In Hitchhiker's Guide to the Galaxy, one of the characters decries the need for a set of detailed instructions on a packet of toothpicks. Volkswagen might feel the same way now that 18,500 of its 2009 Routan minivans are being recalled because their owner's manuals don't include a required warning not to put items on or near the airbag. In the words of the National Highway Traffic Safety Administration:

The owner's manual was printed without the required information explaining that no objects should be placed over the or near the airbag on the instrument panel. Any such objects could cause injury to the vehicle's occupants in the event of a crash severe enough to cause the airbag to inflate.

VW is sending dealers an insert to be placed in affected Routan manuals. If you don't trust yourself to handle the insert, you can take your Routan to the dealer and they'll be happy to assist.

[Source: NHTSA]

Volkswagen is usually known for its simple, basic, iconic styling; the classic Beetle and the previous-generation Jetta are perfect case studies. Which is why the svelte and streamlined CC – known overseas as the Passat CC – has come as a refreshing change of pace for the German automaker. We're not the only ones who think so, either, as the four-door coupe from Wolfsburg has been accumulating design awards the world over.

Adding to the list that already includes the coveted iF Product Design Award and the Australian International Design Award, the Volkswagen CC has now been awarded the prestigious Red Dot Design Award. The prize has bestowed annually since 1955 by the Design Zentrum Nordrhein Westfalen, the legendary design museum housed in the reclaimed Zollverein coal mine. The Best of the Best award was accepted by designer Martin Kropp on behalf of VW's Exterior Design Studio 1 and you can get all the details in the press release after the jump.

Porsche is profitable and it owns a big chunk of the far larger Volkswagen, yet cash seems to be in short supply. Automotive News is reporting that the world-renowned luxury sports car maker's 1.75 billion euro ($2.45 billion USD) loan request from German state bank KFW has been rejected, leaving Porsche to search elsewhere for funding. Porsche secured 10.75 billion euros ($15.1B) in financing from banks in March to feed its 9 billion euro debt ($12.6B) mountain, but it's looking for alternative means for financing its cash crunch.

Porsche has already looked outside of Europe for funding to handle its mounting debt, as it worked with the Arab emirate of Qatar to secure a sizable stake in the company. VW, smelling blood in the water, reportedly gave Porsche an ultimatum, offering up 3-4 billion euro ($4.2-$5.6B) for 49% of the sports car maker in exchange for not forcing the repayment of a 700 million euro loan ($983M) in September. Porsche responded by saying that ultimatums don't belong in the 21st century. Unfortunately, bankruptcies are all too common in the new economy, so the proud German company may have to dig a bit deeper to keep themselves from falling into the financial abyss.

[Source: Automotive News (subs req'd) | Image: Michael Latz/Getty]

Hear about those reports last week of a potential tie-up between Suzuki and Volkswagen for microcar development? Osamu Suzuki, chief executive at the automaker that bear his name, heard the same rumors that we did, and they apparently came as news to him. Though Suzuki falls short of denying outright that any potential deal could be struck, he told the Chunichi Shimbun daily (via Reuters):

So far there's been absolutely no contact (with Volkswagen). Lately, we've been the victim of a lot of rumors (of equity tie-ups and cooperation deals).

Suzuki sells more mini cars – albeit tiny 660cc Kei urban runabouts – in Japan than any other automaker not named Toyota, yet it has a limited footprint in most other markets. Thus, it's not surprising that rumors of impending partnerships are common. In this case, though, it would seem that reports of a potential 10% stake by VW are at least a bit premature.


[Source: Reuters]

Porsche maintains it still has its mojo, but Volkswagen is treating the company like Porsche's got lunch money and VW is hungry. VW -- which Porsche effectively owns -- loaned Porsche €700 million ($983.8 million) earlier this year, with Porsche due to pay it back in September. As collateral for the loan Porsche used its wholesale distribution arm Porsche Holding GmbH.

The way things are going for Porsche, it might not be able to make that September repayment. So VW and the state of Lower Saxony made an offer: Porsche has until the end of June to accept an offer by VW to pay €3 to €4 billion ($4.2 billion to $5.6 billion) for a 49% Porsche's car business. If Porsche doesn't accept, then VW will "insist" Porsche repay the full amount of the loan in September. If Porsche can't come up with the coin VW could walk away with Porsche Holding GmbH.

Porsche, plucky as ever, didn't want to hear about any of that, saying "Ultimatums do not belong in the 21st century.... We hope very much in the interest of the common goals that the authors of the ultimatum regain their calm..." The crew at VW quickly issued a response, with one spokesperson simply saying, "There is no ultimatum."

Porsche has plenty of time to sort things out, and its investment talks with Qatar, which would greatly help its debt situation, are said to "have entered the final stretch." Thanks for the tip, C. Halen

[Source: Reuters, Automotive News - Sub. Req.]

The Volkswagen Phaeton may not have gotten much love in the States, but V-Dub's range-topping saloon has soldiered on in Europe, undergoing a series of minor tweaks since its introduction earlier this decade. For 2011, the Phaeton is finally due for a comprehensive facelift, and these newest spy shots show a new fascia is in the works.

Although the extensive camouflage doesn't give us much to work with, expect a revised grille to join more sculpted, drawn headlamps that lend some familial cohesion to the sedan. Imagine a stretched and broadened Golf and it's likely you're not too far off. Other tweaks include a reworked rear bumper and tail lamps, along with a new instrument panel, center stack and shifter arrangement. A range of powerplants will be available – possibly including a V10 or V12 TDI – and the 2011 Phaeton could debut at the Frankfurt Motor Show, with sales beginning shortly thereafter. Chances of it coming back to the U.S.: zero.

[Source: FastestCar]

After a few years of financial windfalls, Porsche is suddenly in need of plenty of capital. The German automaker already received a 700 million euro ($978 million U.S.) bridge loan from Volkswagen in March to stay out of bankruptcy, and it is reportedly in talks with banks to secure 1.75 billion euros ($2.42 billion U.S.) in financing.

Bloomberg is reporting that Porsche could also be looking for as much as 2.5 billion euros ($3.45 billion U.S.) from the Arab emirate of Qatar to remain independent of the much larger VW. Bloomberg quotes two anonymous sources as saying that the Middle Eastern country is looking for at least a 25% stake in the storied luxury sports car maker. The fresh funding would help Porsche alleviate some of its 9 billion euro ($12.5 billion U.S.) debt, while also giving the Stuttgart automaker some breathing room to stave off future financial meltdowns.

Last week, Automotive News Europe was reporting that Qatar was exploring two options: it could either buy a stake in Porsche Automobil Holding SE (which owns both Porsche's automaking unit and its 51% stake in VW), or purchase Porsche's outstanding options on a 24% stake in Volkswagen. According to the Bloomberg sources, a deal between Porsche and Qatar could be consummated by the end of June.

[Source: Bloomberg | Image: Michael Latz/AFP/Getty]

You knew that something like this was coming sooner or later: at least one of Magna's clients have found the supplier's majority stake in Opel to be a conflict of interest. As it turns out, Volkswagen was the first automaker to cry foul.

Magna is a major supplier for VW and its brands, while Opel is a big-time competitor. Spokesman Michael Brendel says the company going to "monitor this development very closely." We're guessing that translates roughly to "'if Opel receives any preferential treatment over VW whatsoever, heads will roll."

Should all go according to plan, Magna and its partner Sberbank will have a combined 55% stake in the new Opel. GM will retain a 35% stake, while Opel's 25,000 employees will receive the remaining 10% in the company. The German government provided 1.5 billion euro to keep Opel from entering GM bankruptcy proceedings, making the deal with Magna possible.

Magna expects Opel to once again become profitable within four years, and the Canada-based supplier intends to bring Opels to Canada by the end of the year. Opel vehicles will not be making their way to the U.S. under the terms of the agreement, however.

Magna co-CEO Siegfried Wolf expects the Opel deal to be signed off on in the next five weeks.

[Source: Automotive News subs req'd]

Remember when Volkswagen just named their cars for different winds? Scirocco, Jetta, Corrado, Santana – they all had a certain clean, sweeping quality about them, even if it wasn't immediately clear where the names came from. More recently, however, VW has gone further afield, invoking cryptic names like Touareg (a nomadic Saharan tribe) and Tiguan (Tiger + Iguana). Add this to the list: Amarok.

That's the official name for VW's forthcoming overseas market pickup truck. According to the automaker's press release, Amarok means "wolf" in the language of the hearty, frigid-dwelling Inuit. Alternatively, VW says the appelation "translates into 'he loves stones' in the languages spoken in South America." We'll have to take their word for it, but we can certainly see some sort of stoning at work here.

For its part, Volkswagen actually hasn't unveiled the production version of the Amarok yet, although it did display the fetching concept version (labeled simply as 'Concept Pickup') seen here at last September's IAA Commercial Vehicles Show in Hanover, Germany, and a prototype example was even spotted running around the Nürburgring in April.

In any case, VW promises the Amarok will launch as a double-cab, four-wheel drive pickup, with a smaller single-cab variant to follow. Built in Argentina, the diesel pickup will hit South America early next year, with Central America coming on stream in the spring, followed by Russia, Europe, Africa, and Australia. As expected, North America isn't in the model's plans at this time. Check out the full press release after the jump.



[Source: Volkswagen]

Porsche may have gotten in over its head when it tried to take over Volkswagen outright, but that doesn't mean the German automaker is struggling to sell premium sports cars. The Stuttgart-based automaker is planning on selling 80,000 units in 2009 at an astounding profit margin of 12%. That's $979 million in US currency, and more profit than most automakers several times its size will likely achieve during the global economic downturn.

The news of Porsche's healthy booty comes as a bit of a surprise considering its flirtation with bankruptcy back in March. Porsche has 9 billion euros in debt hanging over its head, though it told Reuters it can cope with the red ink. Porsche had to borrow 700 million euro from Volkswagen to get itself out of an earlier jam, and it's now discussing a merger with Europe's largest volume automaker.

Claus Schmiedel, a member of parliament in Baden-Wuerttemberg, Germany, says that Porsche intends to increase sales in 2010 to 100,000 units, and that it intends to again eclipse 1 billion euro in earnings. Not too shabby for an automaker pushed to the brink of insolvency.

[Source: Reuters | Image Source: Michael Latz/Getty]