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.
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.
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.
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.
Click above for a high-res gallery of the Volkswagen up! Space concept.
It was rumored last week and now it's been confirmed: Volkswagen's up! minicar will be switched from a rear-engine, rear-wheel-drive layout to a front-engine, front-wheel-drive arrangement when it goes on sale in 2011. According to VW CEO Martin Winterkorn, "Our engineers favored a rear engine and fought until the end for that solution." Unfortunately, the rear-engine layout had to be nixed due to cost constraints and the limitations it imposed on passenger space.
Volkswagen originally planned to launch the up! in Europe sometime in 2010, but the architecture switch has bumped back its sale date by four- to five-months, meaning it will likely hit showrooms in early 2011. While a few months wouldn't normally be a big deal, the Toyota IQ is set to debut in dealers early next year and the Fiat Topolino will launch late in 2009, putting VW behind the eight ball by almost two years.
Volkswagen plans to launch the up! in three flavors: a hatchback, minivan and sedan. The automaker expects sales in Europe and emerging markets to hit approximately 500,000 units per year, although a decision has yet to be reached on whether the up! will make it to the U.S.
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.
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.
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.
Following-up on last week's announcement that Volkswagen was looking at Alabama for a new manufacturing facility, the German automaker's management board is expected to make their final recommendation today. Following that announcement, Volkswagen's supervisory board, headed by former VW group CEO Ferdinand Piech, will make its decision by tomorrow. Whether Huntsville, Alabama, or second-choice Chattanooga, Tennessee, gets the nod, the move is key for Volkswagen as they attempt to increase sales in the United States with more targeted, and lower priced, vehicles. In addition to the Volkswagen Jetta (itself being redesigned to better compete with the Honda Civic) the new facility will produce an all-new Passat-sized sedan with a base price of about $20,000. Larger, in order to compete with the Toyota Camry, the new sedan would undercut the current Volkswagen Passat's pricing by about $5,000--a significant margin. The plant would open in late 2010 with an annual production capacity of nearly 250,000 vehicles.
The VW Beetle is a cult favorite here in the States, but in Germany, it's not so well loved. That could be part of the reason why Volkswagen has been slow to produce a successor to the new Beetle, but word from Motor Trend is that two models could be coming shortly. The first Beetle will be based off the Gen-VI Golf and will hit production in 2010 or 2011.
Word out of Wolfsburg is that a second Beetle could be on the way as well, but this one would be based off the up! minicar. That would give VW a sub-brand Beetle lineup, kind of like what Toyota has with Scion, but with an eye on MINI buyers. The smaller up!-based Beetle would also be more true to the original Bug, which was a cheap and efficient "People's Car" with the engine out back (supposedly). Quality problems and a weak dollar have lead VW to struggle in the U.S. over the past few years, but an inexpensive, reliable car with top-notch fuel economy would go a long way toward reversing that trend.
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.
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