VW wants to Expand its SUV Line-up, Plans to Triple U.S. Sales by 2018

Volkswagen hasn’t given up on its plans to become the world’s biggest automaker and for that it needs to sell more cars in the U.S. The Germans want to triple their American sales in the next seven years and one solution is to expand their SUV line-up in order to catch up to GM and Toyota.

“We will be looking to really grow, particularly in the compact SUV segment”, VW's U.S. chief Jonathan Browning told Bloomberg news. “Over time, I think there's also scope for growth in terms of a larger SUV within the portfolio”.

Volkswagen sold 20,946 Tiguans and 4,713 Touaregs in the U.S. last year, which is insignificant compared to the total of 3.3 million SUVs delivered in the country.

“VW is simply not a player in the American SUV segment”, said Stefan Bratzel, director of the Center of Automotive Management at the University of Applied Sciences in Bergisch-Gladbach, Germany. “Their models aren't being recognized as sufficiently competitive”.

The automaker is exploring other means to increase its sales as well, one of them being the all-new New Mid-Size Sedan (NMS), which is set to debut at this year’s North American International Auto Show.

The yet to be named model will be assembled at the company’s new factory in Chattanooga, Tennessee, with deliveries programmed to start in the third quarter of 2011.

By Csaba Daradics

Source: Bloomberg

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VW Group's Skoda Division Sets New Record in 2010 with 762,600 Sales

The once ailing Skoda brand is turning out to be a solid investment for the Volkswagen Group as the Czech automaker is breaking one sales record after the other. In the year that just passed on, Skoda Auto recorded is best-ever sales results delivering 762,000 vehicles, which represents an increase of 11.5% over 2009 when it sold 684,200 units. Furthermore, the company broke the threshold of three quarters of a million vehicles sold in a single year for the first time in its history.

Commenting on the results, Prof. Dr. h.c. Winfried Vahland, Chairman of the Board of Skoda Auto said:

“In 2010, Škoda achieved an outstanding performance. In almost all markets, we have had significant growth and increased our market share. Once again, our sales have risen at a double-digit pace. In the most significant developing markets, our growth rates are above 40%. Within the framework of the Škoda growth strategy, we will shift up a gear in the coming years. By 2018, we want to at least double our worldwide sales. In order to do so, we will clearly expand the Škoda model range and strengthen the activities in international markets."

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2012 Volkswagen NMS Teaser Shows Up on Official Site, Confirms Detroit Debut

It's no secret Volkswagen is developing a new mid-size sedan (hence the NMS codename) to replace the Passat in the North American market, but today the German automaker posted a teaser on its website ahead of the car's world premiere which will take place at next week's Detroit motorshow.

Visitors entering Volkswagen of America's website are greeted by a sedan model wrapped in a white sheet and a note that says "The sleeker, roomier, all-new, German-engineered 2012 ______. Fill the blank on January 10th".

We'll have to wait until the Detroit show to find out more details including the car's name, but from the info VW has revealed so far, we know that the NMS will be produced at the firm's new U.S. factory in Chattanooga, Tennessee and it will be priced lower than the current Passat which it will replace in the North American market.

Volkswagen's new Honda Accord and Hyundai Sonata rival will go on sale at dealerships in the third quarter of 2011 as a 2012 model year.

Link: VW of America

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Poll: Should Fiat Cut Loose Alfa Romeo and/or Sell it to Volkswagen?

Like Saab and countless other brands before, Alfa Romeo is at a tipping point. The famed Italian automaker, which once stunned the world with its gorgeous styling and motorsport victories, is now losing an estimate €200 million (US$265 million) per annum. It’s hard to believe that the company that brought us cars like the GTA, the Spider and the 158/159 Alfetta could be reduced to such a sad state of affairs.

Sergio Marchionne, the unwavering CEO of Fiat and its subsidiaries, is determined to turn the ailing automaker around. Meanwhile, Volkswagen is sniffing around for more brands and smells a potential winner in the Milanese company.

There are many arguments for and against selling Alfa Romeo to ze Germans. Here are the ones we’ve covered in our previous article:

The Case For Selling Alfa Romeo

• Alfa Romeo is valued at €1.5 to 2 billion. By selling what equates to their biggest loser, Fiat would emerge virtually debt free.
• The brand’s dismissal would save Fiat a further €1.5 billion that it would of spent product R&D over the next four years.
• Fiat would also save €200 million a year in losses.
• Alfa’s departure could potentially allow for Dodge to return to Europe as Fiat’s sporty brand, with Fiat remaining the first choice for entry level buyers and Lancia / Chrysler for those seeking something a little more upmarket.
• Volkswagen has worked wonders with Bentley, Seat and Bugatti. Can you think of a better mother hen for one of Italy’s finest?

The Case Against Selling Alfa Romeo

• If Fiat can survive until 2014, analysts predict it will emerge with no debt and fatter profit margins. And that’s with Alfa Romeo.
• Fiat could net the same amount of lira by selling three of its OEM suppliers: Magneti Marelli, Comau and Teksid.
• After Fiat’s expected 2014 recovery, the Milanese automaker is expected to account for 10% of Fiat’s sales.
• Fiat has plans to share platforms between Alfa Romeo, Chrysler and Jeep, helping all three brands. Without the platform sharing, Chrysler and Jeep will continue struggle and Fiat’s push into the Chinese and Russian markets will be delayed.
• With Fiat focusing primarily on small cars, it would have to develop new mid-sized and large car models to fill the gap left by the departing Alfa.

So there you have it: five points for and five points against. All that’s left now is to cast your vote, so get voting!

By Tristan Hankins

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Should Fiat Sell Alfa Romeo to the VW Group?

VIDEO: "Buying a Volkswagen from an Old Lady" Dutch Ad is Epic

In what could very well be one of the most amusing automotive-related ads we've seen this year, this Volkswagen commercial from The Netherlands puts a surprisingly wild twist on the belief that old ladies take good care of their cars. The 50 second-long clip finishes with the tagline "Not every old lady is reliable as a Golf". Watch the video after the break.

Via: Autoblog.nl

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New Beetle Limousine is a Prom Queen’s Dream

New Jersey’s Route 22 Limousines is selling this 1999 Volkswagen Beetle limousine. The six passenger vehicle was built in 2001 and is finished with a white exterior and grey leather interior with TV, minibar, mirrored roof and custom lighting. Imagine the look on the face of Daddy’s Little Princess when you bring this home to take her to the Senior Prom...

And imagine the look on the face of Daddy’s Little Princess’s mother when you try to explain the US$45,000 price tag. Sure, it may seem a little steep at first, though presumably Route 22 spent a fair amount of money lengthening and customizing this...uh...“unique” vehicle.

It occurs to me though, adding all that additional weight to a New Beetle is going to seriously impede the performance of its 2.0 L engine, especially when mated to the standard 4spd automatic transmission. You know what I mean: 0 to 60 mph (0 to 100 km/h) in four hours and a minimum turning circle of a mile (1.6 km). I hope Route 22 upgraded the brakes, at least, or the new owner is going to be in for some fun times on wet roads.

Though I suppose, unless you’re carrying the President of the United States, a limousine doesn’t really have to be fast or nimble: it just has to be big, comfy and have a well stocked minibar. I won’t bother asking what you readers think of this thing; unless you’re a bride-to-be or a prom attendee you’ll probably think this thing is daft as it looks. I could be wrong though...

By Tristan Hankins

Via: eBay

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Volkswagen to Build Cars in Malaysia, will Start with the Passat from 2011

The Volkswagen Group on Tuesday signed an agreement with Malaysia's DRB Hicom auto group for local vehicle assembly as the Wolfsburg-based automaker seeks to expand its operations in Southeast Asia under the Strategy 2018 growth program. The announcement came after VW abandoned alliance talks with Malaysian state-owned carmaker Proton earlier this year for undisclosed reasons.

The one billion ringgit ($318 million) deal with DRB Hicom will see VW beginning the assembly of Passat models from the end of 2011 with an initial annual capacity of "several thousand vehicles." The German carmaker said it plans to build further models for the Malaysian market on the basis of a local full scale production in a second expansion phase from the end of 2012.

"Developing the market potential of the ASEAN region is of major significance for the Volkswagen Group’s long-term growth strategy," said Christian Klingler, Member of the Board of Management of Volkswagen AG. "We will be using existing structures and capacities at the DRB Hicom plant in Pekan to systematically extend our presence in the Malaysian market of the future."

The Malaysian joint venture will be Volkswagen's second in the Asean region, as the German company set up assembly operations in Indonesia for the production of the Touran in 2009

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ABT Sportsline Presents Discrete Tuning Package for 2011 Volkswagen Touareg

According to ABT, the 2011 Volkswagen Touareg should be tuned without diluting its distinct character. As a result, the Bavarian specialist concentrated on increasing the power of the German SUV, while keeping the exterior changes to a minimum.

“More power wouldn’t hurt with a car as diverse as this, but it was important for us that the tuning suited the characteristics of the Touareg”, the company’s general manager, Christian Abt, explained.

Tipping the scales at 2.5 tons, the Touareg is certainly no featherweight, so adding more power and torque to the mix is probably a good idea. Engineers developed the ABT Power kit for 3.0-liter diesel V6, which increases peak output from 240 hp to 282 hp. The second stage of the engine conversion is called Power S and delivers 310 hp.

Garnished with a similar power upgrade, the 4.2-liter V8 diesel also benefits from extra oomph, churning out 385 hp (+45 ponies) and an even more impressive 870 Nm (642 lb-ft) of mountain-moving torque (+70 Nm or 52 lb-ft).

As mentioned previously, exterior appointments are discrete as they are limited to a new front grille, rear wing and rear apron, alongside a 4-pipe exhaust system. ABT BR or CR wheels, which can be specified in various sizes up to 22 inches complete the finishing touch.

By Csaba Daradics

The new ABT Touareg – dates and facts
ABT ENGINE TECHNOLOGY
Engine: 3.0 TDI, 2967 ccm, V6
Performance tuning: ABT POWER
Performance: 282 PS/207 kW (standard: 240 PS/177 kW)
Engine: 3.0 TDI, 2967 ccm, V6
Performance tuning: ABT POWER S
Performance: 310 PS/228 kW (standard: 240 PS/177 kW)
Engine: 4.2 TDI, 4134 ccm, V8
Performance tuning: ABT POWER
Performance: 385 PS/283 kW (standard: 340 PS/250 kW)
ABT AERODYNAMICS
ABT front grille
ABT rear spoiler
ABT rear skirt
ABT EXHAUST SYSTEM
ABT 4-pipe-exhaust-system
ABT SPORTS WHEEL TECHNOLOGY
ABT BR and CR up to 22 inch

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