2013 Volkswagen Jetta Gli on 2040-cars

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VW may move production because of Russia's cutoff of natural gas

Volkswagen AG is exploring ways to counter a shortage in natural gas, including shifting production around its network of global facilities, signaling how the energy crisis unleashed by Russia’s invasion of Ukraine threatens to upend EuropeÂ’s industrial landscape. Volkswagen, EuropeÂ’s biggest carmaker, said Thursday that reallocating some of its production was one of the options available in the medium term if gas shortages last much beyond this winter. The company has major factories in Germany, the Czech Republic and Slovakia, which are among European countries most reliant on Russian gas, as well as facilities in southern Europe that source energy from elsewhere. “As mid-term alternatives, we are focusing on greater localization, relocation of manufacturing capacity, or technical alternatives, similar to what is already common practice in the context of challenges related to semiconductor shortages and other recent supply chain disruptions,” Geng Wu, VolkswagenÂ’s head of purchasing, said in a statement.  RussiaÂ’s decision to throttle gas supplies to Europe has raised concerns that Germany might be forced to ration its fuel. Recent news that gas storage levels hit 90% ahead of schedule has soothed fears of acute shortages this winter, but Germany faces a challenge in replenishing depleted reserves next summer without contributions from Russia. Southwestern Europe or coastal zones of northern Europe, both of which have better access to seaborne liquefied natural gas cargoes, could be the beneficiaries of any production shift, a Volkswagen spokesman said by phone. The Volkswagen group already operates car factories in Portugal, Spain and Belgium, countries that host LNG terminals. Labor hurdles To be sure, any major production shift away from EuropeÂ’s biggest economy would face significant hurdles. VW has some 295,000 employees in Germany and worker representatives account for around half the companyÂ’s 20-member supervisory board. Any shift in production would likely involve a limited number of vehicles rather than wholesale factory shutdowns. While gas supplies for VWÂ’s plants are currently secured, the company has identified potential savings at its European sites to cut gas consumption by a “mid-double-digit percentage,” said Michael Heinemann, managing director of VWÂ’s power-plant unit. Still, the carmaker said it was concerned about the effect high gas prices could have on its suppliers.

VW offers $2,000 to keep owners loyal

Volkswagen stands to lose a large portion of its customer base in the aftermath of the diesel emissions scandal, but the German automaker isn't about to sit back and watch its customers defect to other brands. To that end, VW is offering significant incentives to keep its buyers coming back. This latest incentive program will award a $2,000 loyalty bonus to existing VW drivers in the United States, to be applied to towards the purchase or lease of a new gasoline- or hybrid-powered vehicle. What's more, the offer can be combined with any other incentive on offer (save for employee or fleet discounts). The automaker is offering discounts of between $2,000 for a Passat to as much as $4,000 for a Touareg, CC, or Eos. The incentives are aimed to stave off a potential dip in sales as public trust of the company plummets in the wake of the diesel scandal. Despite the admission that it had manipulated emissions testing, Volkswagen's sales in the US actually increased in September. But they could stand to drop significantly over the course of October. The discounts may soften that blow some, but the manufacturer is not likely to be able to keep up those incentives in the long run. The move follows a similar initiative undertaken by Fiat Chrysler Automobiles in Europe. There the Italian-American automaker is offering owners of Volkswagen Group vehicles – diesel or otherwise – significant discounts of up to $1,700 to trade into an FCA vehicle. Related Video:

This classic VW bus packs Porsche power

Appearances can be deceiving. The rolling embodiments of that principal we call "sleeper cars": ordinary-looking vehicles that pack a much bigger punch than you'd get by just looking at them. Take this classic VW bus, for example. Sure, it may have some racing graphics and upgraded rolling stock to tell you this isn't just any old van, but looking at it, you'd still have no idea what lies beneath the surface. That's where you'll find oily bits sourced from Porsches. And not from a 914, either. (That was as much a Volkswagen as it was a Porsche anyway.) No, this vintage 1962 VW T1 "Bulli" van packs the air-cooled, forced-induction flat-six from a 993 Turbo, driving 530 horsepower and 558 pound-feet of torque through the six-speed manual transmission from a 996 GT3 to 18-inch BBS alloys. It's the obsessive six-year project of Swiss customizer Fred Bernhard, who also used carbon fiber to cut the curb weight down to 3,300 pounds. The resulting light sleeper can top out at 143 miles per hour, in a vehicle with the aerodynamic profile of, well, a bus. It's called the T1 Race Taxi and is being showcased by Volkswagen Commercial Vehicles at the GTI-Treffen at Worthersee this year. Short of maybe the Renault Espace F1 concept, we can hardly imagine any other van we'd rather drive around the Nordschleife. Or just to pick up the kids from school.