840-1,280 miles (not km) on a single charge! I retrofitted a car with a motor, battery pack and my ‘technologies’ to enable this car to potentially go over 1,200 miles on a single charge but as you all know there are at least 5 different criteria that a vehicle (ICE or EV) will get its range from. My battery pack is like 1/3rd the size of Tesla’s and since they make a great car, I wish that they would buy my technologies. “Happy motoring”; Sincerely; Edward H. – Owner of New Ideas and Innovations, LLC in CT USA

  35. Three things:- Batteries – where is VW going to get them at a competitive price?- Charging network – 30 bil into cars isn’t going to build a competitive charging network- Trustworthiness – which corporation has lied more about more important things in the last few years?In other words, “I’ll believe it when I see it”.

  36. an excuse to make a cheap and nasty interior ” <– Except it isn’t cheap or nasty. If your sense of aesthetics prefers elaborate and gaudy metallized plastic, I can see why you wouldn’t like it.

  37. “3. Definitely trust VW over Tesla. Odds are much better that VW will be around in five years than Tesla being around in 5 years.”

    Especially since…

    The Department of Justice (DOJ) is investigating whether Tesla misled investors about the production of its Model 3 sedan, The Wall Street Journal reports.

    According to the publication, the DOJ is trying to determine if the automaker made projections in 2017 about Model 3 production that it knew it would not be able to achieve.

    “When we started the Model 3 production ramp, we were transparent about how difficult it would be,” a Tesla representative said. “Ultimately, given difficulties that we did not foresee in this first-of-its-kind production ramp, it took us six months longer than we expected to meet our 5,000 unit per week guidance.”

    …but I am sure that the NBF Resident Musk Fluffers will attack me here for just passing the news along that they don’t like to hear.

  38. 1. Seems the current plan is to build their own. It isn’t that hard.
    2. Mostly irrelevant if your EVs have a 200 mile range
    3. Definitely trust VW over Tesla. Odds are much better that VW will be around in five years than Tesla being around in 5 years.

  39. First of all, Tesla is nothing more than aanother government scam. We wouldn’t need billions of charging stations built nationwide if we followed Toyotas lead with a vehicle that charges itself while driving. Much more efficient. Second, if tesla or government was in the least bit interested in helping people or the environment theyd be developing the hydrogen car. You all need deprogramming.

  40. Teslas have the largest screen with the best resolution and graphic of all auto manufactures, it is a simple fact.

  41. In the US you can buy what fits your budget. If all you can afford is polyester than you buy polyester. If in your country they don’t have an option for poor people that is not an advantage. Cadillacs are considered luxurious all over the world by the way.

  42. Not true. All the materials in model 3 interior are high quality and not cheap at all. Absence of dozens of buttons and levers you find in other cars does not mean absence of luxury. In fact the more I drive mine the more I feel the luxury of simplicity. Less is more…

  43. Nothing wrong with Tesla interior with the exception of awful wood dash color. I have restained the dash into cherry wood color which complements the red exterior and now it is gorgeous inside and out.

  44. Three things:
    – Batteries – where is VW going to get them at a competitive price?
    – Charging network – 30 bil into cars isn’t going to build a competitive charging network
    – Trustworthiness – which corporation has lied more about more important things in the last few years?
    In other words, “I’ll believe it when I see it”.

  45. ” an excuse to make a cheap and nasty interior ” <-- Except it isn't cheap or nasty. If your sense of aesthetics prefers elaborate and gaudy metallized plastic, I can see why you wouldn't like it.

  46. Just a heads up that VW has been misrepresenting their ranges – you need to derate by about 18%. So 205 miles not 250.Also a lead VW engineer said the base Neo would have tepid acceleration.

  47. The “minimalist design aesthetic” is basically an excuse to make a cheap and nasty interior. It looks like the design brief was “as cheap as possible – but with a big screen stuck in the middle”. It’s far worse than the Model S and it was the cheap and nasty interior that put me off that car. I guess Tesla’s are luxurious in the same way Cadillac’s are luxurious, basically they’re luxurious in a country where polyester is an acceptable fabric for a suit and you line up at a counter to get your food in a paper bag in a restaurant. Where I live that’s not luxury, it’s not a suit and it’s not a restaurant.

  48. In the US you can buy what fits your budget. If all you can afford is polyester than you buy polyester. If in your country they don’t have an option for poor people that is not an advantage. Cadillacs are considered luxurious all over the world by the way.

  49. Yep, the Model 3 is luxurious. Perhaps you don’t care for the minimalist design aesthetic and you are confusing clutter, faux chrome and gauges with luxury? Find what suits your taste but having owned Mercedes, Jaguars, Infinitis as well as a Model 3 it is clear that Tesla more than holds it own in the segment.

  50. Not true. All the materials in model 3 interior are high quality and not cheap at all. Absence of dozens of buttons and levers you find in other cars does not mean absence of luxury. In fact the more I drive mine the more I feel the luxury of simplicity. Less is more…

  51. Nothing wrong with Tesla interior with the exception of awful wood dash color. I have restained the dash into cherry wood color which complements the red exterior and now it is gorgeous inside and out.

  52. You’re right. 200 miles or so. That’d be 3+ hours of driving from “here” to “there”, if looking at it one-way, and given getting out of your own driveway, onto the freeway to begin with, and the reverse at the other end. For instance, from ‘here’ to ‘Tahoe’ is roughly 190 miles. And it takes the better part of 3.7 hours when I figure the crâhp-at-the-ends into it. Unfortunately, the tail end is where a LOT of kilowatt hours are potentially used up getting up The Big Hill. Right when the battery is likely to be at its limit.So, for personal reasons, I’d like to see a 250 mile battery. We go to Tahoe a bunch. To feed the goats. Still, your other number is good: $28,000 for the vehicle. I just bought a year-old model of a $38,000 car for 10 bigs off. A Buick Encore — a loaner for its customer base. 3200 miles at purchase.The car has averaged 32.5 MPG. That, for the Bay Area to Tahoe travel is good. Its nice, has giddyup, is quiet, easy handling and the usual features. LED headlights, a backup camera, all that. ALL IN, with the time-value-of-money equation set to 60% depreciation in 5 years, and supposing that we can keep the 32 MPG going all that time, and that gasoline rolls at $3.50 or so a gallon indefinitely, $1000 a year in maintenance, 30,000 miles on $750 sets of tires, you get to $0.52 or so per mile ownership cost. 10.9¢/mi for fuel. Just goes to show that the other stuff is taking up a huge amount of the per-mile cost. And what would an electric car really come in at?Same basic parameters … California electricity, no subsidy, $28,000 buy-price; 40% depreciation in 5 years (they’re in high demand, and really, what goes wrong?). 18¢/kWh, 4 mi/kWh, 85% plug-to-motive efficiency, 800 miles a month (just would drive it less), same on tires, only $350 a year in maintenance expectations. Bûggered headlights, wonky turn signals, framistat bonkered passenger side window, that kind of thing.So… Guess what.$0.47 a mile. Mmmm… its not like its making a HUGE difference, you know?In fact it is something of a surprising yawn. ⇒ 47¢ a mile (electric, economy vehicle)⇒ 52¢ a mile (gasoline, similar economy ‘medium grade’ vehicle)For the charge-time hassle, I think I’ll forego the electric car for now, thank you. Although you can fault me for my Fat American Convenience oriented opinion, I seriously depend on getting into and out of a refueling station in less than 10 minutes, drive-in-and-out timed.Now at the hotel we like to stay in at South Lake Tahoe, it turns out there are no less than 16 Tesla supercharge kiosks INSIDE the parking lot. That sure is attractive. But drive around Tahoe some, and sure enough… there aren’t very many others. I’m not downloading their app. Just, not that many. Not compared to pretty poorly priced but completely ubiquitous gasoline filling stations. Just saying,GoatGuy

  53. I agree, we have Tesla to thank for showing the car industry that EV’s don’t have to be slow, with awful range and bizzare styling. Unfortunately Tesla then lost the plot and forgot to put an interior in their cars that matches the price, so I’m waiting for the competition to offer something more to my taste.

  54. The Model 3 is very luxurious vehicle”You think so? Luxury typically applies to the interior of the car and in my opinion the Model 3 interior is awful, it looks and feels cheap – because it is – it is the complete opposite of luxurious.Perhaps you’re confusing price with luxury, normally these two go together but the Model 3 is expensive but not luxurious.

  55. Agreed. I’d love to see one tricked out with a stowaway bed, sink, hot plate, and rotating captains chairs.

  56. The electric bus looks fun. Would like to see a sychro westfalia 4×4 camper bus with off road tires and a performance package.

  57. Hat’s off to Elon Musk. He, and the people of Tesla, have dragged the legacy auto industry into revisiting the electric vehicle.The reboot was inevitable, but might have taken decades more without Elon. Thank you Elon, I’ve been wishing for this for decades.

  58. Just a heads up that VW has been misrepresenting their ranges – you need to derate by about 18%. So 205 miles not 250.

    Also a lead VW engineer said the base Neo would have tepid acceleration.

  59. I hope that VW electrics will not be VW clean diesels and promises will be kept. Tesla competes more with BMW, not VW. The Model 3 is very luxurious vehicle. I wish there was Model 7, competing with Corollas or even less-costly cars. Safer than India cars, too. 🙂 “The is plenty of room at the bottom” when it comes to low price but good value — not just here but around the world.

  60. The “minimalist design aesthetic” is basically an excuse to make a cheap and nasty interior. It looks like the design brief was “as cheap as possible – but with a big screen stuck in the middle”. It’s far worse than the Model S and it was the cheap and nasty interior that put me off that car.

    I guess Tesla’s are luxurious in the same way Cadillac’s are luxurious, basically they’re luxurious in a country where polyester is an acceptable fabric for a suit and you line up at a counter to get your food in a paper bag in a restaurant. Where I live that’s not luxury, it’s not a suit and it’s not a restaurant.

  61. it’s kind of hard to reason through it; everybody’s 200 miles is different – elevation changes, headwind… basically i want to be able to drive south jersey to NYC and back or south jersey DC and back with 50 miles of charge left for margin and decay of battery. Give me that for under $30,000 and my next car will be electric. Never be the first one to buy. Let all the problems shake out with the adventurers like igor.

  62. $28,000 and 200 miles at 80mph is my convert to electric price and range. I don’t trust manufacturer claims of 250 mile range today. Teslas are beautiful. So are VW

  63. Yep, the Model 3 is luxurious. Perhaps you don’t care for the minimalist design aesthetic and you are confusing clutter, faux chrome and gauges with luxury? Find what suits your taste but having owned Mercedes, Jaguars, Infinitis as well as a Model 3 it is clear that Tesla more than holds it own in the segment.

  64. You’re right. 200 miles or so. That’d be 3+ hours of driving from “here” to “there”, if looking at it one-way, and given getting out of your own driveway, onto the freeway to begin with, and the reverse at the other end.

    For instance, from ‘here’ to ‘Tahoe’ is roughly 190 miles. And it takes the better part of 3.7 hours when I figure the crâhp-at-the-ends into it. Unfortunately, the tail end is where a LOT of kilowatt hours are potentially used up getting up The Big Hill. Right when the battery is likely to be at its limit.

    So, for personal reasons, I’d like to see a 250 mile battery. We go to Tahoe a bunch. To feed the goats.

    Still, your other number is good: $28,000 for the vehicle. I just bought a year-old model of a $38,000 car for 10 bigs off. A Buick Encore — a loaner for its customer base. 3200 miles at purchase.

    The car has averaged 32.5 MPG. That, for the Bay Area to Tahoe travel is good. Its nice, has giddyup, is quiet, easy handling and the usual features. LED headlights, a backup camera, all that.

    ALL IN, with the time-value-of-money equation set to 60% depreciation in 5 years, and supposing that we can keep the 32 MPG going all that time, and that gasoline rolls at $3.50 or so a gallon indefinitely, $1000 a year in maintenance, 30,000 miles on $750 sets of tires, you get to $0.52 or so per mile ownership cost. 10.9¢/mi for fuel. Just goes to show that the other stuff is taking up a huge amount of the per-mile cost.

    And what would an electric car really come in at?

    Same basic parameters … California electricity, no subsidy, $28,000 buy-price; 40% depreciation in 5 years (they’re in high demand, and really, what goes wrong?). 18¢/kWh, 4 mi/kWh, 85% plug-to-motive efficiency, 800 miles a month (just would drive it less), same on tires, only $350 a year in maintenance expectations. Bûggered headlights, wonky turn signals, framistat bonkered passenger side window, that kind of thing.

    So… Guess what.
    $0.47 a mile.
    Mmmm… its not like its making a HUGE difference, you know?
    In fact it is something of a surprising yawn.

    ⇒ 47¢ a mile (electric, economy vehicle)
    ⇒ 52¢ a mile (gasoline, similar economy ‘medium grade’ vehicle)

    For the charge-time hassle, I think I’ll forego the electric car for now, thank you. Although you can fault me for my Fat American Convenience oriented opinion, I seriously depend on getting into and out of a refueling station in less than 10 minutes, drive-in-and-out timed.

    Now at the hotel we like to stay in at South Lake Tahoe, it turns out there are no less than 16 Tesla supercharge kiosks INSIDE the parking lot. That sure is attractive. But drive around Tahoe some, and sure enough… there aren’t very many others. I’m not downloading their app. Just, not that many. Not compared to pretty poorly priced but completely ubiquitous gasoline filling stations.

    Just saying,
    GoatGuy

  65. I agree, we have Tesla to thank for showing the car industry that EV’s don’t have to be slow, with awful range and bizzare styling. Unfortunately Tesla then lost the plot and forgot to put an interior in their cars that matches the price, so I’m waiting for the competition to offer something more to my taste.

  66. “The Model 3 is very luxurious vehicle”

    You think so? Luxury typically applies to the interior of the car and in my opinion the Model 3 interior is awful, it looks and feels cheap – because it is – it is the complete opposite of luxurious.

    Perhaps you’re confusing price with luxury, normally these two go together but the Model 3 is expensive but not luxurious.

  67. Hat’s off to Elon Musk. He, and the people of Tesla, have dragged the legacy auto industry into revisiting the electric vehicle.
    The reboot was inevitable, but might have taken decades more without Elon. Thank you Elon, I’ve been wishing for this for decades.

  68. I hope that VW electrics will not be VW clean diesels and promises will be kept. Tesla competes more with BMW, not VW. The Model 3 is very luxurious vehicle. I wish there was Model 7, competing with Corollas or even less-costly cars. Safer than India cars, too. 🙂 “The is plenty of room at the bottom” when it comes to low price but good value — not just here but around the world.

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