Autoblog

Officially Official: VW and Suzuki tie the knot

Jonathon Ramsey — Wed, 09 Dec 2009 07:32:00 EST

Filed under: Suzuki, Volkswagen, Earnings/Financials

As you can see from the image above depicting Osamu Suzuki, chairman and CEO of Suzuki Motor Corp. and Martin Winterkorn, his counterpart at Volkswagen AG, the two auto companies have agreed to link arms. Volkswagen has properly announced that it has "reached a common understanding to establish a close longterm strategic partnership" with Suzuki Motor Corporation. The union means VW will buy 19.9% of Suzuki, then Suzuki will spend half the money they just received from Volkswagen reciprocating by buying VW shares.

Beyond that, Suzuki gains access to VW technology and the comforting warmth of a hugely profitable big brother. Volkswagen gets a nearly turn-key solution to boosting its small car development and piggybacks on Suzuki's presence in India and Southeast Asia. Suzuki, and of course, VW, will remain independent, but unofficial word suggests that VW might increase its stake to 33% or more at some point down the road, which could shift the balance of power.

VW's press release is after the jump, and there will be a press conference and webcast (you'll need a user name and password to watch) at 5 p.m. with more details.

[Source: Volkswagen | Image: Kazuhiro Nogi/AFP/Getty]

Continue reading Officially Official: VW and Suzuki tie the knot

Officially Official: VW and Suzuki tie the knot originally appeared on Autoblog on Wed, 09 Dec 2009 07:32:00 EST. Please see our terms for use of feeds.

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REPORT: Volkswagen to take 20% stake in Suzuki

Jeremy Korzeniewski — Tue, 08 Dec 2009 18:39:00 EST

Filed under: Suzuki, Volkswagen, Earnings/Financials

Where there's smoke, there's fire. Though Suzuki CEO Osamu Suzuki would beg to differ, it seems that the old saying has once again been proven prescient. After a ton of rumor, innuendo and speculation on the matter along with the subsequent denials, a fresh report from Reuters indicates that Volkswagen is indeed on the verge of announcing that it's procuring a 20% stake in Suzuki.

Assuming that the news is accurate, it will cost VW roughly $2.8 billion (250 billion yen) to purchase a fifth of Suzuki. Anonymous sources (aren't they all these days) suggest that the German automaker's share in Suzuki could easily rise to a controlling thirty-percent-plus stake.

[Source: Reuters | Image: Gabriel Bouys/AFP/Getty]

REPORT: Volkswagen to take 20% stake in Suzuki originally appeared on Autoblog on Tue, 08 Dec 2009 18:39:00 EST. Please see our terms for use of feeds.

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Autoblog Podcast #156

Dan Roth — Tue, 08 Dec 2009 16:40:00 EST

Filed under: LA Auto Show, Podcasts, Etc., Aston Martin, Audi, Chrysler, Dodge, Volkswagen

Click above for the Autoblog Podcast in iTunes, RSS or listen now!

Editor Chris Paukert has apparently been bitten by the podcasting bug, and he once again joins Shunk and Roth for Episode #156 of the Autoblog Podcast. We dive right in to reminiscence about the recently finished Los Angeles Auto Show. Moving on from there, we talk about Audi's new A7 Sportback and its extreme gorgeousness, as well as the new A8 and all its massive awesomeness. Speaking of awesomeness, Shunk thinks that the $199,950 Aston Martin Rapide is one very attractive four-place supercar. Going to the other end of the spectrum, rumors about Volkswagen's upcoming Jetta replacement gets some head scratches from us before we moved on to prognosticating about a unibody Dodge Dakota replacement. We wrap up a chewy hour-and-forty-five minutes by addressing some of your questions and calling it a night.

Don't forget to check out our colleagues at Joystiq and Engadget, and let us know what you think of our podcast by dropping us an email at Podcast at Autoblog dot com, reviewing the show in iTunes, filling out our survey, or even leaving us a voicemail on our Google Voice line 734-288-8POD (734-288-8763). Thanks for listening!

Continue reading Autoblog Podcast #156

Autoblog Podcast #156 originally appeared on Autoblog on Tue, 08 Dec 2009 16:40:00 EST. Please see our terms for use of feeds.

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Volkswagen takes 49.9 percent stake in Porsche AG

Jonathon Ramsey — Tue, 08 Dec 2009 09:32:00 EST

Filed under: Porsche, Volkswagen

Cue Ennio Morricone and the symphonic accompaniment to the endgame: VW has officially taken a 49.9% stake in Porsche. VW paid €3.9 billion ($5.75B U.S.) for its cut, "based on the enterprise value for Porsche AG calculated under a careful due diligence and valuation procedure." That's a few shades more than the €3.3 billion amount VW was saying it would pay a few months ago.

In acquiring Porsche, VW not only gains a premium brand that is still among the most profitable in the business, but VW expects its operating profit to jump by €700 million ($1.03B U.S.) over time due to cost-saving synergies. The purchase won't be finalized until 2011, though, when VW will incorporate Porsche Holding Salzburg, Europe's largest car dealer which also happens to be owned by Porsche.

You can read VW's press release - which has an air of something from Napoleon's PR department after the Battle of Austerlitz - after the jump.

[Source: Volkswagen]

Continue reading Volkswagen takes 49.9 percent stake in Porsche AG

Volkswagen takes 49.9 percent stake in Porsche AG originally appeared on Autoblog on Tue, 08 Dec 2009 09:32:00 EST. Please see our terms for use of feeds.

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REPORT: VW confirms Jetta name for small sedan, upcoming coupe concept could enter production

Jeremy Korzeniewski — Sat, 05 Dec 2009 10:47:00 EST

Filed under: Concept Cars, Coupe, Sedan, Volkswagen, Rumormill

It seems that we'll be getting a new Jetta sedan next June, and it apparently won't be a slightly restyled Golf with a trunk grafted to the rear end. According to Car and Driver, VW's so-called New Compact Sedan, which will be built at the same Mexican plant that assembles the current Jetta, will indeed retain the Jetta nameplate.

Following its June debut here in the States, Volkswagen will prep the car for its European launch later in the year, and it may or may not be called Jetta overseas. A sportier GLI variant will continue to be offered on the new model. Looking farther down the model-range totem pole, there's a decent chance that VW will bring the Polo to the U.S. market to rival the new Ford Fiesta, possibly as both a sedan and a hatchback.

Lastly, we're told that we should expect to see a new U.S.market-tailored two-door notchback coupe concept on the show circuit in short order. If public reaction to it is positive, there's a good chance VW will greenlight the car for series production.

[Source: Car and Driver]

REPORT: VW confirms Jetta name for small sedan, upcoming coupe concept could enter production originally appeared on Autoblog on Sat, 05 Dec 2009 10:47:00 EST. Please see our terms for use of feeds.

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Officially Official: Volkswagen Amarok pickup makes the scene

Jonny Lieberman — Tue, 01 Dec 2009 13:00:00 EST

Filed under: Truck, Europe, Volkswagen, South America

Volkswagen Amarok - Click above for high-res image gallery

Well looky here - it's the latest in a long line of oddly named trucks from Volkswagen. This time, the Amarok refers to a cryptozoological Inuit giant wolf-creature that eats those who dares to hunt alone. No really. Regardless, the Amarok is VW's first pickup truck since the Caddy, aka the Rabbitamino first released in 1980. Aside from being thirty-years more new, the Amarok looks to be a bit, well, more stout.

Spartan, too - especially the no frills interior. And here's the really good part for you truck dudes - it's a real-deal, honest-to-goodness body-on-frame worker bee. Meaning it can haul 2,300 pounds and tow nearly three tons (5,600 pounds) when equipped with VW's 2.0-liter common-rail turbo diesel four-cylinder that's good for 163 hp and 295 lb-ft of torque.

A smaller diesel motor with 122 hp and 250 torques will be an option, as well as a direct-injected gasoline engine. True, it's not a Ford F-450 Super Duty. But then again, what is? And really, if hauling a couple of jet skis or a track car are your thing (as opposed to say a yacht), the Amarok could be your truck. If you live in Europe, South America, Asia, Africa or Australia. Predictably we can't get the Argentinian-built Amarok here. But feel free to inflame your trucky jealousy by reading the full press release, after the jump. Hat tips to Carlos and Doug!

Gallery: Volkswagen Amarok

[Source: Pickuptrucks.com via Argentina Auto Blog]

Continue reading Officially Official: Volkswagen Amarok pickup makes the scene

Officially Official: Volkswagen Amarok pickup makes the scene originally appeared on Autoblog on Tue, 01 Dec 2009 13:00:00 EST. Please see our terms for use of feeds.

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VW Gol: Brazilian proto-Impreza by VW?

Dan Roth — Sun, 29 Nov 2009 16:45:00 EST

Filed under: Classics, Etc., Hatchback, Volkswagen, South America

The string of interesting and offbeat Volkswagens from the firm's Brazilian division is enough to fill a coffee-table book. The SP2, for example, is one of the prettiest variations ever laid atop Type III mechanicals, one that many die-hard Volks-fans in the United States have never heard of. The rest of the world probably knows better what VW do Brasil has wrought; forty-something years of cars we'd dearly love to roll here in The States, but which never came north. Eventually, a Brazilian VeeDub did head for os Estados Unidos.

Instead of Brasilias or Karmann Ghia TCs, we got the Fox. Known in Brazil as the Gol, which rode on its own BX platform, itself a derivate of the B1 platform that underpinned other VW and Audi products. Our Foxes were all sedans or wagons, but a recent troll of old car ads on Flickr turned up this masterpiece. Look carefully - we always thought the Fox transaxle looked a lot like the naughty bits of a Beetle. And there it is, a doghouse-shrouded 1300cc bit of air-cooled muscle mounted in the FRONT. Hot diggety, this thing has it all, 3-door hatch bodywork, a flat-four, and no pesky coolant to boil over in tropical climes. The closest you can come to something like this now is an Impreza hatch, which is an exponentially better car. That doesn't stop us from thinking about bolting that spare 1600DP into a Polo-Edition Fox and warping everyone's minds at the next Spring Dust-Off.

[Source: Flickr/Hugo90 - CC2.0]

Gallery: VW Gol

VW Gol: Brazilian proto-Impreza by VW? originally appeared on Autoblog on Sun, 29 Nov 2009 16:45:00 EST. Please see our terms for use of feeds.

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Rumormill: Volkswagen ponders becoming F1 engine supplier in 2012

Jonathon Ramsey — Sun, 29 Nov 2009 12:19:00 EST

Filed under: Motorsports, Volkswagen

There have been rumblings about VW getting into F1 by signing up with a specific team, but the chatter was always quashed. This time, reports suggest that VW is actively talking up the idea of getting into Formula 1 after 2012, but as an engine supplier to multiple teams. Hans-Joachim Stuck, VW's motorsports head, said with the way F1 engine regulations are going -- especially with costs and the potential of the "world engine" -- it could be the perfect opportunity for VW to start pumping out powerplants.

While future F1 regulations are still undefined, and VW's eventual entry into the series is by no means guaranteed, it's clear that VW's looking for ways to show off its engineering chops and get its name onto tracks. Stuck recently visited a NASCAR race and spoke about the company looking to get into the GrandAm series, and perhaps IndyCar.

Interestingly, the very conditions that Stuck sees as favorable for VW's entry are the ones that a number of F1 teams and fans are, at best, ambivalent about: substantially lower costs, spec engines, and more than 24 teams on the grid. With a new FIA president, what F1 is going to look like after 2012 is almost completely unknown. Hat tip to Stefano

[Source: Autosport]

Rumormill: Volkswagen ponders becoming F1 engine supplier in 2012 originally appeared on Autoblog on Sun, 29 Nov 2009 12:19:00 EST. Please see our terms for use of feeds.

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REPORT: Volkswagen confirms Karmann purchase, plans to build new car at factory in 2011

Michael Harley — Mon, 23 Nov 2009 09:32:00 EST

Filed under: Europe, Plants/Manufacturing, Volkswagen

Volkswagen AG has announced it will be establishing a new manufacturing unit in Osnabrueck, located in VW's home state of Lower Saxony, Germany. Interestingly enough, VW will be purchasing the land, equipment, and machinery formerly owned by Karmann -- the coachbuilder and convertible roof specialists who manufactured the classic Beetle-based Karmann Ghia coupe (Karmann filed for bankruptcy protection in April, and has been struggling since).

Production of a new vehicle at the plant is slated to start in 2011. In the meantime, 200 people will be needed to open the plant next year, and VW is estimating more than 1,000 new jobs will be created by 2014. Volkswagen AG has not disclosed which model will be built at the plant, or any financial details.

[Source: Automotive News - Sub. Req.]

REPORT: Volkswagen confirms Karmann purchase, plans to build new car at factory in 2011 originally appeared on Autoblog on Mon, 23 Nov 2009 09:32:00 EST. Please see our terms for use of feeds.

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REPORT: 65,000 seek jobs to build VW's New Midsize Sedan in Tennessee

Chris Shunk — Wed, 18 Nov 2009 10:59:00 EST

Filed under: Hirings/Firings/Layoffs, Plants/Manufacturing, Volkswagen

2011 Volkswagen NMS Sketch No. 2 - Click above to enlarge

You probably already know just how bad the employment situation is here in the States, and if you don't, nationwide unemployment is right around 10% - and that doesn't include those who took lower-paying part-time jobs in place of a lost full-time job. That's bad news for us, but at least in one case, that's good news for Volkswagen. No, the German automaker doesn't take pleasure in the fact that the U.S. job market sucks or that consumers aren't buying new vehicles like they were just a few years ago, but on the bright side, the automaker has scored 65,000 applications for its under-construction Tennessee production facility. That's enough people to fit into the typical pro football stadium or enough workers to run 32 assembly plants - and all of those apps were turned in over a narrow three week window.

According to the Chattanooga Times Free Press, Volkswagen plans to hire 2,000 workers overall; 1,200 for general assembly and another 800 for salaried and skilled positions. Since only one-in-32.5 applicants are likely to be hired, VW is being very selective. Prospective employees will need to pass an aptitude test and be able to perform some basic tasks in order to be considered. Once workers are able to prove their worth, the next step for applicants is to be entered into a lottery for the precious jobs. Only residents of Chattanooga and Hamilton County will be given preferential treatment.

The German automaker has already hired about 200 workers for the facility which will produce the company's so-called New Midsize Sedan (NMS), and a lot more figure to come on-line in the Spring. The rest of the employees will be brought on board closer to the plant's scheduled opening in early 2011. General laborers will receive a starting wage of $14.50 per hour with that number rising to $19.50 within three years plus a "comprehensive benefits package."

[Source: Chattanooga Times Free Press]

REPORT: 65,000 seek jobs to build VW's New Midsize Sedan in Tennessee originally appeared on Autoblog on Wed, 18 Nov 2009 10:59:00 EST. Please see our terms for use of feeds.

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Volkswagen Amarok to tackle desert as official support vehicle of Dakar

Sam Abuelsamid — Tue, 17 Nov 2009 13:57:00 EST

Filed under: Motorsports, Truck, Volkswagen

Volkswagn Amarok pickup - click above to enlarge

Two months from now, Volkswagen will be expanding its involvement in the annual Dakar Rally in South America. Just as they did last January, factory-backed teams will be competing in the 5.600 mile race through Argentina and Chile. However, this time, those outfits will be fielding four race Touaregs rather than two.

Perhaps more interesting is official word that VW's new Amarok pickup truck will be the official support truck of the for the entire rally. Volkswagen Commercial Vehicles has struck a deal with the race organizers, and as a result, the specially outfitted Amaroks will travel the same route as the competitors carrying media, checking out route conditions, and carrying VW crews and race organizers. The Amarok will be built by VW in Argentina starting in 2010, but the automaker has repeatedly said the truck won't be offered in the U.S. market. Learn more by checking out the official press release after the jump.

[Source: Volkswagen]

Continue reading Volkswagen Amarok to tackle desert as official support vehicle of Dakar

Volkswagen Amarok to tackle desert as official support vehicle of Dakar originally appeared on Autoblog on Tue, 17 Nov 2009 13:57:00 EST. Please see our terms for use of feeds.

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VW building $125M flagship dealer complex on Manhattan's west side

Alex Nunez — Fri, 13 Nov 2009 17:58:00 EST

Filed under: Car Buying, Audi, Volkswagen

Rendering of new VW/Audi complex in Manhattan - Click above to view in high-res

Volkswagen is building swanky new digs on New York City's west side for its VW and Audi brands. The automaker has purchased a 256,000 square foot space currently occupied by Potamkin GM (the Potamkin family has been synonymous with car sales in NY for decades), which stretches between 55th and 56th Street along 11th Avenue.

Visually unimpressive in its current state, the space will be converted into a state-of-the-art mega facility featuring brand-new Volkswagen and Audi stores. VW's total outlay for the real estate purchase and ensuing renovation will be around $125 million. The splashy move is part of the automaker's push to dramatically increase its U.S. sales numbers over the next several years. Potamkin GM will relocate a few blocks south to the space once occupied by Potamkin Honda (the family has sold its Honda franchise to another dealer group). Official press release after the jump.

[Source: Volkswagen]

Continue reading VW building $125M flagship dealer complex on Manhattan's west side

VW building $125M flagship dealer complex on Manhattan's west side originally appeared on Autoblog on Fri, 13 Nov 2009 17:58:00 EST. Please see our terms for use of feeds.

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VW Bus stolen 35 years ago returned in mint condition... to Allstate

Jonny Lieberman — Mon, 09 Nov 2009 17:40:00 EST

Filed under: Classics, Budget, Minivan/Van, Europe, Volkswagen

In 1974, this 1965 Volkswagen Type 2 (a.k.a. 'Bus') was stolen from Washington State. Fast-forward to October 19 of this year and custom agents at the Port of Los Angeles open up a container bound for Europe only to rediscover said van. Somehow, the Bus's VIN was still in the LAPD's stolen vehicle database. Guess which 1965 Type 2 is no longer headed for Europe?

Here's where it gets a little bit foggy, a little bit weird. According to the Los Angeles Times, the cops and the feds can't find the original owner. And the gentleman that restored the thirteen-window Bus to such pristine condition and who was planning on shipping said Bus back to the fatherland is also a victim of the theft - meaning he's off the hook, but out of money. Because way back in 1974, Allstate ("You're in good hands") Insurance paid the then owner $2,500 for the stolen Volkswagen. Which means that Allstate is winding up with the Bus.

Update: The original owner has been located! Her name is Michelle Squires and yes, she would like her Bus back. The reason that she couldn't be located at first is because her last name used to be Carlson. Says Squires, "I don't know if I could afford it because the restored bus is supposed to be around $25,000 now, but I would like the opportunity to talk to Allstate to see if I could get it back." While we think it would be a stellar PR coup for Allstate, Squires should probably prepare to stay separated from her van.

[Source: Los Angeles Times | Image: Department of Homeland Security]

VW Bus stolen 35 years ago returned in mint condition... to Allstate originally appeared on Autoblog on Mon, 09 Nov 2009 17:40:00 EST. Please see our terms for use of feeds.

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2010 Volkswagen Jetta TDI Cup Street edition arrives in January

Sam Abuelsamid — Wed, 04 Nov 2009 14:20:00 EST

2010 VW Jetta TDI Cup Street Edition - Click above for high-res image gallery

When we were in Germany last month for the launch of the 2010 Golf, VW product planner Andres Valbuena told us that a special street replica of the Jetta TDI Cup race car would be launching in January 2010. We just got the first photo of the new limited edition model along with further details. The TDI Cup "Street" edition gets the same deeper front fascia, rocker panel and rear bumper extensions used on the race cars. Unfortunately, the replica keeps the standard 140-horsepower engine rather the uprated 170-hp diesel used in the track cars... but it does get some functional upgrades.

The replica won't be any quicker off the line, but it will stop and turn better than standard TDI models. The brake calipers are larger than standard and painted red to let observers know they are special. The suspension gets thicker sway bars and the retuned springs and dampers from the Jetta GLI along with 18-inch wheels. Inside, the Cup car gets a paddle shift steering wheel to go with the 6-speed DSG gearbox. The Cup Jetta starts at $25,000 and will be available in January.

Gallery: Jetta TDI Cup Street Edition

[Source: Volkswagen]

Continue reading 2010 Volkswagen Jetta TDI Cup Street edition arrives in January

2010 Volkswagen Jetta TDI Cup Street edition arrives in January originally appeared on Autoblog on Wed, 04 Nov 2009 14:20:00 EST. Please see our terms for use of feeds.

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Volkswagen releases another sketchy look at forthcoming 2011 mid-size sedan

Damon Lavrinc — Wed, 28 Oct 2009 15:30:00 EST

Filed under: Sedan, Volkswagen, Design/Style

2011 Volkswagen NMS Sketch No. 2 - Click above to enlarge

Volkswagen has released another rendering of its new mid-size sedan (appropriately dubbed NMS) before its official unveiling late next year, and while it's a clearer indication of what to expect when the wraps come off, it doesn't divulge anything we haven't seen before.

Although details are sketchy (*rimshot*), we know the new sedan will be built at VW's new Chattanooga, Tenn. plant in the spring of 2011 and go on sale later that year as a 2012 model. The plant is expected to churn out around 100,000 units each year, with the majority of the sedans finding homes in U.S. garages. However, VW plants to export the Passat replacement outside of North America.

As far as content and specs are concerned, don't be surprised to find VW's turbocharged 2.0-liter underhood in the base model, with a V6 option available on higher-spec trims. Bluetooth integration and other tech-rich features are a given, and naturally, being a product bound for U.S. consumers, scads of cupholders ought to be available to fit our 64-ounce Big Gulps.

[Source: Volkswagen]

Volkswagen releases another sketchy look at forthcoming 2011 mid-size sedan originally appeared on Autoblog on Wed, 28 Oct 2009 15:30:00 EST. Please see our terms for use of feeds.

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VIDEO: More autonomous VW action from Stanford

Jonathon Ramsey — Tue, 27 Oct 2009 18:40:00 EST

Filed under: Technology, Videos, Volkswagen

VAIL Autonomous valet parking demo -- Click above to view the video after the jump

You didn't think having an Audi TTS climb Pike's Peak was the only thing that Stanford's Volkswagen Automotive Innovation Laboratory was working on, did you? No, they're also working on something closer to home -- or the restaurant or club -- with a project to get cars to find spots and park themselves.

A "mostly stock" VW Passat wagon equipped with some computer gear in the trunk and -- paging Dr. Evil -- lasers. The extra bits are off-the-shelf (or some shelf, at least), and one write-up says that VW's computers could control the car without Stanford's added electronics package.

The caveats are that right now the car can't detect obstacles like people, and it needs a detailed map of the parking lot where it's trying to find a spot. Details, details. For now, follow the jump to enjoy another glimpse at one possible future, brought to you by VAIL.

[Source: Bot Junkie]

Continue reading VIDEO: More autonomous VW action from Stanford

VIDEO: More autonomous VW action from Stanford originally appeared on Autoblog on Tue, 27 Oct 2009 18:40:00 EST. Please see our terms for use of feeds.

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Stanford to run driverless Audi TT-S up Pikes Peak next year [w/VIDEO]

Jonathon Ramsey — Mon, 26 Oct 2009 18:01:00 EST

Filed under: Technology, Videos, Audi

Stanford's autonomously drifting Audi TTS -- Click above to view video after the jump

If you read AutoblogGreen regularly, then you already know that Volkswagen and Stanford University have taken their relationship that began with developing autonomous vehicles to compete in the government-sponsored DARPA Grand Challenge competitions to the next level. VW has committed over $5 million to open the Volkswagen Automotive Innovation Lab on Stanford's campus with the intent of taking their research further regardless of whether the government is offering a carrot or not.

The two organizations are kicking off their new commitment to autonomous vehicles in a big way. Already under development is a the third-gen autonomous vehicle will make past DARPA Grand Challenge winners Stanley and Junior look obsolete by comparison. Based on an Audi TT-S, the new vehicle eschews all the outwardly visible hardware and has one expressed purpose: to tackle the Pikes Peak Hill Climb just like a real rally driver, four wheel drifts and all.

While still in the early stages, the team of researchers from Stanford have already performed tests with the autonomous TT-S at the Bonneville Salt Flats where the car was free to roam while being driving at the limit without a driver. They've also reportedly visited Pikes Peak with the car and ran it up the hill, albeit slowly.

Follow the jump to check out video of Stanford's autonomous TT-S being tested, including a nifty little trick where it traces Audi's corporate logo in the salt. It's just a teaser for now, but we gotta admit the idea of watching an empty TT-S tackle Pikes Peak is tantamount to finally getting that flying car we were promised. Thanks for the tip, Marcial

Gallery: Stanford driverless Audi TT-S Pikes Peak Hill Climb car

[Source: YouTube | Photos by jurvetson | CC2.0]

Continue reading Stanford to run driverless Audi TT-S up Pikes Peak next year [w/VIDEO]

Stanford to run driverless Audi TT-S up Pikes Peak next year [w/VIDEO] originally appeared on Autoblog on Mon, 26 Oct 2009 18:01:00 EST. Please see our terms for use of feeds.

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VW chooses Deutsch LA as its new ad agency

Jonathon Ramsey — Mon, 26 Oct 2009 07:01:00 EST

Filed under: Marketing/Advertising, Volkswagen

Chrysler, Cadillac, and Chevrolet aren't the only folks looking for new advertising agencies on the assumption that, to quote GM CEO Fritz Henderson, "We can do better." For the last four years Crispin, Porter and Bogusky has attended to Volkswagen's advertising needs, bringing us moments like the return of the "Rabbit" name, that talking black Beetle, the "Find Your Fast," "Unpimp Mein Auto," "Meet the Volkswagens" and Brooke Shields hawking Routans.

Now it's the turn of Deutsch LA, who won VW's print and digital business. VW has just 2% of the U.S. market, which is about half a percent higher than when Bogusky took over, but they desperately want to get that higher and they'll be showering $200 million on Deutsch LA to make that happen.

Deustch LA's last automotive account was Saturn, and we'll assume the reason we can't remember a single Saturn commercial is due to GM's lack of ad creativity, not the agency's. VW is known for its willingness to go bold with campaigns, so we look forward to seeing what Deutsch can do.

[Source: Brandweek]

VW chooses Deutsch LA as its new ad agency originally appeared on Autoblog on Mon, 26 Oct 2009 07:01:00 EST. Please see our terms for use of feeds.

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VW launches Real Racing GTI on iPhone, giving away six GTIs!

John Neff — Thu, 22 Oct 2009 16:29:00 EST

Filed under: Performance, Marketing/Advertising, Hatchback, Volkswagen, Toys/Games

2010 Volkswagen GTI Mark VI prize car - Click above for high-res image gallery

Volkswagen is no stranger to promoting its vehicles using games for the iPhone and iPhone Touch. Witness such forgetables as Volkswagen Polo Challenge 3D [iTunes link] and Volkswagen Scirocco R 24H Challenge 3D [iTunes link], both by developer FISHLABS. Neither game is very fun to play, being on the early end of the curve for racing games on Apple's smart phone. For the launch of the new GTI, however, Volkswagen got smart and instead partnered with developer Firemint, which already has a well received racing game for sale in the App Store called Real Racing [iTunes link]. Together, the two companies have put out Real Racing GTI [iTunes link], a free version of the $6.99 app that exclusively features the new 2010 Volkswagen GTI.

We'll get to the game in a second, but the big news is that VW is putting some promotional muscle behind the app by launching a contest (view rules and regulations here) to give away six brand new, limited edition GTIs just for playing the game. Thankfully, your chances of winning are not tied to your skill level, and entering involves simply registering through the game and completing a race. What's more, you can enter once per day and Volkswagen will pick a winner each week for the next six. The GTI prize cars are limited edition models with numbered dash plaques, special interior and exterior trim and unique 18-inch black wheels.

Real Racing GTI App images - Click above for high-res image gallery

As for the game, it's pretty solid. While only featuring the GTI and fewer tracks, all the gameplay mechanics are the same as the paid app. The control settings are also extensive allowing you to steer using either the device's accelerometer or a steering wheel on the screen, as well as choosing between auto or manual modes for accelerating and braking. The competition AI, however, is pretty weak, allowing you to pass them all from the back of the grid before the first turn and then hanging on the back of your bumper for the rest of the race.

So here's our advice: DO NOT download Real Racing GTI and DO NOT register for the contest to win one of six limited edition GTIs. We think we have a real shot at winning and don't want you all throwing the curve.

Gallery: Real Racing GTI App images

Gallery: Volkswagen 2010 GTI Mark VI prize car

[Source: Volkswagen | iTunes link]

VW launches Real Racing GTI on iPhone, giving away six GTIs! originally appeared on Autoblog on Thu, 22 Oct 2009 16:29:00 EST. Please see our terms for use of feeds.

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Volkswagen to buy 49.9% of Porsche in first stage of merger

Sam Abuelsamid — Thu, 22 Oct 2009 08:20:00 EST

Filed under: Porsche, Volkswagen, Earnings/Financials

The days of Porsche being an independent automaker will soon be drawing to a close. Volkswagen has announced that it is ready to move ahead with the first stage of its buyout of the smaller company that had tried to do the same thing to it just a short while ago. Back in August when the VW board approved the merger, the Wolfsburg company announced that it would start off by purchasing 42 percent of Porsche AG, the car building unit of Porsche. That stake has now been increased to 49.9 percent and the purchase will happen before the end of 2009.

According the announcement from Volkswagen, work on future joint projects between the two companies is moving ahead faster than anticipated. As a result, VW is buying a larger stake now with the expectation that Porsche's share price will increase next year due to these new projects.

Next year VW will be issuing more preferred shares in itself to help pay for the rest of the acquisition while maintaining its credit rating. The full merger is expected to be completed sometime in 2011.

[Source: Volkswagen]

Continue reading Volkswagen to buy 49.9% of Porsche in first stage of merger

Volkswagen to buy 49.9% of Porsche in first stage of merger originally appeared on Autoblog on Thu, 22 Oct 2009 08:20:00 EST. Please see our terms for use of feeds.

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