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Volkswagen breaks 40-year-old sales record in 2012

The last time Volkswagen moved this many vehicles in America in one year, Richard Nixon was still a President in good standing, Let It Be was a radio hit and each car wearing the VW badge boasted an air-cooled engine. That's right, with a grand total of 580,286 vehicles sold in the US last year, the VW Group has broken its own four-decades-old sales record by 2,899 vehicles.
Of that 580k total sold, 438k were Volkswagens and 139k were Audi products - increases of 35.1 percent and 18.5 percent, respectively, in year-over-year sales. The ultra-premium members of the VW group also fared well; Bentley delivered 2,315 vehicles for a 23.3-precent increase, and Lamborghini delivered 520 units for a 52.9-percent jump. Bugatti, we're told is "right on track."
Jetta (pictured) sales paced the marque with 170k models sold, and Passat also finished very strong with sales of 117k total. Tiguan also racked up its best year on file, with 31,731 models shifted.

Volkswagen lays off 500 Chattanooga workers

The redesigned Volkswagen Passat has been a decent seller since its debut in 2011, but sales have apparently dropped off enough that the automaker is trimming some of the employees from its Chattanooga, TN assembly plant. According to Automotive News, Volkswagen will be cutting shifts and laying off 500 contracted workers in response to slowing sales.
Currently, the plant has three teams running 10-hour shifts Monday through Saturday, but starting May 13, this will be reduced down to two teams running 10-hour shifts Monday through Thursday. This will be done to reduce dealer inventory (the article says that VW dealers, on average, have a 97-day supply of Passats) and production capacity (currently running at an annual pace of 170,000 units, which is more than the 150,000 annual units the plant was planned to produce).
This, of course, isn't saying that the Passat has been a failure since VW added 200 full-time employees to the plant in February 2012 to keep up with increased demand. The AN article says that automakers frequently overstaff plants during the launch of a new product - or in this case, a new product and a new plant - but eventually reduce the workers as things run smoother and more efficiently.

Skoda racing Up! to Worthersee with Citigo Rally concept

If you thought the Volkswagen Group was about to wind down the endless stream of concept cars based on the new Up! city car, think again. Because not only is the Volkswagen brand itself keeping the train a-moving, so are its sister brands.
Skoda has its own version of the Up called the Citigo. But what racing fans know the Czech subsidiary for best is its rally program that has become a dominant force in the Intercontinental Rally Challenge and the basis for VW's own foray into the World Rally Championship. Now Skoda is bringing the two together with an exciting concept car previewed by the rendering above and confirmed in the press release below.
Following in the footsteps of the tantalizing Fabia roadster unveiled last year, the Citigo Rally concept is to be the centerpiece of the Skoda display at the Volkswagen Group's annual hot-hatch gathering at Lake Wörthersee in Austria. Details are scarce, but the show car will feature rally-inspired bodywork complete with 18-inch white alloys packed into aggressively flared wheel arches, a substantial rear wing and vents aplenty.