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Volkswagen hatches hotter GTI in Geneva

The all-new seventh-generation Volkswagen Golf hasn't even launched here in the United States, but over in Geneva, we're already getting our first glimpse at the hotter GTI hatchback. The fancy new Mk VII Golf is already off to a healthy start with positive reviews in Europe, and we have no doubt that this next GTI will work hard to regain its title as king of the hot hatches.
The big news for this generation of GTI is that for the first time ever, Volkswagen is actually offering two different power grades for the model, both relying on the 2.0-liter turbocharged inline-four. Standard cars pack 220 horsepower and 258 pound-feet of torque, but an optional performance pack ups the horsepower number to 230. Hitting 60 miles per hour takes 6.5 seconds (6.4 with the performance pack) and top speed is quoted at 153 mph (or 155 with the performance kit). Volkswagen will continue to offer the GTI with both six-speed manual and dual-clutch transmissions.
On the visual front, the sub-3,000-pound GTI adds the usual bit of hot hatch aggression over the standard Golf, and those changes carry over to the interior with a flat-bottomed wheel and, of course, plaid seats. She's certainly a looker, and while some of us do find the new Golf's design to be a bit staid and evolutionary, the enhancements for the GTI indeed tug on our enthusiast heart strings.

VW, Suzuki mulling rekindling relationship in face of legal battle

Volkswagen and Suzuki have been undergoing marriage counseling in a bid to avoid finalizing their nasty divorce. The blissful union has been troubled for some time, with Volkswagen claiming that it could affect operational decisions at Suzuki, and the Japanese brand's sniping and constant flirting with a certain Italian temptress causing rifts.
The matter first went to court in 2012, when Suzuki demanded VW get out, and leave its 19.9-percent stake in the Japanese brand in a box to the left. Now, Automotive News is reporting that the company will give the relationship one last shot, according to closed-door dealings between the two in London.
Still, it's understood that VW and Suzuki recognize the benefit of their alliance, and that it'd be in the best interests of the kids both parties to make things work. Spokespeople declined to comment to AN, but the newsmagazine spoke with Frank Biller, an analyst for LBBW in Stuttgart, who said, "Both companies stand to benefit if they can overcome the disagreements over leadership claims."

VW to unveil diesel-electric Twin-Up! in Tokyo

We've received multiple reports that Volkswagen will be bringing a diesel-electric concept to the 2013 Tokyo Motor Show, set to take place later this month. The car, called the Twin-Up!, is based on the Up! city car, with some sources claiming this is a thinly veiled concept that will eventually enter production.
According to Automotive News Europe, the Twin-Up! will reportedly return 214 miles per gallon on the US cycle by combining an 800-cc, two-cylinder diesel and an electric motor. It will also boast plug-in capabilities, and will be able to cover 30 miles on electric power alone.
Autocar has a more complete picture of the Twin-Up!'s powertrain, though, claiming it's a modified version of the hybrid system found in the Volkswagen XL1. The Twin-Up! will get a more potent, 47-horsepower electric motor to the XL1's 27-hp unit, but will retain that car's 47-hp turbodiesel. The battery pack will also grow, from 5.5 kilowatt hours to 8.6 kWh. Both of these increases are necessary due to the increased weight of the Twin-Up! - it's some 900 pounds heavier than an XL1.