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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."

Winterkorn receives support of VW board, leadership battle continues

Strange things have been happening - in public, that is - at Volkswagen over the past few weeks, kicked off when VW Group chairman Ferdinand Piech reportedly said he didn't want Group CEO Martin Winterkorn to be the next company chairman, and that he was keeping Winterkorn "at a distance." Winterkorn's ascension was widely believed to be a fait accompli. We were really just waiting for office furniture and desk plaques to be moved around. That led to a meeting of the six-member supervisory board's leadership committee in Piech's office in Salzburg, Austria, not at Group HQ in Wolfsburg, Germany, where the five other members of the committee came out in support of Winterkorn. They also suggested they might extend his contract when it ends in 2016, and then gave Piech an ultimatum to agree to public support of the CEO or they would demand Piech's resignation. At the same time, the company's labor reps and the German state of Lower Saxony issued statements supporting Winterkorn. It's said that the chairman has a number of gripes with the CEO, prime among them being the state of the company's US business for the core Volkswagen brand. Market share has dropped to two percent in the United States and Winterkorn admitted that his team hasn't been properly engaged with our market. Years of effort put into a budget car haven't resulted in much except the company saying it finally knew how to do one, and that was a year ago. It's losing share in Brazil, overall profit margins are down, BMW is taking possession of the green-car credentials among German brands, and it's said that Piech doesn't believe Winterkorn has the vision to do what's necessary. Having agreed to play along and now in "diplomacy phase," some say a little light has gone out of Piech's star inside the company, while others wonder if this battle is truly over. Related Video: News Source: Automotove News - sub. req.Image Credit: JOHANNES EISELE/AFP/Getty Images Hirings/Firings/Layoffs Volkswagen martin winterkorn volkswagen group

VW reaches out to diesel consumers with new website

Volkswagen is starting to get details out to the public about its diesel emissions evasions in the US, and the automaker now has a dedicated website for consumers. The first thing that visitors see is an apology video from Volkswagen Group of America CEO Michael Horn. The site also details all of the VW TDI's currently known to be affected here, including the 2009-2015 Jetta, 2009-2014 Jetta SportWagen, 2010-2015 Golf, 2015 Golf SportWagen, 2012-2015 Beetle and Beetle convertible, and 2012-2015 Passat. Although, the Audi A3 should be on there, too. The company repeatedly reassures owners that these vehicles are safe to drive and promises it's developing a fix as quickly as possible to make them emissions compliant. On the site's FAQ, VW also clarifies that there's still a stop-sale on all of these models with the 2.0-liter TDI, including certified pre-owned ones. That could change soon because the automaker believes that the 2016 model year examples are legal, but the Environmental Protection Agency needs to sign off before they could go to dealers. Until the diesels can be sold, there also won't be any TDI advertising by VW. "We are working at full speed on a technical solution that we will present to partners, to our customers and to the public as swiftly as possible," Herbert Diess, CEO of Volkswagen passenger car division, says in a statement. He also offers an improved accounting of the number of vehicles affected. VW had previously said that there were 11 million with the emissions evading software worldwide. According to Diess, around five million of these came from the VW brand. Audi has said there about 2.1 million of its models affected globally with between 13,000 and 14,000 in America. DR. HERBERT DIESS, CEO OF THE VOLKSWAGEN PASSENGER CARS BRAND, EXPLAINS: "WE ARE WORKING AT FULL SPEED ON A SOLUTION." Wolfsburg, September 25, 2015 – In the press release dated September 22, 2015, the Volkswagen Group announced that Volkswagen Group vehicles worldwide are affected by the current issues regarding emissions. The internal evaluation revealed that approximately five million Volkswagen Passenger Cars brand vehicles are affected worldwide. Certain models and model years of these vehicles (such as the sixth generation Volkswagen Golf, the seventh generation Volkswagen Passat and the first generation Volkswagen Tiguan) are equipped exclusively with type EA 189 diesel engines.