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Volkswagen building budget car family planned for China in 2018

Volkswagen has publicly pondered a low-cost car for China, something akin to Nissan's Datsun revival in Southeast Asia, for at least three years. In 2013 it tapped Chinese partner FAW to help develop an entire budget brand, with plans to have something on the market in 2016 in the 6,000- to 8,000-euro range. About a year ago, VW said it couldn't figure out how to engineer an inexpensive car that didn't run counter to the brand's values, then three weeks later said it had overcome the issues. Reuters now reports that VW CEO Martin Winterkorn told German newspaper Bild am Sonntag, "We will bring a budget-car family to market in 2018, with an SUV, saloon and hatchback." Winterkorn didn't offer any other details like who VW would work with to build it - VW has partnerships with both FAW and SAIC, but the announcement will be welcomed by the brand's Chinese outpost. When this adventure started, VW said it was working to create a model that would cost 6,000 to 8,000 euro. That estimate has increased. Winterkorn is now saying the 2018 offerings will come in between 8,000 and 11,000 euro. In a straight euro-to-yuan conversion, that would equate to Chinese pricing of 56,000 to 77,000 yuan. For comparison, the New Polo with a 1.4-liter engine and a manual transmission starts at 85,900 yuan. Perhaps with an eye on the success of the Nissan-Renault sub-brand Dacia in Europe and emerging markets, Winterkorn told Bild, "We will see if this is something of interest for other markets as well." On the opposite end of the price/performance spectrum, Winterkorn also said that VW is working on two new models for Bugatti, one powered by a traditional gasoline engine and another with some sort of hybrid setup. The latter model would reportedly be the higher-performing of the two, though it's not clear whether there would be two vehicle lines or two versions of the same vehicle. As ever, as soon as we know more, so will you.

VW sales increase 0.6% in September despite diesel scandal

Volkswagen was spared in the month of September from posting a sales disaster, but in reality, the impending doom and gloom is likely just postponed until October. According to VW, it delivered 26,141 vehicles to its dealerships last month, which represents a 0.6-percent gain over the same period a year ago. While up, that meager increase represents the smallest uptick of all major brands in the United States, which is currently in the middle of the best vehicular sales year in the last decade. Audi, the German automaker's mainstream luxury unit, saw a bigger gain at 16.2 percent with 17,340 total units sold, thanks in large part to the popularity of its crossover models. These numbers can't totally be taken at face value, however. In 2014, Labor Day weekend was counted as part of August's sales figures; in 2015, that traditional car-buying holiday fell early in September and is therefore partly responsible for the huge increases from all brands doing business in the United States. Remember, the diesel emissions scandal didn't hit the news until September 18, which means VW was free to sell its 2.0-liter TDI engine for the majority of the month. In other words, October is going to be the real indicator of sales reckoning as it will be the first full month that the brand can't sell its popular diesel models and the first since its emissions scandal broke. Still, TDI sales were down last month. VW reports a total of 3,060 sales of vehicles equipped with TDI engines, which represents 11.7 percent of total volume. That's nearly cut in half from the TDI's year-to-date volume percentage of 20.4 percent. "We would like to thank dealers and customers for the support of the Volkswagen brand," said Mark McNabb, chief operating officer for Volkswagen of America in a statement. "Volkswagen will continue to work diligently to regain trust and confidence in our brand." It's not yet clear exactly when VW will issue a fix to make its 2.0-liter TDI engine emissions legal, or when the EPA will recertify those models for sale. Once those two things happen, dealers will again be free to sell vehicles equipped with the powertrain, but even then it remains to be seen how consumers react when the sales ban is lifted. Scroll down below for all the sales data from Volkswagen in September.

Hyundai offers discounts to owners done with dirty VW diesels

For Volkswagen owners that aren't satisfied with getting a payout from the company to make up for dirty emissions, and need to rid themselves of their polluting machines, Hyundai may have a solution. The South Korean automaker is now offering Friends and Family Pricing Plus on new Hyundais for owners of 2.0-liter diesel Volkswagens. A Hyundai spokesperson said it's "an alternative to potentially orphaned diesel owners that will be entering the market for a new vehicle." This discounted pricing plan, as listed by a dealer in Tampa, Florida, starts with the gross dealer invoice price, which includes destination and advertising fees. From there, the buyer gets $1,250 off the purchase price, as well as 3-percent off of the MSRP, excluding destination charges. Also, any current Hyundai incentives can be added to the Friends and Family Pricing discounts. A list of the eligible VW models is below: 2013-2015 Beetle and Beetle convertible 2010-2013 Golf 3-door hatchback 2010-2015 Golf 5-door hatchback 2015 Golf SportWagen 2009-2015 Jetta 2009-2014 Jetta SportWagen 2012-2015 VW Passat 2010-2013, 2015 Audi A3 These incentives certainly make the prospect of a new Hyundai rather attractive, especially for VW owners with that sweet settlement money burning a hole through their wallets. The question is, will owners of these cars find any current Hyundais they like as much as their VWs? Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. News Source: Courtesy Hyundai of Tampa, Hyundai via CarsDirectImage Credit: Sebastian Blanco Green Hyundai Volkswagen Emissions vw diesel scandal