Most likely filled with a certain degree of foreboding, Volkswagen signed today contracts with their joint venture partner FAW to build a new plant in the south of China, we hear from a Volkswagen press release. That VW has designs on building cars in the South of China is no news to the avid TTAC reader. But why the anxiety? (Read More…)

It’s out. Volkswagen’s best kept secret is out. At VW do Brasil’s website. The price for the mid-size (for Brazil) Volkswagen Amarok is out. It’s way out there. You can pre-order now. Ready? Take your checkbook out. Breathe deeply … (Read More…)

Ferdinand Piech is cultivating long standing traditions. He always liked to watch a good catfight between his people. In the olden days, he did let plants in Europe compete and bid for cars. Now for the battle royale:  Who will develop the basics on which all future sports cars in the Volkswagen empire will be built? Porsche or Audi? The answer should be obvious: (Read More…)

Designing a product for local tastes is a tricky affair. Just getting the name right is a hassle. Everyone remember the Toyota MR2? Not the French. They remember the Toyota MR. Why? Because “MR2” in French would have sounded like “Em-Ar-Deux” (“Deux” being French for “two”). And “Em-Ar-Deux” sounded very close to “merde” which is French for…..let’s not go into that. So, if getting the name right is a chore, you must do your car research with care  if you want to pander to local needs. I mean, get that wrong and you could end up in deep Em-Ar-Deux. But Volkswagen reckons they’ve found what the Russians want … (Read More…)

Financial Times calls “Volkswagen a long-time skeptic about hybrid and electric cars.” As a long time observer of the Wolfsburg boys, I have to agree. Despite green initiatives for public and political consumption, their private position has been that the consumption and emissions of a hybrid could be achieved with their low displacement supercharged engines and some weight savings. Some electric initiatives notwithstanding, this position has not changed. Case in point: Their new Touran. (Read More…)

Toyota has released their production numbers for the first four months. So has Volkswagen. GM has not, but that doesn’t change the general picture: Toyota is still in the lead in worldwide production, Volkswagen catches up a bit, but sits solidly in the #3 position for the first four months of the year. (Read More…)

Having recently hooked up with firms like BYD and Suzuki, Volkswagen is continuing its rampage across the developing world’s markets, as Reuters reports that the VW’s leadership is in talks with the Malaysian state-owned (42 percent) automaker Proton. VW had previously sought an alliance with Proton, but talks broke off without an agreement in 2007. According to Bloomberg BusinessWeek, VW is not likely to take a stake in Proton despite last year’s policy shift by the Malaysian government allowing foreign firms to own majority stakes in mainstream Malaysian automakers. Proton was founded as a joint venture between the Malaysian state-owned firm Khazanah Nasional Berhad, and Mitsubishi.
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Last week we told you that Volkswagen could announce this week that they would buy Giorgetto Giugiaro’s Italdesign. Sure enough, they did. At a joint press conference held today in Turin, both companies announced that Volkswagen Group will take a 90.1 percent stake in IDG. That buys them the company lock, stock and barrel, including the brand name rights and patents. (Read More…)

Further signs that Volkswagen’s SEAT is due for euthanization emanate from China. If there ever were plans to bring SEAT to China, well, the plans are no more, says China Car Times. (Read More…)

Having some time on my hands, I ventured out again into cardealershipland. Wanted to get my hands on the mini mites that inhabit many an urban Brazilian cowboy’s dream. You know, the call of the sertão (that’s what you think we call the pampas.) In the left corner, all the way from Italy, but made in Brazil, the long-time favorite and market leader Fiat Strada Adventure Locker. In the right corner, the Teutonic tiny titan, the all new VW Saveiro Cross. As the long names suggest, these are the top of the line offerings from each maker. Both offer cheaper, less equipped versions for the daily grind and/or work routine. So hold your cavalos, vaqueiro, I mean, hold your horses, cowboy! Which one comes out on top? (Read More…)

A few years ago, if I had told you that there would be a production car available with 1000 horses, you’d have probably said “Get lost, Cammy!” Well, in this age of electric cars, hybrids, clean diesels and climate change (it’s a crock of what, Mr Lutz?), what if I were to tell you that there is a production car with 1200 hp on the horizon? What would you say, then? Hold the straight-jacket … (Read More…)

When I did my first copywriting jobs for Volkswagen in 1973, I heard to my great amazement that the Passat wasn’t designed in Wolfsburg. It was designed in Turin (“Isn’t that where Fiat is?” “Don’t ask stupid questions, Schmitt”) by someone called Giorgetto Giugiaro. Lo and behold, the Golf thereafter looked a little bit like the Fiat 128, but nobody cared. Volkswagen and Giugiaro‘s Italdesign worked together ever since. Now Volkswagen will buy a controlling stake in Italdesign, if industry sources who whispered it to Automotive News[sub] are not totally mistaken. If the deal happens (and an announcement could come next week), Volkswagen will formalize old friendships. (Read More…)

Despite suffering from a market-induced sales conflagration at home and in Europe last April, Volkswagen can pat itself on the shoulder for outperforming the global market. In the first four months of 2010, the world bought 20.9 percent more Volkswagen Group cars than in the same period of last year. That versus an 18.1 rise of the general market.

VeeDub’s bacon was saved by China and Brazil, “where Volkswagen is particularly successful,” said a proud VW sales Chief Christian Klingler today. Looking forward, he’s hedging his bets. “Despite the very positive performance to date, we remain cautious about our forecast for the full year. It is still very difficult to predict macroeconomic developments,” a Volkswagen communiqué cites Klingler.

Klingler is right to be careful. (Read More…)

Hybrid/electric cooperation between Volkswagen and Suzuki appears to be yielding fruit already, as the Japanese automaker is announcing a plug-in hybrid version of its Swift subcompact. According to Bloomberg BusinessWeek, the new plug-in will combine lithium-ion batteries supplied by Sanyo, paired with a 660cc three cylinder engine. An electric-only range of just under ten miles is being thrown around, after which the gas engine will apparently be used to generate electricity along the lines of GM’s Volt Extended-Range Electric concept. 60 test units of the plug-in Swift will be delivered to Japanese dealers for testing “later this year,” although official plans regarding when and where the vehicle will eventually go on sale have not yet been announced. Suzuki had previously said that one of the goals of its cooperation with VW was to develop electric vehicles for the Japanese market.

Whenever TTAC took GM to task for branding run amok and excessive platform sharing, the example of Volkswagen has always been the key counterfactual. With seven brands available in Europe, the Volkswagen-Audi group is the continental GM, always looking for another way to repackage a pedestrian FWD platform. The only difference is that VW has actually been growing.  But Wolfsburg’s brand profligacy is starting to bear some GM-style bitter fruit. Skoda has been surprisingly strong of late, actually making problems for the Volkswagen brand in certain markets. Seat, on the other hand, is not doing so well. With only one factory, at Martorell, near Barcelona, Seat has always been a slightly niche player, offering older VW designs with some Pontiac-style “emotional” styling flair and a sportier image. The problem now, as Seat CEO James Muir tells The WSJ [sub], is that

The brand really is too small for this plant

Running at only 60 percent of its 500,000 unit capacity, Seat is too small for its lone plant. As a result, VW is launching a last-ditch effort to save its dying brand.
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