Volkswagen personnel at the LA Auto Show is intently studying reactions to a Beetle with possibly 270 hp. After all, it was public reaction at the 1994 NAIAS that brought the New Beetle to life. Originally, it was meant as a lark, but enthusiasts pounded the table until the car was made. It suffered the fate of cars powered by enthusiasts: An initial pop, then declining numbers. On display in LA is what they call the “Beetle R Concept.”

Careful: This is NOT the 2012 Beetle Turbo as tested by Jack Baruth. If they ever build the Rrrrrr model (and the ooohs and aaahs in LAhhhhh will influence that), it will come with an impressive added oomph. Nothing is known about the motorization of the brawny bug, but Volkswagen’s press department offers-up enough material for educated guesses:

“At Volkswagen, the letter ‘R’ as an added identifier promises top-notch performance. Currently, this claim is being validated with turbo pressure by the Golf R with 199 kW / 270 PS of power and the Scirocco R (currently only in Europe) with 195 kW / 265 PS. As an ‘R’, the Beetle could demonstrate a performance potential similar to that of the Golf R and Scirocco R.”

Well duh, all three are based on the same platform. All it needed were extra air intakes for the blower and a rear spoiler that is “significantly larger than the one on Beetle production models with up to 200 PS in power” to generate the required “ideal downforce values.”

If you are one of those who are itching to buy a new car after years of economy-induced withdrawal, one of the many questions that may run through your mind is the exit strategy from that shiny new car. In other words: How well will the car hold its value? If you want the executive summary: Buy just about any Toyota, Lexus, or the 2012 Jeep Wrangler.

If you need more detail, hit the jump. (Read More…)

The old Volkswagen law is making headlines again. After three years of silence, the European Commission could drag Germany again in front of the European Court of Justice, Der Spiegel reports. A decision to sue could be made by Wednesday, sources of the German magazine say. (Read More…)

The pent-up demand has been chased-after more than Richard Kimble. And like the good doctor, the pent-up demand has so far eluded its pursuers. Now, Joe Pent-Up appears to be surrounded, further resistance is futile. Reuters has it from J.D. Power that:

“U.S. auto sales may have their strongest month of 2011 in November, spurred by consumers’ growing need to replace aging cars and trucks and a wider selection on dealer lots.” (Read More…)

“Car makers are huge users of cash – we use cash because we are big employers, big investors and because we have huge supply chain systems. So the working capital is necessary to make the company work. And if all of a sudden the banks stop lending or are frozen, you have a serious problem. A very serious, immediate problem.”

Nissan/Renault CEO Carlos Ghosn at the Japan Society, New York City, November 17, 2011 (Read More…)

If you want to start a business in China, you need a business license. Getting a license to make cars used to be quite hard, but the Chinese government wants to make it harder. China’s industry ministry will hand down standardized rules, which may limit new entrants, Bloomberg reports.

The not yet precisely defined rules don’t sound sinister at first glance. They state that new car companies must meet certain criteria including scale of production and development capacity. They will take effect on January 1, a statement on the ministry website says. (Read More…)

Both Akio Toyoda and Carlos Ghosn are in the U.S. and what are they doing here? They complain loudly about the high yen.  Akio Toyoda uses an interesting reasoning. It may make Americans wish for an even higher yen. Toyota may shift a “significant” amount of production to the U.S., if the yen stays high, and if demand in Japan will fail to consume Toyota’s vast capacity there. If the majority of Toyota’s output is shipped overseas, then factories will follow.

“If demand in Japan recovers, we will continue and work to maintain production of 3 million units” in Japan, Akio Toyoda said to Bloomberg. “If most of it becomes exports, shifting a significant amount of production to the U.S. may be considered.” (Read More…)

Attempts to ratchet-down the rhetoric in the Suzuki/Volkswagen row have failed. Suzuki launched a heavy missile in the direction of Wolfsburg. Suzuki will take the case to court, The Nikkei [sub] heard before a scheduled press conference in Tokyo. But fear not, Volkswagen gets a whole year to make up its mind. (Read More…)

While Saab in Sweden is in the emergency room with wires and drips attached, Saab will be back from the dead at the  Guangzhou Auto Show. This is when  BAIC will show what they have produced from the Saab tooling that they had bought at fire-sale-prices when Saab had gone bust before. (Read More…)

Toyota steadfastly refuses to refer to its upcoming  new compact rear-wheel-drive sports car as anything else than a “new compact rear-wheel-drive sports car.” But Toyota sure knows how to whip up more excitement (if that is possible) before the pocket racer will be officially unveiled at the Tokyo Motor Show. While websites around the globe publish every scrap of paper or digits they can lay their hands on, Toyota will paint you a picture. (Read More…)

Vladimir Antonov, the Russian “financier” who was feted by the acolytes of the zombie Saab as the second (after Victor Muller) coming of the dear Jesus, had his bank taken away from him.

More than $392 million of assets of Antonov-controlled Snoras Bank may be unaccounted for, central bank Governor Vitas Vasiliauskas told Bloomberg. Snoras’s operations were halted, and a state administrator was appointed by the Lithuanian government after the bank ignored recommendations to reduce its credit risk.

As a precautionary measure, government and bank traded accusations of felonious conduct. Reports Reuters:

“The government and central bank said they had found a risk of insolvency and possible criminality. The bank meanwhile has accused the government of ‘robbery’.”

Just to be sure, Swedish Radio mentions that “Antonov lent a large sum to Victor Muller which allowed Spyker to buy Saab.” (Read More…)

What do the European car market and crabs have in common? Both move sideways. In October, new car registrations in the EU were down a tiny bit, minus 1.8 percent, says the European manufacturers association ACEA. January to October produces likewise uneventful numbers: For the year, 11,126,436 new cars changed hands in the EU, that is 1.2 percent less than in the first ten months of 2010. (Read More…)

The Japanese car market is anything but closed, Toshiyuki Shiga, chairman of the Japan Automobile Manufacturers Association said yesterday. Vis-a-vis The Nikkei [sub], Shiga basically repeated what we had said all along, and he used the same line of reasoning that doesn’t seem to register with some blockheaded parties:

“Import duties are zero, and there are no regulations or procedures that block American cars. European vehicle imports are increasing.”

Shiga should know. He is COO of Nissan, which quietly turned into Japan’s largest car importer on a brand basis for the year, only to fall back to number 2 in October on strong imports of the Volkswagen Group. Shiga also asked the same question which I always use, usually without receiving an answer: (Read More…)

PSA Peugeot Citroen is planning an Opel-sized thinning of its French workforce, Reuters says, citing comments of Jean-Pierre Mercier, union representative at Peugeot’s factory in the Paris suburb of Seine-Saint Denis. The union claims that PSA wants cut 5,000 jobs. And guess who’s to blame? (Read More…)

According to my informants, the Tokyo Motor Show will degrade into a „regional show“ and will pale in comparison to the monster shows in Shanghai or Beijing. Toyota will ignore that, and its exhibit will be “likely one of the most closely watched ones of the show,” as Automotive News [sub] says.

The crowd magnet will be a car which Toyota steadfastly refers to as the “compact, rear-wheel-drive sports vehicle jointly developed by Fuji Heavy Industries and TMC.”  Any guesses what it may be?

Autoguide already publishes under-hood pictures, but Toyota will release neither name of the FT-86 / Scion FR-S, nor will it hand out pictures, even under strict I-will-cut-your-fingers-off-if-you-break-it embargo. First in-the-flesh pictures should appear on Sunday, November 27. How do I know that? Trust me.

Did I say no pictures? You will drown in pictures after the jump … (Read More…)