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VW recalls 1.1M Jetta, Beetle models in US, China over suspension fears

Volkswagen is recalling about 1.1 million vehicles in China and North America in a newly announced campaign affecting the rear suspensions on some models. For the US, the action covers about 442,265 vehicles, including 400,602 examples of its 2011-2013 Jetta and 41,663 units of the 2012-2013 Beetle and Beetle Convertible. According to Reuters, the recall affects a further 126,000 vehicles in Canada and about 581,090 in China, including related market-specific models like the Sagitar.
The problem can occur if the affected models have a collision to the rear or the side-rear of the vehicle. It's then possible for the trailing arms on the torsion-beam rear suspension to be damaged. If the harm isn't noticed, then the part could fracture while driving. Obviously, a broken rear suspension is going to have an adverse effect on handling.
To fix things, VW dealers will inspect the trailing arms on the models, and they will all receive a sheetmetal part that will make a distinctive sound if broken in the future. If already damaged, the entire torsion beam will be replaced. Obviously, this work will be done at no charge to owners.

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.

Skoda plans big investment into electric cars as part of rebound effort

PRAGUE — Czech carmaker Skoda, part of the Volkswagen Group, said on Wednesday it would invest around 2.5 billion euros over the next five years on future technologies, with more than half going to electric vehicle investment. The Czech Republic's largest exporter is hoping for a rebound in 2021 from a global car sales drop but faces uncertainty over the coronavirus pandemic and a semiconductor shortage rattling the industry. "This year is likely to be another big challenge," finance director Klaus-Dieter Schuermann said. "We expect Skoda Auto's group performance to improve, with sales revenue significantly above the level of last year." Skoda reported on Wednesday a 54.5% drop in 2020 operating to 756 million euros ($894 million). Sales revenue dropped 13.8% to 17.1 billion euros. Global deliveries remained above 1 million cars for a seventh straight year despite a 19% drop after production outages at the outset of the pandemic and a fall in China, its biggest single market. Chief Executive Thomas Shaefer said the car company was managing the semiconductor shortage "but it will follow us for awhile" and the impact was not visible yet. Skoda's core market in Europe would be electric in the future, Shaefer said, although it was still not time to completely switch away from traditional models, which include the launch last year of a new generation of its flagship Octavia model. It has also started production of the all-electric Enyaq iV model, which is a version of Volkswagen's ID.4. Skoda plans investments of 1.4 billion euros into electromobility development as part of its five-year investment plan. Investments will also go into digitalization activities and plant modernization. Related video: Green Volkswagen Skoda Electric