1986 Volkswagen Golf Base Hatchback 4-door 1.6l Diesel on 2040-cars

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VW using other manufacturing locations as leverage in battle with TN [w/video]

We've reached a new step in the ongoing drama at Volkswagen's factory in Chattanooga, TN. The United Auto Workers recently dropped its opposition to the union vote and agreed that it wouldn't hold another ballot for at least a year. Now, the new question becomes where VW is going to build its forthcoming midsize SUV.
Earlier, it had been considered all but certain that the SUV, likely a production version of the CrossBlue concept (pictured above), would be built in Tennessee. However, it seems the Chattanooga factory might have competition to produce it. In emails obtained by The Detroit News, VW's lawyer wrote to the Tennessee economic development department in January saying, "While we understand there are some 'non-deal' issues that are causing a delay in the TN solution, VW has been successful in reaching agreement on terms at the alternative locations."
As previously reported, the state of Tennessee allegedly offered VW about $300 million in incentives to build the vehicle there and create an estimated 1,350 jobs, but it later rescinded the deal. Newly leaked documents from NewsChannel 5 (WTVF-TV) in Nashville allegedly show just how close that offer was to being completed. It appears that VW actually sent the government the first draft of a memorandum of understanding agreeing to the incentives, but the state removed the offer in late January.

Volkswagen Golf R wagon promises to be fast and functional [w/poll]

Volkswagen's array of performance-oriented Golfs keeps getting bigger and bigger. What started with the GTI has since grown to include the diesel GTD, the hybrid GTE and the most powerful Golf R. But the additions haven't all come down to powertain. There's been cabrio versions of the GTI and Golf R as well, but before all is said and done, there will be one more bodystyle to join the lineup.
That, according to these latest spy shots, would be the Golf R Variant. For those unfamiliar, Variant is what Volkswagen calls the wagon version of the Golf (in some markets, anyway). It offers the Golf Variant with a variety of engines, but as the spy shots reveal, it is now working on bringing the Golf Variant and the Golf R together into one high-powered, long-roofed model.
The VW Golf R Variant would in all likelihood pack the same 2.0-liter turbo four as the hatchback, splitting 290 horsepower between all four wheels. Only in the wagon, it would offer that extra bit of utility. Of course there's no guarantee that Volkswagen would offer the Golf R Variant in the North American market, but considering that the Golf R hatchback will soon be joined in American showrooms by the Golf SpotWagen (as it's tipped to be called here) in place for the Jetta wagon, the possibility is definitely there.

Audi rumored to buy Alfa Romeo, officials deny it

For more than two years, Volkswagen has been making public statements about its willingness to buy Alfa Romeo and quadruple the Italian brand's sales, and for just as long, Fiat CEO Sergio Marchionne has replied with some version of "Mr. Piëch, drop it." According to a report in Ward's Auto, all that jousting might be over: it claims that sources close to both Marchionne and Audi CEO Rupert Stadler admit that the two are in talks for Audi to buy not just Alfa Romeo, but a production plant in Italy. In fact, a final deal could possibly include partsmaker Magnetti Marelli.
Against that backdrop, a report by German news weekly Stern quotes a Fiat spokesmen as saying it doesn't comment on rumors and an Audi rep has said flatly that "There is no substance in the news." If a sale is being arranged, the timing would seem to point to how eager Fiat is to raise cash to complete its major initiatives. Even though Alfa Romeo continues to delay its return to the US, it just showed off the production version of the 4C at the Geneva Motor Show (shown above) and said that preferred Fiat dealerships here would get them. Then there's Alfa's recently concluded deal with Mazda to develop a roadster based on the next generation MX-5 Miata - a deal that would seem to help both the Italian and Japanese brands.
The monetary issues are troublesome, though. Fiat is taking a beating in the European market and its weak-kneed balance sheet is delaying gotta-have-it products like the Jeep Cherokee. Fiat has been talking to banks about getting money to buy the rest of Chrysler and those financial institutions have also raised issues about debt and cash reserves, and the nasty game of chess Fiat is playing with the United Auto Workers (and now the court system about the portion of Chrysler it doesn't own) could end up blowing another hole in Marchionne's plans. It is possible that this could finally have convinced Fiat to at least see how serious Audi's parent company, Volkswagen, is about buying Alfa Romeo. Or it could be just another rumor.