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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.

Are more diesel scandals about to erupt?

More automakers may soon be embroiled, like Volkswagen, in diesel emissions scandals. According to the Daily Kanban, either the International Council on Clean Transportation (ICCT) or the Deutsche Umwelthilfe (DUH) will soon announce from 10 to 15 more cases of automakers cheating national diesel emissions rules. The outlet says three of the incidents are attributed to Opel. Studies conducted by the DUH, the University of Applied Sciences in Bern, Switzerland, and the UK's Leeds University found that Opel's diesel Zafira, Corsa, and Vectra models emit more NOx than European regulations allow when tested in ways that go beyond the European testing protocol, such as when done on a four-wheel rolling road instead of a two-wheel rolling road. Opel said the accusations had no merit. Specifically on the Zafira, the DUH asked Opel about the emissions findings, and Opel said that no General Motors software contains any measures to enable cheating. Opel then tested a Zafira of its own "both on a two- and a four-wheel roller dynamometer," finding that "The emission behavior determined in each case does not differ from one another." That makes this a case of he-said-she-said for the moment. The Daily Kanban's sources say the cheating methods "range from the crude to the highly sophisticated," with those at the latter end complex enough to render Volkswagen's methods "pedestrian." As for any automakers who might be named, the matter of real-world emissions exceeding a legal limit doesn't mean a carmaker has designed systems that cheat, it might mean the company designed the car to pass a test. Related Video: News Source: Daily KanbanImage Credit: PATRICK PLEUL/AFP/Getty Images Government/Legal Green Volkswagen Opel Emissions Diesel Vehicles vw diesel scandal icct

Volkswagen plugs new Passat GTE into European outlets

It's been the better part of a year since Volkswagen first announced the Passat GTE and revealed it at the Paris Motor Show. And now the German automaker is finally bringing it to market. That is, at least, certain markets, anyway. The new GTE broadens the range of the European-market Passat (which is entirely different from the model we get here) with a plug-in hybrid for the first time. It follows the emergence of the Golf GTE which has a similar setup. The gasoline-electric powertrain marries a 1.4-liter turbo four to an electric motor and a dual-clutch transmission, producing a combined 215 horsepower. It can also be switched into pure electric mode, giving it a battery-powered range of 31 miles and warranting exemption from congestion charges in London and other such cities. VW will offer the Passat GTE in both sedan and Variant wagon forms, with sales already beginning in select markets and broadening across Europe this fall. Asian markets can expect to see the new plug-in by year-end as well. Interested US customers will just have to admire this particular model from afar. New Passat GTE launches as saloon and Variant - Volkswagen continues e-motoring offensive with plug-in hybrid - Passat GTE delivers 218 PS and travels up to 50 kilometres on all-electric power - First Volkswagen plug-in hybrid in the high-volume segment of large family cars The Volkswagen continues to electrify! Following the Golf GTE*, comes the next high-volume model with a plug-in drive system: this time the German carmaker is electrifying the new Passat GTE. Its launch marks the debut of a new generation of business and family cars – zero-emission vehicle and long-distance touring car all in one. A Volkswagen that combines the present and the future. A car that boasts not only one of the most progressive drive systems of our time, but also an array of innovative assistance and infotainment systems that is ground-breaking in the segment of large family cars. With superb system output of 160 kW / 218 PS, frugal NEDC consumption of just 1.6 l/100 km and 12.2 kWh/100 km (Variant: 12.4 kWh) and an all-electric range of up to 50 kilometres, the Passat GTE defines a new level of efficiency in its class. Under normal operating conditions the new Volkswagen always begins its journey in all-electric and thus emission-free mode. This E-Mode can also be activated at the push of a button, for example towards the end of a journey as you enter a city.