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Volkswagen feuds with thriving stablemate Skoda

BERLIN, Oct 4 (Reuters) - Volkswagen managers and unions are seeking to curb competition from lower-cost stablemate Skoda, move some of its production to Germany and make the Czech brand pay more for shared technology, company sources told Reuters. As VW struggles to cut jobs and spending at German factories and turn the page on dieselgate, Skoda's superior car reviews and profitability have intensified the brands' rivalry within the Volkswagen empire. VW now wants to reduce what it sees as Skoda's unfair advantages - combining German technology with cheaper labor - and reaffirm the top-selling brand's primacy ahead of a wave of new electric car launches, the sources said. The tussle between VW and Skoda is reviving tensions at the heart of the Volkswagen group between profits and jobs, and between central control and autonomy for its 12 vehicle brands. "Instead of devoting our efforts to beating Tesla, we may just be setting up a futile internal conflict," said one manager. Once the butt of jokes, Skoda has blossomed under 26 years of VW group ownership into a successful mid-market carmaker, steadily winning business from rivals - including VW - and surpassing even Audi's operating profit margin last year. At the same time, VW is facing thousands of job cuts as management moves to trim excess capacity at German factories. Its powerful domestic unions see Skoda's success as both a threat and a potential lifeline. VW workers' representatives are now demanding the transfer of some Skoda production to their underused German plants, a source close to the supervisory board told Reuters. The proposal aims to offset declining output of the VW Passat and aging Golf that could otherwise threaten more jobs. They are also making the case that Skoda should pay higher royalties to use VW's main common vehicle platform. The so-called MQB architecture also underpins mid-sized models from the group's Audi and SEAT brands. Responding to the news, Czech Prime Minister Bohuslav Sobotka said he would meet Skoda management and unions to ask for clarification. The government will seek to ensure that VW investment plans are followed through and that "production is not moved outside the country," a statement released by Sobotka's office said. Skoda's main union warned that a production shift could cost as many as 2,000 jobs. VW's works council declined to comment.

2015 Volkswagen Touareg [w/video]

The second-generation Volkswagen Touareg has been in production since 2010, and is therefore staring down the last part of its model cycle. To keep buyers interested, the company has undertaken a refresh of its upscale midsize SUV. As is typical of these things, the changes include some exterior and interior rejuvenation, as well as increased content levels and a slight uptick in price. The basics of the styling changes are pretty straightforward. The 2015 Touareg can be pretty easily spotted versus the outgoing model by way of its four-bar chrome grille, a cleaner headlight design, bigger VW badge and a completely new lower front clip. (I got one photo of the old and new models side-by-side for my Twitter followers before we rolled out on the drive.) There's also a thin strip of chrome that runs around the bodywork, standard LED taillights and a selection of three new wheel styles and five new paint colors. Inside, I found it harder to spot the changes, old to new. The Touareg's switchgear has been updated and there's a new frame for the infotainment display, but there's no piece that stands out and says "new model year!" Powertrains and mechanical bits all carryover from the 2014 Touareg, too. But there were a few functional changes to the vehicle, primarily in the new Driver's Assistance Package, for me to take note of as I took a lap of my favorite Ann Arbor, MI driving route. Drive Notes Let me start with the newest news then, the Driver Assistance pack. Volkswagen will sell you this suite of safety gear on either the mid-level Lux or the top-end Executive trims, for $2,500. The package included adaptive cruse cruise control, "Front Assist" for emergency braking situations, lane-keep assist and blind spot monitoring. If the contents of that package don't strike you as revolutionary, you're not alone. Some or all of the technologies that are new to the Touareg have been around other showrooms – and other VW family products – for quite a while. Still, they're nice to have as options. All of the driver assistance features that I was able to test worked as advertised, too. The adaptive cruise uses cameras, radar and ultrasonic sensors, so it isn't likely to be impacted by inclement weather, which is nice. I also appreciate that the lane-keep assist (which offers the driver a haptic buzz to the steering wheel when straying out of the lane) can be turned off, or turned down in terms of intensity and reaction time.

Someone is leaving anti-diesel flyers on Volkswagen TDIs in Portland

As if some Volkswagen TDI owners don't already feel bad enough, given the recent diesel scandal, someone is further shaming them. Flyers full of bad information are being left on TDI cars in eco-friendly Portland, OR. Portland-based sandwich joint Lardo posted a picture of the flyer to their Instagram account yesterday morning. Along with annoying font color changes, the flyer incorrectly states that the diesel car spews two to four times more pollutants than a Chevy Suburban. The author of the flyer also throws a Nazi mention in there for good measure, though they get the history wrong, too. Volkswagen wasn't founded by Nazis, though the Nazi government did create a nationalized car industry to build the 'People's Car', originally designed by Ferdinand Porsche. The factory ended up making war machines instead. Volkswagens weren't really produced until after the fall of the Nazis at the end of World War II. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Volkswagen outfitted their "clean" diesel cars with a device that would only limit emissions during testing. Once on the road, the car spewed 40 times more pollutants than it claimed. The automaker plans to 'refit' 11 million faulty vehicles. Today, the automaker launched a website dedicated to consumers unlucky enough to own the bum vehicles. Eco-warriors aren't the only ones leaving judgmental, passive-aggressive notes on cars. Like this incident in Portland, these notes often fall flat, like when this paralyzed man in Michigan parked in a handicap spot and was accused of stealing the spot simply because he drove his BMW to the gym.