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Volkswagen considering a four-door, four-seat XL1

According to a report in Autocar, Volkswagen might have more in mind for the XL1 than mining it for advances to grace the next-generation Golf. Aiming to fight the Honda FCEV due for public consumption next year, we're told VW executives have put a four-door, four-seater version of the XL1 - it could be called XL2 - on the drawing board. The impetus is said to come from the top, with VW Group chairman Ferdinand Piëch intent on staying in the deep end of "super-efficent vehicles."
Autocar suspects the necessary changes could raise the weight of the car from 1,749 pounds to 2,068 pounds, which would make it four pounds less than the 2,072-pound Up! we drove a few years ago. Crucially, however, the mag thinks the extra capacity wouldn't change the two-seater's 310-mile-per-gallon rating, with tech tweaks and the aerodynamic benefit of a longer car offsetting the weight. Speculation is that the back seats would be staggered like the fronts in order to maintain the XL1's overall profile.
We recently heard about another XL1 variant that's gone off the radar entirely, the Ducati-engined XLR that we thought we'd see at the Geneva Motor Show and that was said to be going into production, so this one could go the same way. The biggest hurdle to making such an idea a reality, though, could be the price: the current XL1 costs 110,000 euros ($146,116). If VW really is going to compete with the Honda FCEV and the Toyota FCV - $70,000 in Japan - that might be where it wants to start.

Volkswagen Routan dead, pour out a sippy cup for your little homies

America's minivan wolfpack has just gotten smaller by one. According to Automotive News, Volkswagen officials have confirmed what we've suspected for some time - the Routan is dead. Essentially a lightly reworked version of the Dodge Grand Caravan, the Routan actually hasn't been rolling off of Chrysler's Windsor, Ontario production line at all this year, but VW had yet to confirm its discontinuation. However, Jonathan Browning, CEO of VW America, has reportedly admitted that the Routan is being axed, with remaining units expected to be funneled into corporate functions for "internal purposes."
The move isn't unexpected - the Routan has never been a big seller, with just 57,650 examples moved since sales began in 2008 - peak yearly sales totaled under 16,000 units, and that was back in 2010. And while many have talked of the minivan segment shrinking, Automotive News points out that the segment actually grew 14 percent last year to 597,118 units, though it should be noted that most segments have been on sales upticks as the US economy chugs out of its recession.
So, is volume-crazy Volkswagen prepared to pass on large family vehicle sales? Probably not - the German automaker has signaled that it plans to build a three-row crossover in North America soon, and we wouldn't be surprised if it looks an awful lot like the Crossblue Concept from January's Detroit Auto Show - minus the fancy plug-in diesel powertrain.

VW's Winterkorn tells 20,000 staffers of big cost-cutting plans

During a gathering of 20,000 Volkswagen Group employees at company headquarters in Wolfsburg, Germany on Wednesday, CEO Martin Winterkorn dropped a bombshell. The boss stated that the automaker isn't operating efficiently enough and admitted the company needs to radically start cutting back to raise its profit margins. To right the ship, Winterkorn has proposed killing off less profitable models and spending less on research and development.
According to Reuters, Winterkorn wants to raise the VW brand's profit margin from about 2.9 percent in 2013 to a target of 6 percent. To make that possible, his plan amounts to increasing cost cutting until Volkswagen reaches about 5 billion euros ($6.7 billion) per year to get things back in order. "Over the short-term, we urgently need more efficiency and higher profit," the CEO said during his speech, according to Reuters.
However, Winterkorn can't make these decisions unilaterally. Volkswagen's works council also has a seat on the supervisory board to represent laborers, and it isn't likely to take the proposed cuts sitting down.