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Cost-cutting measures put VW Beetle in jeopardy

Volkswagen is on a mission to cut costs. That means producing more models across its various brands based on the same platforms and powertrains, but the latest word from Germany has it that it will also mean cutting some of the VW brand's less successful models. First on the chopping block, according to German publication Der Spiegel, is the three-door version of the Polo, which will reportedly cede its place to the five-door version exclusively. The elimination of that model alone is said to save VW a good 200 million euros, putting it on its way towards reducing the brand's costs by a targeted five billion euros. The Polo isn't the only one in danger, though. The Eos, as we know, is not due to be replaced, but the future of the Beetle could be in jeopardy as well. The Beetle may be one of VW's most iconic models, but is hardly its most successful in terms of sales. With the 2014 annual report due to be released shortly, the last full-year sales figures had Volkswagen selling 109,517 Beetles in 2013. That may be more than four times the number of Scirocco models it sold, but hardly puts a dent in the 871,413 Jettas, 824,629 Golfs and 725,291 Polos it sold during the same year.

Volkswagen Passat gets classier styling, tech updates for 2016

Volkswagen revealed a snazzier-looking, better-equipped version of the Passat Monday evening, which will start at $23,260 when it goes on sale as a 2016 model late this fall. The refresh updates VW's midsize sedan, though the changes are mostly evolutionary, and they come as Volkswagen is mired in scandal following charges it cheated on EPA tests. The design features a new hood, grille, rear bumpers, and front fenders. It's also the first VW sedan to offer LED head- and taillights as an option, and the 2016 version is the first Passat to get an R-Line package, which includes black accents, 19-inch aluminum alloy wheels, and a custom front bumper. "We applied a progressive design strategy with the new Passat, giving the car a dynamic presence and a more sophisticated look," Klaus Bischoff, Volkswagen head of design, said in a statement. "We have integrated several new design elements, including a sculpted, domed hood that significantly sets the car apart from its predecessor." Inside, the cabin gets nicer materials, including chrome and piano-black trim, a new steering wheel, and available heated rear seats. VW's second-generation modular infotainment platform is standard, and it offers swiping and pinch-to-zoom features on most models. Volkswagen's Car-Net system is also available, which allows for smoother smartphone integration. The powertrain lineup carries over and is made up of the 1.8-liter turbo four-cylinder, 2.0-liter turbo diesel, and a 3.6-liter V6. It's unclear if the TDI model will be offered at launch in light of VW's recent diesel scandal. VOLKSWAGEN UNVEILS NEW 2016 PASSAT WITH STRIKING DESIGN, INNOVATIVE TECHNOLOGY AND ENHANCED VALUE The Chattanooga-built Passat raises the bar in the midsize segment, offering new styling inside and out as well as a host of new connectivity and driver assistance features • Striking new front and rear design • New interior with updated instrument panel and center stack for a more premium feel • Standard MIB II infotainment system includes USB connectivity • Available VW Car-Net® App-Connect supports smartphone integration with Apple CarPlay®, Android Auto™ and MirrorLink® • Energy-efficient LED headlights and taillights available for the first time on a VW sedan • New driver assistance systems are standard features on select trim levels • First-ever R-Line® trim for U.S.

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.