Motor Authority - blog Category: Volkswagen

Rumors of the Volkswagen Phaeton's return to the U.S. have been brewing, off and on, for almost two years. Now, the return looks more likely than ever, with VW's American CEO Stefan Jacoby saying it's time for a comeback for the big sedan.

When Volkswagen's flagship Phaeton was last sold in the U.S., it was almost universally overlooked, selling just 3,354 total cars in its brief 2003-2006 stint in the American market. Nevertheless, Jacoby today told Automotive News that "it was a mistake to take this car out of the market."

Jacoby thinks the VW brand is the right place for the Phaeton, and that focusing on a diesel Phaeton as a high-tech,...

Rumors of the Volkswagen Phaeton's return to the U.S. have been brewing, off and on, for almost two years. Now, the return looks more likely than ever, with VW's American CEO Stefan Jacoby saying it's time for a comeback for the big sedan. When Volkswagen's flagship Phaeton was last sold in the U.S., it was almost universally overlooked, selling just 3,354 total cars in its brief 2003-2006 stint in the American market. Nevertheless, Jacoby today told Automotive News that "it was a mistake to take this car out of the market." Jacoby thinks the VW brand is the right place for the Phaeton, and that focusing on a diesel Phaeton as a high-tech, efficiency-driven flagship may work best. VW has previously admitted that the Phaeton was generally unsuccessful due to a number of shortcomings, including problems with initial quality and blasé styling. It is convinced it has learned the lessons from that failure and is ready to try again, however. The problems with the Phaeton were largely addressed in the newly facelifted 2009 global model, which saw the inclusion of a direct-injection gasoline V-6 engine rated at 276 horsepower, offering enough power without the overkill of the $100,000 W-12 flagship or even the full-luxury pricing of the $70,000 entry-level models. Instead, the next Phaeton, tipped as a 2011 model-year car, is likely to start closer to $55,000 and will be positioned largely below the Audi A8, its corporate cousin. [Auto News - sub. req.] Read More

Volkswagen is set to expand its BlueMotion range of fuel misers with the launch of several new models based on the latest Passat sedan and Golf and Polo hatchbacks. The new cars will appear in production trim at this month’s Frankfurt auto show and sadly, the chances of any of these ultra-frugal hitting U.S. showrooms are next to nil.

The highlight of the stand will be the Passat BlueMotion, which for 2010 adopts a 1.6-liter common rail diesel engine developing 104 horsepower. The new engine, replacing the existing 2.0-litre TDI unit currently fitted to the Passat BlueMotion, allows the new car to return 54 mpg on the combined...

Volkswagen is set to expand its BlueMotion range of fuel misers with the launch of several new models based on the latest Passat sedan and Golf and Polo hatchbacks. The new cars will appear in production trim at this month’s Frankfurt auto show and sadly, the chances of any of these ultra-frugal hitting U.S. showrooms are next to nil. The highlight of the stand will be the Passat BlueMotion, which for 2010 adopts a 1.6-liter common rail diesel engine developing 104 horsepower. The new engine, replacing the existing 2.0-litre TDI unit currently fitted to the Passat BlueMotion, allows the new car to return 54 mpg on the combined cycle--up from the 48 mpg achieved by the outgoing car. This means that the total range for the 2010 Volkswagen Passat BlueMotion is 840 miles from the one tank. The engine, however, is only part of the story. The car’s fuel economy also benefits from the results of aerodynamic changes with a new front bumper, sill extensions, a lower ride height and relocated air ducts behind the grille elements. The result is less aerodynamic drag leading to less loading on the engine and greater economy. The most efficient model remains the Polo BlueMotion, which gets by with a fuel economy rating of 71 mpg, while the Golf BlueMotion rates in at 62 mpg. All three models are due to go on sale in Europe early next year with prices and specifications due to be announced nearer the time. Read More

 

In late July Porsche announced Wendelin Wiedeking would be leaving his position as the company's CEO to be replaced by Michael Macht, clearing the way for the supervisory board at Volkswagen to lay the foundation for an integrated company with Porsche under VW leadership. Yesterday reports broke that the Auto Union name could be revived to brand it and that Porsche's American arm would operate autonomously, and today VW has announced it will finalize the merger with Porsche by purchasing 42% of Porsche's shares by then end of 2009.

The purchase will tie the two companies very closely together, though in a somewhat reversed role from ...

  In late July Porsche announced Wendelin Wiedeking would be leaving his position as the company's CEO to be replaced by Michael Macht, clearing the way for the supervisory board at Volkswagen to lay the foundation for an integrated company with Porsche under VW leadership. Yesterday reports broke that the Auto Union name could be revived to brand it and that Porsche's American arm would operate autonomously, and today VW has announced it will finalize the merger with Porsche by purchasing 42% of Porsche's shares by then end of 2009. The purchase will tie the two companies very closely together, though in a somewhat reversed role from Porsche's initial conception of the arrangement. Porsche had hoped to take over the VW Group by buying up its voting shares, but due to German state laws and its own debt, it was ultimately forced to turn to VW itself for help, leading to the VW Group's purchase of Porsche stock. Qatar, which has recently sought a share of Porsche and VW both, has also been welcomed into the deal as well as a key shareholder. According to a statement released by the VW Group on the announcement of the acquisition, "The integrated automotive group will be formed from the progressive participation of Volkswagen in Porsche AG and the subsequent merger of Porsche Automobil Holding SE and Volkswagen AG. Porsche will remain an independent company headquartered in Stuttgart." While VW re-affirms Porsche's independence, the Auto Union name is also being considered to help preserve the idea that it's not Volkswagen running the whole show. The Auto Union name was originally given to a merger of four German carmakers - Horch, Audi, DKW and Wanderer - in 1932. The brand went on to fame in motorsports through the 1930s, but was disrupted by World War II, and subsequently went through a number of reformations, eventually ending in a renaming to Audi AG in 1985. VW board chairman Martin Winterkorn described the company's plans in July, saying, "Volkswagen and Porsche have excellent know-how at their disposal and can use their resources even more efficiently by combining them. For this reason, we expect additional growth opportunities, safeguarding existing jobs and creating new ones. "At the same time, we can call on our considerable experience in the integration of proud and successful brands rich in tradition. Like Audi today, Porsche can also continue its independent development under the aegis of Volkswagen and preserve its own identity. We have great respect for the achievements of the Porsche workforce and are convinced that Porsche can enrich the Volkswagen Group – just as Volkswagen can vice versa enrich Porsche.” With today's announcement of VW's plans to buy into Porsche, the merger of the two companies is all but complete, but in other respects, it is only just beginning. Now the work to fit Porsche and its products together with the other 9 brands under the VW Group - or Auto Union - umbrella without conflicting with others, like Audi and Lamborghini, begins. How that is to be handled is an issue of great concern for Porsche enthusiasts, as it could dramatically re-shape the Porsche lineup. [Auto News - sub. req.] Read More

On the tail of a failed attempt to takeover Volkswagen and the ensuing embroilment of the ruling Porsche and Piech families, Porsche has confirmed that current CEO Wendelin Wiedeking will be replaced by the company's former production chief, Michael Macht.

Other changes include the departure of finance chief Holger Haerter, as well as the appointment of Thomas Edig, Porsche’s current human resources chief, as Macht’s deputy, according to Automotive News.

Wiedeking has accepted compensation of €50 million ($71 million), the company said in a statement, while Haerter will receive €12.5 million. Such a... On the tail of a failed attempt to takeover Volkswagen and the ensuing embroilment of the ruling Porsche and Piech families, Porsche has confirmed that current CEO Wendelin Wiedeking will be replaced by the company's former production chief, Michael Macht. Other changes include the departure of finance chief Holger Haerter, as well as the appointment of Thomas Edig, Porsche’s current human resources chief, as Macht’s deputy, according to Automotive News. Wiedeking has accepted compensation of €50 million ($71 million), the company said in a statement, while Haerter will receive €12.5 million. Such a severance/retirement package for Wiedeking is entirely fitting with his compensation during his tenure as CEO of Porsche. He was criticized and forced to defend his high salary - the highest in the automotive industry- several times. The most recent reports pegged his yearly salary at about $89 million in 2007. It wasn't all failure and misery at Porsche under Wiedeking's tenure, despite the rocky past several months. In fact, under Wiedeking's leadership, Porsche's pre-tax profits rose about €4 billion to €5.9 billion in 2008, and were set to climb even further until the weakened economy hamstrung his plans to takeover VW. As Wiedeking leaves, Porsche’s board has approved the sale of stake in the company to the Gulf state of Qatar and to boost its finances with a capital hike of at least €5 billion. Wiedeking's successor, Macht, 48, joined Porsche in 1990 and is regarded as a close ally of Wiedeking. Both executives worked closely together in the 1990s to boost Porsche's manufacturing efficiency. Read More

Accurate crystal balls were in short supply a year ago, but this year predictions of recovery are flying. The latest to join the side of the optimists are Audi and Lamborghini, predicting the market to reach its lowest point this year and start recovery in 2010.

The Volkswagen Group's luxury and super-luxury brands aren't saying all is well, however. "Global markets will bottom out this year," Audi chief financial officer Axel Strotbek said in an interview with Bloomberg. “By and large, we expect a slight recovery in 2010.”

The uptick is already being seen in Germany, where Audi scored a record 27,700 sales in June. The larger... Accurate crystal balls were in short supply a year ago, but this year predictions of recovery are flying. The latest to join the side of the optimists are Audi and Lamborghini, predicting the market to reach its lowest point this year and start recovery in 2010. The Volkswagen Group's luxury and super-luxury brands aren't saying all is well, however. "Global markets will bottom out this year," Audi chief financial officer Axel Strotbek said in an interview with Bloomberg. “By and large, we expect a slight recovery in 2010.” The uptick is already being seen in Germany, where Audi scored a record 27,700 sales in June. The larger U.S. market will take longer to respond, and is the basis for the 2010 recovery statement. Interestingly, it may be luxury brands that lead the way out of the slumped economy. China, Australia and India are also helping to boost things back up, especially for Lamborghini. China in particular is a strong market for the Raging Bull according to the report. What does this mean for the present? If you're in the market to buy a car and you can afford one now, it may be time to take advantage of low interest rates, cash-back incentives and dealer willingness to bargain, because once the market is back on its feet, such deals won't likely stick around. Read More

Automotive Performance, Execution and Layout - APEAL - is how J.D. Power measures the 'gratification' a car owner experiences with each new model on the market. For the fifth year running Porsche took top honors, but several trends in the market show a wide range of improvements.

First up: American carmakers have closed the gap on their import counterparts. In 2007, domestics fell 27 points short of imports, while in 2008 that shrunk to 15 points. This year there's just 5 points between domestics and imports, reflecting the huge improvement in design and build quality of American vehicles.

“Consumers have a great array of appealing... Automotive Performance, Execution and Layout - APEAL - is how J.D. Power measures the 'gratification' a car owner experiences with each new model on the market. For the fifth year running Porsche took top honors, but several trends in the market show a wide range of improvements. First up: American carmakers have closed the gap on their import counterparts. In 2007, domestics fell 27 points short of imports, while in 2008 that shrunk to 15 points. This year there's just 5 points between domestics and imports, reflecting the huge improvement in design and build quality of American vehicles. “Consumers have a great array of appealing vehicles to choose from by both domestic and import brands,” said David Sargent, vice president of automotive research at J.D. Power and Associates. Underscoring the improvement of the American brands is the overall industry improvement. The average score across all models in 2009 is up 9 points from 2008 to 779. A large part of that increase is attributed to a boost in owner satisfaction with fuel economy, according to Sargent. “Although lower fuel prices and the switch to smaller vehicles have undoubtedly helped, there are also many individual vehicles that have made strong improvements in fuel economy ratings,” said Sargent. “For example, the Ford F-150, Cadillac Escalade, Volkswagen Jetta and redesigned Dodge Ram have all made major strides in owner satisfaction with fuel economy through the introduction of more efficient powertrains.” The Germans also did well - as usual - in the APEAL rankings for 2009. Beyond Porsche's first-place finish, Volkswagen took home four category awards for the CC, GTI, Passat and Tiguan. Mercedes-Benz nabbed two of its own for the S-Class and SLK-Class. The APEAL results are built on owner evaluations of more than 90 vehicle attributes, with responses gathered between February and May 2009 from more than 80,900 purchasers and lessees of new 2009 model-year cars and trucks who were surveyed after the first 90 days of ownership. Read More