Autoblog

The Volkswagen New Beetle was first thrust upon the world in 1998. Its release was an immediate success and thus spawned an insurgence of retro inspiration in automotive design. However, after 10 years on the market the novelty of the bug's cutesy styling and flower holder have begun to wear off. While some rendered speculations of what a Beetle update might look like have not struck a chord, it is hopeful that VW has been holding back on dropping any hints about the future direction of its iconic vehicle. With recent comments, Volkswagen CEO Martin Winterkorn has further added to the mystic surrounding the impending Beetle successor. During a celebration at VW's plant in Puebla, Mexico, he called the planned replacement attractive. The comment is not much to go by though, as those who have most vehemently adored the Beetle's design have also held rather unique perspectives. On the other hand, Winterkorn added that he is certain the next generation New Beetle will be a continued success. At least for now, it is almost certain the vehicle will be a success for Mexico, since most likely the Puebla plant will be outfitted for its production.

[Source: Auto News, Sub. Req'd]

Volkswagen CEO Martin Winterkorn has put a bull's-eye on Toyota. He believes the German automaker can outpace the Japanese company in ten years time, if not sooner. He sites German design aesthetics and meticulous engineering as VW's strong points over Toyota. However, he knows that's not all it takes to win the global battle, as sales in the North American market will be the focus of Winterkorn's plan to grow. Part of VW's sales deficiency is its high market price over its competition. In order to reduce costs, Volkswagen must streamline production and decrease exchange rate losses through new plant locations, such as building a new one in the United States (Auto News, Sub. Req.). With these future goals in mind and the assistance of a 9.5 billion Euro investment. Winterkorn hopes to develop 20 new cars over the next three years. Ultimately, by 2010 Winterkorn would like to see VW where Toyota is today.

It is a bold move by the VW CEO (apparently bold moves aren't just limited to Ford), but it also seems a bit contradictory. Usually designs that are efficient and low cost to produce are not the most detail oriented. Toyota has also demonstrated how high production volumes can lead to reduced overall quality ratings. Let us hope that VW does not lose touch with its heritage while attempting to dethrone the king.

[Source: Automotive News - Sub. Req.]

Back in January we told you that new VW boss Martin Winterkorn ordered a strategic review of the Golf, Tiguan, and Scirocco. The goal of the review was to spice up design, and an unfortunate side effect is delayed product launches. Auto Express is reporting that the Golf MkVI is now scheduled to be unveiled in Paris next fall; six months later than the original plan to debut the car in Geneva. Here in the US, we're used to waiting longer than expected for an updated Golf, but this is undoubtedly a big letdown for fans of one of the world's most popular compacts. If Europe isn't getting the Golf until 2009, there is a good chance our Rabbit won't receive its overhaul until next decade.

[Source: Auto Express]

The debate as to whether Bugatti was going to create a second model eventually led to former Bugatti head Thomas Bscher's resignation. Bscher wanted another car, Martin Winterkorn, head of VW, said that a second car would remain nothing more than Bscher's dream.

Somewhere, minds have changed. Although Bugatti isn't meeting original sales projections, new Bugatti CEO Franz-Josef Paefgen assures the continuation and growth of the brand. Not only that, but it has been decided that the second model won't be one priced in the thick-growth band of ultra luxury vehicles, around $150,000 to $200,000. No, it will be just as much, and be just as exclusive, as the current $1.4 million Bug. According to Paefgen, it will have "lifetime volumes in the hundreds."

No one has any idea what such a vehicle will be. And if Bugatti keeps losing money in the amounts rumored, no one knows if VW won't have another change of mind and shut it down. So until then, I guess we'll just have to be happy with Veyron variations like the Pegaso, Pur Sang, and convertible.

[Source: The Car Connection]

It's hardly been a week since we told you that the sexy VW Scirocco wouldn't be coming stateside, and now it seems VW of America vice president Adrian Hallmark may have been premature in his assessment. Now VW spokesman Hans-Gerd Bode is telling us that the big cheese, VW Chairman Martin Winterkorn, will have the final say in this matter.

The folks over at Autoweek seem to think that the 2008 Geneva Motor Show would be the best time for VW to announce whether or not the Scirocco will be coming to the US, but we aren't so sure. It makes sense for VW to unveil the production version of the Scirocco at Geneva, where VW was eerily silent during the 2007 show, but we'll put our money on Volkswagen making that announcement on US soil if the Scirocco is headed here.

We were a little surprised that Hallmark's reasoning for not bringing the Scirocco to the US was because it "might cannibalize GTI sales". VW's current lineup consists of four small cars, a mid-size, and an SUV, what's one more good-looking, fun to drive hatch going to hurt?

Click image for hi-res gallery of the facelifted VW Phaeton

It appears that the VW Phaeton will make a return to the Unites States market, according to Volkswagen CEO Dr. Martin Winterkorn. In an interview with Financial Times Deutchland, he essentially stated that to be successful with a product, it has to be something sold worldwide. (We're paraphrasing from a Google Translation of the FTD article, so be advised that the wording may be off a bit.)

The other thing we took from the translated article is that the car earmarked for a return to the States is the "successor" to the Phaeton. That has us thinking that the facelifted car introduced at Geneva last week is not the one Winterkorn's talking about. The Phaeton story is well known by now; poorly marketed and just as poorly received by car shoppers, the VW super sedan is a beautiful, handbuilt machine that tanked thanks in large part to an idiotic campaign at the car's launch (remember the TV commercials where VW showed still photos of the car with the logos covered while a voiceover clown said things like, "No question...that's a BMW"?) and a price tag that was incongruous with what people were willing to pay for a Volkswagen. The 8-cylinder Phaeton stickered at over $64K, and a gargantuan $94K was the price set for the range-topping W12. For that kind of money, people could go shop at Audi (or BMW, or Mercedes), and that's likely what many of them did. The Phaeton was pulled from our market in 2005.

Assuming this actually happens, it'll be interesting to see what Volkswagen does to help make round two a success for the Phaeton. If any readers have a proper command of German and can better elucidate what the FTD article says, please chime in with your own comments. The Financial Times piece can be found here. If you don't read German, this will come in handy.

Thanks to all who sent tips.

[Source: FT Deutchland]

Audi has raided the castle at Wolfsburg and changes are in store. New boss Martin Winterkorn has ordered that the new Scirocco, Golf and Passat be presented for scrutiny. Rounding out the new royal court at Volkswagen will be a coterie of raiders from Ingolstadt, among them Walter de'Silva. de'Silva will be tweezing the look of the new cars until Winterkorn is satsified. Also, the petrol-powered V10 returns to the Touareg, giving back a unique offering and hopefully enticing sales. We're not sure what Mr. Winterkorn doesn't like about the styling of the new cars, but we're hopeful that de'Silva will be allowed to stretch his legs and stun us when the re-designs start trickling out. As Winterkorn consolidates and centralizes power in Wolfsburg, we're sure to see bigger changes coming out of Volkswagen and its brands. We're all for it - what's the worst they can do, screw up? Judging from de'Silva's portfolio, that's not bloody likely.

[Source: Germancarblog]

The Wall Street Journal is reporting today that Volkwagen brand chief Wolfgang Bernhard will be leaving his post next month after the company's board votes to approve a new management shakeup. Supposedly the management reorginization involves offering Bernhard a new position in which he would oversee production across all brands in the VW/Audi group. Bernhard, however, has been reported as saying he would leave the company if his job changed.

Speculation that Bernhard would pack up and leave has been rampant ever since the man who hired him, ex-CEO Bernd Pischetsrieder, was replaced by his counterpart at Audi, Martin Winterkorn. If Bernhard does choose to leave VW, it's not entirely certain he could accept a position at another automaker due to a two-year non-compete clause built into his contract. This could potentially block Bernhard from returning to a post at his previous employer, DaimlerChrysler. Rumor has it that DaimlerChrysler CEO Dieter Zetsche would love to his bring his former prodigy back to the company, perhaps to replace current Chrysler Group CEO as the captain of the company's U.S. domestic division.

[Source: Automotive News]

Automotive News reports that incoming VW chairman Martin Winterkorn, Audi's current CEO, may want to sell the SEAT brand. In his current position, Winterkorn is responsible for SEAT, as it's part of the Audi group. He is apparently frustrated with the Spanish automaker's disappointing profitability and according to Automotive News, it's not part of his plans when he assumes his new position.

Bernd Pischetsrieder, who will be replaced by Winterkorn, is said to oppose any such sale because it would include a transfer of valuable VW technical and operational information to the new owner. The anti-sale sentiment is apparently shared by Wolfgang Bernhard, but it's reported that he may also be leaving VW and is looking for a way out of his contract.

Amidst all the sale talk, SEAT sales through October are up 4.4%.The automaker has officially issued a blanket denial of any reports regarding a sale, calling the speculation "absurd."

[Sources: Automotive News (sub req), SEAT]

Looks like Wolfgang Bernhard may have taken the appointment of Martin Winterkorn as future Volkswagen AG CEO personally. Reports are swirling that Bernhard is likely to step down soon. Newspapers are reporting today that VW has asked for a commitment from Bernhard by Friday. German business newspaper Handelsblatt said Bernhard had threatened as early as May to resign if Winterkorn became CEO.

This would be a pretty big loss for Volkswagen, as Bernhard is widely regarded as a savior for VW because of his efforts to cut costs in Germany. Some put Bernhard's contribution to Volkswagen's bottom line as high as $9 billion (7 billion euros) by 2008. That has come mainly as a result of restructured benefits and extended working hours for VW's 100,000 workers at its plants in western Germany.

This comes on the heels of last week's shakeup that saw the group's chief executive Bernd Pischetsrieder stepping down after a power struggle with VW chairman Ferdinand Piech. That resulted in the nomination of Audi CEO Martin Winterkorn as the new head of VW. Bernd has since been reassigned to the trucking arm of VAG.

[Sources: Reuters and Automotive News, sub req]