Autoblog

Every time Porsche re-does its core product – the 911 – we anticipate a staggered roll-out of new derivatives. Now that Porsche has Volkswagen by the reins, we can expect VW to undertake the same as it unveils new versions of its core offering, known here as the Rabbit and elsewhere as the Golf, now out in the open in its sixth iteration. Short of a new R32, enthusiasts are undoubtedly looking forward most to the new GTI. And if the latest reports are any indication, Volkswagen won't be keeping its fans waiting any longer as the MkVI GTI is tipped to be unveiled next week at the Paris show. Of course we'll be on hand to see if that's the case, so stay tuned, sports(car) fans.

[Source: CarScoop]

Volkswagen typically shies away from massive rebates, but tough sledding on the sales floor had led the German automaker to take drastic measures. All 2008 models can be had with 0% financing for a limited time, which should help VW dealers clear inventory before the '09 models arrive. The 0% deals vary in duration depending on the model, with most models receiving the special financing for 60 months. You can even get a GTI interest free for five years.

Almost every automaker is breaking the bank with incentives to keep declining sales and increased inventories in check. VW is one of the few automakers that fared fairly well in August sales, so something as drastic as 0% financing is a bit of a surprise. Given that the competition is doing it, though, the German automaker may just be keeping up with the Joneses. Thanks for the tip, Jay!

[Source: Volkswagen]

Germany's Spiegel Online is reporting that currency concerns will force Volkswagen to not sell the upcoming Mk VI Golf in the United States, Brazil, and Australia. It all boils down to profitability, and it appears that the forthcoming Golf simply cannot be sold in our market (or Brazil or Australia) in the current economic climate without falling short of VW's targets. Thus, Spiegel reports that VW boss Martin Winterkorn told a meeting of the board that the next Golf won't make an appearance here in the States, period. The original article (in German) is here, and any German-speaking readers are welcome to add clarity to the report in the comments below.

In the US, the Golf (Rabbit) family is VW's second-highest seller behind the Jetta. If this drastic measure does indeed come to pass, we're left wondering what, if anything, would fill that void. Would the current Mk V soldier on, much in the same way VW continues to offer the Mk IV in markets like Canada under the City moniker? This is going to be an interesting story to follow, regardless of what ultimately transpires. Thanks to all who sent tips.

UPDATE

[Source: Spiegel Online (Translated)]

If Consumer Reports is right, Volkswagen is well on its way to attaining its dream of outselling Toyota by 2015. In the magazine's June 2008 issue, CR threw a handful of hatchbacks into the ring and the VW Rabbit hopped out the winner. The magazine cited the Rabbit's "very well finished" interior for its class, agility, braking and transmission as reasons to choose it over a growing field of small hatchbacks. CR also expects the Rabbit to have an "above average" reliability record.

The biggest negative the staff found in the VW was "mediocre" fuel economy for a car its size, though many SUV drivers looking to downsize will love seeing its 24 mpg figure. Staffers also complained about the large C-pillars blocking their view and engine lag after stops.

Consumer Reports has routinely praised the Mazda3 as one of its favorite hatches, but in overall scoring, the car now comes in third, slightly behind the Toyota Prius Touring. Rounding out the top five are the Subaru Impreza Outback Sport and the newly redesigned Toyota Matrix/Pontiac Vibe twins. At the bottom of the list are the Dodge Caliber and the Chevrolet HHR.

[Source: Consumer Reports]

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]

Those of you rolling in a Volkswagen Jetta or Rabbit that was hecho en Mexico, take note: VW is recalling 340,000 vehicles sold in the U.S. due to a headlamp defect. The recall stems from rubber caps that could be missing from the horizontal and vertical headlight alignment screws, something that's apparently required by federal safety standards. A V-Dub spokesman said that there was no danger to drivers, and beginning today, owners could have the parts replaced at a local Volkswagen dealer.

[Source: Drive.com.au]

The workforce exodus in Southeast Michigan is slated to continue, as Volkswagen's North American headquarters is officially heading over to Washington D.C. VW currently employs 1,500 workers in Auburn Hills, just a stone's throw away from Chrysler's epicenter. The move to D.C. comes as VW has lost about $2 billion in North America in 2005 and 2006. Past headquarter moves, like Nissan's shift from California to Tennessee, have helped pare-down a company's white collar workforce, and VW feels its workforce is bloated and in need of fresh blood.

While it's unfortunate for Michigan to lose yet another large employer, the move promises to be a big win for the D.C. area. It'll be tough for VW to improve its bottom line, however, with the Euro worth so much more than the Dollar at the moment. Perhaps a view of the White House and Lincoln Memorial will motivate the new VW North America workforce to keep making great products, but with price tags that are a bit closer to the competition.

[Source: The Car Connection]

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Back in January when Volkswagen unveiled its new diesel Jetta TDI in Washington D.C., the German automaker began a campaign to find the oldest running diesel VW in the U.S. The search is over, with the eldest VW oil burner being a 1977 Rabbit owned by Clint Wilson in Tehachapi, California. The 1977 Rabbit was the first diesel passenger car sold in the U.S. by Volkswagen, and it appears that Wilson's is still in great shape, something VW no doubt hopes isn't lost on today's prospective diesel customers. The car's age was verified by Volkswagen of America and Family Volkswagen, a VW dealer in Bakersfield, CA. The search is still on for the VW diesel with the highest mileage, but in the meantime, VW has provided Wilson with a Touareg V10 TDI to drive for six months.

[Source: Volkswagen]

KGP Photography was spending its weekend in beautiful Death Valley when its photogs snapped a whole lot of pics of the next VW Rabbit in testing. Judging from the VW engineer flipping off the camera (will they ever learn how bad that looks?), we're pretty sure the Volkswagen testers didn't want any pictures out just yet. A new, stronger character line can be seen spanning the Rabbit's flank, and the door handles no longer intersect said crease. The front and rear of the car are pretty well covered, but the general shape doesn't look very different than the Rabbit we already know and love. Powertrains are likely to remain largely unchanged, with a Euro-style range of petrol and diesel engines.

The Rabbit/Golf is perhaps the most important car in the VW stable, as it sells worldwide at very high volume. One place where the Rabbit isn't as popular is here in the States, which is part of the reason we didn't get the Gen V Rabbit until only recently. Expect to see the new Golf swing in to European showrooms in 2008, with the bunny-monikered version arriving here a couple of years later. Click the read link below to view more spy shots of the Rabbit over at Winding Road.

[Source: Winding Road]

Volkswagen makes good-looking vehicles with terrific interiors, very good fuel economy, and spirited driving dynamics. In the US, those virtues alone don't make a high volume automaker, as price tends to play a major role in buyer's decisions. Due to the strength of the Euro, VW has much higher fixed costs than its competitors, even when production in Mexico is taken into account. As a result of their large financial burden, Volkswagens usually cost more than most of the competition. To strengthen their competitive position and leverage cheap labor in developing countries, VW is planning on producing vehicles in China for the US market.

VW, along with partner SECI Motors, is a juggernaut in the land of the Great Wall, as the Germans automaker has been entrenched in China since 1984. The SECI/VW partnership will replace the Chinese market Passat Lingyu with a sedan that will also be sold on our shores. Many automakers have utilized China's inexpensive labor for cheaper parts, but as of yet, no US-sold vehicles have been assembled there. If VW can make cars in China that can meet US safety and emissions standards, Europe's only volume automaker with a presence in the US will go a long way towards closing the cost gap.

[Source: Auto News (subscription req'd)]