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Volkswagen scores dominant 1-2-3 finish at Monte Carlo Rally

Racing calendars change from year to year, but most series have that one race they just couldn't do without: the Monaco Grand Prix for F1, Le Mans for endurance racing, Dakar for rally raid, the Indianapolis 500 for Indy, the Daytona 500 for NASCAR... and for the World Rally Championship, it's the Monte Carlo Rally. Winning the Monte brings with it its own measure of bragging rights, but locking out the podium is another story altogether. And that's just what Volkswagen did this weekend on the Cote d'Azur. The hard-fought season-opener saw nine-time world champion (and seven-time Monte Carlo Rally winner) Sebastien Loeb return with Citroen, but ultimately it was the VW team that won – and won big, taking a commanding 1-2-3 finish. Sebastien Ogier (with Julien Ingrassia) finished first, followed by Jari-Matti Latvala (with Miika Anttila) in second and Andreas Mikkelsen (with Ola Floene) in third, all of them in the Volkswagen Polo R WRC that was just updated in time for the start of the season. The rally passed right through the Forest Saint Julien where Ogier was born, and at the end of it all, Mikkelsen walked little more than 50 steps from the Volkswagen garage to his condo at Quai Antoine 1er in Monte Carlo. It was only the second time VW has locked out the podium since hitting the scene two years ago, following the German team's 1-2-3 finish in Australia last season en route to its second consecutive world championship. This also marked the second year in a row that Ogier and VW have won the Monte, after narrowly losing out to Loeb in '03. The achievement in Monaco this weekend made VW only the fifth manufacturer to take the top three spots in the Monegasque capital: Renault-Alpine became the first in 1973, followed by Lancia (with the Stratos) in '76 and then again (with the Delta Integrale) in '89, Audi sandwiched between in '84 and Citroen with the "dream team" of Loeb, Colin McRae and Carlos Sainz in 2003. (Peugeot achieved the same in 2009, but that was when the Monte Carlo Rally had left the WRC and was run as part of the less prominent and lower-spec Intercontinental Rally Challenge.) Not even Subaru, Mitsubishi, Toyota or Ford - all dominant forces in their time - can claim that feat. The victory secures the Polo R WRC's place as the most dominant car in the championship, winning over 85 percent of the rallies in which it has been entered since its debut in 2003. FIA World Rally Championship (WRC), Rally Monte Carlo One-two-three!

Matthias Muller officially named VW Group CEO

While the vast number of rumors made it seem like a foregone conclusion, Porsche boss Matthias Muller has officially been named Volkswagen Group CEO to replace the recently resigned Martin Winterkorn. His contract runs through the end of February 2020, and until a replacement is found, Muller also gets to hang onto his old job as chairman of Porsche. At the same time, the VW Group Supervisory Board is announcing a massive structural reorganization across the entire company, with the new management model in place by the beginning of 2016. Contrary to previous rumors, Michael Horn remains as President and CEO of VW Group of America. The board wants a greater emphasis on brands and regions going forward, and the scale of this shift can be seen in the US. On November 1, VW Group business in the US, Mexico, and Canada is being combined under the leadership of current Skoda chairman Winfried Vahland. However contrary to previous rumors, Michael Horn remains as President and CEO of VW Group of America. Other brands are also seeing some significant changes mechanically. Porsche, Bentley, and Bugatti now fall under the Group's "sportscar and mid-engine toolkit." This means that the brands will start sharing standardized technical parts. A Chief Technical Officer across all of the company's brands will also start working toward future innovations. The new brand-centric view means the end of a group-wide production department. "Going forward, the brands and regions will also have greater independence with regard to production. So it follows that they should also hold the responsibility for these activities," Berthold Huber, interim Chairman of the Supervisory Board, said in the announcement. In a statement with the press release about his promotion, Muller promised to turn the company around after such an international crisis. He said: "My most urgent task is to win back trust for the Volkswagen Group – by leaving no stone unturned and with maximum transparency, as well as drawing the right conclusions from the current situation. Under my leadership, Volkswagen will do everything it can to develop and implement the most stringent compliance and governance standards in our industry." Matthias Muller appointed CEO of the Volkswagen Group Muller remains Chairman of Porsche AG until a successor has been found Matthias Muller (62) has been appointed CEO of Volkswagen AG with immediate effect.

VW and partner SAIC start building $2.5B Audi plant in China

BEIJING — Volkswagen AG's China joint venture with SAIC Motor Corp has started building a $2.5 billion new energy vehicle (NEV) plant in Shanghai, which will make VW's luxury Audi brand cars, a possible first for the venture. The new plant is a key step for Audi to diversify production of its cars in the world's largest car market from its long-standing local partner, China FAW Group Corp. This shift has been delayed amid resistance from local dealers. SAIC Volkswagen said the new plant would have an annual capacity to make 300,000 cars and begin production from 2020. Audi sold 481,387 vehicles in China from January to September this year. The announcement comes the same week Tesla secured a Shanghai location for a Gigafactory battery plant to serve the Chinese market. Audi unveiled the plan to bolster ties with SAIC in late 2016. Earlier this year, the Germany luxury carmaker bought a 1 percent stake in the SAIC Volkswagen venture, paving the way for the joint venture to produce and sell Audi cars. Volkswagen currently gets a larger proportion of the proceeds from the 50-50 tie-up with SAIC than from its 40 percent stake in the venture with FAW. SAIC Volkswagen said in a statement on Friday the plant would cost 17 billion yuan ($2.5 billion) and would make VW and Skoda models as well as Audi cars. It will help VW tap China's fast-growing market for NEVs, a category comprising electric battery cars and plug-in electric hybrid vehicles. ($1 = 6.9314 Chinese yuan renminbi) Reporting by Yilei Sun and Adam JourdanRelated Video: Image Credit: Reuters Green Plants/Manufacturing Audi Volkswagen Skoda Electric Hybrid