2009 Volkswagen Jetta Gli 4dr Automatic Sunroof Sat Radio Alloy Wheels on 2040-cars

Auto blog

Russian auto boomtown grinds to halt over Ukraine sanctions

Thousands of auto workers have been furloughed and food prices are soaring as Western sanctions pummel the small Russian city of Kaluga and its flagship foreign carmakers, with more sanctions likely to come. The Kaluga region, 190 kilometers (120 miles) southwest of Moscow, says it has attracted more than 1.3 trillion roubles ($15 billion) in investment, mostly foreign, since 2006. But Western sanctions imposed in recent weeks after Russia sent tens of thousands of troops into Ukraine have exacerbated lingering component shortages and halted production at two flagship car plants, Germany's Volkswagen and Sweden's Volvo. A third, the PSMA Rus plant that is a joint venture between Stellantis and Mitsubishi and employs 2,000, may halt production soon due to a lack of parts, Stellantis' chief executive said last Thursday. "It is not clear what will happen. They don't give us any concrete information," said Pavel Terpugov, a welder at the PSMA Rus plant. Terpugov said he needs twice as much money to buy groceries than before the sanctions. Analysts have forecast Russian inflation could soar to 24% this year, while the economy may shrink to 2009 levels. The United States and Europe are weighing more sanctions against Russia after Ukraine accused Russian forces of civilian killings in northern Ukraine, where a mass grave was found in Bucha, outside Kyiv. Russia calls its actions in Ukraine a "special operation" and the Kremlin categorically denied any accusations related to the murder of civilians, including in Bucha. One source of hope for some in Kaluga, with its 325,000 residents, is the West may be reluctant to hurt its own companies. "Does it make sense to impose sanctions on its own plant and lose money?" said Valery Uglov, an auto mechanic at the Volkswagen plant. "Does it make sense to lose the Russian market?" "We hope to return to work as soon as possible and everyone will have confidence in the future again," Uglov said. Volkswagen, whose factory employs 4,200 people, in early March suspended operations. A spokeswoman said production remained frozen. Volvo Group, which employs over 600 people to build trucks, also suspended production. Even before the sanctions, Russian car sales had contracted from 2.8 million units from when the Volkswagen factory opened in 2007 to 1.67 million units last year, damaged by both sanctions after the 2014 annexation of Crimea and the COVID-19 pandemic.

VW takes world sales crown from Toyota for first half of 2015

Despite uncertainty in major markets like Russia and China, Volkswagen is wearing the global sales crown for the first half of the year to overtake Toyota. Through the first six months of 2015, VW sold 5.04 million vehicles, which only narrowly beat its Japanese rival's 5.02 million, Reuters reports. The half-year trophy also placed the German brand one step closer to the goal of being the world's largest automaker. VW can't just cruise through the second half of 2015 to continue wearing the crown, though. The company is a major player in China, and that might start to be a disadvantage soon. Auto demand there is expected to be weak for the rest of the year, which could mean dire effects for companies around the world. According to Reuters, the Western European market shows few signs of a sudden surge, either. To turn things around, VW is working on a massive realignment to be more responsive by organizing its 12 brands under four separate holding companies. One factor in VW's favor is that Toyota is facing its own sales struggles across the globe. In the last fiscal year, the Japanese automaker had growing profits but actual volume was down. At the time, the company predicted a drop to 8.9 million vehicles for the current fiscal period. According to Reuters, Toyota has had problems growing in emerging markets and dealing with higher taxes on small vehicles in Japan. For all of 2014, Toyota held the sales trophy with 10.23 million sales, and VW was in second place with 10.14 million. General Motors came in third with 9.92 million. The year was the first time that VW or Toyota had ever surpassed 10 million vehicles over the stretch of a calendar. Related Video:

Volkswagen bringing production GTI Clubsport to Frankfurt

"No plans for the car to be sold here." It's probably good I read that part of the email from Volkswagen before I looked at the photos and read the release for the car you see above. It's the production-spec GTI Clubsport. It's coming to the Frankfurt Motor Show. It's awesome. And I want one. I know, I'm kind of a GTI fanboy, but really, there's a lot to like here. The special-edition hot hatch is essentially a road-going version of the concept Volkswagen brought to Worthersee this year, complete with a more powerful engine. It produces 261 horsepower – a healthy increase over the 210 hp of the base GTI (or 220 if the car is fitted with the performance pack) – and can even crank out 286 hp for short bursts, thanks to an overboost function. Hitting 62 miles per hour takes six seconds flat with the six-speed manual gearbox, and that time is reduced to 5.9 seconds should you opt for the six-speed dual-clutch automatic. Even with these upgrades, VW says the GTI Clubsport will still return nearly 34 miles per gallon with the manual transmission. Volkswagen doesn't specifically mention any chassis upgrades, however. In its press release, VW simply says that the GTI Clubsport "has groundbreaking handling properties at high speeds and breathtaking cornering speeds." Cool. I'm sure it'll be a riot. A lot of the exterior is new: the front bumper, side sills, rear diffuser, roof spoiler, and aluminum wheels are all unique to the Clubsport. Buyers can choose between 18- or 19-inch rollers, the tailpipes are larger than those on a standard GTI, and the LED lights out back have a black/red, dark finish. Inside, the Clubsport comes with racing buckets covered in tartan fabric (of course) and there's Alcantara everywhere. Fellow GTI fans, get excited about this one – even if it's just another delicious piece of forbidden fruit. Still, I can't wait to see it live in Frankfurt next week. Related Video: VOLKSWAGEN TO UNVEIL MORE POWERFUL GTI CLUBSPORT AT THE FRANKFURT INTERNATIONAL MOTOR SHOW New anniversary model celebrates the GTI's 40th birthday - 265 PS special edition accelerates from 0 to 62 mph in 5.9 seconds - An overboost function increases power to more than 290 PS for a short time - Expressive exterior design features new front bumper, side skirts, rear diffusor and multi-part roof spoiler Wolfsburg, September 9, 2015 – At the beginning of 2016, the iconic sporty compact—the Golf GTI— celebrates its 40th birthday.