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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." Even Fiat, another automaker long considering a budget brand beneath its Fiat line-up, wasn't sure how to squeeze any extra money from lower-cost products but was sure that it couldn't be done by manufacturing in Europe. If VW hasn't yet made the math work with a joint venture in China, it will be interesting to see how it might build a European go-it-alone business case.

VW will need to recall 323,700 diesel vehicles in India

Volkswagen Group's diesel emissions scandal continues to spread, and now the automaker must recall 323,700 diesel vehicles in India because of too much pollution, according to Bloomberg. The campaign covers models from several of the group's brands including VW, Audi, and Skoda. The Automotive Research Association of India first discovered the emissions irregularities after conducting its own real world and lab tests, and the Indian government then commanded VW to explain what was happening. The country's regulators will allow the automaker to set the recall schedule for the repairs, according to a government official who spoke to Bloomberg, and the campaign will likely happen in phases. Among the affected vehicles, there will be about 100,000 from the VW brand including the Jetta, Passat, and some variants of the Polo. VW already has repairs for some of the affected diesel engines in Europe, and the company can allegedly fix the emissions problem with new software and small hardware changes. The situation is harder in the US where regulators still need to approve any proposed solutions, and VW also must now recall its 3.0-liter V6 TDI in California to eliminate other problematic code. The German automaker faces investigations from regulators all over the world into its emissions evasions, and they could be quite costly. One estimate already suggests the minimum price of the potential repairs, fines, and other expenses at about $24.5 billion. Officials in Brazil have already fined the company $13 million for pollution issues with the diesel Amarok pickup and requested a recall to fix them.

Cruze Diesel Road Trip reveals the good and bad, but no ugly

Most of us have strong opinions on diesel-powered cars based on our perceptions of and experience with them. I used to thoroughly dislike oil burners for their noise, smoke and lackluster performance, and the fact that they ran on greasy, smelly stuff that was more expensive than gasoline, could be hard to find and was nasty to get on your hands when refueling. Those negatives, for me, trumped diesel's major positives of big torque for strong acceleration and better fuel economy. Are any of those knocks on diesel still valid today? I'm not talking semis, which continue to annoy me when their operators for some reason almost never shut them down. At any busy truck stop, the air seems always filled with the sound – and sometimes smell – of dozens of big-rig diesels idling endlessly and mindlessly. Or diesel heavy-duty pickups. Those muscular workhorses are far more refined than they once were and burn much less fuel than their gasoline counterparts. But good luck arriving home late at night, or departing early morning, without waking your housemates and neighbors with their clattery racket. No, I'm talking diesel-powered passenger cars, which account for more than half the market in Europe (diesel fuel is cheaper there) yet still barely bump the sales charts in North America. Diesel fuel remains more expensive here, too few stations carry it, and too many Americans remember when diesel cars were noisy, smelly slugs. Also, US emissions requirements make them substantially more expensive to certify, and therefore to buy. But put aside (if you can) higher vehicle purchase and fuel prices, and today's diesel cars can be delightful to drive while delivering much better fuel efficiency than gas-powered versions. So far in the US, all except Chevrolet's compact Cruze Diesel come from German brands, and all are amazingly quiet, visually clean (no smoke) and can be torquey-fun to drive. When a GM Powertrain engineering team set out to modify a tried-and-true GM of Europe turbodiesel four for North American Chevy Cruze compacts, says assistant chief engineer Mike Siegrist, it had a clear target in mind: the Volkswagen Jetta TDI 2.0-liter diesel. And they'll tell you that they beat it in nearly every way. "I believe we have a superior product," he says. "It's powerful, efficient and clean, and it will change perceptions of what a diesel car can be." The 2.0L Cruze turbodiesel pumps out 151 SAE certified horses and 264 pound-feet of torque (at just 2,000 rpm) vs.