Volkswagen Passat Glx 2005 Vw on 2040-cars

Auto blog

VW budget sub-brand stuck in limbo over VW standards, costs

Reports in October 2012 claimed Volkswagen had begun investigating the creation of its own budget brand. This came after having failed to purchase Malaysian car company Proton or produce a meaningful partnership with Suzuki, and after watching Renault-Nissan make piles of euro on Dacia and plot the return of Datsun.
For VW, more important than the question of what to call it was how to build it profitably and in a way that didn't damage the VW brand. According to a report in Autocar, a satisfactory answer still hasn't been found. The hurdle is how to hit "'necessary' quality and safety levels" at the price points needed to make the venture worthwhile. At the time of the 2012 report, German outlet Der Spiegel said VW was trying to get prices down to 6,000 to 8,000 euro ($7,784 to $10,379 US), about two thousand to four thousand euro under the price of the VW Up and in line with the cost of a 6,790-euro Dacia Sandero in Germany.
In March 2013, VW announced, "We want to bring a true budget car to the market in China in the foreseeable future," the most concrete move in that direction after years of planning to make a decision. Working with local Chinese maker FAW, it was predicted that the vehicle in question would appear around 2016, but as of November last year a final vote on it needed to wait until this year because "We are still working on the cost side" and profit possibilities for a car that "has to be durable, it has to be precise, it has to be safe."

Dealers, owners feel betrayed by VW scandal

Bob Rand bought his Volkswagen Passat last year for its clean emissions and high gas mileage. He liked the car so much he convinced his son and a friend to buy one, too. Now, as Volkswagen comes clean about rigging diesel emissions to pass US tests, Rand is desperately trying to sell the fully loaded model with white leather seats for $10,000 below what he paid. His sole bite has been from a man who offered $7,500 on speculation that he could resell it in Mexico. "Volkswagen was somebody that you could rely on for cutting-edge products and quality and all those things and now you find out that they're not above lying just flat out," said Rand, who plans to join a class-action lawsuit against VW. "That's probably about as bad a thing as a company can do is lie to your face when you're buying a $35,000 car." Rand's anger at the world's top-selling car company was echoed Wednesday by private dealers, auto wholesalers and owners across the US as fallout from the smog test trickery mounted. The US Environmental Protection Agency first disclosed Friday that stealth software makes VW's 2009-2015 model cars powered by 2.0-liter diesel engines run cleaner during emissions tests than in actual driving. On Wednesday, CEO Martin Winterkorn resigned and took responsibility for the "irregularities" found by US inspectors - a scandal that has wiped out billions in the company's market value and raised the possibility of criminal investigations and billions more in fines. The revelations left dealers sitting on hundreds of diesel cars they could not sell. Many also dealt with a flood of angry calls, emails and tweets from Volkswagen owners who felt betrayed because they believed they had bought a car that polluted less without sacrificing the good gas mileage and performance that comes with a diesel engine. "I think their feet should be held to the fire." - Joe DeCarolis "I think their feet should be held to the fire. I think apologies don't mean anything when something is so premeditated," said Joe DeCarolis, of Cary, NC, who owns a 2012 TDI Jetta Sport Wagon — a car he bought after careful comparison shopping for its clean emissions and good gas mileage. Dealers can't give customers good answers because Volkswagen hasn't said a whole lot, said AutoNation CEO Mike Jackson, the leader of the largest auto dealership chain in the US.

Volkswagen rules out more potent Polo R

Volkswagen may be planning ever more powerful versions of its Golf, but don't expect that lust for power to trickle down to the smaller Polo anytime soon as the German automaker has reportedly ruled out the prospect of making a Polo R. This according to Autovisie, the automotive section of Dutch newspaper De Telegraaf, in speaking to VW representatives at the launch of the new Polo GTI. Where the previous Polo GTI offered 177 horsepower, the new one packs 189 and is available with either a six-speed manual or seven-speed dual-clutch transmission. The company briefly offered a Polo WRC Street with 220 horsepower, but that was only for a limited edition that Autovisie says will not be repeated for mainstream production. Which may just be for the best, as far as we're concerned, as no versions of the Polo are offered in the US, and we don't need yet another piece of forbidden fruit we can't get our hands on. The decision may seem at odds with the Polo R WRC rally machine with which Volkswagen has been dominating the World Rally Championship for the past two seasons, but was likely made in order to keep the Polo from infringing on Golf territory. VW currently offers the Golf GTI with 210 horsepower and the Golf R with 292, and showcased an even more powerful version with nearly 400 hp.