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VW budget sub-brand stuck in limbo over VW standards, costs

Reports in October 2012 claimed Volkswagen had begun investigating the creation of its own budget brand. This came after having failed to purchase Malaysian car company Proton or produce a meaningful partnership with Suzuki, and after watching Renault-Nissan make piles of euro on Dacia and plot the return of Datsun.
For VW, more important than the question of what to call it was how to build it profitably and in a way that didn't damage the VW brand. According to a report in Autocar, a satisfactory answer still hasn't been found. The hurdle is how to hit "'necessary' quality and safety levels" at the price points needed to make the venture worthwhile. At the time of the 2012 report, German outlet Der Spiegel said VW was trying to get prices down to 6,000 to 8,000 euro ($7,784 to $10,379 US), about two thousand to four thousand euro under the price of the VW Up and in line with the cost of a 6,790-euro Dacia Sandero in Germany.
In March 2013, VW announced, "We want to bring a true budget car to the market in China in the foreseeable future," the most concrete move in that direction after years of planning to make a decision. Working with local Chinese maker FAW, it was predicted that the vehicle in question would appear around 2016, but as of November last year a final vote on it needed to wait until this year because "We are still working on the cost side" and profit possibilities for a car that "has to be durable, it has to be precise, it has to be safe."

Volkswagen Golf voted 2013 European Car of the Year

The seventh-generation Volkswagen Golf just went on sale in Europe, but it is already off to a promising start. Announced as the Geneva Motor Show kicked off, the newest Golf was named European Car of the Year for 2013 in dominating style over cars like the Subaru BRZ/Toyota GT86 twins, Volvo V40, Ford B-Max and Mercedes-Benz A-Class.
According to Automotive News Europe, the MkVII Golf won handily over its rivals with a total of 414 votes. The Subaru BRZ and Toyota GT86 received 202 votes finishing in a distant second, while the Volvo V40 (189 votes), Ford B-Max (148 votes) and Mercedes-Benz A-Class (138 votes) round out the top five. The new Golf marks the third Volkswagen product to receive the prestigious award with previous cars including the MkIII Golf and the most recent iteration of the Polo.

Volkswagen looking to acquire Proton, Lotus?

Let's say you're an automaker bent on world domination looking to grow your sales. That's going to have you looking at Asian markets, because that's where some of the biggest growth has been, and that's exactly what Volkswagen is doing as it considers making another run at Malaysia's Proton.
Reuters reports that Volkswagen is interested in at least a partial stake, if not a controlling interest in Lotus-parent Proton as a way to continue a production presence in the region without having to build its own factory.
Volkswagen already builds the Passat in a DRB-HICOM facility in Pekan, Malaysia, and plans are in place to build the Jetta and Polo there, as well. With both southeast Asia and its relationship with Proton figuring so importantly in Volkswagen's plans for expansion, buying into Proton can help ensure stability. Volkswagen is being tight-lipped about the whole idea, but CEO Martin Winterkorn did recently say, "it's our clear goal to continue the successful (expansion) course of past years with great dynamics and stability," which sounds an awful lot like deals are on the table to smooth the path to further growth.