2007 Volkswagen Rabbit 2.5 Hatchback 2-door 2.5l on 2040-cars

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VW agrees to halt next-gen rally car development to help others stay in WRC

Volkswagen has petitioned the FIA to hold on to the current specifications for cars in the World Rally Championship, according to Autosport.com. The move is evidently an effort to keep as many competitors in the sport as possible, despite the fact that using the current spec racers may actually hurt Volkswagen's chances at winning. The three factory teams currently competing in the WRC are at the end of a three-year homologation cycle at the end of 2013, and new cars are expected to bow next year. But developing new racers could cost as much as $4.7 million.
That price tag would put M-Sport (which fields Ford racers) out of the WRC game for 2014 and would put Citroën participation in question as well. VW has already begun work on the next iteration of its Polo R WRC, and the hatch has nabbed four wins in six rounds this season. Now it appears that car won't bow until at least 2015. The FIA has officially agreed to freeze homologation of new WRC cars until the end of next season.

Get ready to Camino-ize your fourth-generation VW Jetta with this kit

Inexpensive, small pickup trucks used to be everywhere in the US, whether they were from Japanese brands like Datsun or Toyota, the truly weird Subaru Brat or even from Europe with the Volkswagen Caddy based on the Golf. These days that market has completely disappeared, but if you're willing to pick up some tools to build your own, there's a company out there bringing the Caddy back as a kit for the Jetta.
Mark Smith knows a thing about building a vehicle at home. He has over two decades in the DIY-car business as a co-founder of Local Motors and the company that became Factory Five Racing. His latest venture is Smyth Performance and already offers a mid-engine, VW-based kit called the G3F. His new product, though, started as a fluke. "I just wanted a shop truck," said Smith to Autoblog. He already had a Ford F-450 but found that he was driving around with the bed empty most of the time. The result was a pickup truck based on the fourth-generation Jetta that he dubbed the Ute.
The kit retails for $3,500 and ships in three, big boxes, and it's designed to be built and painted in a weekend. Buyers get fiberglass exterior panels, a fiberglass rear window surround, sliding rear window, an aluminum reinforced bed with a tubular steel subframe, taillights, a fully functional steel tailgate, and other parts. In the end, you get a vehicle with a six-foot bed and a payload of around 700-750 pounds. The Ute maintains all of the factory suspension, fuel tank and emissions equipment and requires just a few cuts in the body to complete. "We did a modern Caddy," admits Smith.

If VW defaults on loans it may sell Bentley or Lamborghini

If something goes catastrophically wrong with Volkswagen Group's recent $21 billion loan, brands like Bentley or Lamborghini could hit the auction block. According to two insiders to Reuters, the beleaguered German automaker agrees with its creditors to sell assets if the company somehow can't pay back the debt in a year. One of these anonymous people claimed the company hasn't yet deliberated over what to sell. However, the sources were willing to speculate that the power engineering portion of Man could be among the first to go. "Volkswagen may also consider divesting luxury car brands Bentley and Lamborghini or motor bike brand Ducati, although these units don't really move the needle," an insider said to Reuters. VW Group negotiated with the banks earlier this week to get the massive loan. The cash is necessary as a buffer in case the automaker doesn't have enough money on hand to repair vehicles or settle upcoming fines. VW would reportedly issue bonds in the spring to begin paying the debt. The company's bills will start racking up quickly in the new year. German authorities mandate a recall there in early 2016, and repair campaigns in the US for the 2.0- and 3.0-liter diesel engines are inevitable. There are also hundreds of class-action lawsuits to settle. The company needs to resolve its CO2 emissions scandal in Europe, too. In response to these financial threats, VW management created a cost-cutting plan to slash the research and development budget by $1.1 billion next year.