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Seat Leon Sport Cross concept leaks before Frankfurt debut

Seat's big Frankfurt Motor Show debut has been teased/leaked ahead of its official debut. The teasers are, of course, directly from Seat and show the new Leon Cross Sport Concept in a pair of sketches. You can check those out below. The leaked stuff, available up top, is far juicier, though. The shots originally came from AutoForum.cz, Auto Express reports, and look to be stock images of the three-door hatchback. In short, it looks like a Seat Leon, which is to say the MQB-based Spaniard is a more attractive Volkswagen Golf. In concept form, though, this new Leon is something of an anomaly. It wears the steroidal sheetmetal of the high-performance Cupra, especially with the large wheels and prominent quad exhausts, but its boosted ride gives it much more of a soft-roader character. Think of this, then, as a high-riding Golf GTI. It'll be a lot more potent than the beloved hot hatch, though. According to Auto Express, the Leon Cross Sport will use the Golf R's 296-horsepower, turbocharged four-cylinder engine and Haldex all-wheel-drive system. That should mean that there'll be some very real off-road performance behind the soft-roader looks. We'll have much more on the Cross Sport Concept when it makes its debut at Volkswagen's huge Group Night event later today. Stay tuned.

VW midsize crossover production headed for Chattanooga

Potential labor woes aside, it looks like Volkswagen's Chattanooga, TN factory must have done something that impressed the bosses in Germany, because it sounds like the three-year-old factory is set to score a second model.
The factory currently builds the Passat, and has been in the running alongside VW's Puebla, Mexico factory to build a new crossover vehicle, likely based on the CrossBlue Concept. According to Bloomberg, a pair of unnamed sources have confirmed that Chattanooga is the favorite ahead of an official announcement.
When last we heard about the CrossBlue Concept, word was that a production decision had been delayed over concerns about the three-row CUV's business case. That August 2013 story claimed that a decision regarding the CrossBlue would be pushed back until early in 2014, which means we're ripe for some sort of news, whether good or bad.

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.