You didn’t seriously think there was a tall, be-cladded wagon that could sell like a Subaru Outback, did you?

And you didn’t think — if such a tall, be-cladded wagon did have the potential to sell as well as a Subaru Outback — that it would be a Volkswagen Golf Alltrack?

Of course you didn’t, not in this post-diesel scandal world. But as the all-conquering Subaru Outback continues to enjoy increased U.S. demand, the latest Outback alternative is already suffering a mild case of DTWS.

Not Dancing With The Stars. Don’t read so fast.

Decreased Tall Wagon Sales.

The Volkswagen Golf Alltrack’s May 2017 performance of only 1,312 sales represented a six-month low. (Read More…)

Government officials and automakers are accusing Volkswagen of twisting its emissions-cheating penance to its own advantage. As part of its sentence for equipping over half a million vehicles with defeat devices, the United States is forcing VW to spend billions of dollars on a decade-long program that promotes environmentally friendly transportation and green technologies. The company opted to invest a large part of those compulsory efforts into establishing an EV charging network within the U.S.

However, seven state attorneys generals have urged the Environmental Protection Agency to closely monitor Volkswagen’s course. They contend that such a network would give the company an unfair advantage in the forthcoming electric revolution, allowing VW to profit from its misconduct.  (Read More…)

The Volkswagen Passat has a roomie.

Production of the Volkswagen Atlas, Volkswagen of America’s first three-row SUV and the automaker’s first three-row vehicle since the Dodge Grand Caravan-derived Volkswagen Routan fled the scene in 2014, began earlier this year in Chattanooga, Tennessee, previously known as the Passat’s factory.

The first 1,610 copies of the Atlas were sold in May 2017.

Volkswagen, which built the Tennessee assembly plant as part of a goal that would see the brand selling 800,000 vehicles in America per year by 2018, originally intended to build 150,000 vehicles annually in Chattanooga. Only half that capacity was used last year.

If the Volkswagen Atlas becomes the hit the Volkswagen Passat never was, what might that say about the North Americanized Volkswagen Passat’s future?  (Read More…)

Volkswagen’s sole U.S. assembly plant was spared any fallout from the company’s wildly expensive diesel emissions scandal, but the upcoming North American Free Trade Agreement negotiations could see VW throttle back its future plans for the facility.

The Chattanooga plant, which builds the Passat and Atlas, has seen $900 million in investment over the last couple of years. More models are anticipated, and the automaker said it expects the plant to reach full production by 2020. However, recent threats of an import tax to be levied on German automakers has VW brass in wait-and-see mode before sending any new models or money to Tennessee. (Read More…)

“The Germans are bad, very bad. Look at the millions of cars that they sell in the U.S.
Terrible. We’re going to stop that.” – President Donald Trump

Through the first four months of 2017, Germany-based automakers and their respective subsidiary brands have sold 413,000 new vehicles in the United States.

At a minimum, 28 percent of those vehicles were built in the United States at assembly plants in Alabama, Tennessee, and South Carolina. According to Automotive News, BMW, Mercedes-Benz, and Volkswagen combined to produce 281,519 vehicles, the bulk of which were destined for export.

But to avoid even a faint whiff of statistical manipulation, TTAC has compiled the complete U.S. sales and production picture for each of these manufacturers. We present them to you with no limited commentary. (Read More…)

Complete with an alternate Miller Cycle that Volkswagen is calling the “Budack Cycle,” the German automaker has evolved its ubiquitous EA888 2.0-liter turbocharged four-cylinder engine for installation in the second-generation 2018 Volkswagen Tiguan.

Horsepower? For a 2.0T, it’s rather unimpressive at only 184 ponies. But Volkswagen isn’t caught up in horsepower per liter figures. Instead, Volkswagen’s own introduction of this “Budack Cycle” 2.0T makes the company’s existing 1.8T — currently on duty in four product lines — sound downright ineffective.

Naturally then, Volkswagen won’t reserve the Budack Cycle EA888 2.0T solely for the 2018 Tiguan. According to Volkswagen of America communications manager Mark Gillies, “It will eventually supersede the 1.8T in the Passat and Beetle.”  (Read More…)

Vinay Shahani, a former decade-long Nissan employee, has just been poached from Volkswagen of America by Toyota.

Shahani was Volkswagen’s U.S. vice president in charge of marketing, responsible for cementing a cohesive product message after the eruption of the now infamous diesel emissions scandal that broke in September 2015.

“Things are definitely difficult for the Volkswagen brand,” Shahani told the Automotive News New York Marketing Seminar one year after Volkswagen’s wrongdoing was made public.

Shahani’s perseverance through said difficulty obviously drew the attention of Toyota Motor North America, particularly since Shahani’s resume proves he’s no mere ad man. (Read More…)

Volkswagen has attempted to portray itself as a kinder and more responsible automaker in the wake of its emissions cheating scandal. However, CEO Matthias Müller says convincing middle management to change has proven exceptionally difficult. VW has been pushing to become — or at least seem like — a more transparent company that has decentralized its rigid management hierarchy.

“There are definitely people who are longing for the old centralistic leadership,” Müller stated during a meeting with business representatives on Monday. “I don’t know whether you can imagine how difficult it is to change their mindset.”

It’s been 20 months since the diesel emissions scandal entered the news cycle and Müller took over as chief executive. Throughout that time, VW’s top executives have tossed mid-level employees under the bus on numerous occasions. While there is little reason to doubt some might have trouble adjusting to a new corporate climate, it would be nice to hear top brass taking any semblance of responsibility once in a while — even on something minor like this.  (Read More…)

The Environmental Protection Agency and California Air Resources Board will soon announce an approved fix for roughly 84,000 recalled Volkswagen diesels. As part of VW’s buyback program of cars equipped with emissions-cheating defeat devices, the soon-to-be-certified modification allows 2012-2014 Passat TDIs to operate within acceptable pollution guidelines.

Volkswagen has already designed fixes for the Generation 3 diesel 2.0-liter engines, providing vehicle owners the choice to keep and repair their car, or to have it bought back. Similar fixes in Europe have yielded complaints of reduced fuel economy, starting difficulties, trimmed power, weak acceleration, and even abnormal sounds. As usual, if you want to hold onto your TDI, you may be doing so at your own risk.  (Read More…)

I was lost. Rather, I was about to be lost.

As I drove an eye-catching white silver metallic 2017 Volkswagen Jetta GLI onto the MV Confederation in Caribou, Nova Scotia, it dawned on me. I had never driven across Prince Edward Island by myself. But I was about to, if I could find my way.

Mrs. Cain and the kids had already made it to Prince Edward Island, having departed earlier in the week to begin our house hunt after our Nova Scotian home sold in 24 hours. Sunshine and a quick car made me realize that the MV Confederation’s perfectly timed departure would allow for some sorely needed blood pressure reduction, sitting on the deck of a ferry for an hour in the middle of a Friday afternoon.

But I left my iPhone charge cord at home on the dining room table. My phone’s battery was below 5 percent with pictures yet to be snapped. I couldn’t use my phone for directions. I didn’t trust the island signage to be sufficient — we’re not big on signs around these parts. And then a light came on: the ferry’s tourist bureau would have maps. Maps! Maps, my dear Watson. Maps. I studied that arcane sheet for, well, it had to be minutes. In the belly of the ship, with everybody else back in their cars, I spent a few more minutes folding that sucker up with every ounce of dexterity my parents’ genetics afforded me.

Not until I arrived at my Summerside destination did it dawn on me. The 2017 Volkswagen Jetta GLI has a navigation system.

Maybe that’s why it costs $29,815. (Read More…)

German prosecutors verified the launch of a formal investigation involving Volkswagen Group CEO Matthias Müller and chairman Hans Dieter Poetsch due to suspected market manipulation.

While we reported on the probe last week, Müller’s inclusion was highly unexpected. It was unclear what, if anything, officials had on the CEO and why they waited until now to add him to the growing number of upper-level executives under examination.

The Stuttgart prosecutor’s office stated on Wednesday the investigation was prompted by a request from market regulator BaFin in the summer of 2016. After spending some time gathering evidence, investigators began to believe executives deliberately postponed releasing information to investors about the scale of the scandal and didn’t adequately disclose its financial consequences.

VW Group maintains the leadership had complied with disclosure rules and executives were unaware of the scope of the emissions cheating scandal when it kicked-off.  (Read More…)

Is was probably with a sigh of relief that U.S. District Judge Charles Breyer granted final approval to a settlement for owners of 3.0-liter diesel Volkswagen Group vehicles earlier today. The issue has consumed no shortage of court time both before and after last December’s preliminary approval for a buyback, compensation and fix plan.

More than 80,000 Volkswagen, Porsche and Audi models were sold with engines rigged to cheat on emissions tests. Many of those units will now be bought back and others fixed — a plan with a minimum $1.22 billion price tag.

Breyer’s approval marks the end of the automaker’s main legal wranglings in the U.S. It also opens the cash floodgates, as even owners who opt for a fix will see a pile of crisp, clean dollars from VW. (Read More…)

Volkswagen Group CEO Matthias Müller is under investigation in Germany over the possibility he withheld important information on the company’s emissions scandal to investors, as well as potential market manipulation relating to Porsche. While public prosecutors continued to broaden their search among high-ranking company officials, the inclusion of the CEO is a bit of a surprise.

It was widely believed Müller would be free from scrutiny as he was appointed to replace ex-CEO Martin Winterkorn shortly after the emissions scandal went public in September 2015. Initially, German investigators even stated the CEO was not suspected of any wrongdoing. Then, in March of 2017, prosecutors launched a raid that seized the mobile phones, electronic passwords, appointment books, and email files of numerous Volkswagen and Audi employees — including Müller.  (Read More…)

Volkswagen AG announced at its annual shareholders meeting this week that it will not be publishing the findings of an external investigation into its diesel emissions scandal conducted by the Jones Day law firm. The reason for VW’s secrecy is due to an underlying fear among management that the information held in the report would lead to further lawsuits and fines.

VW Chairman Hans Dieter Pötsch addressed the thousands of shareholders by first thanking the U.S. legal team for its hard work and then explaining there was no way in hell anyone outside of the company would benefit from its findings — tossing any promised transparency out the window. (Read More…)

Lost amid the automaker’s newfound focus on bringing as many utility vehicles to global customers as possible, Volkswagen’s stalwart Jetta soldiers on without a diesel option, wearing more or less the same duds it donned for 2011. A mild — some would say unnoticeable — refresh came in 2016, but the Jetta’s U.S. sales have continued to slide at a remarkably steady rate ever since the current generation’s debut.

Naturally, Volkswagen wants to arrest the plunge. As part of its newly crafted product strategy, the automaker plans to find time for a new Jetta among all the crossovers. (Read More…)