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Volkswagen planning Up! hybrid model using XL1 powertrain

Even though we've finally gotten a look at the production version of the 261-mile per gallon Volkswagen XL1, this aero-shaped two-seater was never intended for high-volume sales. Fortunately, it sounds like the same isn't true for the car's diesel plug-in hybrid powertrain, which, according to a report from AutoCar, could make its way under the hood of another Volkswagen model: the Up! minicar (shown above).
A potential Up! Hybrid would likely be able to return some of the same impressive fuel economy numbers as the XL1, but it would be a more realistic car with more passenger space and greater production capacity. The hand-built XL1 will use a 47-horsepower, two-cylinder TDI engine paired to a seven-speed dual-clutch transmission, and the 27-hp electric motor and lithium-ion battery helps deliver an all-electric driving range of 31 miles.
One of the core pillars of the XL1's design is its lightweight construction with a 1752-pound curb weight, which makes the Up! a perfect recipient for using this powertrain since it weighs just 300 pounds more. The report says that the Up! Hybrid is still in the developmental phase, so a production version isn't expected for at least another 18 months.

VW could look outside its own ranks for next CEO

Companies have two options when coming up with succession plans – hire within, or go outside its ranks. Either choice comes with advantages and disadvantages, to be sure. Hiring within means generally getting someone familiar with the company and its culture and traditions, while going outside is ideal if you're looking to shake things up and bring in fresh ideas. It's unclear which avenue the Volkswagen Group will go down when it comes time to replace its head man, Herr Professor Doctor Doctor Herr Martin Winterkorn, but he isn't ruling out a trip outside of Wolfsburg. Winterkorn has already given the reins of the VW brand to former BMW board member Herbert Diess, while Andreas Renschler, a former Daimler board member, is heading up VW's truck group. Now, Winterkorn has made some statements to a German weekly that indicate the most important thing about his successor isn't necessarily his (or her, though no women appear to be on the short-list) previous employer, Motoring.com.au is reporting, so much as his qualities as a leader and an engineering background. "A Volkswagen boss has to have a big affinity to our products. He needs to be close to customers and he needs to have a relationship with dealers," Winterkorn told Stern. "Like always, it depends on the personality and it also helps if the candidate is an engineer." Motoring throws out a couple of potential candidates from within, including Porsche boss Mathias Muller, Audi Chairman Rupert Stadler and engineering guru Ulrich Hackenberg, in addition to both Diess and Renschler. And while each candidate has a lot of potential, the only thing that's guaranteed right now is what Winterkorn has already said: "The decision about who will succeed me is not an easy one for the supervisory board."

Volkswagen lays off 500 Chattanooga workers

The redesigned Volkswagen Passat has been a decent seller since its debut in 2011, but sales have apparently dropped off enough that the automaker is trimming some of the employees from its Chattanooga, TN assembly plant. According to Automotive News, Volkswagen will be cutting shifts and laying off 500 contracted workers in response to slowing sales.
Currently, the plant has three teams running 10-hour shifts Monday through Saturday, but starting May 13, this will be reduced down to two teams running 10-hour shifts Monday through Thursday. This will be done to reduce dealer inventory (the article says that VW dealers, on average, have a 97-day supply of Passats) and production capacity (currently running at an annual pace of 170,000 units, which is more than the 150,000 annual units the plant was planned to produce).
This, of course, isn't saying that the Passat has been a failure since VW added 200 full-time employees to the plant in February 2012 to keep up with increased demand. The AN article says that automakers frequently overstaff plants during the launch of a new product - or in this case, a new product and a new plant - but eventually reduce the workers as things run smoother and more efficiently.