2013 Volkswagen Routan Se on 2040-cars

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VW sets aside $7.3B war chest for diesel scandal fallout

The crisis enveloping Volkswagen AG, the world's top-selling carmaker, escalated Tuesday as the company issued a profit warning following a stunning admission that some 11 million of its diesel vehicles worldwide were fitted with software at the center of a US emissions scandal. The German company said it was setting aside around 6.5 billion euros ($7.3 billion) to cover the fallout from the scandal that has tarnished VW's reputation, raised questions over the future of CEO Martin Winterkorn and battered its share price. The reputational damage to Volkswagen is implicit in the market's response. Volkswagen's share price slid a further 16.2 percent Tuesday to a near four-year low of 112 euros. The fall comes on top of Monday's 17 percent decline. The shockwaves from the scandal enveloping Volkswagen were being felt far and wide across the sector as traders wondered who else may get embroiled. Germany's Daimler AG, the maker of Mercedes-Benz cars, was down 6.5 percent, while BMW AG fell 5.4 percent. France's Renault SA was seven percent lower. The scandal is hugely damaging to a business that relies heavily on a hard-won reputation for quality and trustworthiness. "Brands are all about trust and it takes years and years to develop. But in the space of 24 hours, Volkswagen has gone from one people could trust to one people don't know what to think of," said Nigel Currie, an independent UK-based sponsorship and branding consultant. The trigger to the company's market woes was last Friday's revelation from the US's Environmental Protection Agency that VW rigged nearly half a million cars to defeat US smog tests. The company then admitted that it intentionally installed software programmed to switch engines to a cleaner mode during official emissions testing. The software then switches off again, enabling cars to drive more powerfully on the road while emitting as much as 40 times the legal pollution limit. "We have totally screwed up." - Michael Horn "In my German words: we have totally screwed up," the head of Volkswagen's US division, Michael Horn, told an audience in New York on Monday. In its statement Tuesday, Volkswagen gave more details, admitting that there were "discrepancies" related to vehicles with Type EA 189 engines and involving some 11 million vehicles worldwide. The number of vehicles involved is more than the 10 million or so cars it sold in 2014.

Volkswagen Golf Variant will make a lovely Jetta SportWagen

In addition to several other versions of the Golf, Volkswagen is debuting the new Golf Variant (read: wagon) here at the 2013 Geneva Motor Show. And if this bigger version of the Golf looks like it might fit right at home in the States, it's because we could possibly see some version of this car as the next-generation Jetta SportWagen here on our shores.
Volkswagen is debuting the Golf Variant with two efficient diesel engines, rated at 110 and 150 horsepower, the smaller of which is good for an impressive 71.3 miles per gallon on the European cycle (when mated to a six-speed manual transmission). The Golf Variant also gets a version of Volkswagen's 4Motion all-wheel-drive system, making it incredibly all-weather capable.
It's a handsome estate, and it wears the new Golf's design language well. We can't say for sure if this car will actually make its way Stateside, but given the fact that the current Jetta SportWagen still rides on the old Golf platform, the odds look to be in our favor.

Volkswagen Caddy gets the Alltrack treatment for Frankfurt

We've seen Alltrack versions of the VW Golf and Passat. The German automaker's commercial vehicles division has even done a concept version of the Multivan with a similar treatment. And now it's taking that same rugged off-road approach with the Caddy van. The new Caddy Alltrack starts off with the latest, fourth-generation city van revealed earlier this year in Geneva, and beefs it up to replace the previous Cross Caddy. That comes down principally to black trim on the wheel arches, side sills, bumpers, and underbody protection with metallic accents. It also packs unique 17-inch alloys, fog lights, chrome trim on the grille, silver roof rails, a new optional beige metallic paint (pictured), and Alltrack logos galore. The interior has similarly been worked over with unique trim. Though no mention has been made of any suspension upgrades, the Caddy Alltrack can be specified with 4Motion all-wheel drive. Prospective buyers (in markets where VW offers its commercial vehicles line) will also have to choose between passenger and panel van body-styles, and between four diesel and three gasoline engine options. They range in output from 74 to 123 horsepower and come mated to manual or dual-clutch transmissions with five, six, or seven gears. Look for the new Caddy Alltrack to highlight the Volkswagen Commercial Vehicles display at the Frankfurt Motor Show opening later this week. Related Video: The new Caddy – now available as Alltrack version with off-road styling - World premiere of Cross Caddy successor at IAA 2015 - Fourth generation of the Volkswagen best-seller once again available in rugged off-road style - Passenger car and panel van Alltrack variants optionally available with 4MOTION Hannover/Frankfurt, 10 September 2015 – Volkswagen Commercial Vehicles will be showcasing the latest off-road style version of its best-selling Caddy at the IAA (International Automobile Show) from 15 to 27 September, 2015. The successor to the Cross Caddy is called the Caddy Alltrack. Like its predecessor, it is available both in passenger car and panel van formats. The latest version of the urban delivery van and family MPV is clearly distinct from the other Caddy models with its exclusive 17-inch alloy wheels 'Quito', new Mojave Beige metallic paintwork and optional 4MOTION all-wheel drive technology.