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Major automakers urge Trump not to freeze fuel economy targets

WASHINGTON — Major automakers are telling the Trump administration they want to reach an agreement with California to avoid a legal battle over fuel efficiency standards, and they support continued increases in mileage standards through 2025. "We support standards that increase year over year that also are consistent with marketplace realities," Mitch Bainwol, chief executive of the Alliance of Automobile Manufacturers, a trade group representing major automakers, will tell a U.S. House of Representatives panel on Tuesday, according to written testimony released on Monday. The Trump administration is weighing how to revise fuel economy standards through at least the 2025 model year, and one option is to propose freezing the standards through 2026, effectively allowing automakers to delay investments in technology to cut greenhouse gas emissions from burning petroleum. The National Highway Traffic Safety Administration has not formally submitted its joint proposal with the Environmental Protection Agency to the White House Office of Management and Budget for review. Even so, last week, California and 16 other states sued to challenge the Trump administration's decision to revise U.S. vehicle rules. Auto industry executives have held meetings with the Trump administration for months and have urged the administration to try to reach a deal with California even as they support slowing the pace of reduction in carbon dioxide emissions that the Obama administration rules outlined. One automaker official said part of the message to President Donald Trump at a meeting on Friday will be to consider California like a foreign trade deal that needs to be renegotiated. Automakers want to urge him to get automakers a "better deal" — as opposed to potentially years of litigation between major states and federal regulators. On Friday, Trump is set to meet with the chief executives of General Motors, Ford, Fiat Chrysler and the top U.S. executives of at least five other major automakers, including Toyota, Volkswagen AG and Daimler AG, to talk about revisions to the vehicle rules. Senior EPA and Transportation Department officials will also attend. Environmental groups are eager to keep the rules in place, saying they will save consumers billions in fuel costs. A coalition of groups plans to stage a protest outside Ford's headquarters in Michigan.

Volkswagen reveals Golf GTI Clubsport concept at Worthersee

The various brands under the Volkswagen Group umbrella are bringing a slew of hot hatch concepts to the GTI-Treffen in Worthersee, Austria, this week – but the gathering wouldn't be complete without a version of the headline Volkswagen Golf GTI. And here it is. Previewed with initial details and a trio of design sketches last week, VW has now released a proper array of images showing the GTI Clubsport concept. The enhanced GTI packs an upgraded version of the stock version's 2.0-liter turbo four with 261 horsepower on tap, favorably splitting the difference between the standard GTI with the Performance package and the more potent Golf R. An overboost function even kicks in an extra 10-percent more horsepower to bring peak output up to 287 hp – just a few horses shy of the R's 292, but driving only the front wheels. As you can see, the Clubsport concept also features a more aggressive aero kit as well as upgraded rolling stock with semi-slick rubber. Most, if not all, of these enhancements are earmarked to find their way onto a 40th anniversary edition GTI, but we're unlikely to see that model in US showrooms. World premiere of the Golf GTI Clubsport at Lake Worthersee - Exclusive anniversary model for 40th birthday of the GTI - Golf GTI Clubsport debuts with 265 PS and boost function Next year, the Golf GTI celebrates its 40th birthday. Volkswagen is marking this historic event with a progressive anniversary model: the new Golf GTI Clubsport. Volkswagen will be showcasing the Golf GTI Clubsport on 14th May as part of the legendary GTI meet at Lake Worthersee, when it will make its world premiere in the form of a near-production concept car. With a power output of 195 kW / 265 PS (35 PS more than the Golf GTI Performance) and top performance temporarily increased by around a further 10 per cent thanks to a boost function, the Golf GTI Clubsport is set to take off at the start of 2016 as the most powerful production 'GTI' yet. The anniversary model is being launched not only with an extremely powerful engine, but also with an individualised interior and exclusive bodywork details. The design modifications include a completely new front bumper, new side sills, a new and aerodynamically highly innovative roof-edge spoiler and a specially developed rear diffuser. All of these features were designed with the aim of further enhancing the GTI's performance and of thereby bringing form and function into perfect harmony.

Volkswagen lays off 500 Chattanooga workers

The redesigned Volkswagen Passat has been a decent seller since its debut in 2011, but sales have apparently dropped off enough that the automaker is trimming some of the employees from its Chattanooga, TN assembly plant. According to Automotive News, Volkswagen will be cutting shifts and laying off 500 contracted workers in response to slowing sales.
Currently, the plant has three teams running 10-hour shifts Monday through Saturday, but starting May 13, this will be reduced down to two teams running 10-hour shifts Monday through Thursday. This will be done to reduce dealer inventory (the article says that VW dealers, on average, have a 97-day supply of Passats) and production capacity (currently running at an annual pace of 170,000 units, which is more than the 150,000 annual units the plant was planned to produce).
This, of course, isn't saying that the Passat has been a failure since VW added 200 full-time employees to the plant in February 2012 to keep up with increased demand. The AN article says that automakers frequently overstaff plants during the launch of a new product - or in this case, a new product and a new plant - but eventually reduce the workers as things run smoother and more efficiently.