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VW pondering low-cost sub-brand for China?

More detail is being sketched into the Volkswagen Group's plan to launch a low-cost brand for emerging markets. Late last year a German report quoted a VW rep saying that the brand has been interested in building a no-frills car, the kind that would challenge Dacia and Datsun, for a while. With both Proton and Suzuki effectively out of the partnership picture, a report in Reuters suggests VW could go straight to China, developing a car with its joint venture partners and building and selling it there.
Officially, company CEO Martin Winterkorn said the issue of a model for emerging markets would be decided this year but VW isn't any closer to confirming any kind of plan for a car in its portfolio underneath the Up!, remarking to Reuters about the China possibility, "That's an issue we're currently looking at."

VW Golf TDI circles US on less than $300 of diesel

$294.98. That's how much it cost the Volkswagen team to drive across all 48 contiguous states in the union. Which is pretty impressive, but it's only part of the story. In an effort to demonstrate just how economical a conventional diesel engine can be, VW sent a team out from its US headquarters in Herndon, VA, in a Golf TDI. Their mission was to visit all the Lower 48 on as little fuel as possible. Over the course of 16 days, they traveled 8,233.5 miles, burned through 101.43 gallons of fuel, and marked a frankly astonishing average of 81.17 miles per gallon. As a result, the team – made up of hypermiling automotive journalist Wayne Gerdes and electronics engineer Bob Winger – picked up a new Guinness World Record for the lowest fuel consumption achieved in a non-hybrid car across the 48 contiguous states. The previous record, it's worth noting, had also been set by VW and Gerdes, who piloted a 2013 Passat TDI at just a hair under 80 mpg. But here's the kicker: in raising the diesel economy bar even higher, the team also beat the record for the same achievement in a hybrid vehicle by over six mpg. So the next time someone tries to tell you a hybrid is more efficient than a diesel (at least on the highway), you can point them towards this record. Related Video: VOLKSWAGEN GOLF TDI® ROUNDS LOWER 48 STATES ON LESS THAN $300 OF CLEAN DIESEL, SETS GUINNESS WORLD RECORDS™ ACHIEVEMENT FOR FUEL ECONOMY Golf TDI® beats the GUINNESS WORLD RECORDS™ achievement for "lowest fuel consumption—48 U.S. contiguous States for a non-hybrid car" at a stellar 81.17 mpg Herndon, Va. — Volkswagen of America, Inc., is pleased to announce today that the 2015 Golf TDI® Clean Diesel, part of the family of vehicles that won the 2015 North American Car of the Year, has set a new GUINNESS WORLD RECORDS® achievement for the "lowest fuel consumption—48 U.S. contiguous States for a non-hybrid car" with a remarkable 81.17 mpg. Traveling 8,233.5 miles around America in 16 days on $294.98 of Shell® Diesel fuel, the Golf beat the previous mark of 77.99 mpg by more than 3 mpg, and also beat the hybrid vehicle record of 74.34 mpg by more than 6 mpg. "Covering 8,233.5 miles on just 101.43 gallons of Clean Diesel fuel is a remarkable accomplishment, and solid proof of the efficiency and fuel economy of Volkswagen's TDI® Clean Diesel vehicles," said Michael Horn, President and CEO, Volkswagen Group of America, Inc.

Volkswagen is not cool with a Fiat Chrysler merger

Volkswagen CEO Matthias Mueller shot down Fiat Chrysler CEO Sergio Marchionne's overtures for a merger in blunt fashion this week. Mueller told Reuters at the Geneva Motor Show, "We are not ready for talks about anything ... we have other problems. I haven't seen Marchionne for months." The unusually candid – and icy – response from one chief executive to another comes after Marchionne similarly pursued General Motors (again) this week. The FCA boss suggested GM might be looking for a new European partner as it prepares to unload its troubled Opel and Vauxhall divisions to PSA. A GM spokesman told USA Today that the company is not interested. Marchionne has been openly suggesting a GM merger since at least 2015, despite GM never reciprocating interest. VW's "other problems," as Mueller notes, include legal proceedings, fines, recalls, and other issues related to its long-running diesel scandal. Marchionne has long sought industry consolidation, arguing that automakers don't get a proper return on their investments in technologies, some of which are relatively similar. He's suggested sharing chassis and powertrain components could be a benefit to the collective auto sector. Skeptics argue FCA, which is smaller than GM, VW, Toyota, and others, needs a partner to survive, while its rivals already have the necessary scale to remain competitive. Related Video: