Autoblog

Porsche is one step closer to its goal of purchasing Volkswagen. Back in April of last year, the German automaker passed the 30-percent mark, forcing it to make an outright offer for The Volkswagen Group in its entirety, which it did. Not too many VW shareholders sold their stake to Porsche, as the bid was for the bare minimum amount allowed by law. Still, the legal requirement had been met, allowing Porsche to continue gobbling up the automaker according to its own timetable. Earlier this year, the VeeDub board approved a request by Porsche to obtain 51-percent of the company for some $15.73 billion, which would give it a majority stake. Before the house that Ferdinand built could complete its acquisition, the European Commission required it to make one last purchase, which took place in June of this year. Finally, the EU has granted its permission for the buyout.

This story is likely far from over, as the German State of Lower Saxony still claims a 20-percent stake in Volkswagen, which gives it certain rights to block decisions made by VW's new parents. Still, it seems that its only a matter of time before VW and Porsche are united under a different Ferdinand... Piech that is, grandson to Mr. Porsche himself.

[Source: Reuters]

Volkswagen is making money hand over fist right now thanks to cost cutting measures and increased global sales, and the German automaker wants to keep the good times rolling. High commodity prices for items like steel, aluminum and rubber are beginning to eat away at VW's cash horde, so the German automaker may hike the prices of its vehicles. VW marketing chief Detlef Wittig told reporters that he feels automakers are afraid to raise prices in such a competitive sales environment, and that the company was monitoring the situation closely. While VW may not be afraid to pull the trigger on price hikes, it likely still won't ask customers to pony up the entire amount for high commodities. A lot will depend on whether VW's many competitors also jack up MSRPs, and by how much.

It seems as though most automakers here in the States have either announced price hikes or are "thinking about doing it." The market is even more competitive in Europe, so such a decision isn't as easy. Wittig expects several automakers to raise prices in the second half of the year.

[Source: Automotive News (subs req'd)]

It seems Volkswagen has breathed a collective "Oops!", and is now working to turn its design ship around. VW was known for neat, differentiated designs with great interior details. While this stayed true in some parts of the world, in the U.S., Volkswagen design turned into chrome shield grilles fronting identical bodies in various sizes.

When Martin Winterkorn was lured back from academia, "he looked at Volkswagen's upcoming designs and binned the lot." Audi's design chief was brought in. VW started over on the Golf, which will be coming out later this year. The Polo redesign was taken up again from scratch. The Up! "was not fully thought through as a concept," and is getting a workover.

VW's new language is said to be about "simplicity," "a confident identity," "crisply-detailed functionality," and cars that aren't "over-designed." The chrome shield is gone (thank goodness) and headlights that wrap around to the front wheel arches have also been sent packing, "because that's not what a headlight is for." Stay tuned for more horizontals, as seen on the Scirocco -- and here (so much for no more chrome) -- and hopefully a slew of compelling shapes.

[Source: Evo]

Click either image for a high-res gallery.

Over the past five years, Volkswagen has continued to tease us with sports car concepts that never seem to come to fruition. Back in 2003, VW unveiled the Concept R in Frankfurt to critical acclaim and two years later, the wraps came off the EcoRacer, proving that the automaker was still kicking around the idea of a lightweight, affordable roadster for the masses.

In the interim, VW had two similar concepts that never left the studio, but when the Los Angeles Auto Show rolls along later this year, a new mid-engine coupe will be revealed, and this one actually has a shot at production.

According to Autocar, this newest concept aims to be a budget alternative to the Lotus Elise, balancing performance and fuel economy in a low-cost package. Sources suggest that the coupe will feature either a 168 hp, 1.4-liter TSI gasoline engine or a 125 hp, 1.6-liter TDI mounted amidships and sending power to the rear wheels via a seven speed DSG gearbox. If and when the production version debuts in 2011, the coupe's curb weight is pegged at just over 2,200 pounds, allowing it to run to 60 in under seven seconds while still returning over 55 mpg.

If the project is given the green light, the same architecture that underpins the VW variant could form he basis for the oft-rumored and continually denied Audi R4. And with Porsche's stake in V-Dub, that means a 914 successor is just a badge and prayer away.



[Source: Autocar]

Click above for a high-res gallery of the VW Touareg North Sails

Volkswagen has treaded carefully down the path first blazed by the largely ignored Mercury Villager Nautica with a sailing-themed Touareg concept that has debuted at the famous Travemünder Woche, which we're told is the second largest annual race week for sailing in Germany. Teaming up with a company called North Sails, which actually sells boat sails unlike Mercury's branding partner, Nautica, which sells polo shirts, VW has added a new ground effects kit, a yellow rub strip, watery-blue reflectors, and 19-inch wheels. Stepping aboard, occupants will find a cabin decked out with teak flooring, LED lighting accents, white leather seats with aquamarine stitching, and an alcantara headliner. We think we've seen that window tint color on our beloved Matchbox SuperFast cars from the early 1980s, too. North Sails branding shows up in the form of logos on the B-pillar and stainless steel sill plates. The instrument panel gets a compass, and there's also a pair of binoculars in the center console so you can make sure that it's your team rounding the pin and raising the chute for the long run to the finish line. Once docked, there's even a North Sails bicycle so you can cruise the marina in style. Spiffy, but we doubt it'd float, unlike the original Beetle.


[Source: World Car Fans]

The seller states he's not really sure what this car is worth. Here's our estimate: it's worth even less than a regular '89 Scirocco with 123,000 miles. Why? Because it's been molested into a Delorean imposter. Not just any Delorean, either, but the Back To The Future Delorean, which so many people feel compelled to recreate as a rolling manifestation of their overdeveloped love for a movie prop. Don't get us wrong, the BTTF DMC's masterful design has had astounding resonance with the public, becoming a real icon of its time. It's just that while the original design by Andrew Probert and Ron Cobb was something new, rehashing it endlessly for twenty-five years has gotten tiresome.

With that out of our system, let's go on to say that the seller has a sense of humor about this car. It was used to promote a primary school play, +1 for kickin' it with the kiddies, and there's obviously a lot of effort here. It's also heartwarming that the mods were perpetrated on a somewhat more common Scirocco, versus a rarer Delorean. The Flux capacitor and time circuits have not been tested, according to the seller, so caveat emptor. If it actually works, we'd love to go back and whisper in VW's ear to build more Sciroccos, and do likewise with Johnny Z, too. Bids currently stand at £156 with the reserve not met, so you're not yet OUTATIME. Thanks for the tip, Tim!


[Source: eBay]

The Rabbit is currently the most fuel-efficient gasoline-powered vehicle in Volkswagen's U.S. fleet, getting around 26 mpg on the EPA's combined city/highway cycle. But V-Dub wants something better for the U.S. market. Speaking with Bloomberg, VW CEO, Stefan Jacoby revealed that the automaker is considering bringing a subcompact vehicle, similar to the Polo, to the U.S.

With the Toyota Yaris rated at 32 mpg and the Honda Fit coming in at 31 mpg (combined city/highway), Volkswagen is hoping to meet or exceed the competition. While it's unlikely we'll see the current Polo on U.S. shores anytime soon, it's expected that the next generation will be available in the States in 2010 when the new Jetta is released, followed by a new midsize sedan that will replace the Passat.

The additions and revisions to VW's product line is an effort by the automaker to boost U.S. sales to 800,000 units by 2018, nearly tripling the 230,571 vehicles it sold in 2007. VW is also looking to build a new engine plant in Mexico, along with its recently announced Tennessee plant.

[Source: Bloomberg]

Volkswagen is working hard to make the up! a reality, but the technological challenges of a rear engine, RWD car are proving to be more daunting than expected. The VW engineering team is reportedly having trouble conjuring up a low cost rear-engine layout. The problem has been trying to accommodate a radiator in the up!'s nose and transferring coolant through the car. Early up! prototypes are also having a difficult time with cross-wind stability due to the unbalanced heft of its rear drive/rear engine layout. To correct these issues, some styling changes may be necessary, but if the basic shape of the up! is compromised, the German automaker may have to look at front wheel drive as an option. In spite of any problems engineers are having, VW executives are confident any difficulties will be overcome.

We're hoping that means we can still expect the inexpensive hatch to be pushed via the rear wheels just like the original Bug. Then again, the Mini has proved that small cars can be fun and driven by the front wheels, and as long as the up! is cheap, efficient, and adorable, there will be plenty of buyers.

[Source: Autocar]

Volkswagen announced this morning that it would build a manufacturing plant in Chattanooga, Tenn. where it will build a vehicle specifically for the North American market. The plant will employ 2,000 workers from the tri-state area and is expected to invest $1 billion in the local economy.

The plant is an integral part of Volkswagen's plan for expansion in the N.A. market, with sales expected to crest 800,000 units by 2018. The 1,350-acre site will produce 150,000 vehicles annually – specifically a midsize sedan – in 2011.

Make the jump for the full press release.

Despite the fact that Volkswagen's 2009 Jetta TDI sedan and Sportwagen cost more and have yet to get here, plus fuel prices in the five-dollar range, customer desire for the sparkless VeeDubs is running high. Perhaps buyers don't realize that these ain't the old Rabbit rattlers that cost three cents to run and would rack up a billion miles with five tanks of fuel. TDI maintenance costs are not insignificant, but the allure of inherent efficiency has folks putting their money where their mouths are and some dealers have sold out before even taking delivery. All in all, an auspicious start for the latest TDI Jetta.

Not faring as well is the Tiguan, VW's smallest 'ute. While we find the Tiguan delightful to drive and well executed besides the smallish cargo area (Jetta Wagon FTW), the launch hasn't gone as swimmingly as Wolfsburg had hoped. Maybe the TDI powertrain could add some sales sparkle to the Tiguan. It would fit, being on basically the same platform as the Golf.

[Source: Automotive News]