1979 Volkswagen Beetle Convertible on 2040-cars

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If VW defaults on loans it may sell Bentley or Lamborghini

If something goes catastrophically wrong with Volkswagen Group's recent $21 billion loan, brands like Bentley or Lamborghini could hit the auction block. According to two insiders to Reuters, the beleaguered German automaker agrees with its creditors to sell assets if the company somehow can't pay back the debt in a year. One of these anonymous people claimed the company hasn't yet deliberated over what to sell. However, the sources were willing to speculate that the power engineering portion of Man could be among the first to go. "Volkswagen may also consider divesting luxury car brands Bentley and Lamborghini or motor bike brand Ducati, although these units don't really move the needle," an insider said to Reuters. VW Group negotiated with the banks earlier this week to get the massive loan. The cash is necessary as a buffer in case the automaker doesn't have enough money on hand to repair vehicles or settle upcoming fines. VW would reportedly issue bonds in the spring to begin paying the debt. The company's bills will start racking up quickly in the new year. German authorities mandate a recall there in early 2016, and repair campaigns in the US for the 2.0- and 3.0-liter diesel engines are inevitable. There are also hundreds of class-action lawsuits to settle. The company needs to resolve its CO2 emissions scandal in Europe, too. In response to these financial threats, VW management created a cost-cutting plan to slash the research and development budget by $1.1 billion next year.

Piech's dismissal from VW came after failed coup to oust Winterkorn

When the Volkswagen board ousted its chairman Ferdinand Piech over the weekend, we knew right away it had something to do with disapproval of chief executive Martin Winterkorn. And now we have more details of how that struggle reportedly came to a head. According to Reuters, Piech undertook a cloak-and-dagger campaign to oust Winterkorn as CEO, even after having publicly endorsed the top executive's leadership of the company. Piech reportedly focused on other members of his family – descendants of Ferdinand Porsche and majority stakeholders in Volkswagen – to install Porsche chief Matthias Mueller as group CEO in Winterkorn's stead. But Piech failed in his campaign, and was given an ultimatum by the board: either show yourself out or we'll kick you out. And so he resigned. A big part of Winterkorn's rescue and Piech's failure reportedly came at the hands of labor representatives on the VW board, like Berthold Huber who was appointed as acting chairman following Piech's departure. That may leave Winterkorn still in charge, but may leave him beholden to the unions even more than before. Winterkorn has been undertaking a concerted campaign to cut overhead costs at VW, but the trade unions have reportedly been blocking many of the steps the chief exec has proposed. The next big question is who will ultimately replace Piech in the long term at the head of the board table. Winterkorn could get the nod, leaving the company to find a new CEO to take his place. Another likely scenario, however, would be another member of the Porsche/Piech family taking the helm and leaving Winterkorn in place. Whether Ferdinand Piech ultimately sells his 13.2 percent stake in the company (likely to other members of his family) or holds on to it and exerts influence behind the scenes is an open question. One way or another, any major appointment at the head of either the management or supervisory board will require support from the Porsche/Piech family, from the works council of labor representatives and from the state government of Lower Saxony, so the process of filling Piech's vacancy will likely prove anything but straightforward. News Source: ReutersImage Credit: Thomas Kienzle/APN Hirings/Firings/Layoffs Volkswagen martin winterkorn

VW pits Foust against Winslow in epic sound-effects battle

Tanner, we feel your pain. You are, by all accounts, an excellent driver. You've won races, starred in television shows, and generally proven yourself a nice all-around guy. And then Volkswagen shows up and asks you to be as childish as possible for a couple laughs on video as you make pretend driving sounds for the German brand's latest ad campaign. How demeaning. And then, to top it all off, they bring Michael Winslow, the king of noise-making merriment, to one-up you. How could they? Just kidding. Really, the videos you see above and below are pretty clever, highlighting the same 18th letter of the alphabet that is affixed to the Golf R, a car we're deeply in lust with. And, to be honest, Tanner's goofy driving sounds are just as good as Mr. Winslow's. See for yourself. And if you feel like acting out your own inner child on VW's behalf, feel free to click here. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. NEW VOLKSWAGEN 'UNLEASH YOUR RRRR' CAMPAIGN ALLOWS USERS TO DRIVE A VIRTUAL GOLF R WITH SOUND OF VOICE Deep learning, an artificial intelligence subset of machine learning, analyzes each unique vocal pitch to create customized film of Golf R driving in sync with the sound of the user's voice Herndon, VA (July 13, 2015) — Volkswagen of America, Inc., is excited to unveil the Unleash Your Rrrr site that allows Volkswagen fans to drive a virtual Golf R using only the sound of voice. The web app utilizes deep learning, an artificial intelligence subset of machine learning, developed by VW's agency of record Deutsch LA, to analyze each user's unique impression of the Golf R engine's roar. It then generates a customized video of the 292-hp turbocharged Golf R model roaring through a race track, drifting, braking, among other cool stunts that correspond with the user's voice recording. "The idea behind the Golf R 'Unleash Your Rrrr' was simple – imagination. As children, we've all played with toy cars, and the power of our imaginations allowed us to turn rugs into expressways and wooden floors into slick racetracks. Our voice would act as the engine. Fast forward to today where we now have the power of technology to enhance our imagination, and to visualize the power of our voice." said Vinay Shahani, Vice President of Marketing for Volkswagen of America.